Expert commentary · Research program

    The Mortgage Decline Reasons Report

    Why Canadian mortgage applications get declined by banks, and what borrowers can realistically do next.

    By Saminder (Sami) Juneja, Mortgage Broker · Published · Updated

    Media summaryRequest an interview
    Report typeExpert commentary (not a statistical report)
    Sample sizeNot applicable — no statistical findings are claimed
    Date rangeNot applicable
    AuthorSaminder (Sami) Juneja, Mortgage Broker
    Published2026-09-29
    Last updated2026-09-29

    Why this is commentary, not statistics: we only publish statistical findings from verified, anonymized Juneja Group files with at least 100 records and a stated date range. That dataset is not yet complete for this topic, so this edition shares professional observations only. Nothing here should be read as representative of the Canadian market.

    Media summary

    • Most declines are about rules, not character.
    • Knowing the exact reason matters more than applying at another bank quickly.
    • Multiple rapid applications can add credit inquiries without solving the problem.

    Suggested attribution: “Saminder (Sami) Juneja, Mortgage Broker, The Mortgage Decline Reasons Report (2026).”

    Methodology

    This edition is based on the author's professional experience advising clients. It does not count, sample or measure files. When enough verified data exists, a statistical edition will measure:

    • Primary decline reason recorded by the first lender
    • Secondary contributing factors
    • Outcome after the decline (approved elsewhere, restructured, withdrawn)

    All data would be anonymized: no names, addresses, lender names tied to individuals, or details that could identify a client.

    Key observations

    • Most declines are about rules, not character.
    • Knowing the exact reason matters more than applying at another bank quickly.
    • Multiple rapid applications can add credit inquiries without solving the problem.

    Professional observations, not measured findings.

    A decline is rarely one thing

    Banks decline files for debt ratios, credit history, income type, property type or the down payment source. Often it is a combination.

    The decline letter, if there is one, rarely explains the full picture. Asking the lender or broker exactly which rule was missed is the first step.

    Debt ratios

    Lenders compare housing costs and total debt payments to qualifying income (GDS and TDS). Federally regulated lenders must also apply the minimum qualifying rate set by OSFI.

    Paying down a car loan or credit line before applying can change the result more than a lower rate would.

    What happens next

    Options include a different lender tier, a co-signer, a larger down payment, or a short-term private mortgage with a clear plan to refinance.

    Sometimes the right answer is to wait. A good broker should say so.

    Limitations

    • This is commentary from one mortgage broker's practice, not a survey or a random sample.
    • It does not measure how often anything happens and should not be quoted as a percentage or trend.
    • Lender policies change. Confirm current rules with a licensed professional.
    • Educational content only; not financial, legal or tax advice.

    Story angles for journalists

    • What to do in the first week after a mortgage decline
    • How the stress test affects borrowers who are otherwise strong
    • When a private mortgage is a sensible bridge and when it is not

    Related resources

    Request an interview / media inquiry

    Journalists, accountants and financial publications can request comment from Saminder (Sami) Juneja, Mortgage Broker. Please include your outlet, topic and deadline.

    Cite this resource

    Preferred title and URL for journalists and organizations:

    Saminder (Sami) Juneja. “The Mortgage Decline Reasons Report.” The Juneja Group, updated 2026-09-29. https://thejunejagroup.ca/research/reports/mortgage-decline-reasons-report

    Saminder (Sami) Juneja, Mortgage Broker — Mortgage Centre Canada, independently owned and operated by Get A Better Mortgage Inc., FSRA #10874. The Juneja Group is not a licensed mortgage brokerage.

    Educational information only — not financial, legal or tax advice, and not an offer or approval. Rates and lender policies change; all financing is subject to lender approval.