How long after bankruptcy, a consumer proposal, or foreclosure can you get a new mortgage?

After a bankruptcy discharge, how long each tier of lender waits

Private lenders move fastest — in theory you could apply the day after discharge, but expect a down payment north of 15% and the highest rates and fees of the three tiers.

The middle tier (usually called alternative or subprime lenders) typically starts considering applications three months to a year after discharge, with down payments commonly in the 15%–20% range.

Prime, CMHC-insured lending usually wants a full two years since discharge, plus at least one year of on-time payments on two credit products (say, a credit card and a car loan) within that window, a credit score roughly back up to 650–680, and down payments starting around 5%–10%.

The real difference between the three tiers isn't "can I get approved" — it's "what does getting approved right now cost." The more urgent it is, the more it costs.

A consumer proposal — the clock starts at "completed," not "started"

Prime lenders generally count two years from when the proposal is fully paid off, not from when it started. CMHC-insured mortgages have the same two-year-post-completion requirement, and there's no real way around it within those two years short of a 20%+ down payment that avoids needing mortgage insurance in the first place.

Alternative lenders generally don't require the full two years — exactly how soon varies — but in exchange they'll want a bigger down payment and a higher rate.

One option people often miss: if the goal is paying off what's left of the proposal (not buying a new home), some lenders will work with you even before the proposal is fully complete — that's a specific "clear the debt using home equity" product, different from "buy a home after completion." Whether it applies to you depends on the specifics.

Foreclosure or power of sale sticks around longer than most people expect — but you don't have to wait for it to disappear

A foreclosure or the related court judgment typically stays on your credit report for six to ten years (the exact span varies by bureau and province).

But you don't need to wait for it to vanish from the report. Generally, lenders start reconsidering around the two-year mark, provided you can show the risk picture has actually changed — stable income, a fresh track record of on-time payments, enough of a down payment. Prime banks tend to be the last to come around on this one; alternative lenders are usually willing to listen sooner, at a higher rate.

All three show up on your report as an outcome, not a reason — someone has to explain the reason

The report just says "bankruptcy" or shows a foreclosure record — it doesn't say whether it was a divorce, a failed business, or a bad month. The same entry can mean very different things, and how willing a lender is to work with you depends on that context, which never shows up automatically. It has to be laid out when you apply.

Same principle as the bruised-credit page: lenders are reading what happened and whether things are stable now, not just the headline result at the top of the report.

A few things worth doing regardless of which of the three applies to you

Keep your discharge or completion certificate — a lender will ask for it.

Start rebuilding with whatever small credit product you can get approved for, even a secured credit card, and pay it on time. Most lenders weight your recent track record more than your credit limit.

Decide up front whether you'd rather move sooner (and accept an alternative lender's cost) or wait it out for the best rate with a prime lender — neither is inherently the right call, it's a trade-off worth running the actual numbers on before deciding.

Common questions