Rebuilding Credit After a Consumer Proposal

If you’ve recently completed a consumer proposal, first of all—congratulations. Taking that step shows responsibility, courage, and a real commitment to turning things around financially. As a mortgage broker here in Canada, I work with clients every day who are working hard to rebuild their credit and buy a home after coming out of tough financial situations. So if that’s your goal, you’re not alone—and you’re not out of options.

Step 1: Rebuild Your Credit the Smart Way
Once your consumer proposal is paid in full, your focus should shift to rebuilding your credit. Here’s how to get started:

• Get a secured credit card and use it responsibly (keep balances low, pay in full). For the purposes of a mortgage pre-approval you should have 2 new trades opened after the proposal is paid in full. Each should have a minimum of at least $2000 of credit.
• Make every payment on time, whether it’s utilities, phone bills, or rent.
• Keep your credit utilization below 30%—this is key.
• Monitor your credit score regularly so you can track your progress.

Within 12 to 24 months of consistently good behaviour, you’ll start to see real improvements.

Step 2: Qualifying for a Mortgage After a Consumer Proposal
Yes—it’s absolutely possible. Here’s what lenders usually want to see before approving a mortgage after a proposal:

• At least 2 years of re-established credit history (though some alternative lenders will consider you sooner). Meaning two new tradelines opened since the end of the consumer proposal with perfect repayment history for 2 years.
• A minimum credit score (often 600+, but it depends on the lender).
• Stable, verifiable income.
• A reasonable down payment—ideally at least 10% if you're going through an alternative lender.

Final Thoughts
Life happens. A consumer proposal doesn’t mean homeownership is off the table—it just means the path looks a little different. If you’ve put in the work to pay off your proposal and rebuild your credit, you’re already on the right track. I’d love to help you take the next step toward homeownership when you’re ready.