Yes, in some cases. Most banks will decline an application while a consumer proposal is active, but B-lenders and private lenders look at it differently. If you’ve been making your proposal payments on time, a B-lender may approve you with a larger down payment. Private lenders, who lend against home equity rather than credit score, can often work with you even earlier in the proposal.
It depends on the lender. Some B-lenders will consider you the day your discharge certificate is issued, especially with a stable income and some re-established credit. Traditional banks and CMHC-insured mortgages usually want to see two years of on-time payments on at least one or two credit products after discharge before they’ll approve you at their best rates.
No. A consumer proposal stays on your Equifax report for three years after you finish paying it, or six years from the date you filed, whichever comes first. TransUnion generally removes it three years after discharge. Once it drops off, it stops factoring into automated lender decisions, though a manual underwriter may still ask about it.
Usually, yes, at least at first. B-lenders and private lenders offset the added risk by asking for more equity, often well above the 5-20% a conventional buyer might put down. As your credit rebuilds and you get further from your discharge date, the down payment lenders expect typically comes down.
It depends on your timeline and how much equity you have. A private mortgage can close faster and doesn’t lean on your credit score, which helps if you need financing now or are still inside your proposal. A B-lender mortgage usually carries a lower rate than a private one, so if you can wait a few months for your credit to improve, it may cost less overall.
Yes. Your broker will see it on your credit bureau regardless, so it’s better to disclose it upfront. That lets us match you to lenders who already work with consumer proposal files instead of wasting time on applications that will be declined.
If you already own a home with equity, a refinance through a private lender can sometimes be used to pay out the remaining balance of your consumer proposal directly, which ends it early and starts your credit recovery sooner. This only works if there’s enough equity left after the new mortgage and any existing debt on the property.
It depends on the lender. Private lenders will often work with you immediately after discharge, using your home equity as security. B-lenders typically want 12 to 24 months of re-established credit first. A-lenders and banks generally hold to a 2 years discharged plus 2 years of rebuilt credit rule before they will approve a standard mortgage.
No. A first bankruptcy stays on your Equifax file for six years from your discharge date. A second bankruptcy stays on file for 14 years. TransUnion reporting periods are similar. The flag disappears on its own; you do not need to apply to have it removed.
Not always. Private and B-lender approvals are usually based on your income, down payment and the property itself, so a cosigner is not required. A cosigner with strong credit can help if your income alone does not meet a lender’s debt service ratios, or if you are trying to qualify with an A-lender sooner than the standard timeline allows.
A bankruptcy discharges your debts outright and carries a longer credit reporting period. A consumer proposal is a negotiated repayment plan that never triggers a discharge date in the same way, and most lenders will consider you again as soon as the proposal is paid in full. If a consumer proposal fits your situation better, our mortgage after consumer proposal guide covers those timelines separately.
Gifted down payments from immediate family are accepted by most A-lenders and many B-lenders, provided the funds are documented with a gift letter and bank records. RRSP withdrawals under the Home Buyers’ Plan are available once you qualify as a first-time buyer again, which most discharged borrowers do. Private lenders usually require the down payment to come from your own resources.
Yes. Every lender at every stage will ask for your Certificate of Discharge from the Office of the Superintendent of Bankruptcy, along with a short letter explaining what led to the bankruptcy and what has changed since. Keep a digital copy on hand; it speeds up underwriting at every lender tier.
Yes, in most cases. Lenders look at the equity in your home and your ability to carry the new mortgage payment. A CRA balance is treated as a debt to be paid out at closing, not an automatic decline.
A registered lien has to be paid or discharged before or at closing. Many A-lenders will fund this directly through your lawyer; if the bank declines, alternative and private lenders will often still work with a filed lien as long as there’s enough equity.
Once you have a payout statement and an appraisal, most refinances close in two to four weeks. A file that’s close to a tax sale deadline can sometimes be expedited with a private lender.
Traditional banks usually want the arrears paid out at or before closing. If a tax arrears certificate has already been registered, some banks pass and an alternative lender picks up the file instead.
The refinance itself is reported like any other mortgage. Clearing a CRA debt or lien generally helps your credit and your ability to sell or borrow in the future, since the lien is what was holding things back.
The lender can only advance what the appraised value and loan-to-value ratio allow. If the payout is larger than your available equity, we look at a partial payout with the CRA alongside the refinance, or a repayment arrangement for the remainder.
The mechanics are the same, but the payout goes to the CRA or the municipality instead of a credit card or line of credit, and the closing has to happen before any lien deadline or tax sale date on file.
Not on cost. A bank mortgage usually costs less, and a B lender usually costs less than a private lender. A private lender fits when a bank and a B lender have said no, or cannot act in time. See how bank, B and private lenders compare.
