Can a private lender give me a mortgage during a consumer proposal?

The answer depends on context

Often, yes - but only if the borrower and property fit a lender whose guidelines address the specific issue. A mortgage that works on paper still needs to fit the borrower’s cash flow, property, and longer-term plan. This is best approached as a mortgage-planning question: identify the constraint, quantify the available strengths, and select a lender whose guidelines match both.

Private lending may be available during a proposal

In practice, the focus can be heavily weighted toward property value and available equity, but the borrower still needs a viable repayment plan.

The transaction must make financial sense

From an underwriting perspective, using expensive secured debt to deal with unsecured obligations can be appropriate in some cases and harmful in others. Compare the cost and legal consequences carefully.

Coordinate with the trustee

For this particular question, any plan involving proposal payout or restructuring should be discussed with the Licensed Insolvency Trustee and legal advisers as needed.

When an alternative lender may fit

A borrower who completed a proposal and then maintained clean new credit for a meaningful period presents a different risk than someone still in an active proposal with new missed payments.

Documents to have ready

• a current credit report and explanation for major negative items
• recent income documents and proof of employment or business activity
• statements showing down payment, home equity, or existing mortgage balances
• a list of monthly debts and any amounts that will be paid out at closing