Can You Get a HELOC After a Consumer Proposal or Bankruptcy?

Quick answer: Yes, you can get a HELOC after a consumer proposal or bankruptcy in Canada, but the timeline depends on lender tier, not a fixed rule. Private lenders can work with strong equity during an active file; B-lenders like Equitable Bank and Home Trust typically open 12-24 months after completion or discharge; A-lenders need roughly 2-3+ years. The bigger constraint is the 65% HELOC loan-to-value cap, which matters more than credit score alone.

Last updated: August 2026. The Bank of Canada held its overnight rate at 2.25% on July 15, 2026 — the sixth consecutive hold — with the next rate announcement scheduled for September 2, 2026. Prime sits at 4.45% and the Big-5 standard HELOC rate is around 5.45%, according to WOWA.ca (August 2026).

If you’re still weighing a consumer proposal against other options, or haven’t filed yet, start at the consumer proposal hub or talk to a Licensed Insolvency Trustee through find-lit before assuming a HELOC is off the table for years — it usually isn’t, but the path is narrower than a standard HELOC application.

Can You Get a HELOC After a Consumer Proposal or Bankruptcy?

Yes. A consumer proposal or bankruptcy does not permanently disqualify you from a HELOC in Canada, but it does route you through a different lender tier for a period of time. Private lenders can work with strong equity even during an active file; B-lenders open first, typically 12-24 months after completion or discharge; A-lenders (the Big 6) come last, generally at the 2-3+ year mark, depending on credit rebuild and equity position.

The mistake most readers make is treating this as a mortgage question with a HELOC label. It isn’t. A HELOC carries its own regulatory loan-to-value ceiling that a purchase mortgage doesn’t, which changes what “enough equity” actually means after an insolvency.

How Does the 65% HELOC LTV Cap Change What You Need After Insolvency?

The Office of the Superintendent of Financial Institutions (OSFI) caps the revolving HELOC portion of any real estate secured lending product at 65% loan-to-value, under its Guideline B-20 clarification on innovative real estate secured lending products. That 65% ceiling applies even inside a combined re-advanceable mortgage-and-HELOC structure, where the overall combined limit is 80% — the extra 15% must be amortizing, non-revolving credit, not additional HELOC room.

For a post-insolvency borrower, this matters more than the “20% down” framing used for purchase mortgages. A HELOC applicant needs to be at or under 65% LTV on the revolving piece specifically, which in practice means carrying more real equity than a standard mortgage borrower needs, especially at B-lender and private-lender tiers where pricing already runs above prime.

That last row is why private lenders working with post-insolvency borrowers often structure the loan as an amortizing second mortgage rather than a true revolving HELOC — it gives them room the 65% HELOC cap doesn’t.

What Do You Need to Qualify for a HELOC After a Consumer Proposal or Bankruptcy?

1. A completed proposal or a discharge certificate. Lenders want to see the file closed, not active, before they’ll consider a standard HELOC application — get the certificate of performance or discharge document from your Licensed Insolvency Trustee and confirm both Equifax and TransUnion reflect the updated status.
2. Enough equity to clear 65% LTV on the HELOC portion, not just a 20% down payment. Run your numbers through the HELOC borrowing capacity calculator before applying anywhere.
3. A credit score matched to your lender tier — roughly 680+ for A-lenders, 550-680 for B-lenders (at a rate premium), and no firm floor at private lenders who underwrite on equity, according to industry underwriting guidance (Pegasus Lending, 2026).
4. A clean payment record since filing, especially on your existing mortgage. One missed mortgage payment during a proposal or post-discharge period does more damage to a HELOC file than the insolvency itself.
5. Stable, documentable income — T4 employment is the easiest file to underwrite at every tier; self-employed borrowers should expect the same Notice of Assessment and gross-up process used for any HELOC application.
6. A realistic lender-tier expectation. Applying to a Big 6 bank 8 months post-discharge wastes a hard inquiry and delays your file at the tier that will actually approve you. Start with a mortgage broker who works post-insolvency files.

How Long After Discharge or Completion Can You Get a HELOC?

