Credit & Your Situation
Bad Credit and Bankruptcy, Explained
Past credit trouble doesn't have to close the door on a mortgage.
Updated for 2026
A bankruptcy, a consumer proposal, or a rough stretch with your credit doesn't automatically rule out a mortgage. Lenders who specialize in these situations look at your full picture, not just a score.
What lenders typically look for
- Whether your bankruptcy or consumer proposal has been fully discharged
- A track record of on-time payments since then, even on something like a secured credit card
- Steady income and a reasonable debt load relative to that income
- How much you can put down — a larger down payment opens up more lenders and better terms
The exact requirements vary by lender, so the fastest path forward is usually a conversation with a broker who can match you to the right one.