Credit recovery
Bad Credit Mortgage in Toronto: How to Get Approved and Rebuild
A lender, B lender, or private — here's how to pick the right step today.
The three lender tiers
- A lenders (banks, monolines, big credit unions) — require strong credit, full income proof, stress test
- B lenders (Equitable, Home Trust, etc.) — accept bruised credit, flexible income, ~1% lender fee, higher rates
- Private lenders — equity-driven, short-term, highest cost
The 12-24 month rebuild plan
- Pay every account on time, every month — payment history is ~35% of your score
- Keep utilization under 30% on each revolving account; under 10% is ideal
- Don't close old cards — length of credit history matters
- Limit new credit inquiries to what you actually need
- Pull your free credit report and dispute genuine errors
Frequently asked questions
+Can I get a mortgage after a consumer proposal?
Yes. B lenders typically require the proposal to be paid in full and 1–2 years of re-established credit. A lenders typically require 2 years post-discharge with re-established credit.
+How long after bankruptcy can I get a mortgage?
B lenders may consider you 1 year post-discharge with re-established credit. A lenders typically want 2 years post-discharge with strong re-established credit.
Keep going
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