What You Need To Know About Bankruptcy!

Re-Financing a Mortgage In Consumer Proposal:

Re-finance of Consumer Proposal

You might be in the midst of a Consumer Proposal, but there may be a way to shorten the time required to pay it out and begin building your credit again. TDFS is a division of Toronto Dominion Bank. They have recently launched a mortgage option for those who are in a Consumer Proposal and have paid as agreed for a 1 year term.

The Mortgage will allow clients to refinance their home (provided they have equity) and pay out the remaining Consumer Proposal. The greater benefit is that the new mortgage would report to the credit bureau and aide in the restoration of a clean Beacon Score. TDFS (Toronto Dominion Financial Services) will consider the 1 year of repayment of the Consumer Proposal as re-established credit for the purposes of obtaining the refinance.

Instead of taking 3 or 5 years to pay a Consumer Proposal in full, the time could be reduced to just 1 year. While the interest rate is higher than a traditional mortgage, the rebuilding of credit and completion of the Consumer Proposal is off set by leaving the Proposal behind and having a fresh start. At the end of this TDFS mortgage, a client should have clean credit and be able to apply for a competitive mortgage through a national lender without higher rates or the possibility of being declined for financing.

If you are in this situation, please contact us today and find out if we can assist you!

Every Canadian deserves a home they can call their own. Let “Your Durham Region Mortgage Solutions Team” at Mortgage Intelligence help you with a low rate solution! Apply today & save!

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Bankruptcy

What You Need To Know About Bankruptcy!

Some Basic Facts About Bankruptcy

2008:

Personal Bankruptcy – 38,637

Consumer Proposal - 14,657

Total: 53,294

2009:

Personal Bankruptcy – 48,729

Consumer Proposal – 20,765

Total: 69,494

In 2009 the number of insolvencies in Ontario increased by 30.4% over those in 2008.

Stats are from Office of the Superintendent of Bankruptcy Canada.

Bankruptcy is a legal process, in which a bankruptcy trustee will be appointed to you

Before considering bankruptcy you should make sure you are aware of all the different options available to you bankruptcy should be considered your last resort.

Another option you might want to consider is a debt consolidation loan or debt settlement service. This will allow you to merge all of your monthly debts into one manageable monthly payment.

You may also want to consider a consumer proposal. This is an alternative to filing for bankruptcy in Ontario. A trustee will arrange for you to make monthly payments that you can afford in order for you to deal with your debts, and hopefully avoid bankruptcy.

When you file for bankruptcy in Ontario you are able to keep certain things which are referred to as exempt assets. Please read our article entitled Assets You Keep in Bankruptcy for more information.

In order to be discharged from a bankruptcy in Ontario you must also attend two credit counselling sessions. You will discuss budgeting and ways to rebuild your credit once you are discharged from your bankruptcy.

Once you are in bankruptcy you are required to make monthly payments to your trustee. This amount is based on your monthly income. This process will be explained to you by your trustee and if you have any questions about the calculation your trustee will be able to answer them.

Financial problems do not happen over night nor do they get remedied that fast, so please remember the earlier you take action the earlier you will be able to start fresh and start to rebuild your credit once again.

Bad things happen to good people! We want to be the ones to make something good happen when you need a mortgage, to buy a home or refinance. “Your Durham Region Mortgage Doctor” will treat you with respect and guide you to an approval. Contact us!