You can get a mortgage after a bankruptcy or a consumer proposal, and often sooner than you’d think. A-lenders, meaning banks and monoline lenders, generally want to see you discharged with a period of re-established credit before they offer their best rates. B-lenders can say yes sooner, at a higher cost, while you rebuild.
The date that matters most is usually your discharge date, not the date you filed. And the single biggest thing you control is re-established credit.
If you’re reading this because you went through a bankruptcy or a proposal, there’s no shame in it. It’s a legal process designed to give people a second chance, and lenders see it every day.
One sentence to take away: a mortgage after bankruptcy or a consumer proposal is realistic, the path just runs through B-lenders first for many borrowers, then back to an A-lender once credit is rebuilt.
The Timeline by Lender Type
The timeline depends entirely on which type of lender you approach, and every lender sets its own internal rules. Here’s the honest, directional picture, without pretending there’s one universal number.
A-lenders (the big banks and monoline lenders) typically want to see you fully discharged and carrying a period of re-established, on-time credit before extending their best pricing. That waiting period varies by lender and by the strength of your file, so no broker should quote you an exact number of years as a guarantee. Some A-lenders are more flexible than others depending on the size of your down payment and how clean your credit has been since discharge.
B-lenders (alternative and non-bank lenders) can often say yes sooner, sometimes shortly after discharge, because they price for the added risk with a higher rate and often a lender or broker fee. This is the bridge most people use: get into a mortgage now, keep every payment on time, then move to an A-lender once the file looks strong again.
Private lenders are the fastest option and the most expensive, and they’re generally treated as a last resort rather than a first move. They exist for genuinely urgent situations where speed matters more than cost. If that’s your situation, read our breakdown of private loans with quick approvals before deciding.
The key fact: A-lenders reward time and re-established credit with better rates, B-lenders trade a higher cost for speed, and the right choice depends on how urgently you need to buy or refinance.
Discharge Date vs Filing Date
The clock that matters for most lenders is your discharge date, not the day you filed for bankruptcy or signed your consumer proposal. Filing is the start of the process. Discharge is the legal end of it, the point where you’re released from the debts covered by the proceeding.
This distinction trips people up constantly. Someone might say “it’s been three years since I filed,” but if discharge happened two years ago, the lender’s clock is likely counting from that more recent date. Always know your exact discharge date and keep the paperwork that confirms it, because a lender or broker will ask for it.
The one-line fact: lenders generally count re-establishment time from your discharge date, not your filing date, so confirm that date precisely before you start shopping for a mortgage.
Bankruptcy vs Consumer Proposal
A bankruptcy and a consumer proposal are different legal processes, and lenders treat them differently even though both are fully recoverable. In a bankruptcy, you’re released from most unsecured debts through a formal discharge process. In a consumer proposal, you negotiate to repay a portion of what you owe over a set period, and once you complete the proposal, it’s considered settled rather than discharged in the bankruptcy sense.
Some lenders view a completed consumer proposal slightly more favourably than a bankruptcy, because it shows you repaid something rather than being released from the debt entirely. Others weigh them similarly. Either way, a proposal is not a bankruptcy, and a broker who knows the lender landscape can tell you which lenders are comfortable with your specific situation.
This is not legal or insolvency advice. For questions about the bankruptcy or proposal process itself, including your discharge status and any conditions attached to it, speak with your Licensed Insolvency Trustee. They handled your file and are the right professional to confirm the legal details.
The citable fact: bankruptcy and consumer proposal are distinct processes, both recoverable, and lenders may weigh a completed proposal differently than a discharged bankruptcy depending on their internal guidelines.
Re-Established Credit: The Real Requirement
Re-established credit, not the calendar, is what actually earns you better rates and A-lender approval. Time alone doesn’t rebuild your file. What lenders want to see is a pattern of new, well-managed credit after your discharge or proposal completion.
That usually starts small. A secured credit card, where you deposit cash against the limit, is the most common first step because almost anyone can get approved for one. Making small purchases and paying the balance in full every month builds a track record fast.
From there, adding a small instalment loan or a second trade line, and keeping every payment on time without exception, builds the depth of history lenders want to see. Brokers commonly reference a period of one to two years or more of clean, active credit, though the exact requirement varies by lender and by how the rest of your file looks. This is the one variable you fully control, and it matters more than almost anything else in this process.