A private lender lends mainly against your home’s equity, for a short term, typically one or two years. In many cases you pay only the interest, so what you owe does not go down. You need a plan to move to a lower-cost lender before the term ends, and the brokerage and agent arranging it must be licensed by FSRA.
It can be easier than a bank mortgage, because the lender looks mainly at your home’s value and your equity rather than your income or credit score. FSRA adds the catch: you may face higher interest rates and fees. With little equity in your home, it is harder. Read more on how easy it is to get a private mortgage.
There is no single best lender: the right one depends on your home, your equity and your plan. Compare the full cost (the rate and every fee), the term, whether it can renew, what happens if you miss a payment, and whether you can pay it off early. A mortgage investment corporation (MIC) is judged the same way. And make sure the person arranging it is a mortgage agent level 2 or a broker licensed by FSRA.
A brokerage may be paid by the lender, by you through a brokerage fee, or both. In Ontario, the brokerage must tell you in writing about its fees and anything others pay it for your mortgage, and include its fees in the cost of borrowing it gives you, before you sign.
Each lender sets its own limit, based on your home’s value, where it is and what type of property it is. The more equity you have, the more lenders will consider your file. Ask for your loan-to-value to be worked out at the start, so you know where you stand.
You repay it, usually by refinancing with a B lender or a bank, or by selling, or the lender may offer to renew. Renewal is the lender’s choice, not yours, and it can bring new fees. That is why your exit plan starts on day one.
It may be possible. A private lender looks mainly at your home’s equity, so income that looks low on paper or a low credit score matters less than at a bank. Check first whether a B lender would say yes, since that usually costs less. More on a self-employed mortgage and a bad credit mortgage.
A second mortgage is a second loan secured on a home that already has a mortgage. Your first mortgage stays as it is, and you repay the new loan alongside it. The Financial Consumer Agency of Canada (FCAC) says a second mortgage has the same features as a mortgage, and that its interest rate is usually higher than on a first mortgage because it is riskier for the lender.
It depends on what each costs you in total. A refinance replaces your first mortgage with a bigger one. If your mortgage is closed and you break it before the term ends, FCAC says you normally pay a prepayment penalty, which can cost thousands of dollars, so ask your lender for the exact amount in writing. A home equity line of credit (HELOC) lets you borrow, repay and borrow again, up to 65% of your home’s value, FCAC says. A second mortgage leaves your first mortgage untouched, but usually at a higher rate. Compare the penalty, the rates, the fees and how long you need the money.
FCAC puts the usual limit at 80% of your home’s appraised value, minus what you still owe on your mortgage. An appraisal is an independent estimate of what your home is worth. To show the maths only: on a home appraised at $900,000 with $600,000 still owing, 80% is $720,000, which leaves up to $120,000. A lender may offer less than that, depending on your home, your credit and your income.
It may be possible, through a private or alternative lender. These loans usually cost more than a bank’s, and a private mortgage is meant to be short. FSRA, Ontario’s mortgage regulator, describes a private mortgage as a temporary option for one or two years and says to have a plan for how you will pay it off. Before you sign, ask what it will cost in total and what happens at the end of the term.
Interest is only part of it. FCAC lists appraisal, title search, title insurance and legal fees among the costs of borrowing against your home. FSRA also warns about fees on private mortgages, such as for late payments. In Ontario, the brokerage must give you its disclosures in writing, including fees, the main risks and the cost of borrowing, at the earliest opportunity and generally at least two business days before you commit. Read them, and ask about anything you do not understand.
Private second mortgages are often short. FSRA calls a private mortgage a temporary option for one or two years, and says many are interest-only, which means your payments may not reduce what you owe. An exit plan is how you will repay the loan when the term ends: for example, refinancing with a bank or B lender, selling, or paying it from other funds. Write it down before you sign, and ask the lender what happens if the term ends and you cannot repay.
Call your lender as soon as you see trouble coming. Your home secures the loan, and FCAC warns that not repaying can lead to serious consequences, such as losing your home. In Ontario, the Mortgages Act says a lender using a power of sale (selling your home to recover the debt) cannot give notice until a payment has been missed for at least 15 days, and cannot sell until at least 35 days after that notice. Those are minimum waiting periods, a court can allow exceptions, and they apply to a second lender as well as the first. Get legal advice early.
Mortgage brokerages, brokers and agents in Ontario are licensed by FSRA, and you can look any of them up on FSRA’s public licence register. FSRA’s guidance says that since 1 April 2023, private mortgages are handled by a mortgage agent level 2 or a mortgage broker.
Start with the mortgage checklist so your papers are ready. Then tap Apply Now to open the online application (it opens in a new tab), or call or WhatsApp 416-840-6368. Ask for the full cost of each option in writing before you decide.
