Can You Get A Mortgage After Bankruptcy?

September 14, 2021 | Posted by: Sherry Corbitt

Have you just got out of bankruptcy recently? If so, you may wonder if you can get a mortgage loan. The simple answer is yes. It is possible, yet it may not be an option for some recently in bankruptcy. However, if you are determined to get a mortgage, there certainly are some things that you can do to make this possible. 

Recover Your Credit Score

The first thing to do is to establish what your credit score is. It should not be a surprise that your credit score will be low since you are still recovering from bankruptcy, along with months to years of debt. Once you know your score, you can have a good picture of how high you will need to bring it up. To get a mortgage with a reasonable rate from most lenders, your credit score should at least be 680. Compared to what your current credit score is at, the difference could be significant. Building your score to this amount will take time and effort. The more you put into improving your credit score, the faster it will be for you to reach an eligible amount for a mortgage loan. There are many ways that you can improve your credit score, even within a few months. Start by cleaning up your credit report, as this is the main thing that lenders may look at. As well, settle any payments of yours that still need to be paid off.

Paying Off Your Taxes

Along with making your remainder debt payments, you must pay off any taxes that have not been paid. Although you have been released from bankruptcy, it is still vital to pay these taxes off. Not only will Canada Revenue charge you interest, but you also will likely not be able to get a mortgage. Lenders will want to see tax return paperwork, which shows your record of paying taxes. When they know that you have not spent, they will certainly reject your mortgage application. To avoid being in this situation, sit down and evaluate the taxes that have not been paid off yet. Once you have paid, you can call Canada Revenue directly and ensure that they have received the payment. It should take them a few weeks to update your new tax return paperwork. After receiving it, you can feel assured that a lender will consider offering you a mortgage. 

Saving For Your Down payment

After cleaning up your credit score and taxes, the next thing to focus is saving up to pay for your down payment. The more significant the down payment amount you have, the more likely a lender will accept you for a mortgage. Therefore, you should try aiming for at least a 20% down payment of the mortgage amount. A 20% or higher down payment offers better rates and, as mentioned earlier, will give you more selection with lenders. However, you most likely may not have a 20% down payment after fixing your credit score. That is why waiting at least a few months, up to a year, would be wise. Within this time, you can save up and have a sizeable down payment prepared. Although waiting longer may seem more frustrating, going from lender to lender with a smaller down payment will be much more tiresome. 

Having Paperwork Ready

When you first begin the mortgage process and begin speaking with a lender, it is vital to have all your paperwork prepared. It will be helpful for the lender when you openly explain your bankruptcy situation and show him your statements. This will save the lender time finding out about it, and it will also show them how serious you are about getting this mortgage. If you do not have your paperwork on hand, you can quickly go online or call The Archives of Ontario. They will either send you the documents in electronic or paper format. Do not worry about providing every single copy that you have on file. The lender will guide you on what documentation they will need, and you can proceed from there.


Before the lender gives you a mortgage loan, they will want to see that you can make regular payments. They will want to evaluate if you have a steady job and what you are making. They also may consider your bank statements to see your spending habits. To ensure that a lender is pleased with what they know, watching how you spend your money is essential. You will need to maintain low expenses, especially on other payments. They do not want to see you overspending when you are trying to get a mortgage. Although it can be challenging to do so, it will pay off when you find different methods in keeping your budget low. Your lender will trust you that you can make your payments and will ultimately feel confident in providing you with your mortgage loan.


Getting a mortgage after bankruptcy can be strenuous, yet it is certainly more than possible when you take the right actions to progress.

If you have any questions or concerns about getting a mortgage after bankruptcy, please contact me!

Sherry Corbitt, Mortgage Broker



-Hoyes, J. Douglas (2020). How to Get A Mortgage Even After Bankruptcy. Hoyes Michalos. Retrieved from

-Mortgage Approval Help (2020). 6 Crucial Steps to Mortgage Approval Post Bankruptcy. Retrieved from

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