Lending Solutions for Clients in or Emerging from Consumer Proposals
At Assadi Private Capital, we provide secured private mortgage financing to Canadians who are currently in a consumer proposal or have recently completed one. Many of these individuals hold substantial equity in their homes but are rejected by banks and trust companies due to credit score issues or insolvency flags.
We lend based on equity, exit strategy, and borrower intent, not rigid credit thresholds. If the asset is strong and the proposal is active, we are often able to help where institutional lenders cannot.
Why Proposal Clients Struggle to Get Financing
Consumer proposals are an increasingly common legal mechanism for Canadians to restructure unsecured debt. Unlike bankruptcy, a proposal does not necessarily result in asset loss. In fact, many individuals in consumer proposals:
• Continue to own their homes throughout the proposal period
• Make regular payments to a trustee, with full disclosure of debts
• Cannot refinance with major lenders due to credit damage or policy barriers
• Face high rates on renewal or denial of renewal entirely
• Would benefit from refinancing to pay out the proposal early and rebuild credit
Traditional lenders typically require a 2-year waiting period after full proposal completion before offering refinancing. We offer a path forward sooner.
What We Offer
We provide first and second mortgages to borrowers:
• Currently enrolled in a consumer proposal (mid-term or near-completion)
• Just paid out their proposal and are rebuilding credit
• Looking to exit their proposal early with a lump-sum payout
• Denied renewal or refinance due to proposal status
• Seeking equity to cover tax arrears, legal fees, or necessary home repairs
We can also consider loans to family members or spouses, in cases where the primary borrower cannot take on new credit during the term of the proposal.
Loan Parameters
• Loan amounts: $50,000 to $500,000+
• Security: Residential or mixed-use real estate (1st or 2nd position)
• Max LTV: Up to 75% depending on property and location
• Term: 6 to 12 months (interest-only)
• Pricing: Reflects short-term, non-institutional risk
• Timing: Commitments within 24–48 hours; funding in as little as 3–5 business days
We lend in Manitoba, Alberta, Atlantic Canada, and select parts of Ontario and Saskatchewan.
Proposal Payouts: A Strategic Use of Private Mortgages
In many cases, a borrower with real estate equity can refinance with a private mortgage to pay off the remaining balance of their proposal. This allows them to:
• Exit insolvency earlier
• Rebuild credit faster
• Avoid proposal completion delays
• Qualify for conventional mortgages sooner
We frequently work with mortgage brokers and LITs to structure proposal payout strategies, especially when timed near the midpoint of the proposal term.
Important Considerations
• Trustee consent may be required, especially if the client is still within an active proposal
• The borrower must retain legal ownership of the property
• Private funds may not be used to pay unsecured creditors directly unless structured as a proposal payout
• Co-borrowers or family members may be used to facilitate registration if the primary borrower is restricted
We work closely with brokers and trustees to ensure compliance with all requirements under the Bankruptcy and Insolvency Act.
We Work Through Professionals
All applications must come through a licensed mortgage broker, financial advisor, or insolvency professional. We do not deal directly with consumer borrowers.
If you have a client in a proposal and sufficient equity exists, Assadi Private Capital can often deliver financing where banks say no. Our underwriting is fast, practical, and structured around real-world borrower needs.
Let’s Work Together
If you’re brokering a deal or advising a client in an active or completed consumer proposal, and the file requires short-term, equity-based financing, contact us today.
• We issue terms within 48 hours
• We close in days, not weeks
• We lend where institutional lenders won’t
Submit your file through our website or call us to discuss the details. Assadi Private Capital is committed to helping your clients reset, rebuild, and recover, with dignity and speed.