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.
A private mortgage is a mortgage funded by a private individual or company rather than a bank or regulated institution. Approval is based primarily on the property’s appraised value and the resulting loan-to-value ratio rather than credit score or income. Most private mortgages in Toronto are one-year terms and are used as a short-term bridge while the borrower’s credit or income documentation improves enough to qualify with a regulated lender.
Private mortgage rates in Ontario typically range from 8% to 15% depending on the LTV ratio, property location, and borrower risk profile. Lender fees range from 1% to 4% of the loan amount on top of standard broker fees. These costs are higher than regulated lenders and we present the full cost breakdown before any application is submitted. For most borrowers using a private mortgage to replace high-interest debt, the total monthly cost is still lower than what they are currently paying.
Private lenders can approve and fund within 24 to 72 hours when the equity position is clear, the property is in a strong urban market, and documentation is ready. This speed is one of the primary reasons borrowers in time-sensitive situations, including power of sale scenarios, turn to private lenders. A lenders and B lenders cannot match this timeline.
Private mortgage qualification is based on the property rather than the borrower. You need sufficient equity in a property in a marketable location. Most private lenders in Toronto will lend up to 75% to 85% of the appraised value. There is no minimum credit score requirement and no stress test. Borrowers who are self-employed, have a recent consumer proposal or bankruptcy, or have been declined by B lenders are common private mortgage candidates.
Most private lenders in Ontario will lend to a maximum of 75% to 85% LTV depending on the property location, type, and condition. Toronto urban properties with strong market demand typically access the higher end of that range. Properties in smaller markets or with unique characteristics attract lower LTV limits. The lower the LTV, the more lender options are available and the better the rate.
Yes. A private mortgage can pay out the arrears on a defaulted mortgage and stop the power of sale process, provided there is sufficient equity in the property. Private lenders can fund quickly enough to meet the timelines that power of sale situations require. We assess the equity position and the outstanding arrears immediately and confirm whether a private mortgage solution is viable before the power of sale window closes.
A second mortgage is a loan secured against a property that already has a first mortgage on title. It does not replace the first mortgage. Funds are advanced as a lump sum at closing and repaid in monthly principal and interest payments over the term. Because the second mortgage lender is in a secondary position on title, rates are higher than first mortgage rates but significantly lower than unsecured credit products.
Yes. Second mortgage approval is primarily equity-based rather than credit-based. Private lenders who fund second mortgages in Toronto have no minimum credit score requirement and base approval on the property’s appraised value and the combined loan-to-value ratio. B lender second mortgages are available for borrowers with credit scores of 450 and above. We assess your equity position and credit profile together to identify the right lender type.
B lender second mortgage rates in Toronto typically run 1 to 3% above first mortgage rates. Private second mortgage rates range from 8% to 15% depending on the loan-to-value ratio, property location, and borrower profile. Private lenders also charge lender fees of 1% to 4% of the loan amount. We present the full cost of all available options before any application goes forward.
Private second mortgage lenders can fund within 24 to 72 hours when the equity position is clear and documentation is ready. B lender second mortgages typically take 2 to 5 business days. For time-sensitive situations including power of sale, tax arrears, or urgent renovation timelines, we identify the lender who can meet the required funding date and manage the process accordingly.
Most second mortgage lenders require the combined loan-to-value of the first and second mortgage to remain at or below 80% of the property’s appraised value. For example, a Toronto home worth $900,000 with a $600,000 first mortgage has up to $120,000 in accessible equity for a second mortgage at 80% combined LTV. The stronger the equity position, the more lender options are available and the better the rate.
Second mortgage payments include both principal and interest and are made monthly in addition to the existing first mortgage payment. The amount depends on the loan size, interest rate, and term length. Most second mortgages in Toronto are one-year terms. We model the monthly payment alongside the existing first mortgage payment before any application is submitted so the total debt service is clear.
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.