By Leanne Mollica, Mortgage Broker — My Mortgage Strategy (Salmon Arm, BC)
Consumer Proposals & Your Credit—When Do They Disappear?
If you’ve completed a consumer proposal and are gearing up for a mortgage renewal or new application, your credit report should reflect the fresh start you worked hard to earn. But depending on the bureau, these notes don’t disappear instantly—and outdated information can still affect your mortgage approval.
Here’s exactly how it works, how long a proposal should stay on your file, and what to do if the credit bureaus haven’t caught up.
How Long Should a Consumer Proposal Stay on Your Credit Report?
Both Canadian credit bureaus have clear rules, but they don’t match perfectly.
Equifax Canada
A consumer proposal is removed three years after completion or six years from the filing date—whichever comes first.
TransUnion Canada
A proposal is removed three years after completion or six years from the default date—whichever comes first.
Example:
If you finished your proposal in February 2022, the latest it should appear is February 2025.
Keep in mind that reporting practices can vary slightly by province and can change over time, so always check directly with Equifax and TransUnion when reviewing your file.
What Should Disappear—and What Can Still Linger
When a proposal is purged, two things should be gone:
- The consumer proposal from the Public Records section
- Negative proposal-related notes attached to each account included in the proposal
If you still see lines like:
- “Included in proposal”
- “Settled/written off through proposal”
…on closed, $0-balance accounts after the purge window, those notes are outdated and should not remain.
Why Leftover Notes Can Still Hurt Your Mortgage
Most Canadian mortgage lenders rely heavily on Equifax. If an underwriter sees multiple accounts showing “included in proposal” or “settled,” they may treat you as if you are still in financial recovery—even if the proposal is long completed.
That can mean:
- Higher interest rates
- Additional conditions
- More conservative underwriting
- Declines from mainstream lenders
A clean credit report matters more than most people realize.
Clean-Up Checklist (Do This Before Applying for a Mortgage)
- Pull full reports from both Equifax and TransUnion (not summaries).
- Flag any accounts still showing proposal-related remarks.
- Pause mortgage applications until the errors are corrected.
- Dispute inaccuracies with each bureau and attach proof of completion or discharge.
- Seek support if needed—I can connect you with a trusted Canadian credit-file specialist who works with the bureaus daily.
Pro Tip: Review Your File Before a Lender Sees It
Before we send your file to any lender, I can review your credit report with a mortgage-specific lens and give you a clear action plan. Sometimes removing one outdated remark can save thousands over a mortgage term.
The Bottom Line
A completed consumer proposal shouldn’t haunt you forever. If enough time has passed and your report still looks gloomy, don’t guess—clean it up.
A clean report means stronger approval odds, better pricing, and fewer surprises during your mortgage application.
If you’d like a pre-mortgage credit check-up and readiness plan, just reach out—I’m here to help you get mortgage-ready the smart way.
Need support building your mortgage plan? I’m always here to help.
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📧 leanne@mymortgagestrategy.ca
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📍 Serving Salmon Arm, the Shuswap, the Okanagan & all of BC
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