If you've gone through a consumer proposal, you might think owning a home is off the table. But here's the good news — it's not. Plenty of people get approved for a mortgage after a consumer proposal. You just need to know how it works.

What Is a Consumer Proposal, Anyway?

A consumer proposal is a deal you make with the people you owe money to. Instead of paying everything back, you agree to pay a portion. A licensed insolvency trustee helps you set it up. It's not the same as bankruptcy — it's actually a step above it.

When a consumer proposal goes on your credit report, it stays there for a while. But it doesn't stay forever. And lenders know that life happens. Job loss, divorce, medical bills — these things can hit anyone.

When Can You Apply for a Mortgage?

Here's what most lenders want to see:

  • Your proposal is fully paid off — not just in progress, but done.
  • You've been discharged — meaning you got the official paperwork saying it's complete.
  • You've started rebuilding credit — even a secured credit card used for a few months helps a lot.
  • You have a down payment saved up — typically at least 5% for your first home.

Some lenders will work with you even while the proposal is still active, but the interest rates will be higher. Once it's discharged and you've rebuilt a bit, your options get much better.

How to Rebuild Your Credit After a Proposal

Think of your credit score like a garden. The proposal pulled out the weeds, but now you need to plant new seeds. Here are a few simple steps:

  • Get a secured credit card and use it for small things like gas or groceries. Pay it off every month.
  • Make sure all your bills are paid on time — phone, internet, everything.
  • Don't apply for a bunch of new credit all at once. Take it slow.
  • Check your credit report every few months to make sure everything looks right.

What Documents Will You Need?

When you're ready to apply, your mortgage broker will ask for:

  • Your discharge documents from the consumer proposal
  • A list of debts that were included in the proposal
  • Proof of income (pay stubs, T4s, or tax returns)
  • Proof of your down payment

Why a Mortgage Broker Makes This Easier

Banks have strict rules. If you walk into a bank after a consumer proposal, they might say no right away. A mortgage broker works differently. We have access to dozens of lenders — including ones that specialize in helping people rebuild.

We look at your whole picture, not just your credit score. And we know which lenders are most likely to say yes to your situation.

A consumer proposal isn't the end of your homeownership dream. It's just a detour. With the right plan, you can still get there.

Bottom Line

Yes, you can get a mortgage after a consumer proposal. It takes some time and some effort, but it's very doable. The key is to start rebuilding your credit as soon as you can, save up a down payment, and work with a broker who knows how to match you with the right lender.

If you've been through a proposal and you're wondering what your next steps are, reach out to us. We'll walk you through it — no judgment, no pressure.