Consumer proposal (mortgage impact)

Discharged bankruptcy — mortgage impact

A discharged bankruptcy stays on the credit file for 6-7 years in Quebec. A-lenders generally require 2 years post-discharge with a rebuilt credit file to approve a mortgage.

Credit rehabilitation

Process of rebuilding a credit file after financial problems (late payments, collections, bankruptcy). Involves opening new secured credit lines and timely payment over 12-24 months.

Credit score (Beacon score)

Numerical score between 300 and 900 summarizing borrower risk. Calculated by Equifax (Beacon) and TransUnion. Threshold 680 for standard A, 720+ for best rates.

B lender mortgage (alternative lender)

Mortgage granted by a non-bank lender to borrowers whose file does not pass A-lender criteria (atypical income, imperfect credit). Higher rates, origination fees.

Private lender

Individual or company lending against mortgage security outside the banking system. High rates and fees; used for files refused at A and B levels.