There is no separate rulebook just for second mortgages, but a few rules shape every one. FCAC says you can usually borrow up to 80% of your home’s appraised value, minus what you still owe, and lenders usually ask for an appraisal. In Ontario, the person arranging your mortgage must be licensed by FSRA, and the brokerage must give you its disclosures, including every fee and the cost of borrowing, in writing before you commit. Each lender then sets its own conditions for credit, income and the property.
If your score falls below 680, a B lender mortgage is often the most practical next step. B lenders use more flexible underwriting criteria than chartered banks, rates are higher than a bank but significantly lower than a private mortgage, and a one to two year term gives enough time to rebuild credit and qualify at a prime rate at renewal.
Yes. Many B lenders will consider bank statements, business financials, or stated income where an A lender requires two years of strong T4 income. Approval criteria vary by lender, which is why working with a broker who has active relationships across multiple B lenders makes a material difference to the outcome.
B lender rates in Ontario typically run 1 to 3% above comparable A lender rates depending on your credit profile, loan-to-value ratio, and income documentation. Most B lenders do not charge significant upfront lender fees, keeping costs lower than a private mortgage.
Most B lenders in Ontario offer both. Fixed rates are more common for B lender clients since predictable payments matter when rebuilding credit. Rates are higher than equivalent A lender products, but the gap narrows for borrowers with stronger equity and well-documented income.
Yes, directly. A stronger credit score, lower loan-to-value ratio, and well-documented income reduce perceived risk and translate into better rates and terms. Borrowers on the stronger end of B lender eligibility sometimes qualify at rates close to A lender pricing.
For most borrowers it is a short-term tool, not a permanent arrangement. The responsible approach is to enter a one to two year term with a clear plan to qualify at an A lender rate at renewal, tracking credit score milestones and debt ratios throughout. At Everything Mortgages, that transition plan is built into every B lender file from day one.
If improvement within a short window is realistic, it is worth exploring. Even a modest gain can move a file from B lender to A lender territory. However, if you need financing now or recovery will take 12 to 24 months, a B lender mortgage gets you into the property while that recovery happens.
The main alternatives are private mortgage lenders and Mortgage Investment Corporations (MICs), covered in detail on our alternative mortgage lenders page. Private lenders offer more flexibility but charge higher rates and upfront fees. MICs sit between B lenders and private lenders in cost and flexibility. We assess every file across all three options and recommend the lowest-cost path that gets approved.
It depends on the lender type. A lenders assess declared net income from personal tax returns averaged over two years. B lenders who offer bank statement programs assess 12 to 24 months of business bank deposits rather than tax returns. For self-employed borrowers whose write-offs have compressed declared income, the bank statement path typically produces a significantly higher qualifying income. We assess both and recommend whichever produces the strongest result.
Most A lenders require a minimum of two years. B lenders are more flexible — some will consider files with 12 months of business bank statements regardless of total self-employment history. For borrowers in their first year, private and stated-income lenders can provide options, typically with a larger down payment requirement.
For B lender bank statement programs: 12 to 24 months of business bank statements, business registration or articles of incorporation, and government-issued ID. Tax documents are not required. For A lender programs: two years of T1 General personal tax returns and Notices of Assessment, business financial statements if incorporated, and six months of bank statements. We confirm which list applies after reviewing your income situation.
Yes. B lenders using the bank statement program average 12 to 24 months of deposits rather than any single year. A lenders average the past two years of net income. The more consistent the deposit pattern, the stronger the qualification. Irregular deposit patterns may direct the file toward a stated income program instead.
A bank statement program uses 12 to 24 months of business account deposits to calculate qualifying income based on actual cash flow. A stated income program allows the borrower to declare income supported by contracts, invoices, or an accountant’s letter without full bank statement verification. Bank statement programs are more common and produce stronger results when deposits are consistent. Stated income programs suit borrowers with irregular deposit patterns or newer businesses.
Yes. B lenders who specialize in self-employed mortgages have credit score thresholds starting at 450. The income documentation is the bank statement program rather than tax returns. A larger down payment strengthens the application when credit is below the prime threshold. We assess both the income path and the credit profile together before recommending a lender.
The minimum down payment for a non-owner-occupied investment property in Ontario is 20%. Mortgage default insurance is not available for investment properties, making the 20% minimum firm regardless of purchase price. For properties with five or more units, commercial mortgage rules apply and the down payment is typically 25% or higher.
Yes. Most lenders count a portion of the gross rental income from the investment property toward your qualifying income. The exact percentage varies by lender, typically ranging from 50% to 80% of gross rent under the rental offset method, or a higher add-back percentage under the add-back method. A signed lease agreement or rental appraisal is required to support the income claim. We identify which lender’s rental income treatment produces the strongest qualification for your file.
