Car loans during or after a consumer proposal in Calgary

Active proposal vs. completed proposal: they finance differently

Lenders see them differently. An active R7 means you're still paying down agreed creditors. A completed proposal (R7 still on bureau, but with a completion date) is almost identical to a discharged bankruptcy from a lender's perspective. The lender list and rate sheet are not the same for the two.

If you're actively in a proposal

• We need your most recent proposal statement.
• Your trustee will write a letter approving the new debt.
• Rates run 16-21% depending on income and the lender.
• We strongly recommend a 60-month max term. Keeps total cost down.

If your proposal is complete

• We need your discharge / completion certificate.
• No trustee letter required.
• Rates run 12-16%.
• Refinance opportunity at 12 months of clean payments.

How we coordinate with your trustee

Calgary's major trustees (MNP, BDO, Grant Thornton, A. Farber) all have a standard format for car-loan approval requests. We send them the lender's pre-approval terms, the monthly payment, and the loan term. The trustee responds in 2-7 business days with either an approval letter or a request to modify the structure. It's routine.

What to do during your proposal to make the next car loan easier

1. Pay your proposal payment every month, on time, without exception.
2. Open one secured credit card to add a positive trade-line to your bureau.
3. Save $1,500-3,000 as a down payment.
4. Don't apply at multiple Calgary brokers. One inquiry only.

What we won't do

We won't recommend buying mid-proposal if your debt-to-income is already maxed out. We won't put you in a car you can't afford to keep through the next 36 months. Defaulting on a car loan during a proposal can void the proposal and force a bankruptcy. The math has to work, and we say so when it doesn't.