Mortgages with credit challenges: your options in Ontario
Past credit issues, bankruptcy, consumer proposals or late payments do not automatically close the door to homeownership or refinancing. Alternative lenders look beyond credit scores to your property equity, job stability and income potential. I connect you with flexible options and map out a step-by-step path back to prime bank rates.
What pathways exist for non-standard credit?
Consumer proposal and bankruptcy exit
Solutions to pay out an outstanding proposal early, or to finance a purchase once you are discharged.
Alternative B-lenders
Institutional lenders with flexible credit criteria, in exchange for higher rates and fees. They use income and home equity as the main approval drivers.
Short-term private solutions
Temporary equity-based financing for urgent situations, built with a clear exit plan back to a traditional lender.
Run your numbers
How much equity a refinance could unlock, up to 80% of your home’s value, and what is left after paying off debt. Change any value and the result updates as you type.
Credit cards, loans, lines of credit.
OwedAvailable20% stays
Equity you could access
$340,000
- 80% of your home’s value
- $760,000
- Current mortgage balance
- -$420,000
- Left after paying off the debt
- $302,000
A refinance is a new mortgage, so it is tested at the stress test rate, and a prepayment penalty may apply if you break your term early. Estimate only, not a mortgage offer or approval. Rates and terms vary by lender.
How do we rebuild your financial baseline?
Comprehensive credit review
We analyze your full credit report for errors, collections or high utilization holding your score down.
Structured alternative financing
We secure a competitive short-term mortgage with a lender that accepts your current credit status.
Credit repair roadmap
We set up active rebuilding steps, such as secured cards or credit builder loans, during your mortgage term.
Prime transition
At renewal, we review your improved score and move your mortgage back to a lower-rate prime lender.
Questions, answered
Can I get a mortgage while I am in an active consumer proposal?
In some cases, yes. Certain alternative and private lenders allow you to refinance your home equity and pay out your consumer proposal at closing. That has credit and cost implications, so I walk through them with you first.
How much down payment is required if I have poor credit?
Alternative lenders typically ask for a minimum 20% down payment or 20% equity in the property, because equity acts as the main security for the loan.
Related
Rules and figures current as of October 2026.