House rich, cash poor

Consumer Proposals - Individuals
Hamilton, Ontario

What Happened?

We were planning to use home equity to consolidate debt a couple of years back. Then the mortgage regulations changed and the bank said CMHC was no longer insuring refinanced mortgages and that we didn’t have enough equity to refinance without it. So we were left with equity but no way to use it to alleviate the financial pressure created by our debts.

We weren’t quite sure what we do, so we went to my husband’s bank (not the one where we had applied for the mortgage) and applied for a consolidation loan. They said our debt ratios were too high and declined us. We had wanted to explore debt relief options but were concerned about our home.

The Solution!

Thankfully we were able to file for a Consumer Proposal, which reduced our debt in half, left us with a low monthly payment, and we were able to keep our home and vehicle.