Can I get a mortgage after a consumer proposal in Ontario?

Often, in steps: in Ontario, many people get a mortgage after a consumer proposal, always subject to lender approval. An alternative lender generally comes first, while the proposal is recent or still on your credit report, then a bank, credit union or monoline lender once your credit is rebuilt. A consumer proposal comes off your Equifax and TransUnion credit reports 3 years after all the debts in it are paid or 6 years after you signed it, whichever comes first (source: Financial Consumer Agency of Canada, "How long information stays on your credit report", page dated July 2026, checked October 2026).

When the proposal comes off your credit report

The FCAC rule gives two dates, and the earlier one counts. Two illustrative timelines:

• Paid off early. You sign in January 2024 and pay the proposal in full in June 2024. Three years after payment is June 2027; six years after signing is January 2030. The proposal comes off in June 2027.
• Paid over the full term. You sign in January 2022 and make the last payment in January 2027. Three years after payment is January 2030; six years after signing is January 2028. The proposal comes off in January 2028.

Finishing the payments sooner can bring the date forward, but only up to the six-year limit. Bankruptcy follows different timelines: usually 6 years after discharge, and 7 years with TransUnion in Ontario (same FCAC source). Checking your own credit report does not affect your score (source: FCAC, checked October 2026). Use your own credit report to confirm the proposal drops off when it should.

Why alternative lenders often come first

Banks and monoline lenders generally look closely at recent credit history. Alternative lenders, often called B lenders, generally accept more flexible credit at a higher cost than a bank. Alternative-lender terms are often one to two years. What is a B lender, and when does it make sense? explains how B lenders work.

For a mortgage with default insurance, CMHC's rules include a credit score of at least 600 for one borrower (source: CMHC, checked October 2026). The minimum score is one condition among several, not a promise of approval.

What lenders generally look at after a consumer proposal

• Whether the proposal is paid in full, and if not, how much is left. Many lenders ask for the paperwork showing when you signed and when you finished.
• Credit rebuilt since: new accounts, such as a secured card, paid on time every month.
• Income the lender can verify and a down payment, or equity if you already own.
• The stress test with a federally regulated lender, as for any borrower. See What is the mortgage stress test?

The path back to a bank

If a bank can't lend yet, we look at other banks, credit unions and monoline lenders first. Next is an alternative lender where one fits. Last is a short private bridge from Stonefield Capital, our private-lending brand, with a written plan back to a bank.

Many borrowers who start with an alternative lender move to a bank at a later renewal. The move comes once the proposal is off the borrower's report and their credit and income meet the bank's rules. Timing the move for the end of a term avoids a prepayment penalty. The steps are the same ones described in How do I get back to a bank lender after a private mortgage?

What to do next

If you have finished a proposal, or are close, use our call-me-back form. We'll look at your dates, map which lenders fit now and which may fit later, and write the plan down with you.