Column: Mortgage after bankruptcy can happen

Kelowna mortgage specialists dole out advice on buying homes

Is it possible to successfully obtain a mortgage after a Bankruptcy?

Many Canadians find themselves bogged down with a poor credit rating resulting from situations out of their control—illness, losing a job, or simply not understanding how to handle their credit.

Unsatisfactory financial situations can happen to good people and bankruptcy is sometimes the only option. If you have a bankruptcy it is very important to begin repairing your credit and getting back on track as soon the bankruptcy has been discharged.

Different lenders have different criteria regarding the length of time after a bankruptcy discharges as to when they will consider granting a mortgage.

Typical is two years along with proof of re-established credit. A bankruptcy will remain on your credit bureau for up to seven years.

A private or alternate lender will consider approving a client with a more recent bankruptcy provided the borrower can demonstrate they are now a good credit risk and have a decent down payment with income to support the mortgage payments.

The reasons for a bankruptcy are very important to a lender when considering a new mortgage application. If it was due to factors beyond your control that is more acceptable to the lender than if it were the result of excessive debt and poor money management.

Typically a 10 per cent down payment is required after a two year discharge and the down payment must come from your own resources. Gifted down payments are not considered.

Depending on the time lapse since the bankruptcy has been discharged, some lenders will charge a higher rate and in some cases a fee.

A lender will grant a more favorable rate if certain lending criteria have been met. The important factors considered by a lender two years after bankruptcy has been discharged are good re-established credit, minimum beacon score, down payment from your own resources, good debt servicing ratios and good job stability.

Re-established credit is most important as it demonstrates to the lender that a prospective borrower has new credit and has managed it as agreed since the bankruptcy.

Typically a lender will look for two lines of well established credit for two years. A missed payment during this stage could very well be grounds for the mortgage application to be declined.

Mortgage consultants will provide valuable advice and work with you through the process of repairing your credit and preparing you for home ownership.

Of Prime Interest is a collaboration of mortgage professionals Trish Balaberde (250-470-8324), trishb@creativemortgage.ca; Darwyn Sloat (250-718-4117), dsloat@creativemortgage.ca; Christine Hawkins (250-826-2001), christine@creativemortgage.ca.

To report a typo, email: edit@kelownacapnews.com.


@KelownaCapNews
newstips@kelownacapnews.com

Like us on Facebook and follow us on Twitter.

Just Posted

Kelowna students awarded for their heritage research

The Okanagan Regional Heritage Fair was held April 24

Kelowna Civic and Community Awards announced

The winners were announced tonight at the Kelowna Community Theatre

Kelowna dragon welcomed to the den

Lane Merrifield is the new dragon on Dragons’ Den

Lake Country man facing assault charges

A woman was seriously injured after an alleged aggravated assault on April 22

State of emergency issued for Mill Creek

Risk of flooding increases as runoffs from higher elevations reach the valley bottom in Kelowna

VIDEO: B.C. ‘escapologist’ stuns judges on Britain’s Got Talent

Matt Johnson says televised water stunt was closest he’s come to death

NAFTA talks hold Foreign Affairs Minister in Washington, substitute heads to NATO summit

NAFTA talks keeping Foreign Affairs Minister Chrystia Freeland, sends substitute to NATO summit

Britain gives long-lost Franklin expedition ships to Canada, Inuit

Deeds to HMS Erebus and HMS Terror signed over to Canada and Inuit Heritage Trust

Grief over deadly Toronto van attack sinks in

Three days after rampage, people still gathering at memorial to lay flowers and honour victims

Liberals urged to tax e-commerce services like Netflix

Trudeau has been adamant that his government wouldn’t increase taxes on online subscriptions

Why some B.C. daycares didn’t opt in to subsidy program

Deadline passes for program aimed at laying foundation for universal child care

WATCH: Moms Stop The Harm respond to opioid crisis

Someone asked her if she does the work for her son. McBain said: “No, actually. I do it for your son.”

Haley Blais tackles social norms through music tour

Haley Blais encourages people not to be discouraged by social norms and to be who they are

Been a long day? Here’s cute puppies in training

Group is training next batch of assistance dogs at Vancouver International Airport

Most Read