Consumer Proposal & Bankruptcy at Mortgage Renewal
Insolvency does not automatically mean losing your home at renewal — but it changes which lenders will work with you and how early you must plan. Start 6+ months before maturity with a broker who places insolvency files.
Key Takeaways
- • Staying current on your mortgage and proposal payments is critical.
- • Your current lender may renew at maturity but rarely offers the best rate after insolvency.
- • B-lenders (Home Trust, Equitable, Haventree) are common — expect a rate premium.
- • Do not wait until 30 days before renewal to shop — underwriting takes longer.
Consumer proposal at renewal
A consumer proposal is a formal repayment plan supervised by a Licensed Insolvency Trustee. Secured debts like your mortgage are usually excluded from the proposal — you keep paying the mortgage directly. At renewal, lenders review your proposal status, payment history, and credit score. See our bad credit renewal guide for parallel strategies.
Bankruptcy discharge and renewal
After discharge, rebuild credit with secured cards and on-time bills. Document stable income (T4 or two years self-employed NOAs). Brokers can often place files with alternative lenders while you wait for A-lender eligibility to return.
FAQ
Can I renew my mortgage during a consumer proposal? +
Often yes, if you are current on proposal payments and the mortgage was included in the proposal as secured debt. Your existing lender may renew at renewal maturity, but many will not advance new funds. Alternative lenders and B-lenders accessed through brokers are common paths when A-lenders decline.
How long after bankruptcy can I get a mortgage renewal? +
If you discharged bankruptcy, timelines depend on lender policy: some B-lenders consider files 1–2 years after discharge with strong compensating factors (equity, income). Major banks often want 2+ years with re-established credit. A broker can match you to lenders that work with recent insolvency.
Will a consumer proposal appear on my credit report at renewal? +
Yes — a proposal typically remains on your credit bureau for three years after completion (or six years from filing, depending on bureau). Lenders see it at renewal underwriting. Being transparent with a broker early avoids last-minute declines.