Can I Get a Mortgage with a Consumer Proposal?

Short answer: yes, you can get a mortgage with a consumer proposal—but it’s not as simple as walking into a bank and asking for a low-rate five-year fixed.

If you’re currently in a consumer proposal, or you’ve recently completed one, the idea of buying a home (or refinancing the one you’ve got) can feel like a long shot. I hear it all the time—clients reach out after being turned down by their bank or after reading something online that convinced them it was impossible.

Let me clear that up for you: it's not impossible. You just need the right strategy, a bit of patience, and a mortgage broker (hi, that’s me) who knows how to navigate this space.

What Is a Consumer Proposal, and How Does It Affect My Mortgage Chances?

A consumer proposal is a formal agreement you make with your creditors to repay a portion of your debts over time. It’s a legally binding alternative to bankruptcy—and from a lender’s perspective, it’s a red flag. Not a dealbreaker, but definitely a red flag.

Why? Because it signals that, at some point, you couldn’t keep up with your debt obligations. That doesn’t mean you’re bad with money. Life happens—illness, divorce, job loss—and a consumer proposal is often the smartest, most responsible move someone can make in a tough financial spot.

But mortgage lenders? They don’t always see the nuance. They see risk. So, our job is to show them the full picture—and line up a mortgage option that works for you now, not just when everything magically disappears from your credit report.

Can I Get a Mortgage With a Consumer Proposal Still in Progress?

Here’s where it gets tricky. If you’re still in the middle of your proposal—meaning you haven’t completed all the payments yet—your options are extremely limited. Most A lenders (big banks and credit unions) won’t touch it. But there are private lenders who might.

These lenders look beyond your credit score. They care about income, equity, and stability. If you have a decent down payment (usually 20% or more), stable employment, and you've been making your proposal payments on time, some alternative or private lenders will consider your application.

Will the interest rate be higher than what you’d get with perfect credit? Probably. But it’s not forever. Think of it as a stepping stone.

What If I’ve Completed My Consumer Proposal?

Once your proposal is marked “completed” on your credit report, things get a lot easier—but there are still hoops.

Here’s what most lenders want to see:

• At least two years since completion (some are okay with one)

• At least two re-established trade lines (like a secured credit card or car loan)

• Solid, provable income

• A decent down payment (minimum 5% for insured, but 10–20% makes it smoother)

  
  

Again, if your bank says no, that doesn’t mean it’s game over. There are other lenders out there who specialize in clients rebuilding after a proposal. I work with a bunch of them—and yes, they’re legitimate.

Should I Wait Until It Falls Off My Credit Report?

Maybe. But maybe not.

A consumer proposal stays on your credit report for three years after it’s paid off (or six years from the start date, whichever comes first). But you don’t have to wait until it disappears to get approved for a mortgage.

If you're in a stable position—your income is strong, you’ve saved up a down payment, and your credit has started to bounce back—then waiting just because isn’t always the best strategy. Sometimes getting into the market sooner, even with a slightly higher rate, can set you up for better equity growth, especially in appreciating markets.

What Kind of Mortgage Can I Get With a Consumer Proposal?

It depends on your timeline, credit rebuilding, and down payment.

Here’s a rough breakdown:

• Still in proposal: Private lenders, at least 20% to 35% down

• Recently completed (under 2 years): Alternative lenders may consider, expect higher rates and fees

• 2+ years completed with rebuilt credit: Some A lenders may approve, especially with strong compensating factors

Final Thoughts on "Can I Get a Mortgage With a Consumer Proposal?"

And yes, you can get pre-approved during this process to see where you stand.

Yes, you can get a mortgage with a consumer proposal—but not all lenders will treat you the same, and not all mortgage brokers know how to navigate this space.

This is where experience (and hustle) matters. I’ve worked with countless clients who thought homeownership was out of reach because of a consumer proposal—and together, we proved that wrong.

If you’re in the middle of your proposal, just finished it, or even finished it years ago but feel unsure where to start, reach out. I’ll walk you through what’s possible right now and what steps to take if you need a bit more time to prepare.

No judgment. No pressure. Just honest advice and a path forward.

Let's Chat!

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