Most prime mortgage lenders in Canada will approve a mortgage application as soon as 2 years after bankruptcy discharge
A Path to Homeownership
Bad Credit & Bankruptcy Mortgage
Your mortgage renewal is a critical moment. Your current lender will send you a renewal slip, often with a rate that's significantly higher than what's available on the market. They are banking on the convenience of a simple signature. Don't fall for it.
At Ingram Mortgage Team, we turn the tables. We take your renewal to the open market, forcing lenders to compete for your business. This ensures you get the sharpest rate and the best terms, not just what your bank feels like offering. We serve all of Surrey, Langley, and the Fraser Valley.
Understanding Your Situation:
Bad Credit vs. Bankruptcy
It’s important to understand how lenders view different credit challenges. A history of late payments or a low credit score is viewed differently than a formal bankruptcy or consumer proposal. Each situation has a unique path back to mortgage qualification, but the core principles of rebuilding trust with lenders remain the same.
The Path to a Mortgage After Bankruptcy or Consumer Proposal
If you have gone through a bankruptcy or consumer proposal, lenders will be looking for a clear history of re-established credit before they will consider a mortgage application. Here is the typical timeline and what you need to demonstrate:
Time Since Discharge:
We compare dozens of lenders, including major banks, credit unions, and broker-only specialists, to find the lowest rate.
Re-Established Credit:
Renewal is the perfect time to access equity for renovations or debt consolidation without paying hefty penalties.
Clean Payment History:
It is absolutely critical that every single payment on your new credit accounts is made on time and in full. Any late payments during this rebuilding period will be a major red flag to lenders and can reset your timeline.
Down Payment:
You will need to have a down payment saved. While some programs allow for as little as 5% down, a larger down payment of 10-20% will significantly increase your chances of approval and give you access to better interest rates.
Qualifying for a Mortgage with Bad Credit
If you haven’t been through a formal insolvency but your credit score is lower than what traditional banks require (typically below 680), you still have excellent options. This is where alternative and private lenders come in.
Alternative Lenders (B-Lenders): These lenders specialize in working with borrowers who don't quite fit the strict criteria of the big banks. They are more flexible and can often approve mortgages for individuals with lower credit scores or for self-employed borrowers who can't prove their income in the traditional way. The interest rates are typically slightly higher than prime rates, but they offer a crucial stepping stone to homeownership.
Private Lenders: For more complex situations, private lenders offer the most flexibility. These loans are based primarily on the value of the property and the size of your down payment (usually 20% or more), not your credit score. A private mortgage can be a short-term solution (1-2 years) that allows you to purchase a home while you continue to repair your credit, after which you can refinance with a traditional lender.
Navigating the Application Process with the Ingram Mortgage Team
Whether you are two years past a bankruptcy or struggling with a low credit score, the journey starts with a conversation. The Ingram Mortgage Team specializes in complex situations and has access to a wide range of lenders who are willing to look beyond the numbers on a credit report.
Initial Consultation:
We compare dozens of lenders, including major banks, credit unions, and broker-only specialists, to find the lowest rate.
Strategic Plan:
Renewal is the perfect time to access equity for renovations or debt consolidation without paying hefty penalties.
Connecting You with the Right Lender:
Based on your unique situation, we will connect you with the right lender—whether it’s a prime lender who can see your rebuilt credit, an alternative lender who offers more flexibility, or a private lender who can provide a short-term solution. We handle the entire application and negotiation process, fighting for the best possible terms on your behalf.
Our Exclusive Promise
The UVRM Guarantee — Your Rate, Protected
Our service does not stop when your mortgage documents are signed. The Ingram Mortgage Team's Ultimate Variable Rate Mortgage (UVRM) Guarantee means we continue to actively manage your mortgage for as long as you are our client.
We Watch the Market for You
Whenever the Bank of Canada changes rates, we inform you immediately and advise whether it is a good time to lock in to a fixed rate.
Best Rate Lock-In Guarantee
A short description of this feature and why it matters to your customers.
Lifetime Mortgage Management
From your first home to your forever home, we are your mortgage partner — monitoring, advising, and optimizing your strategy at every stage.
Eligible Lenders: First National, Merix, Street Capital, Scotia, TD, Home Trust, EQ Bank, Canadiana Standard, CFF, ICICI, MCAP Standard, B2B, NBC, Coast Capital Savings, and more.
Broker Rate Lock-In Guarantee
When it is time to lock in your variable rate mortgage, we guarantee you will receive the lender's best available fixed rate — or we cover the cost to move you to a better option.
Got Questions?
Frequently Asked Questions About Bad Credit
& Bankruptcy Mortgages
How long after bankruptcy can I get a mortgage in Canada?
Most prime mortgage lenders in Canada will consider your application two years after you have been officially discharged from bankruptcy. During those two years, you must re-establish at least two lines of new credit (like a credit card or car loan) and maintain a perfect payment history.
What is the minimum credit score for a mortgage in Canada?
While major banks typically require a minimum credit score of 680, there are many alternative (B-Lender) and private lenders who can approve mortgages for clients with scores below this. With a larger down payment (20% or more), a mortgage is often possible even with a very low credit score.
Is it better to have a bankruptcy or a consumer proposal on my record?
Both are serious credit events, but a consumer proposal is generally viewed more favourably by lenders than a bankruptcy. The timeline for getting a mortgage is often similar (two years after completion/discharge), but a consumer proposal shows that you made an effort to repay a portion of your debts.
Do I need a bigger down payment if I have bad credit?
Yes, a larger down payment is key. If your credit is bruised, lenders want to see that you have more of your own money invested in the property. While a 5% down payment is the minimum for insured mortgages, clients with bad credit should aim for at least a 20% down payment to access the best options from alternative and private lenders.
Your Fresh Start Begins Today
Financial challenges of the past do not have to define your future. With the right guidance and a solid plan, homeownership is within your reach. Contact the Ingram Mortgage Team today to start your confidential consultation and take the first step on your path to a new home.
