Denied by RBC? Rebuild, Refinance & Regain Control of Your Mortgage

Getting denied a mortgage by a major bank like RBC can feel like a massive setback. Whether you’re a first-time homebuyer, a self-employed applicant, or someone with past credit challenges, being turned away might shake your confidence. But here’s the good news: a mortgage rejection isn’t the end of your journey, it’s just the beginning of a different path.

In this blog, we’ll walk you through what to do after a mortgage denial from RBC (Royal Bank of Canada), how to rebuild your financial profile, refinance strategically, and ultimately regain control of your homeownership goals.

Why Was Your Mortgage Application Denied by RBC?

Before anything else, you need to understand why you were declined. Banks like RBC use strict lending criteria to evaluate borrowers. Some common reasons for mortgage rejection include:

• Low credit score or recent credit issues 
• High debt-to-income ratio (DTI) 
• Unstable or self-employed income 
• Insufficient down payment 
• Lack of documentation or unverifiable income 
• Too new to Canada (non-resident or newcomer status) 

Each of these issues can limit your ability to qualify for a traditional mortgage, but they don’t mean you can’t qualify for any mortgage.

Pro Tip: Request a detailed explanation of the denial from RBC. This gives you a starting point to fix the right issues.

Step 1: Rebuild Your Credit Profile

If your mortgage was declined due to poor credit, rebuilding your credit is the first step to regaining control.

Steps to take:

• Check your credit reports via Equifax Canada or TransUnion and dispute any errors. 
• Pay off high-interest debt to reduce your credit utilization. 
• Make all bill payments on time, especially credit cards and loans. 
• Avoid applying for multiple new credit products in a short time. 

Need help? Mortgage Squad can connect you with credit counselling and budgeting tools to help you get back on track. Learn more about rebuilding credit here.

Step 2: Refinance or Explore Alternative Mortgage Options

If RBC has declined your mortgage, refinancing with an alternative lender or private mortgage lender might be your best move, especially if you already own a home and want to access equity or restructure your current debt.

Refinance with a B-Lender or Alternative Lender:

B-lenders (such as Home Trust or Equitable Bank) offer more flexible mortgage approval criteria than RBC or other traditional banks. They often accept:

• Lower credit scores 
• Self-employed income 
• Higher debt levels 

See how Mortgage Squad helps with alternative mortgage approvals.

Consider a Private Mortgage:

If you need fast approval or have been turned down multiple times, private mortgage lending can offer short-term solutions while you rebuild your profile. Private lenders typically:

• Require equity or collateral 
• Charge slightly higher interest 
• Offer quick approvals (within 24–72 hours) 

These are especially useful if you’re facing foreclosure, a CRA lien, or need to consolidate high-interest debt.

Step 3: Regain Control Through a Custom Mortgage Strategy:

At Mortgage Squad, we believe there’s no one-size-fits-all solution. After a denial, you need a tailored plan, not just a generic fix.

Here’s how we help clients denied by RBC:

Whether you’re refinancing, purchasing, or trying to consolidate debt, we help you move forward, not in circles.

What If You’re a First-Time Buyer?

Many first-time buyers assume a bank rejection means they can’t buy a home. That’s simply not true. You may still qualify through:

• A lower purchase price 
• A co-signer 
• A higher down payment 
• A mortgage broker who works with over 100 lenders 

“Vancouver’s market scared me, but Mortgage Squad helped me get pre-approved even after RBC turned me down. They explained every step clearly.” – Sarah L., first-time buyer

What If You’re in Ontario, Alberta or BC?

Mortgage denial solutions vary by province. Whether you’re buying in Ontario’s competitive GTA, Alberta’s flexible market, or BC’s high-cost zones, Mortgage Squad tailors options to your region and lender availability.

Ontario: High house prices mean more buyers are turning to private lenders and mortgage brokers.

Alberta: Easier qualifying ratios open doors with alternative lenders for those with lower credit.

British Columbia: Equity-rich homeowners can use home refinancing to solve temporary cash flow issues.

FAQs:

1. Why did RBC deny my mortgage application?

RBC may deny your mortgage for reasons such as low credit score, high debt-to-income ratio, insufficient income, lack of down payment, or incomplete documentation.

2. Can I get a mortgage after being denied by RBC?

Yes, you can still qualify for a mortgage through alternative lenders, private lenders, or mortgage brokers even after RBC denies your application.

3. What should I do if RBC rejected my mortgage?

Start by understanding the reason for denial, then work with a mortgage broker to explore refinancing, improve your credit, or apply through more flexible lenders.

4. Does a mortgage denial affect my credit score in Canada?

A mortgage denial itself does not affect your credit score, but multiple hard inquiries from repeated applications can lower your score.

5. How long should I wait to reapply for a mortgage after being denied?

You can reapply immediately with a different lender, especially through a mortgage broker who understands how to package your application for approval.

6. Can I still buy a house after RBC denied my mortgage?

Yes, being denied by RBC doesn’t mean you can’t buy a home. Many Canadians qualify through B-lenders or private mortgages with the right support.

7. Are private mortgage lenders safe in Canada?

Yes, private mortgage lenders are legal and regulated in Canada. They offer short-term solutions for borrowers who don’t meet bank criteria.

8. How can I rebuild credit after a mortgage rejection?

Pay bills on time, reduce credit card balances, avoid new credit inquiries, and review your credit report for errors to improve your score over time.

9. What are my mortgage options if I have bad credit in Canada?

If you have bad credit, options include B-lenders, private lenders, co-signed mortgages, or refinancing an existing home with equity.

10. Should I use a mortgage broker after a bank denied me?

Absolutely. Mortgage brokers have access to lenders that specialize in approvals for borrowers with unique situations or past rejections.

Avoid These Mistakes After a Mortgage Denial

• Don’t keep applying to other banks without addressing the issue 
• Don’t assume you’re out of options 
• Don’t stop tracking your credit or financial goals 

Final Verdict: A Denial Isn’t the End – It’s Your Pivot Point:

Being denied by RBC isn’t the end of your homeownership dream, it’s an invitation to explore smarter, more flexible solutions. Whether you’re looking to refinance, consolidate debt, or qualify with alternative lenders, the key is to act quickly and strategically.

Mortgage Squad agents helps Canadians across the country turn a “no” into a “next step.” We specialize in tough files, bad credit mortgages, and custom mortgage strategies tailored to your situation, not the bank’s rulebook. Ready to Regain Control of Your Mortgage Journey? Let Mortgage Squad help you rebuild, refinance, and regain control. Get a free consultation today, no obligation, just solutions.