Has the Bank Turned You Down?

There are times when the major banks will turn you down. This could be due to a poor credit score or you may have too much debt. As an independent Mortgage Agent we specialize in these situations. If you have been turned down for a mortgage by the bank, give us a call and we will give you an opinion on what you can do next. Remember, there is no obligation to work with us.

The major banks here in Canada rely heavily on what is called your credit score. Another name for it is the Beacon Score or the Empirica Score (depending on the credit bureau used). The biggest problem with using this credit score as the major basis for lending money is that there are so many variables that can affect this score. A couple of late payments, bad reporting by certain companies and other scenarios can all affect your score in a negative way. The banks also rely heavily on a very strict standard of Gross Debt to Service Ratios (GDS) and Total Debt to Service Ratios (TDS). If you are outside of these ratios even by 1% you will probably be turned down.

There are countless other lenders across Canada that are much more lenient when it comes to the credit score and the Gross Debt to Service Ratios and Total Debt to Service Ratios. Most Canadians have no idea that there are almost 100 other lenders across Canada that want to compete for their business. This is where a mortgage agent comes into play. Mortgage agents/brokers have access to all of these lenders and are always trying to get you the best rates and best solutions that fit your given needs.