Can I get a mortgage during a consumer proposal in Quebec?

Sometimes yes, typically through private or select alternative lenders, and in many files a refinance can pay the proposal out in full at closing, which ends it early and starts credit rebuilding immediately. After completion, options widen with every month of re-established credit. Equity and income documentation decide most of it. No approval is guaranteed.

When is it better to finish the proposal rather than refinance it?

When the remaining balance is small and the refinance cost outweighs the time saved, when equity is thin, or when the current payments are comfortable and credit is already rebuilding. The refinance is a tool for cutting years off the recovery, not an obligation.

Mortgage During or After a Consumer Proposal in Quebec

The direct answer: Financing exists during an active proposal, and a refinance that pays the proposal out at closing can end it years early and start the credit rebuild immediately. Completed proposals with a documented clean rebuild read as rehabilitation, not risk, in the right programs.

Why this file is complex

Mainstream guidelines treat an active proposal as a stop sign regardless of payment history. The proposal freezes credit rebuilding while it runs, so waiting out the full term often means years more limbo after it ends. Equity, the trustee's payout figures and income documentation all have to line up at once.

What David checks

Proposal status: months in, payments current, remaining balance and payout figure
Equity available and what structure survives the payout
Income documentation under the programs that accept active or recent proposals
What caused the proposal, and whether that cause is resolved
The rebuild plan: secured cards, utilization, checkpoints
The exit date: when this file re-approaches mainstream lenders

What documents or facts change the answer

A payout figure the equity can absorb changes everything. Twelve months of perfect proposal payments reads well even mid-proposal. Post-completion, every month of clean re-established credit widens the lender list. A spouse with intact credit may change the structure entirely.

When a different path may exist

If refinancing mid-proposal does not fit, completing it and bridging afterward on a short alternative term may reach mainstream pricing on nearly the same calendar. The comparison deserves numbers, not assumptions.

When waiting or not proceeding may be safer

Near the natural end of a proposal, paying the remaining months is often cheaper than any refinance. Thin equity makes a payout refinance fragile. And if current payments are comfortable, the calendar may already be doing the work.

Ask David to Review the Scenario

Send the scenario, not sensitive documents: what happened, the numbers, the timeline. Straight answer within a business day, including an honest none of this fits yet when that is the truth.

Send David the Scenario

No approval is guaranteed. Mortgage availability, rate, terms, and conditions depend on lender underwriting, borrower profile, documentation, property type, jurisdiction, and timing. Insolvency decisions belong with a licensed insolvency trustee; this is not legal or insolvency advice. David H. Nataf, courtier hypothécaire. Licensing context: Groupe Hypothécaire Orbis (AMF 3001986744, Québec); Orbis Mortgage (NMLS 2583431, USA); individual NMLS 2613311.