Reviewed by Scott Dillingham · Licensed Mortgage Agent (Ontario, Level 2) · Updated May 22, 2026
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.
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.
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.
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.
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.
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.
Bad Credit Renewal
Renewing when your score has dropped — A, B, and private options.
B-Lender Renewals
Alternative lenders for bruised credit, self-employed, or rentals.
Private Mortgage Renewal
Private 1-year terms — when they fit and how to exit.
Renewing With Arrears
Options when you're behind on payments heading into renewal.
Job Loss at Renewal
What happens to your renewal if you lose your job or income drops.
Using a Broker at Renewal
How a broker shops 30+ lenders at no cost to you.
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