The key fact: consistent, on-time re-established credit after discharge is the single biggest lever for moving from B-lender pricing to A-lender pricing.
The Recovery Path: B Now, A at Renewal
The honest broker recommendation for most people fresh out of bankruptcy or a consumer proposal is to use a B-lender as a bridge, then move to an A-lender once credit has recovered. This gets you into a home or refinance now, while you rebuild toward the better rate you’ll qualify for later.
Here’s how the three lender types typically compare. Every figure below is directional, since actual rates, fees, and timing depend on the specific lender and your file.
| Lender Type | Typical Timing After Discharge | Cost | Best For |
|---|---|---|---|
| A-lender (bank/monoline) | Later; varies by lender, generally after a period of re-established credit | Best available rates and lowest fees | Borrowers with rebuilt, on-time credit history |
| B-lender (alternative) | Sooner, sometimes shortly after discharge; varies by lender | Higher rate than A-lenders; lender or broker fee may apply | Bridging the gap while credit rebuilds |
| Private lender | Fastest, often available pre-discharge in urgent cases | Highest cost; short terms; fees on top of rate | Genuine emergencies or time-sensitive closings |
An illustrative example helps make the “B now, A later” math concrete. Say a borrower takes a B-lender mortgage of $350,000 for an assumed two-year bridge period while rebuilding credit, then refinances into an A-lender product once qualified. If the B-lender rate carries, illustratively, a 2 percentage point premium over the A-lender rate they’d later qualify for, that works out to roughly $7,000 a year in extra interest during the bridge period.
That cost is illustrative only, not a quote, and it is the price of getting into the market now instead of waiting. It shrinks the moment credit improves enough to refinance into an A-lender rate.
For A-lender context once you’re ready to move over, our comparison of big banks vs monoline lenders explains what changes once you qualify on that side of the market. And if a broker fee comes up along the way, who usually pays a mortgage broker’s fees breaks down who’s actually on the hook.
The takeaway: a B-lender bridge now, followed by a planned move to an A-lender once credit recovers, is the recovery path most brokers recommend for post-bankruptcy or post-proposal borrowers.
What a Broker Does in This Situation
A broker’s job here is to map your specific recovery route and match you to lenders who are actually comfortable with a recent discharge or completed proposal. Not every lender treats these files the same way, and a broker who works across dozens of lenders knows which ones will say yes today and which will say yes in another year.
Pekoe Mortgages is a licensed brokerage, FSRA Licence #13321 in Ontario and RECA licensed in Alberta. We look at your discharge date, your current credit picture, and your goals, then lay out a real plan: which lender fits now, what it costs, and when it makes sense to refinance into an A-lender product.
Have a question? Chat with our team or AI assistant directly on pekoe.ca.
The final fact: a licensed broker can identify which lenders currently accept your specific discharge timeline and credit profile, and can time your move to A-lender pricing once you qualify.
Frequently Asked Questions
How long after bankruptcy can I get a mortgage?
A-lenders usually want you discharged with a period of re-established credit before offering their best rates, while B-lenders can often approve sooner. The exact timing varies by lender, so there’s no single universal number to quote. A broker can tell you which lenders fit your specific discharge date today.
Does a consumer proposal count the same as bankruptcy?
No. Both are recoverable, but a consumer proposal is not a bankruptcy, and lenders treat them differently based on their own internal guidelines. A broker can walk through how your specific proposal or bankruptcy will be viewed by different lenders.
Does the clock start at filing or discharge?
Usually the discharge date, not the filing date. Know your exact discharge date and keep the confirming paperwork on hand, since lenders and brokers will ask for it.
Can I get a mortgage before I’m discharged?
Sometimes, through a B-lender or private lender, though generally at a higher cost. A-lenders generally want to see a completed discharge before they’ll approve a mortgage.
What’s the fastest way to qualify for good rates again?
Re-establish credit and keep every single payment on time. That is the main lever you control, and it matters more than waiting out the calendar alone.
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There’s no judgement here, only a plan. If you’ve been through a bankruptcy or a consumer proposal and want to know exactly where you stand today, talk to a licensed Pekoe agent privately, no pressure and no assumptions.
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