Monday, November 15, 2010

Toronto Homeowners Qualify For Mortgage Financing To Pay Off Consumer Proposals.

If you are in a consumer proposal and own your home, good credit may be closer than you think. If you have some equity in your home, there are lenders that will consider extending you a mortgage IF the consumer proposal is paid off in the process.

A consumer proposal stays on your credit for 3 years from the date it is paid in full, so the faster you pay it off, the faster it will be off your credit. If you were in a 4 year consumer proposal and made the payments over the full 4 years, the proposal would remain on your credit report for a total of 7 years.

You cannot expect to walk into a bank or finance company, in a consumer proposal and qualify for any credit. Finding a lender that offers mortgage financing to a consumer who is in a consumer proposal will involve a relationship with a good mortgage broker.

Mortgage brokers deal with private individuals and businesses that invest in real estate and are licensed to arrange mortgage on behalf of these private investors. Normally, private investors will only loan money to a consumer who is in a consumer proposal on an equity basis.

In effect, the more equity you have in your home, the more likely you will be to qualify for the mortgage refinancing you will need to pay off your consumer proposal.

If you refinance your home and pay off your consumer proposal, you can begin re-establishing your credit immediately. You can start off by obtaining a secured credit card that will report to your credit report.

Two years after your consumer proposal is paid off and with two years of strong re-established credit, you may qualify for mortgage financing at the bank again! Remember, after 3 years all existence of the consumer proposal will disappear from your credit report.

For more information about qualifying for a mortgage to pay off a consumer proposal. Visit www.firstequity.ca.

1 comment:

  1. After reading this site I got lot of information about Mortgage Broker Toronto . This site is very informative for us.

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