Second mortgage after a year in proposal

by Derek
(Oakville, Ontario)

I have a house in Oakville Ontario and want to know if i can get a second mortgage after a year in proposal.

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Jan 15, 2015
Second Private Mortgages and Consumer Proposal
by: Marie

Derek, thank you for your question.

Since your question does not have much detail, I will give you an answer that fits a couple of scenarios.

1. You are discharged and your consumer proposal is paid in full.

The short answer is YES you can get a second mortgage after you have been discharged from your consumer proposal.

Private mortgage lenders will look at your income, area, value of your home, how much equity there is now and how much equity will be left over after the second mortgage has been registered on title.

2. You have not been discharged yet and are still making payments on your proposal.

If you are still in a consumer proposal but have lots of equity in your home as well as a good job, then it depends on your trustee and the private lender.

If the Trustee still has an interest in your home then in order to place a 2nd mortgage, the private lender will have to pay off the money owing on the proposal first and you get money left over money after fees.

If you still owe money on your proposal but your Trustee confirms in writing that they have no interest in your home, then the lender will consider giving you a second private mortgage while leaving the consumer proposal in place. Again, enough equity will be needed and you must be able to make payments on the first and second mortgage.

And remember, as soon as you are discharged from your consumer, you will need a secured credit card to re-establish your credit and get you back on track - follow to get your application. Almost everyone qualifies.

I hope this helps.

Marie Copeland, FSU Hamilton mortgage broker also arranging Burlington mortgages including Oakville to Toronto to Niagara and throughout Ontario.

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