When you first applied for your Consumer Proposal , you were desperate to get rid of your debt balances and were running out of time. You may have not had enough equity in your home to refinance those debts instead or you were given advice to proceed with a debt settlement anyways. Regardless, staying in a Consumer Proposal keeps your credit score in a negative state. You will not be able to get a low mortgage rate or credit card rate for years. You will have limited access to mortgage lenders and other types of loan or credit providers. Most CP’s last up to 5 years worth of payments and many mortgage and credit lenders require that your credit rating is re-established with at least 2 years of revolving credit with 2 separate credit items. That means if you enter a Consumer Proposal , your credit score could be damaged severely for up to 7 years!
FACT: You can Refinance a Consumer Proposal at ANYTIME with your available Home Equity.
Use your home equity to apply now for a consumer proposal refinance. Start rebuilding your credit history today so you can get a low rate mortgage after your consumer proposal is paid off and closed.
– There are several mortgage lenders available who will offer to pay off your Consumer Proposal and do so with a reasonable interest rate. A short term can be done for 2 or 3 years so that after the term is finished and your credit has improved, you can refinance again with a lower rate and use any mortgage lender or bank. Apply today for a consumer proposal mortgage .
– Refinance Consumer Proposal to eliminate the monthly payments. Now you can save money and cash flow on those old consumer proposal payments by including them in a new mortgage refinance.
Don’t waste your valuable credit score by staying in a Consumer Proposal. If you have home equity available then take advantage of today’s low mortgage rates and starting improving your credit now.