TD Bank Mortgage Declined? Here’s What You Can Do Next

Getting declined for a mortgage by a major lender like TD Bank can feel discouraging, but it’s not the end of your homeownership journey. Many Canadians face this situation every year, and the good news is: you still have options. Whether you’re a first-time buyer, self-employed, or have bruised credit, there are smart steps you can take to get approved elsewhere and still achieve your dream of owning a home.

Denied by TD Bank? Don’t Panic – Here’s Your Next Move:

Here we’ll explain why TD Bank may have declined your mortgage and what to do next, with alternative solutions, expert tips, and useful links to help you move forward.

Why Did TD Bank Decline Your Mortgage Application?

Before you panic, it helps to understand why the bank said no. Some of the most common reasons include:

• Low credit score (usually below 620)
• High debt-to-income ratio
• Unstable or unverifiable income
• Insufficient down payment
• Property didn’t meet TD’s lending criteria

Remember, every bank has different rules. A decline from TD doesn’t mean you won’t qualify with another lender.

Pro Tip: Get a copy of your mortgage decline letter. It often includes the specific reason you were denied—and that insight can help you pivot.

Step 1: Reassess Your Finances

Take a fresh look at your financial situation. Check:

• Your credit score via Equifax or TransUnion
• Your monthly expenses and existing debts
• Your total down payment saved

Improving just one of these areas can boost your chances next time you apply. For example, paying off a credit card or waiting another month to build savings could make a big difference.

Step 2: Speak with a Mortgage Broker:

Mortgage brokers can often help when banks say no. Unlike TD Bank, which only offers its own products, a broker has access to dozens of lenders, including:

• Credit unions
• B-lenders (for moderate-risk clients)
• Private lenders (for unique financial situations)

They’ll match you with a lender that suits your profile and walk you through the process from start to finish. Was your TD Bank mortgage declined? Don’t worry, Mortgage Squad has licensed agents ready to help you explore alternative options. Book your free consultation today!

Step 3: Consider Alternative Lenders:

Here’s a quick comparison of your options after a TD decline:

While rates may be slightly higher, many of these lenders are more flexible with credit history and income proof.

Step 4: Improve Your Application:

If you’re not in a rush, consider making improvements before reapplying:

• Fix credit report errors
• Pay down debts to reduce your debt-to-income ratio
• Increase your down payment (aim for at least 20% if possible)
• Get a co-signer if your income is too low

Sometimes, small tweaks are all it takes to move from a “no” to a “yes.” Getting a ‘no’ from the bank doesn’t mean your homeownership dream is over. Connect with a mortgage expert at Mortgage Squad and find the right lender for your needs.

Step 5: Reapply Strategically:

Avoid applying to multiple banks all at once; it can hurt your credit. Instead, work with your broker to target the right lender based on your situation. They’ll know which lenders are most likely to approve you without triggering unnecessary hard credit checks.

What You Shouldn’t Do After a Mortgage Decline?

• Don’t panic or give up.
• Don’t keep applying blindly to more banks.
• Don’t ignore the reasons for your decline.
• Don’t take high-risk loans without professional advice.

Need Help After a Declined Mortgage?

If TD Bank has turned you down, you’re not alone, and you’re not out of options. At Mortgage Squad Canada, we help clients across Canada who’ve been declined by big banks.

Whether you’re self-employed, have bad credit, or need a fast approval, our licensed brokers can guide you to a lender that fits your needs. Contact us today to start fresh with a personalized mortgage solution.

FAQs:

1. Why did TD Bank decline my mortgage application?
   TD Bank may decline your mortgage due to factors like low credit score, high debt-to-income ratio, insufficient income proof, or an unstable employment history. Property-related concerns or not meeting TD’s lending criteria can also lead to rejection.
2. Can I still get a mortgage if TD Bank declined me?
   Yes, you can still qualify for a mortgage through alternative lenders, credit unions, or private lenders. Many Canadians secure approval after a bank decline by working with a mortgage broker.
3. What should I do after being declined by TD Bank?
   Start by understanding the reason for the decline, then review your credit score, income, and debt. Consult a mortgage agent to explore other lender options tailored to your financial situation.
4. Does getting declined by TD hurt my credit score?
   A single mortgage decline may slightly affect your credit score due to the hard inquiry. However, repeatedly applying to multiple lenders in a short time can cause more damage.
5. How long should I wait before reapplying after a mortgage decline?
   It’s best to wait at least 3–6 months before reapplying, depending on the reason for the decline. Use this time to improve your credit, reduce debt, or increase your down payment.
6. Who can help me get approved after a bank denial?
   A licensed mortgage broker or agent can help you access lenders beyond the major banks. They work with B-lenders and private lenders who are often more flexible with credit and income.
7. Are private mortgage lenders safe in Canada?
   Yes, private mortgage lenders in Canada are legal and regulated, especially when accessed through licensed brokers. Always review the terms carefully and understand the interest rates and fees involved.
8. Can I reapply with TD Bank after being declined?
   Yes, you can reapply with TD Bank after improving your financial profile. However, it’s smart to wait a few months and seek guidance from a broker to increase your approval chances.
9. What are B-lenders and how are they different from banks?
   B-lenders are alternative mortgage providers who offer financing to borrowers who may not qualify with traditional banks. They often accept lower credit scores and non-traditional income sources.
10. Is using a mortgage broker better than applying to banks directly?
    Yes, mortgage brokers give you access to multiple lenders and help you find the best deal based on your situation. They also save you time and reduce the risk of multiple credit checks.

Final Verdict:

If your TD Bank mortgage was declined, don’t lose hope. There are many reputable alternative mortgage lenders and private mortgage options in Canada that may still approve you even with a bad credit mortgage profile or self-employed income. The smartest move you can make is to speak with a trusted mortgage broker in Canada who understands your unique situation and can guide you through what to do after mortgage denial. With expert help and the right strategy, your dream of homeownership is still within reach.