There is no single government-mandated waiting period for a HELOC after insolvency — unlike CMHC’s fixed 2-year rule for insured mortgages, HELOC timelines are set by individual lender risk policy. The ranges below reflect mortgage broker and lender guidance rather than a regulatory citation, and mirror the same tiered structure used for post-insolvency mortgages, adjusted for the tighter 65% HELOC LTV ceiling.

Two things worth noting. First, bankruptcy timelines run longer than consumer proposal timelines at every tier — a proposal signals negotiated repayment, while bankruptcy discharges debt without repayment, and lenders price that difference into how long they wait. Second, a second bankruptcy pushes A-lender access out further still, generally beyond the 3-year first-bankruptcy window, consistent with the longer thresholds noted on mortgage after bankruptcy.

Which Lenders Actually Offer HELOCs After a Consumer Proposal or Bankruptcy?

Equitable Bank, Home Trust, MCAP, and Merix are the B-lenders most commonly cited by Canadian mortgage brokers for post-insolvency home equity files, generally opening 12-24 months after completion or discharge with 20%+ equity and a credit score in the 550-680 range. Above that tier, credit unions and eventually the Big 6 banks become realistic as the file ages and credit rebuilds.

Below the B-lender tier, private lenders and MICs are the option during an active proposal or shortly after discharge, but as noted above, they typically deliver that equity access as an amortizing second mortgage rather than a revolving HELOC, since a true HELOC’s 65% cap and their own risk pricing rarely make a revolving structure attractive to them this early.

Can You Get a HELOC During an Active Consumer Proposal or Bankruptcy?

Rarely as a true revolving HELOC, but sometimes as an amortizing second mortgage if equity is strong. Private lenders and some B-lenders will underwrite equity-based financing during an active proposal, provided mortgage payments have stayed current and equity is well above the 65% LTV threshold — but the product delivered is usually structured differently from a standard revolving line of credit.

If your immediate problem is a mortgage renewal falling due while your proposal or bankruptcy is still active, that’s a mortgage-specific question, not a HELOC one — see mortgage after a consumer proposal for renewal-specific guidance, since renewing an existing mortgage with your current lender is a different underwriting event than applying for new equity financing.

Is a HELOC, a Second Mortgage, or a Refinance the Better Fit Post-Insolvency?

For most post-insolvency borrowers, an amortizing second mortgage is more accessible than a true revolving HELOC in the first 1-2 years, because private and B-lenders can price around the 65% HELOC cap by structuring the loan as amortizing debt instead. A refinance of the existing first mortgage is usually only realistic once you clear the same lender-tier thresholds that apply to a brand-new mortgage.

The trade-offs between these three structures — revolving access, rate, amortization, and how each interacts with the 65%/80% LTV rules — are broken down in full at HELOC vs. second mortgage vs. refinance in Canada (2026), which is worth reading before you approach any lender so you’re asking for the right product by name.

What Should You Do Before Applying?

1. Get your completion certificate or discharge documents from your Licensed Insolvency Trustee, and confirm both Equifax and TransUnion show the updated status — a lag on either bureau can stall an otherwise-ready application.
2. Get a current appraisal or realistic value estimate and calculate your position against both the 65% standalone and 80% combined LTV limits, not just a 20%-down mental model.
3. Pull your credit score and match it to a lender tier honestly before applying anywhere — an A-lender application at 8 months post-discharge burns a hard inquiry you’ll want later.
4. Talk to a mortgage broker who handles post-insolvency files. They can pre-screen your file across B-lenders and private lenders on a single soft inquiry rather than multiple hard pulls.
5. If you’re still pre-discharge or pre-completion, confirm your options and obligations with a Licensed Insolvency Trustee via find-lit before assuming any equity product is available to you right now.

Bottom Line

A consumer proposal or bankruptcy doesn’t close the door on a HELOC permanently — it changes which lender tier opens first and how much equity you need to clear the 65% HELOC-specific loan-to-value cap, which is the constraint most borrowers miss. Private and B-lenders are realistic well before a Big 6 bank is, provided your equity position and post-filing payment history support it. Compare your options at the home equity hub and confirm your exact standing with a Licensed Insolvency Trustee or mortgage broker before applying.