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2525 blv Daniel-Johnson, Laval, QC, H7T 1S9
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Fax: 514-533-0143
Homeowners in a consumer proposal — Quebec
Mortgage maturing while you are in a consumer proposal?
If your lender was included in the proposal and took a loss, it may decide not to renew. That is not the end of the road: depending on your equity, your income and the state of your file, other lenders can step in.
- Maturity during or after the proposal
- Current lender possibly affected by the proposal
- Credit being rebuilt
- Equity available in your property
Nectarios Petropoulos, mortgage broker (licence 237338), Dominion Lending Centres National. Free, confidential review with no obligation.
Request a free review
Fill out the form and we will call you back to go over your file. No obligation on your side.
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We will contact you shortly to discuss your situation. If your request is urgent, you can also reach us at 514-999-9946.
Who this is for
Does any of this sound like you?
The proposal dealt with the debts. It also left a mark on your credit file, and renewal is when that mark makes itself felt.
The lender took a loss
If your bank was among the creditors in the proposal, it can decline to extend your loan at maturity.
Proposal still active
Payments are ongoing and you do not know how lenders will read your file before it ends.
Proposal recently completed
You have the certificate of full performance, but the entry is still on your credit file.
Silence from your lender
Nothing has been confirmed and you would rather not find out three weeks before maturity.
The basics
What lenders actually look at after a proposal
Three things matter: the status of the proposal (active or completed), how much time has passed and how the credit has been rebuilt since, and the equity in the property. A completed proposal with two years of clean payments is nothing like an active one with irregular payments.
Several alternative lenders will finance files with a proposal on the credit report, in some cases even while it is ongoing, provided the equity and the income hold up. Here are the routes that can be reviewed.
Options that can be reviewed
Renewal with your current lender
Worth checking first: some lenders extend the loan without requalifying, even in this context. When it works, it is the cheapest option.
Alternative (B) lender
The most common route. Criteria weigh equity and ability to pay rather than the credit score alone. Higher rate and fees, for a term or two.
Refinance to pay out the proposal
In some files the equity allows the remaining balance of the proposal to be repaid at once, ending the process sooner and starting the credit rebuild earlier.
Private financing
If maturity is close and nothing else is ready, short-term financing can bridge the gap, with an exit plan set from the start.
Any decision to pay out a proposal early should be taken with your licensed insolvency trustee. We work on the financing numbers, not in their place.
The process
How the review works
A simple three-step process, at no cost and with no obligation.
We build the picture
Maturity, status of the proposal, current credit, income, remaining debts and available equity.
We compare the options
We look at which lenders accept your profile today and on what terms, and what waiting a few months would change.
We set up what comes next
The financing goes in place and, where needed, a rebuild plan aims at something cheaper by the next term.
What changes
What the review can give you
Every file is different and no outcome can be guaranteed in advance. Here is what the review usually gives you.
- Early warning if your current lender is likely not to renew, instead of finding out late.
- The lenders most likely to accept your file given the status of the proposal.
- A realistic read on how a proposal affects mortgage eligibility.
- A dated rebuild plan instead of a vague sense of uncertainty.
Who you will be talking to
A mortgage broker specializing in non-standard files
Nectarios Petropoulos is a mortgage broker with Dominion Lending Centres National and has worked since 2016 with homeowners whose files carry a consumer proposal or a period of insolvency.
A broker works with several lenders: banks, alternative lenders and private lenders. The job is to compare what exists for your situation and explain the consequences of each option, including when doing nothing is the better call.
- Broker
- Nectarios Petropoulos
- Licence number
- 237338
- Brokerage
- Dominion Lending Centres National
- Office
- 2525 Daniel-Johnson Blvd, Laval, Quebec H7T 1S9
- Phone
- 514-999-9946
Frequently asked questions
Consumer proposals: your questions
Can I get a mortgage during a consumer proposal?
It happens in some files, mainly with alternative or private lenders, where the equity and income support it. Terms are more expensive and the lender generally requires the proposal payments to be current.
Can my lender refuse to renew because it was affected?
Yes. If the lender took a loss through your proposal, that can influence its decision at maturity. Which is exactly why it is better to assess your options ahead of time rather than wait for its answer.
How long does a proposal stay on my credit file?
Generally up to 3 years after the final payment or 6 years from filing, whichever comes first. Equifax and TransUnion apply a similar rule; check both reports.
Does paying out the proposal early help?
It ends the process sooner and starts the credit-rebuild clock earlier. Whether it pays off depends on the balance, the cost of the financing and your situation. That decision belongs with your licensed insolvency trustee.
When should I start preparing for renewal?
Three to six months out. That leaves time to review your current credit, compare lender criteria and put the file together without negotiating against the clock.
Will I be stuck with an alternative lender forever?
Usually not. A term or two is often enough, provided payments stay clean and credit is rebuilt. The plan to move back to a bank is set at the start, not at the end.
Maturity approaching? Do not assume the renewal
Let's look now at which lenders can consider your file, and on what terms.
The information on this page is provided for general guidance only and is not an offer of credit, a guarantee of approval, or insolvency advice. Questions about your consumer proposal belong with your licensed insolvency trustee.