Like any loan, you’ll have to qualify with a lender to get a mortgage after bankruptcy. Here’s a tip: use a mortgage broker if your usual lender turns you down.

Lenders are influenced by how you’ve managed your finances since being discharged from a bankruptcy. They look at:

your current credit score
employment, income, and investments
downpayment
total debt service ratio — monthly debts compared to your income and assets
and loan to value ratio — how much you are borrowing compared to a property’s fair market value (if sold today).

What to do if you get a bank foreclosure notice. Ontario bankruptcy laws and power of sale.

Borrowing down payments for mortgages in Canada.

How Long After Bankruptcy Can I Get a Mortgage in Ontario?

Whatever you’ve heard about waiting periods after a bankruptcy is discharged may be inaccurate.

Bankruptcies do sit on your credit score record for up to seven years. But Ontario lenders don’t have a legal waiting period before re-lending to borrowers. Private lenders regularly make exceptions to the bankruptcy waiting periods traditional and subprime lenders prefer. What is an assumable mortgage?

You could be approved right away by a private lender, or wait until a mortgage lender is satisfied you have sufficient income and a positive credit score to be a good risk. Your lender’s decision is based on their firm’s risk tolerance.

It’s true prime mortgages can be difficult to get unless:

Your mortgage was discharged at least two years and a day before applying.
You have rebuilt your credit by successfully making credit card, personal loan, car lease, or other regular payments for a year or more.

Subprime lenders, who are more flexible because they lend to customers with lower credit scores, may make you wait three to 12 months, and prove your credit has improved. Can’t wait that long? See if you qualify for a private mortgage.

A spouse with a good credit score can still apply for a mortgage. Your score won’t affect their chances of being approved. Buy your next home with a RRSP mortgage.

Mortgages and Bankruptcy in Ontario

No, bankruptcy doesn’t cancel your mortgage. Canadian lenders can’t cancel a mortgage because of bankruptcy, and bankruptcy can’t be used to get rid of mortgage debt.

As long as you keep up the payments, you can own a home.
Even if you are bankrupt, your mortgage payments are due.

Your home’s equity can be used to reduce creditors’ financial demands. The difference between your home’s fair market value and what you owe is an asset, and is applied to your debts by a licenced insolvency trustee. You may have to take out a second mortgage to use that equity, or you can sell your home.

Pay off debts during a marital breakup.

How Your Insolvency Trustee Helps

When you’re overwhelmed by debt, a licenced insolvency trustee helps you by:

Filing for bankruptcy.
Selling assets.
Reducing debt quicker by making extra payments.
Holding creditors’ money in trust.

Find a licensed insolvency trustee in Ontario. For what to expect from creditors, watch this video.

Do You Qualify for Bankruptcy Assistance?

If you’ve been turned down by licenced insolvency trustees, apply to the Ontario bankruptcy assistance program. The Office of the Superintendent of Bankruptcy aids debtors who can’t find a willing trustee. See how it works here.

Hire a bankruptcy lawyer to untangle complicated situations.

Why you need to consider getting a lawyer

Why You Need a Real Estate Lawyer

Axess Law’s virtual real estate lawyers review agreements of purchase and sale for essential clauses that give buyers or sellers the right to cancel.

Your Axess Law lawyer looks for red flags a contract is constructed in a way that disadvantages you, or could leave you paying significant penalties if financing arrangements fall through. We answer questions like do you get the deposit back if the house sale falls through, or who is liable if defects are found after a home inspection.

Our professional legal team checks for condo status certificates, and mandatory fire insurance binders to complete your purchase. We amend the agreement if you opt to pull out of a new build condo purchase during the 10-day cooling off period. Do you get a deposit back when buying a house?

Your Axess Law real estate lawyer negotiates troublesome home inspection reports with the seller’s lawyer to see if minor repairs can be made before you take possession. We advise if your contract allows you to cancel based on an unsatisfactory home inspection report.

Title to your title is searched for financial claims and construction liens, then transferred to your name at a local land registry. If you’re financing your home or land purchase through a mortgage, we finalize the legal documents your lender requires and add their name to title.

Documents to take to your real estate lawyer appointment.

Affordable Real Estate Lawyers, Anywhere You Are

Access lawyers for less in Greater Toronto Area, Ottawa, or anywhere in Ontario when you buy, sell, or transfer property. Axess Law’s flat fee real estate lawyers are affordable, and our rates are all inclusive (excluding taxes, disbursements, and third-party charges). Axess Law offers you only the legal services you absolutely need. Your final invoice includes no surprises or hidden charges. Your itemized statement of adjustments is explained when we deliver it, and we answer any questions you have about it.

Find condo real estate lawyers in Ontario.

Make Appointments by Phone or Online in Minutes

Making appointments is a breeze with our 647-479-0118 lawyer line, toll free to 1-877-522-9377, or try our web booking form to find dates and times for your mortgage appointment. You can meet in person with an Axess Law real estate lawyer at any of our conveniently located Greater Toronto Area or Ottawa law offices. Axess Law has onsite parking and easy transit access.

We bring a virtual real estate lawyer to your home or office when you use our secure, confidential video conference service, anywhere in Ontario.