HB Mortgage Centre

Consumer Proposal Mortgage Ontario

Getting a Mortgage After a Consumer Proposal in Ontario

A consumer proposal does not close the door on a mortgage. Whether you are still in a proposal or recently discharged, there is usually a path, and it depends on where you are in the process and how your credit is rebuilding.

We are an FSRA-licensed Ontario mortgage brokerage, not a Licensed Insolvency Trustee. We arrange mortgages with lenders who work with borrowers who have a proposal in their history, subject to qualification.

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FSRA Brokerage #13449Hardeep Batoo, Broker Licence #M13002408Ontario-wideConsumer proposal files reviewed

The basics

What is a consumer proposal, and who administers it?

Written by the HB Mortgage Centre team. Reviewed by Hardeep Batoo, Principal Broker (licence M13002408). HB Mortgage Centre is an FSRA-licensed brokerage (#13449). Last updated: June 23, 2026.

A consumer proposal is a formal arrangement to repay a portion of your debts. It can be administered only by a Licensed Insolvency Trustee (LIT), and the term cannot exceed five years; a firm without an LIT cannot lawfully administer one (Source: OSB / FCAC). To be clear, HB is not an LIT and does not file or manage proposals. We are a mortgage brokerage that helps you with financing while or after a proposal is in place.

How does a consumer proposal affect your mortgage options?

While a proposal is active, banks usually step back, and alternative or private lenders become the realistic route, focusing on your equity and income. After your proposal is paid and discharged, and as it ages on your credit report, more options open up. A consumer proposal is generally removed from your credit report about three years after the debts are paid or six years after signing, whichever is sooner, though this can vary by bureau and province (Source: OSB / FCAC). Mainstream (A) lenders typically want about two years of re-established credit for best-rate approval, while alternative and private lenders may lend sooner at a higher cost. That two-year figure is common lender underwriting practice, not a regulation, so it varies by lender and file.
A mortgage is often possible during or after a consumer proposal. During the proposal, alternative or private lenders are usually the route. After discharge, as your credit rebuilds, better options open up. The timeline depends on your file.

What does the path forward look like?

  • During the proposal: alternative or private lending, often equity-focused, at a higher cost. See private mortgages.
  • After discharge: as your credit rebuilds, you may move toward better terms over time.
  • Rebuilding: on-time payments and a clean file help you qualify for stronger options later. None of this is guaranteed; it depends on your circumstances.

Why a broker

How we help

We review where you are in the process, your credit, and your goal, then match you with lenders who fit. We explain the options and the cost in plain language. A bank stepping back is one type of lender's answer, not the whole market's: our work spans more than 50 lenders, with over $1 billion in mortgage funding arranged since December 2021. Everything is subject to qualification and lender review.

We provide mortgage guidance, not insolvency advice, and we do not promise approval or a timeline.

A consumer proposal file presented correctly is very different from the same file presented generically.
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FAQ

Frequently Asked Questions - Mortgage After Consumer Proposal Ontario

Can I get a mortgage after a consumer proposal in Ontario?+
Often yes, subject to qualification. The path depends on whether the proposal is active or discharged and on your rebuilt credit.
Can I get one during an active proposal?+
Sometimes, usually through alternative or private lenders that focus on equity and income, at a higher cost.
How long after discharge before I can qualify with a bank?+
It depends on your credit rebuild and the lender. Mainstream (A) lenders typically want about two years of re-established credit after completion for best-rate approval, while alternative and private lenders may lend sooner at a higher cost. That is common lender underwriting practice, not a regulation. We will tell you what is realistic for your file.
Does a consumer proposal stay on my credit report?+
Yes, for a period set by the credit bureaus. It is generally removed about three years after the debts are paid or six years after signing, whichever is sooner, though this can vary by bureau and province (Source: OSB / FCAC). Its impact lessens as it ages and as you rebuild.
Does HB administer consumer proposals?+
No. A Licensed Insolvency Trustee does. We arrange mortgages.
Can home equity be used to pay out a proposal early?+
Sometimes. With enough equity, a refinance or private mortgage is occasionally used to pay out a proposal sooner, which may start the credit rebuild earlier. It is not right for everyone, and decisions about the proposal itself belong with your LIT.
Will my rate be higher because of the proposal?+
Usually at first. Alternative and private lenders price for the added risk. As your credit rebuilds after completion, better terms may become possible. It depends on your file.

Find out where you stand

Tell us where you are in the process and we will tell you, without judgment, what is realistic now and later. No cost, no obligation.

What happens next: A private, no-pressure conversation about where your proposal stands, free of charge. Then we lay out what is realistic now and what opens up after discharge, in plain language. If you proceed, the same broker handles your file throughout. No approval or timeline is promised.

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Qualification subject to lender approval, proposal status, credit assessment, property appraisal, and market conditions. O.A.C. E.&O.E.

FSRA Brokerage #13449 · Hardeep Batoo, Broker Licence #M13002408 · Ontario-wide

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Mortgage approvals, rates, terms, products, fees, and available lender options are subject to lender approval, borrower qualification, property review, market conditions, documentation, title review, and applicable laws. O.A.C. E.&O.E. HB Mortgage Centre is an FSRA-licensed Ontario mortgage brokerage, FSRA Brokerage #13449. Each Mortgage Centre is independently owned and operated. This website provides general information only and does not provide legal, tax, financial planning, estate planning, investment, accounting, or benefits advice. For legal matters, speak with an Ontario lawyer. For tax, estate, benefit, investment, or accounting questions, speak with a qualified advisor before making a decision.

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