Owning your first home is an exciting milestone, but for many people, it may seem like a hopeless or impossible dream. If you want to purchase a home in the next few years, but currently find yourself in debt, a Licensed Insolvency Trustee (LIT) can help.
Your first step towards owning a home of your own is to get your finances in order – in particular, to resolve any debts that are outstanding. By meeting with a qualified and experienced LIT who will review and assess your financial situation, you can determine together the best course of action based on your future financial goals. A Consumer Proposal in Toronto may be the preferred solution, and your LIT can work with you to get back on track so that purchasing a home can be an attainable goal for the future.
Steps You Can Take to Get Back on Track
A Consumer Proposal is a legally binding process in which an offer is made to your creditors to settle your debts for a fraction of your total outstanding amount. Once you have decided to file a Consumer Proposal, there are a few steps you can take to get your finances back on track in order to help you potentially secure a mortgage down the road.
- First and foremost, do not miss any monthly payments as required by your Consumer Proposal. Each month you will be expected to make a fixed payment, which stays consistent throughout the duration of your agreement. Failing to make payments on time may cause you to be in breach of the agreement.
- Attend two financial counselling sessions with your LIT, within the first 7 months of filing the proposal. This is a requirement for all Consumer Proposals, and will provide you with a workable plan to manage your money and avoid financial difficulty in the future.
- Pay off your Consumer Proposal as quickly as possible. This is important because most lenders won’t approve a mortgage until at least two years after you have paid off your Consumer Proposal.
- Rebuild your credit rating. Open a bank account at a bank where you have no debt. Be diligent in paying off any credit cards on a timely basis, and avoid carrying over a balance each month.
Every Financial Situation Is Unique
Remember, every person’s financial situation is unique! Whether you live in Toronto or Hamilton, it is important to meet with a qualified LIT who has years of experience and knowledge in helping people become debt-free.
When you schedule a free consultation with Fuller Landau Debt Solutions, you will be matched with a Trustee who will thoroughly assess your current financial situation. Our team has worked with many families who hope to become homeowners, and we can help you navigate through the process of becoming debt-free, prior to owning your first property.
While a Consumer Proposal is a great solution for many, it is not the only solution. Other options like credit counselling, debt consolidation, or Bankruptcy may be more effective for you. Take the first step to leading a FULLER life in a home of your own – reach out for a free consultation, today.