Declined by the bank
A bank decline isn't the end. Find out why, then find the right lender.
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Behind on mortgage / power of sale notice
Timing matters: in Ontario there's usually only about a 35-day redemption period after a notice of sale.
See how many days are left and how much you need →
Call now +1 416-855-4565Low credit / missed payments
Alternative (B) lenders and private lenders focus more on home equity and accept lower scores.
Open the Credit score tool →
Self-employed, hard-to-prove income
Bank statements, invoices and contracts can show income, not only tax returns.
Open the Self-employed tool →
New to Canada, short credit history
A short Canadian credit history can be supplemented with foreign income and down payment proof.
Open the Newcomers tool →
High debts, fail the stress test
Roll high-interest debts into your mortgage, or bridge with a short-term loan to ease monthly pressure.
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How others in similar situations got financing
Pick a situation to see cases: what was hard, what was done, the outcome and cost.
Self-employedDeclinedSelf-employed 2 years, low taxable income, declinedRenovation business owner, taxable income about $45,000, buying an $850,000 home with 20% down.See how and outcome
- Challenge：
- The bank used taxable income only — about $250,000 max.
- What was done：
- Used 24 months of business bank statements and contracts to show real income; moved to a B lender that accepts stated income.
- Outcome：
- Approved for $680,000, about 1% above bank rates, 2-year term; plan to move back to a bank once taxable income rises.
Low creditHigh debtCredit score 580, late card paymentsOwns a home worth about $900,000 with $400,000 owing; wants to roll $35,000 of high-interest cards into the mortgage.See how and outcome
- Challenge：
- Bank declined the refinance because of the score.
- What was done：
- B lender refinanced based on home equity and paid off all cards.
- Outcome：
- Monthly payments down about $900; after 12 on-time months and a better score, plan to move back to a bank.
NewcomerNewcomer of 8 months, down payment from abroadPermanent resident, 8 months in Canada, full-time job; down payment sent from abroad in several transfers.See how and outcome
- Challenge：
- Short Canadian credit history; unclear fund sources stall approvals.
- What was done：
- Documented every transfer, currency exchange and foreign statement, added a foreign credit report, used a newcomer program.
- Outcome：
- Insured mortgage approved with 10% down at a rate close to regular clients.
ProposalUrgentConsumer proposal still open, need cashOne year left on a consumer proposal; home has equity; $50,000 needed for tuition.See how and outcome
- Challenge：
- Banks generally won't lend during a proposal.
- What was done：
- Private second mortgage of $50,000, 12-month term, interest-only.
- Outcome：
- Interest about $450/month; plan to move into a B-lender first mortgage once the proposal ends.
CRA debtSelf-employedOwes CRA, collections startedSelf-employed, owes CRA about $40,000 in tax and penalties; collection letters have arrived.See how and outcome
- Challenge：
- Risk of a CRA lien on the home.
- What was done：
- Second mortgage against home equity to pay CRA in full.
- Outcome：
- No lien registered; after 12 months, refinanced together with the first mortgage at a lower rate.
ArrearsUrgent4 months behind, power of sale noticeFour missed payments; power of sale notice received, about 3 weeks left to redeem.See how and outcome
- Challenge：
- Too little time for a bank approval.
- What was done：
- Private lender funded within the week using home equity to pay arrears and costs, stopping the sale.
- Outcome：
- Kept the home; 12 months to sort out finances, then sell or move back to a bank.
High debtDeclinedDebt too high to pass the stress testDual-income couple paying $1,800/month on a car loan and line of credit; want to switch lenders at renewal.See how and outcome
- Challenge：
- Switching needed a stress test; TDS was 52%, over the limit.
- What was done：
- B-lender refinance rolled the car loan and line of credit into the mortgage; TDS fell to about 41%.
- Outcome：
- Total monthly payments down about $1,100; plan to return to a bank in 2 years.
UrgentBuying before selling, short on down paymentNew home closes in 10 days, old home in 6 weeks; $300,000 short for the down payment.See how and outcome
- Challenge：
- Closing dates don't line up.
- What was done：
- Bridge loan of $300,000 against the firm sale of the old home.
- Outcome：
- New home closed on time; repaid when the old home sold — about 5 weeks of interest plus a fee.
