S2 Mortgage Group does not file consumer proposals and cannot advise you on whether to file one. A proposal is a legal insolvency process and only a Licensed Insolvency Trustee can file one for you. If you are considering a proposal, speak to an LIT first.
What we do is arrange mortgage financing for people whose credit file already shows a proposal. It is normal work in this business, and a proposal is not a permanent bar to owning a home.
Day after dischargeAlternative lenders
Two yearsPrime lender guideline
Pay out earlyUsing home equity
Where you might be right now
- You are in an active consumer proposal, own a home with equity, and want to settle the proposal in one payment.
- You were discharged in the last two years and a bank has already declined you.
- You want to buy again and need to know how long you actually have to wait.
- You are renewing a mortgage and your current lender will not renew because of the proposal.
- You want a plan to get back to prime lending rather than staying in alternative lending permanently.
What actually helps here
- If you own a home with equity, you can often pay the proposal out in full through a mortgage and end the process early.
- Paying out early starts credit rebuilding sooner, which shortens the road back to prime lending.
- Prime lenders typically want two years of re-established credit after discharge, with active accounts reporting.
- Alternative lenders will often look at a file the day after discharge, and some will look during an active proposal that is being paid out.
- Pull your own credit report and check the proposal is being reported accurately. Reporting errors cost approvals.
- Keep the discharge certificate. Every lender will ask for it.
Documents to gather
- Copy of the consumer proposal and the certificate of full performance, if discharged
- Confirmation from your Licensed Insolvency Trustee of the payout amount, if the proposal is active
- Evidence of re-established credit: a secured card, small loan or line of credit with clean payment history
- Income confirmation for each applicant
- Current mortgage statement and property tax bill
- Government photo ID
How we approach the file
- 01 Confirm your statusActive or discharged, and the exact dates. Timelines for every lender run from the discharge date, so this determines the entire strategy.
- 02 Read the credit file properlyProposals are often reported incorrectly. We check the reporting before submitting, because a reporting error can cause a decline on its own.
- 03 Match to a lender that accepts the fileSome lenders decline outright. Others price for it. We only submit where the file has a real chance, which protects your credit from repeated inquiries.
- 04 Set the return-to-prime planA specific target date, the credit accounts to establish, and the balances to hold. Usually a two to three year plan.
Want to know where you stand?
Start the application, or call 647-505-1096 and talk it through first.
Questions we get asked
- How long after a consumer proposal can I get a mortgage?
- Alternative lenders will often consider a file immediately after discharge, and sometimes during an active proposal if it is paid out through the mortgage. Prime lenders generally want two years of clean re-established credit after discharge.
- Can I use my home equity to pay out an active proposal?
- Frequently yes, if there is enough equity. Your trustee provides a payout figure and the funds go directly to them at closing. This ends the proposal early, which starts the credit recovery clock sooner.
- Does a proposal stay on my credit report forever?
- No. In Canada a consumer proposal generally remains on your credit report for three years after completion, or six years from the date of filing, whichever comes first. Timing varies between the two credit bureaus.
- Do you help me file a consumer proposal?
- No. We are mortgage agents, not Licensed Insolvency Trustees. Only an LIT can file a proposal. We arrange the mortgage financing side, and we are happy to work alongside your trustee.