Lending Options for Discharged Bankrupts and Proposal Clients with Real Estate Equity
At Assadi Private Capital, we provide private mortgage financing to Canadians who have recently completed bankruptcy or are currently under a consumer proposal. Our goal is simple: to offer short-term, asset-secured lending to individuals who no longer qualify for institutional financing but have significant equity in their home or other real estate.
We work exclusively through licensed mortgage brokers and financial professionals. Whether your client is emerging from insolvency, planning a consolidation, or needs a reset before returning to a traditional lender, we can help.
Why Post-Bankruptcy Clients Need Private Mortgages
Bankruptcy is a legal remedy, not a financial death sentence. In many cases, borrowers who file for bankruptcy:
• Retain ownership of their home or other secured real estate
• Have meaningful equity but limited access to credit
• Face restrictions on refinancing, even after discharge
• Are unable to renew with their existing lender due to credit flags
• Have cash flow but cannot satisfy institutional documentation requirements
Traditional lenders often impose a 2–3 year waiting period after discharge, even for borrowers with perfect payment histories on secured debt. We take a different approach. If the equity is real and the exit plan is viable, we will fund.
Who We Can Help
We provide post-bankruptcy mortgages to:
• Discharged bankrupts needing to refinance or consolidate
• Proposal clients (current or paid out) looking to exit early or restructure
• Borrowers rejected by banks due to credit score or insolvency history
• Self-employed individuals emerging from restructuring
• Homeowners at risk of foreclosure after bankruptcy if renewal is denied
We do not require perfect credit, standard income, or notice of assessments. We underwrite based on equity position, repayment strategy, and loan purpose.
Common Use Cases
• Paying out a consumer proposal or final bankruptcy condition
• Consolidating debts that survived bankruptcy (e.g., CRA, support arrears)
• Refinancing an existing private mortgage taken during insolvency
• Funding home repairs or capital needs after discharge
• Preventing foreclosure where renewal or extension was denied
• Stabilizing until the borrower can qualify with a B-lender or institutional bank
Loan Parameters
• Loan size: $50,000 to $500,000+
• LTV: up to 75%, depending on location and property
• Term: 6 to 12 months (interest-only)
• Security: 1st or 2nd mortgage on residential or mixed-use real estate
• Timing: Commitments issued in 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.
Important Notes on Lending During or After Bankruptcy
• Current bankruptcy filings usually require trustee approval or discharge before new credit can be granted
• Consumer proposals that are partially paid may still allow for private mortgage financing to pay out the balance in full
• Lending to a spouse or family member may be an alternative strategy where the bankrupt party cannot register debt in their own name
• CRA debt and support arrears survive bankruptcy and can be consolidated if equity permits
• We always recommend coordination with a licensed trustee or legal advisor when lending into post-insolvency scenarios
We are experienced in working with insolvency professionals, understand the BIA framework, and act in accordance with any court orders or trustee constraints.
We Work With Professionals, Not Directly With Borrowers
All applications must come through a licensed mortgage broker or regulated intermediary. We do not solicit consumer debt files and we do not lend on unsecured basis.
If you are a broker, LIT, or financial advisor representing a client who needs a post-bankruptcy mortgage, we encourage you to contact us. We are prepared to underwrite quickly, offer creative structuring, and close files that institutional lenders won’t consider.
Let’s Work Together
To submit a post-bankruptcy mortgage file for review:
• Ensure your client holds or has access to real estate equity
• Prepare a basic summary of the bankruptcy history and discharge status
• Indicate current mortgage details, arrears (if any), and intended loan use
• Send supporting documentation as available (e.g. proposal documents, appraisals, pay-out statements)
You may submit directly through our secure broker portal or call us to discuss terms. Assadi Private Capital is ready to support borrowers in transition, and help your client move forward.