🏡💥 Mortgage Guide: Getting Approved in Canada After Bankruptcy

Bankruptcy can feel like the end of financial possibilities — but in Canada, it doesn’t have to be. Thousands of Canadians are approved for mortgages every year after bankruptcy, consumer proposals, or major credit setbacks. With the right preparation and the right lender match, homeownership is still absolutely achievable.



Dealerhop, partnered with Homewise, helps you compare mortgage options from 30+ banks, credit unions, and alternative lenders, giving you a far better chance at finding a lender willing to work with your situation. Instead of visiting banks that may automatically decline post-bankruptcy applications, Homewise identifies which lenders are open to second chances and which programs you qualify for based on your timeline, income, credit rebuild, and down payment.

🔄 Understanding Bankruptcy & Mortgage Eligibility in Canada

Canada’s mortgage rules depend heavily on the type of bankruptcy you filed and how long it has been since your discharge. Traditional banks generally require strong credit recovery and a clean financial track record for at least two years. But not all lenders follow the same rules — and that’s where Dealerhop + Homewise changes everything.

Some alternative lenders accept applications immediately after discharge, as long as income is stable and a reasonable down payment is available. Others offer competitive terms after 12 months of re-established credit. Homewise compares all possible lenders so you don’t waste time applying where you’ll get an automatic “no.”

🌟 How Dealerhop + Homewise Supports Canadians After Bankruptcy

🧭 Personalized Mortgage Profiling

You fill out a simple online application. Homewise instantly creates a profile that represents your financial recovery story, not just your past bankruptcy.

🏦 Lender Matching From 30+ Institutions

Many people post-bankruptcy only check with one major bank — and get declined. Homewise finds lenders who actually work with discharged bankruptcies, consumer proposals, or credit rebuild situations.

💸 Multiple Tailored Mortgage Options

You see clear options that suit your stage of recovery, whether it’s an alternative lender mortgage, a short-term rate, or a path to return to “A” lenders in the future.

🧑‍💼 Guided Support From a Real Advisor

Your Advisor helps you understand approval timelines, down payment expectations, credit requirements, and the fastest ways to improve your eligibility.

💡 Tips to Get Approved for a Mortgage After Bankruptcy

🌱 Rebuild Your Credit the Right Way

Lenders want to see at least two new, active trade lines after bankruptcy. A secured credit card or small limit card works perfectly.

🕒 Let Time Work in Your Favour

Most banks want two years after discharge. Alternative lenders may accept you sooner — sometimes immediately.

📄 Keep Your Documents Clean & Organized

Recent pay stubs, discharge paperwork, debt summaries, and proof of re-established credit all help strengthen your file.

🧮 Show Responsible Financial Behaviour

Stable employment, consistent savings, and zero missed payments demonstrate recovery and reliability.

💰 Save a Healthy Down Payment

Post-bankruptcy borrowers often need 10–20% down, depending on the lender and timeline since discharge.

⚠️ What to Watch Out For After Bankruptcy

🚫 Predatory Lenders With Extreme Rates

Some lenders target people recovering from bankruptcy with aggressive terms. Homewise avoids these and steers you toward reputable institutions.

🚫 Low Teaser Rates With Harsh Penalties

Always check for hidden penalties, fees, and inflexible terms. Homewise Advisors explain everything clearly.

🚫 High-Risk Variable Mortgages

If your financial recovery is still recent, a fluctuating payment may add stress. Many post-bankruptcy borrowers start with a fixed-term product for stability.

🚫 Ignoring the “Exit Strategy”

Your first mortgage after bankruptcy might not be your forever mortgage. Homewise helps you build a plan to return to “A” lenders.

🧮 Realistic Post-Bankruptcy Mortgage Scenarios (Examples)

🟦 Example 1: Discharged 3 Months Ago

A borrower recently discharged with stable income but limited credit may be approved by an alternative lender. The rate may be higher at first, but Homewise builds a 12–24 month plan to refinance at a better rate later.

🟦 Example 2: Discharged 1 Year Ago

A borrower with two active credit lines, clean repayment, and 15% down payment qualifies for a competitive short-term mortgage with a credit union specializing in recovery clients.

🟦 Example 3: Discharged 2+ Years Ago

A borrower with rebuilt credit, strong employment, and a solid down payment often returns to an A lender like a major bank, securing excellent rates similar to traditional applicants.

👍 Pros of Using Dealerhop + Homewise for Post-Bankruptcy Mortgages

• Access to lenders who actively work with discharged bankruptcies
• Personalized mortgage matching based on your recovery
• Step-by-step guidance through the entire process
• Transparent terms and advice, no judgment
• Pathway to refinance into better rates later
• Fully online, fast, and free

👎 Cons to Be Aware Of

• Some post-bankruptcy rates may be higher at first
• Down payment requirements may be larger
• Not all lenders accept recent bankruptcies
• You may need to refinance later for best long-term savings

🎉 Rebuild, Recover, and Restart With Dealerhop + Homewise

Bankruptcy doesn’t define your future — and it doesn’t stop you from becoming a homeowner in Canada. Dealerhop and Homewise help you access lenders who believe in second chances, support your financial comeback, and provide mortgage options designed for real recovery.

If you’re ready to rebuild and move forward, applying takes only minutes, costs nothing, and gives you access to more lenders than you could ever reach on your own.

Your comeback story starts here — and homeownership is still within reach. Ready when you are.