Posted: 1 Dec '18

How Can a Mortgage Broker Help You Get a Mortgage After Bankruptcy?

Bankruptcy is something no one wants to face, but sometimes it's necessary to clear one's debt and re-establish a good credit rating. The good news is that there are steps you can take to get back on track financially and even qualify for a mortgage after bankruptcy. Here's how a mortgage broker can help guide you through the transitional period following your bankruptcy.

Faster Bankruptcy Discharge

The sooner your bankruptcy is discharged, the sooner it will fall off your credit report, so it's important to fulfill your bankruptcy requirements as quickly as possible. When applying for a mortgage after bankruptcy, lenders will look at the length of time that has passed since you were discharged, the amount of your down payment on a property, and/or the equity you've built up in a home you already own to determine your mortgage rate. A mortgage broker can help you find a good bankruptcy trustee and provide you with resources for completing your discharge.

Mortgage Refinancing

If you already own a home, a mortgage broker can help you refinance your mortgage after bankruptcy, so you can pay out your proposal earlier. Mortgage brokers maintain professional relationship with lenders that work exclusively with individuals whose have undergone bankruptcies and can negotiate on your behalf to find a solution that works for you.

Alternative Lenders

Obtaining a mortgage after bankruptcy can be difficult if you're only looking at prime lenders (i.e. the "big banks"). Mortgage brokers have access to alternative lenders like trust companies, credit unions, and private mortgage companies that will approve financing, regardless of the borrower's credit history. And since a mortgage broker only needs to pull your credit report once, you avoid having your credit score damaged by multiple credit inquiries when applying for a mortgage after bankruptcy.

Better Mortgage Terms

If you've been discharged from your bankruptcy for less than two years, you may still be able to get approved for a mortgage, but you'll require a larger down payment and be charged a much higher interest rate. Working with a mortgage broker gives you access to special rates and loan products that aren't available to the public and carry more favourable terms.

If you've undergone bankruptcy, it's important to begin repairing your credit as soon as possible. Contact us for help in creating a plan to complete your proposal and qualify for a mortgage after bankruptcy.

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