Those who have gone through a bankruptcy or consumer proposal in Saskatoon sometimes only find out later that mortgages become tougher to gain. Luckily for those clients there are a few options when applying for a mortgage. Situations are different and should be looked at individually. In this article we will describe a few options that people in this situation can use to gain a mortgage.

According to the Office of the Superintendent of Bankruptcy, about 100,000 Canadians either apply for bankruptcy or a consumer proposal every year. There are a variety of reasons why this may happen, business closure, divorce, etc. While this is sometimes the only option for clients, it does make getting a mortgage a little bit tougher down the road.

In the mortgage world, consumer proposals and bankruptcy’s are much the same. There are two ways we can approach these situations, A side or B side.

Applying for an A side mortgage after bankruptcy

To get an A side mortgage you typically need the following:

• 2 years discharged
• 2 years re-established credit (two trades, minimum $2,000.00 limit)
• No mortgage included in the previous bankruptcy

Applying for a B side mortgage after bankruptcy

For B side mortgages, when a client has been discharged there are options to refinance, or purchase a new home. Most lenders need the consumer proposal/bankruptcy to be discharged at least one day. In some cases, lenders will allow clients to pay off consumer proposals via refinance even! Most clients dig themselves into some debt trying to be discharged, consolidating this debt into a new B side mortgage is the final step to financial recovery for them.

A B side mortgage is typically utilized in post bankruptcy files. Post funding, clients are taught to start how to rebuild credit, that way they can go to the A side in two to three years on average.

Every bankruptcy file is different, email me today to come up with a game plan for your certain situation.