Yes. This is one of the most common structures for Ontario investors. A home equity line of credit or refinance on the primary residence accesses equity that is then used as the 20% down payment on the investment purchase. We coordinate both transactions to ensure the equity access and investment purchase close efficiently and the combined debt service is within qualifying ratios.
Investment property mortgage rates at the A lender level are typically 0.10% to 0.25% above equivalent owner-occupied rates, reflecting the higher risk profile. Investors who do not qualify at an A lender due to portfolio size or income documentation can access B lender and private mortgage options at higher rates. We compare options across our full lender network and present the lowest-cost path that produces a confirmed approval.
Lenders assess investment property applications on four factors that do not apply to primary residence mortgages: the 20% minimum down payment, the rental income treatment in the debt service calculation, the existing portfolio size and its impact on debt ratios, and the property type (residential versus commercial rules for five or more units). We work through all four before recommending a lender.
Yes. Refinancing an existing investment property to access equity for a new acquisition is a common strategy for portfolio expansion. The amount accessible depends on the current appraised value, the outstanding mortgage balance, and the lender’s loan-to-value limit for investment properties. We assess the refinance and the new purchase as a combined transaction to confirm the total debt service is supportable before any application is submitted.
Most Ontario homeowners can access between 15% and 55% of their home’s appraised value. The exact percentage depends on your age, the property’s appraised value, its location, and the lender’s policies. Older homeowners can typically access a higher percentage. We provide a preliminary estimate based on your age and property value before any application is submitted.
No. Reverse mortgage funds are not considered taxable income by the Canada Revenue Agency and do not affect eligibility for Old Age Security or Canada Pension Plan benefits. This is one of the key advantages of a reverse mortgage over other equity access options for Ontario seniors on fixed income.
Costs typically include a home appraisal fee, independent legal advice fees (required by both main lenders), and an administration fee charged by the lender. There are no monthly payments and no prepayment requirement until the loan becomes due. Interest accrues on the outstanding balance over the term of the reverse mortgage. We provide a full cost breakdown before any application is submitted.
The reverse mortgage becomes due when you permanently vacate the property, sell it, or pass away. In most cases, the loan is repaid from the sale proceeds of the home. Your estate retains any remaining equity after the loan balance is settled. Neither you nor your estate can owe more than the fair market value of the home at the time of repayment, which is a protected feature of both main reverse mortgage products in Canada.
All homeowners on title must be at least 55 years old to qualify for a reverse mortgage in Ontario. Both the CHIP Reverse Mortgage and the Equitable Bank reverse mortgage product share this requirement. If one owner is under 55, the application cannot proceed until all owners on title meet the minimum age threshold.
Yes, and this is one of the most common uses. Many Ontario homeowners in their late 50s or 60s still carry a mortgage balance. A reverse mortgage can pay out that balance and eliminate the monthly mortgage payment entirely, which improves monthly cash flow without requiring the homeowner to sell or downsize. Any existing mortgage or secured debt must be paid out using the reverse mortgage proceeds as part of the closing.
A purchase plus improvements mortgage lets you buy a property and finance renovation costs in a single loan. The lender approves the mortgage based on the home’s appraised value after improvements are complete. Renovation funds are held separately and released in draws as the work is finished and inspected, typically within 90 to 120 days of closing.
For insured mortgages (less than 20% down), most lenders cap the improvement portion at the lesser of 10% of the purchase price or $40,000. Some lenders allow higher amounts for conventional mortgages with 20% or more down. The total mortgage cannot exceed 95% of the post-renovation appraised value for insured purchases.
Eligible improvements are those permanently attached to the property that add to its appraised value. This includes kitchen and bathroom renovations, flooring, roofing, windows, HVAC, basement finishing, and electrical or plumbing upgrades. Cosmetic items, furniture, and moveable appliances are generally not eligible. We confirm eligibility with the specific lender before the offer is made.
The down payment is calculated on the combined total of the purchase price and improvement costs, not the purchase price alone. The minimum for an insured mortgage is 5% on the first $500,000 and 10% on the portion above that. Properties at $1 million or above require 20% down and do not qualify for mortgage default insurance.
Yes. This product is well suited to first-time buyers who want to purchase a property at a lower price point and build equity through renovations, rather than competing for fully finished properties at a premium. The standard first-time buyer down payment thresholds and government programs apply. We advise on how to combine this product with available incentives at the consultation stage.
Yes. Most lenders require licensed and insured contractors. Some lenders maintain an approved contractor list or require the contractor to meet specific criteria before quotes are accepted. We confirm contractor requirements with the lender before the offer is made so there are no surprises after closing.
Most lenders require renovations to be completed within 90 to 120 days of closing. If work is not finished within that window, the remaining draw funds may be withheld until completion is confirmed. We set clear timelines with clients and contractors before closing to reduce the risk of delays affecting the draw schedule.