RetiredDeclinedLow retirement income, renovation neededAge 68, pension about $3,200/month, mortgage-free; needs $100,000 for repairs.See how and outcome
- Challenge：
- Bank declined based on income.
- What was done：
- Compared a home-equity line counting pension and investment income with a reverse mortgage that needs no payments.
- Outcome：
- Chose the line of credit, interest-only about $600/month; family reviewed the plan before signing.
NewcomerDeclinedWork permit, most income from abroadTwo years left on a work permit; works in Canada but most income comes from a foreign company.See how and outcome
- Challenge：
- Most lenders don't count foreign income.
- What was done：
- Applied on Canadian pay stubs only, raised the down payment to 35%, added foreign income and assets as support.
- Outcome：
- Approved at a somewhat higher rate; aim for a regular rate at renewal after getting PR.
DeclinedHigh debtBuying out an ex-spouse after divorceWants to keep the home for the kids' schooling; needs $250,000 to buy out the ex-spouse's half.See how and outcome
- Challenge：
- One income doesn't meet bank rules.
- What was done：
- B lender counted home equity, single income and court-ordered child support.
- Outcome：
- Kept the home; plan to return to a bank in 2 years once income is steady.
CommercialDeclinedStore below, apartments above — bank won't do itBuying a building with a store below and two apartments above.See how and outcome
- Challenge：
- The bank excludes mixed-use from residential mortgages.
- What was done：
- Financed as commercial property by a commercial lender based on rental income and the borrower.
- Outcome：
- About 65% loan-to-value, driven mainly by whether rent covers the payments.
Sample cases, to be replaced with real anonymized ones. Every situation differs; not a Monest quote or approval.
Can I get a loan?
Tick what applies and add a few numbers to see the right direction, how much you might borrow, the cost and what to prepare.
1. What applies to you? (pick any)
Suggested direction
Alternative lender (B lender)
Banks are strict, but B lenders accept scores from about 550, self-employed and non-traditional income: higher rates than banks, usually far cheaper than private.
- Reference rate range5.5% – 8%
- Reference lender fee1% – 2%
- Typical time1 - 3 weeks
- At 80% of value, you could borrow up to$240,000
Based on your equity, this amount is within reach.
How do I get back to a bank?
Treat it as a bridge: about 12 months of on-time payments plus better credit or income proof, then move back to a bank or B lender at normal rates.
What to prepare
- The reason for the bank's decline (in writing if possible)
- Valid photo ID
- Property tax bill, mortgage statement, home insurance
Reference ranges reflect common Canadian market levels in public sources (which vary widely). They are not Monest quotes; approval, rates and fees are subject to the lender.
The real cost of a private / 2nd mortgage
Private loans are usually interest-only for 6-12 months, with lender, broker, legal and appraisal fees. Put it all together to see the true cost.
Effective annual cost, fees included
17.39%
Advertised rate 10.99%
- Interest-only monthly paymentPaid each month until maturity$916
- Interest over 12 months$10,990
- Total fees$6,400
- Total cost$17,390
- Principal due at maturityRepay, renew, or move back to a bank at maturity$100,000
What moving back to a bank saves
About $458 less per month, $5,490 a year. The sooner you rebuild credit and move back, the better.
Fee levels reflect common public figures; rely on written quotes from the lender and lawyer, and ask for every fee to be itemized before signing.
Borrowing / buying scam check
The more urgently you need money, or if a bank said no, the more you're targeted. Tick what the other party did or said to see the risk. Calculated on your phone only; nothing is saved.
No obvious red flags so far
Still check their licence before signing and have your own lawyer review the documents.
Whatever the result, you can
- Check the licence: Ontario mortgage brokers, agents and brokerages are listed on FSRA's website.
- Verify by phone using the number on the official website, not the one they gave you.
- Move all money through your lawyer's trust account; call to confirm any change.
- Buy title insurance and check the property's sales history.
General fraud-prevention tips, not legal advice. Report suspicious activity to police, the Canadian Anti-Fraud Centre and your provincial regulator.
General information only, not financial or legal advice, and not a guarantee of approval. Monest provides lending services only; all options are subject to lender approval.