Quick answer
Often, yes - but only if the borrower and property fit a lender whose guidelines address the specific issue. This is a common question for Ontario borrowers whose finances do not fit a standard bank application. In this case, the useful starting point is the reason a conventional application may not fit and which lender type is designed to assess that exact issue.
Refinancing during a proposal is more complex than a simple renewal
In practice, the transaction may be intended to consolidate debts, pay out the proposal, or access equity, and each purpose changes the analysis.
Equity can create options
From an underwriting perspective, homeowners with sufficient equity may have alternative or private financing possibilities even when conventional lenders are not available.
Coordinate all parties
For this particular question, the mortgage broker, lender, lawyer, and Licensed Insolvency Trustee may all need accurate payout and settlement information before funds can be advanced.
What can improve the result
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
Talk to Approval Path Mortgages
The goal should be a financing path that solves the immediate issue without creating a harder problem later. 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.