A bankruptcy makes a mortgage harder to get for several years, but not impossible. The timeline starts at discharge: lenders look at how long ago it was, how well credit has been rebuilt since and how large the down payment is. This page covers when discharge happens, how long the bankruptcy stays on the credit report, rebuilding credit afterwards and what each type of lender typically expects. It is part of the mortgage lenders and brokers guide.
A consumer proposal follows a different timeline: it comes off the credit report sooner and lenders generally view it more favourably. Getting a mortgage after a consumer proposal covers that path, and the guide to consumer proposals and bankruptcy compares the two processes.
When discharge happens
The Office of the Superintendent of Bankruptcy sets the automatic discharge dates (OSB), as long as the bankrupt attends 2 financial counselling sessions and no one opposes the discharge:
| Bankruptcy | No surplus income payments | With surplus income payments |
|---|---|---|
| First | 9 months after filing | After 21 months of payments |
| Second | 24 months after filing | After 36 months of payments |
Surplus income and what the trustee collects are explained in the insolvency guide.
How long a bankruptcy stays on your credit report
| Situation | Equifax | TransUnion |
|---|---|---|
| First bankruptcy | 6 years after discharge | 6 years after discharge (7 in Newfoundland and Labrador, Ontario, Prince Edward Island and Quebec) |
| More than one bankruptcy | 14 years | 14 years |
Source: FCAC, how long information stays on your credit report. How long bankruptcy stays on your credit covers checking that the discharge and removal are recorded correctly.
Timeline to a mortgage after a first bankruptcy
The stages after discharge are typical lender practice, not rules; each lender and mortgage insurer sets its own.
| Phase | Typical timing | Mortgage options |
|---|---|---|
| Bankruptcy filed, not yet discharged | Until discharge | Generally no mainstream mortgage; private lenders only in some cases |
| Discharged | From discharge | B-lender and private mortgages become possible, with a large down payment |
| Credit rebuilding | The first year or two after discharge | More B-lender options as new credit history builds |
| Re-established credit | Often about two years or more after discharge | Some mainstream (A) lenders, including insured mortgages where the insurer agrees |
| Bankruptcy off the credit report | See the table above | The full range of lenders, judged on the current credit file |
After a second bankruptcy, mainstream lenders usually want a much longer record of rebuilt credit, and the bankruptcy stays on the report for 14 years.
Rebuilding credit after discharge
| Step | Typical timing | Why |
|---|---|---|
| Secured credit card | Soon after discharge | Starts a new record of on-time payments |
| Small purchases paid in full each month | Ongoing | Builds payment history without carrying debt |
| Second card or credit-builder loan | After several months | Adds another account in good standing |
| Unsecured card | After about a year or more of clean history | Shows lenders extend credit again |
| Credit check before applying | Before contacting lenders | Confirms the discharge is recorded and the file has no errors |
A prepaid card doesn’t build credit, because it isn’t a loan reported to the bureaus. Rebuilding credit after bankruptcy covers the steps in detail, and improving your credit score before a mortgage covers what lenders look for in the rebuilt file.
Lender options after bankruptcy
Which lenders will look at the file depends mostly on how long ago the discharge was and how much new credit history there is; types of mortgage lenders explains the tiers themselves.
- Private lenders can lend at any point, sometimes even before discharge, because they lend against the property’s equity rather than the credit file. The loans are short, carry fees on top of the rate and need a plan to refinance; private mortgage lenders covers how they price and what an exit plan looks like.
- B-lenders usually start considering a borrower from discharge, typically with 20% or more down, verified income and a letter explaining the bankruptcy. Terms are often short so the borrower can move to a bank once the file improves; the B-lender roundup compares them and the B-lender mortgage guide explains how they underwrite.
- Banks, credit unions and other A-lenders generally want re-established credit with a clean record since discharge, often for about two years or more, and then apply their standard rules, including the usual minimum down payment where the mortgage can be insured.
Below 20% down, the mortgage insurer has to approve the file too. For a CMHC-insured purchase, at least one borrower or guarantor needs a credit score of 600 or more; CMHC may use other ways to judge creditworthiness for a borrower with no credit history. The other insurer conditions and the premiums are in what CMHC mortgage insurance is.
Mortgage pricing rises from A-lenders to B-lenders to private lenders. Mainstream pricing is on the current mortgage rates page; whether to buy sooner at a higher rate and refinance later, or to wait for a bank rate, is discussed in how to get a mortgage with bad credit.
What lenders want to see
| Factor | What to show |
|---|---|
| Explanation letter | What happened and what has changed since |
| Stable employment | Ideally a year or two or more with the current employer |
| Savings pattern | Regular deposits in bank statements |
| Rebuilt credit | Two or more active accounts with a perfect payment record |
| No new collections | No new negative items since discharge |
| Down payment source | A clean, documented down payment, not new debt |
Common questions
Can I still use the Home Buyers’ Plan or an FHSA?
Eligibility for the Home Buyers’ Plan and the FHSA depends on the first-time buyer rules, not on credit history, so a past bankruptcy doesn’t by itself make you ineligible.
Does my discharged bankruptcy affect my spouse’s mortgage?
| Scenario | Impact |
|---|---|
| Spouse applies alone | The lender assesses the spouse’s own credit and income |
| Joint application | Both credit histories, including the bankruptcy, are considered |
| You’re on title but not on the mortgage | Varies by lender; some require everyone on title to be on the mortgage |
Steps to a mortgage after bankruptcy
| Step | When | Action |
|---|---|---|
| 1 | Right after discharge | Start rebuilding credit with a secured card |
| 2 | Within the first months | Get a free credit report and confirm the discharge is recorded correctly |
| 3 | About a year after discharge | Check the score and the file’s progress |
| 4 | When the file is ready | Talk to a broker who works with post-bankruptcy borrowers; questions to ask a lender or broker covers what to check |
| 5 | Before house hunting | Get a mortgage pre-approval from a lender in the tier that fits the file |
| 6 | When ready | Buy with a down payment that suits that lender tier |
Related articles
Sources
The figures and rules on this page come from these sources, last checked against them between September 25, 2026 and September 29, 2026. How we check facts.
- CMHC: CMHC Purchase
- Financial Consumer Agency of Canada: How long information stays on your credit report
- Financial Consumer Agency of Canada: How much you need for a down payment
- Government of Canada: You Owe Money—Bankruptcy Discharge and its Consequences for the Bankrupt