There is more than one path
Often, yes - but only if the borrower and property fit a lender whose guidelines address the specific issue. There is no useful one-size-fits-all answer here, because lenders assess risk in different ways. For Ontario borrowers, the practical question is which lender category can support the file at a cost and term that still make sense.
Private lenders can sometimes finance borrowers after bankruptcy
For this particular question, available equity and a marketable property can matter more than meeting a prime credit score.
Private financing should have a defined purpose
What changes the answer is that it may bridge the borrower until credit is rebuilt, a property is sold, or income can be documented, but the exit needs to be realistic.
Review the full cost carefully
A useful distinction is that higher rates, lender fees, legal costs, and renewal risk mean private money should be compared with every lower-cost alternative first.
What can hurt
If the bankruptcy was caused by a failed business but the borrower now has stable employment and clean recent credit, lenders may assess that differently from ongoing financial instability.
Documents to have ready
- For the review, collect a current credit report and explanation for major negative items
- For the review, collect recent income documents and proof of employment or business activity
- For the review, collect statements showing down payment, home equity, or existing mortgage balances
- For the review, collect a list of monthly debts and any amounts that will be paid out at closing
Talk to Approval Path Mortgages
The answer becomes much more useful when it is tied to the borrower’s actual timeline and property. Approval Path Mortgages can review the file, compare suitable lender categories, and explain the cost and trade-offs before another application is submitted.
No credit check. No documents. No obligation.
General information only; mortgage approval and terms vary by lender and borrower. Not legal, tax, insolvency, or financial advice.