Refinance Consumer Proposal - Oshawa Mortgage Intelligence

Refinance Consumer Proposal - Oshawa Mortgage Intelligence

Refinanace Consumer Proposal
Consumer Proposal as a way of managing over whelming debt can be a good solution.

Once a person realizes that there is no way to carry high interest rate payments, a Trustee can assist in negotiating with creditors to ease the burden.

On average it takes 5 years to pay out a Consumer Proposal. But there is a way to shorten the time if there is equity in your home.

Lenders that will re-finance a Consumer Proposal want to know you have paid as agreed for a minimum period of 1 year. An appraisal determines if there is enough equity to pay out the balance of the Proposal. If the numbers work then either a new first mortgage or a small second mortgage are prepared.

In most cases a Second Mortgage is the best choice. Breaking a first mortgage can mean paying a penalty and the first mortgage is generally at a favorable rate. So breaking it for a mortgage with a higher rate isn’t optimum.

Since you are paying out a Consumer Proposal you will be viewed as having bad credit. Therefore the mortgage to pay out the balance owing will be a higher rate.

Why pay out a Consumer Proposal if the rate is high?

It can take 7 years to restore credit if a Consumer Proposal is not paid out at the end of the first year. If the refinance takes place, the total time to restore credit can be as little as 3 years. So despite slightly higher costs for a second mortgage, many people consider it a 2-3 year plan to rebuild their financial house.

Refinancing a Consumer Proposal requires that there is equity in the home and it takes an experienced Mortgage Agent to guide the process. Call us to show you how to pay out your Proposal and rebuild your credit now! We’re toll-free at 866-452-1100

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