Thursday 4 April 2013

Bankruptcy and Mortgages

Question: How long do I have to wait to get a mortgage after bankruptcy?

Answer:
The waiting period varies, here is a list of what is commonly available among my lenders.

3 years discharged, *BFS 5 years discharged; 2 trades re-established for 2 years
2 years discharged, 1 year re-established credit / min. 1 trade line; no property inc. in bankruptcy
2 years discharged with 2 years re-established credit
3 years discharged, with 2 years of re-established credit
2 years discharged,with 2 years re-established on 2 trades or more(credit cards)
3 yrs discharged with 2 yrs re-est, clients under 4 yrs discharged rate premium
2 years discharged with 1 year re-established; rate premium
2 years discharged, 1 year re-established on min. 1 trade line ( credit card)

With some Lenders it is as soon as 3 years and others are 4 or 5 years.
*BFS- Self Employed (Business For Self)

Mortgage Insurers

CMHC 2 years discharged, with 1 year re-established credit.
Genworth 2 years discharged, with 2 years re-established credit; no property involved.
CG 2 years discharged, with 2 years re-established credit.

If you are in more of a hurry, a Private Lender will lend, depending on your story. With private lenders, they charge higher interest.

1 comment:

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