Yes, you can get a mortgage after bankruptcy in Canada, and the stage you are at decides who will lend. During a bankruptcy, almost no one lends to you directly, because the trustee holds your non-exempt equity. After discharge, a private lender can lend on your equity right away at 8-13% plus fees. B-lenders such as Home Trust and Equitable usually lend 1-2 years after discharge at 6.5-9%, sometimes sooner with 25-35% equity. Banks and insured mortgages usually want 2 years after discharge and two rebuilt credit accounts. Lenders and brokers call this bruised credit, and it is a normal file for us.

What happens to your home and mortgage in a bankruptcy?

Bankruptcy does not erase your mortgage. A mortgage is secured debt, so it stays, and you keep the home as long as you keep paying it. What changes is the equity. Each province protects only a small amount of home equity in a bankruptcy. Anything above that belongs to your creditors, through your Licensed Insolvency Trustee. In BC, Alberta and Ontario, most homeowners have far more equity than the province protects. That is why trustees usually recommend a consumer proposal to homeowners instead.

If you are already bankrupt and own a home, the trustee will want to be paid for that equity. You can sell, have a family member buy out the trustee's share, or refinance to pay the trustee. That last one is where a private lender can help, with the trustee's written agreement. Ask your trustee for the payout figure before you call any lender.

Can I renew my mortgage during or after bankruptcy?

Often, yes. If every payment has been on time, many lenders renew without re-qualifying you. But renewal is the lender's choice, and some decline once they see a bankruptcy on the file. If your lender sends a non-renewal letter, you need a new lender before maturity: a B-lender if you are discharged and have strong equity, or a 12-month private first mortgage if not. See mortgage renewal denied for the weeks-before-maturity plan.

What each lender type does with a bankruptcy, November 2026

	Bank or insured	B-lender	Private
Undischarged (still bankrupt)	No	No	Case by case, to pay the trustee, with the trustee's agreement
Renewal of an existing mortgage	Often yes if payments are clean; not guaranteed	Case by case	Yes, on equity
Discharged under 1 year	No	Some, with 25-35% equity	Yes, to 65-75% LTV
Discharged 1-2 years, credit rebuilding	Usually no	Yes, 6.5-9%	Yes, but a B-lender is cheaper
Discharged 2+ years, two clean trade lines	Yes	Yes	Not needed
Rate	4.5-5.5%	6.5-9% + 1% fee	8-13% + 2-3% fees

Ranges for files we place. Your equity matters more than your score. A second bankruptcy narrows every column.

A real-world example: discharged 10 months, renewal refused

A homeowner in Surrey. First bankruptcy, discharged 10 months ago. House worth $1,050,000. First mortgage of $560,000 matures in four weeks, and the lender will not renew. Two secured cards opened at discharge, both paid on time.

	Private first, 12 months	B-lender now (if approved)
Loan to value	53%	53%
Rate	8.99%, interest-only	7.49%, 25-year amortization
Monthly payment	About $4,200	About $4,100
Fees	About 2.5% plus legal and appraisal	About 1% plus legal and appraisal
Next step	B-lender refinance at month 12	Bank at renewal, 2+ years after discharge

We send the file to B-lenders first. At 53% loan to value, some will approve a 10-month discharge. If none will, the private first buys the year needed to rebuild. Both numbers go to you in writing before you sign.

Province notes

BC

Bankruptcy is federal, so the rules are the same everywhere. High Lower Mainland equity often means a B-lender will say yes within the first year. BC page.

Alberta

Lower home values mean less room under the 65-75% private limit. A B-lender with 20-25% equity is often the better first call in Calgary and Edmonton. Alberta page.

Ontario

FSRA's two-business-day borrower disclosure applies to private mortgages. Only a Level 2 agent or broker may arrange one. Ontario page.

The way back to a bank after bankruptcy

Discharge. Get your discharge certificate from the trustee. Every lender asks for it.
Month 0-1. Open two secured or starter credit cards. Use them lightly and pay them in full.
Months 1-12. Every payment on time, including the mortgage. Card balances under 30%. Tax returns filed.
Months 9-12. We pull your credit and test the file with B-lenders. A private first moves to a B-lender here.
24 months after discharge. With two clean trade lines and a score near 650+, a bank or insured mortgage is usually possible.

The bankruptcy stays on your credit report for about 6-7 years after discharge for a first bankruptcy, and 14 years for a second. Lenders care more about what you have done since. See the month-by-month exit plan.

Advisor going over paperwork with a young couple on their living-room sofa as they sign — You talk to a licensed broker who has seen bruised credit files many times, not a call centre.

Bankruptcy mortgage questions

Can I get a mortgage while I am still bankrupt?

Rarely. While you are undischarged, the trustee holds your non-exempt property, and you must tell any lender you are bankrupt before borrowing more than $1,000. The usual exception is a private loan, arranged with the trustee's agreement, that pays the trustee for the equity in your home.

How long after bankruptcy can I get a mortgage in Canada?

From a private lender, the day you are discharged, if you have the equity. From a B-lender, often 1-2 years after discharge, sometimes sooner. From a bank or with CMHC insurance, usually 2 years after discharge with two re-established credit accounts.

Can I buy a house after bankruptcy?

Yes. Right after discharge it usually takes 20-35% down and a B-lender or private lender. Two years after discharge, with rebuilt credit, many buyers qualify with a bank, sometimes with as little as 5-10% down on an insured mortgage.

What is a bruised credit mortgage?

A mortgage for someone whose credit has been damaged by late payments, collections, a consumer proposal or a bankruptcy. B-lenders and private lenders make them. Your equity and your plan to rebuild matter more than your score.

Is a consumer proposal better than bankruptcy for a homeowner?

Usually, yes, if you have equity. A proposal lets you keep the home and its equity, and it leaves your report sooner. Ask a Licensed Insolvency Trustee; they are the only people who can file either. See consumer proposal and your mortgage.

Sources. Office of the Superintendent of Bankruptcy, "Bankruptcy" and discharge rules · Bankruptcy and Insolvency Act, s. 199 (credit over $1,000 while undischarged) · Hoyes Michalos, "How long does bankruptcy stay on your credit report?" · Equifax Canada and TransUnion Canada reporting periods · CMHC re-established credit guidance · FSRA private mortgage consumer scenario · Mortgage Directory private rates, October 2026.

Real people, not a call centre

Talk it through with a licensed broker before you decide

Tell us what is going on in a few lines. We call you back the same day with what lenders will say, what it costs in dollars, and how you get back to a bank. If private is the wrong tool, we say so.