My CP Journey - Updated

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Felize

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My CP Journey - Updated
« on: August 11, 2017, 12:49:44 PM »
Update of my CP Journey:
May 2015: filed CP. Spouse self employed income $90K, mine $50K. Spouse debt $50K + mine $25K. CP payments $400 x 60 months. No assets, was still renting an apartment. Both have RRSP + Two vehicles (1 paid off, 2nd was still paying).
November 2016: CP Full Performance (18 months after application)
November 2016: Meet with mortgage broker prior to full payment of CP. CP was not an issue with broker. Mortgage broker requested to get credit reports and fix errors. Broker wanted to ensure the reports are accurate. I asked if he wants the credit score, he replied that the score doesn't matter at this time. I submitted requests to Equifax and Transunion to correct errors.
December 2016:  Spouse Equifax credit score 533. My score 583. We both have secured and unsecured credit cards, 2 each. After errors were corrected, Spouse Equifax credit score 581. My score 634.
February 2017: Pre-approved with first mortgage  ;)
April 2017: Transunion spouse credit score 564. My score 600 (I observed that Equifax has higher scores vs Transunion). Cost to request credit score from Transunion is cheaper than Equifax.
June 2017: Bought my first home! 10% down payment, 80% 1st mortgage (3.69% interest), 10% 2nd mortgage (9% interest). 1 year term. Spouse being self employed is an issue with the bank. Lots of things to be considered. Easier if employed. No need for 2nd mortgage if you have 15% down payment.
>>> 2 years after CP- I am now enjoying my beautiful home! CONSUMER PROPOSAL IS THE BEST DECISION I EVER MADE DURING MY FINANCIAL DIFFICULTY.

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Jennykk

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Re: My CP Journey - Updated
« Reply #1 on: August 12, 2017, 01:00:10 PM »
Congratulations on completing the proposal and the new house, too!
Is the mortage rate fixed or variable?

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Wetcoaster

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Re: My CP Journey - Updated
« Reply #2 on: August 12, 2017, 06:03:28 PM »
Good for you.....I am amazed you were able to get a mortgage though with such low credit scores.

Was it with a big bank?

And filing the CP changed our lives and stress level 100%....best decision ever.

We filed our CP in July 2016 and paid it in full as of Jan 7 / 21017.

I am still working on getting all the errors corrected .... my Equifax  score is 659 and wife is 651(even though she makes $100,000 a year).
Transunion are much lower mine 567 hers 584


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Felize

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Re: My CP Journey - Updated
« Reply #3 on: August 13, 2017, 08:38:48 PM »
Congratulations on completing the proposal and the new house, too!
Is the mortage rate fixed or variable?

Thank you. The rate is fixed for one year. 
The plan is to renew in one year and to make the two loans (1st and 2nd mortgage) into one at lower interest rate. Hoping for higher home appraisal and higher credit scores in one year, these will help get better deals.
« Last Edit: August 13, 2017, 09:25:43 PM by Felize »

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Felize

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Re: My CP Journey - Updated
« Reply #4 on: August 13, 2017, 09:11:19 PM »
Good for you.....I am amazed you were able to get a mortgage though with such low credit scores.

Was it with a big bank?

And filing the CP changed our lives and stress level 100%....best decision ever.

We filed our CP in July 2016 and paid it in full as of Jan 7 / 21017.

I am still working on getting all the errors corrected .... my Equifax  score is 659 and wife is 651(even though she makes $100,000 a year).
Transunion are much lower mine 567 hers 584

I couldn't believe it too that I will be approved for a mortgage. I thought I need to wait for 3 more years after discharge and/or have 20% down payment. The CP was not even an issue with the broker. I think he could still help me with the mortgage even if I have not paid off the CP. He was not concerned of the credit scores. He was concerned of the credit reports and how much down payment I had. I didn't get the prime rate. Broker said I will not get the prime rate because my spouse is self employed.  Big banks would not approved me for a mortgage, I got my mortgage from a private financial institution.

When I was approved for a mortgage, I told my broker that I still couldn't believe it and that I will believe only when I have the key to my new home, and it really did happen. Amazing indeed!!!
« Last Edit: August 14, 2017, 01:44:34 AM by Felize »

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Jennykk

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Re: My CP Journey - Updated
« Reply #5 on: November 19, 2017, 04:25:04 PM »
Which mortgage broker did you use?

 

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