Steps to take following a Bankruptcy

If you’ve had a previous bankruptcy or consumer proposal don’t worry!  There are still many lenders in the prime-space which will lend to you if you follow the correct steps.

Lenders will accept a mortgage application after you’ve been discharged from your bankruptcy for a minimum of 2 years, and they you have at least 1 trade-line in your personal name (not joint) for a minimum of 2-years.

A trade-line could be a pre-paid credit card, an auto loan/lease, or a line of credit.

If you’ve had a bankruptcy, the first steps to take you should take once you’ve your “discharged from bankruptcy” letter is to obtain a  secured prepaid credit card as soon as possible, and to start using it actively.

While using this secured credit card do not exceed a balance of 50%, and don’t miss any payments for the full 2-years. During this time, try to increase your card limit from the usual $500 limit to a $2000 limit. A higher limit will provide more lenders to choose from once your credit is re-established.

After they have a gone through this 2-year process your credit will be considered re-established so you are able to qualify for high-ratio and default insured mortgages at prime banks.

If you have any questions please contact me at 778-215-4121.

Thanks,