You’ve built equity.
Your home is worth more.
You’ve paid down your mortgage.
And yet the answer from the bank is still no.
If you’re searching “can’t refinance home equity Ontario,” this article explains why this keeps happening in 2026 — and what actually works when refinancing stalls.
First: Yes, You Can Have Equity and Still Be Denied
This is the part most people don’t expect.
In Ontario, equity alone is no longer enough for banks.
Refinance approvals today depend on how equity fits into a lender’s risk model, not whether it exists.
That disconnect is why so many homeowners feel blindsided.
The Real Reasons Banks Refuse Home Equity Refinances
Here’s what’s happening behind the scenes.
1. Appraisal Values Are More Conservative
Even if your home would sell for more, banks rely on strict, defensible comparables — often below market expectations.
Lower appraisal = reduced refinance amount or outright denial.
2. Income Is Recalculated — Not Reused
Banks don’t care that you qualified years ago.
They re-verify:
Self-employed income
Bonuses and commissions
Overtime
Rental income
If today’s numbers don’t fit the formula, the refinance stops — even with strong equity.
3. Debt Ratios Changed
Higher stress-test rates, updated property taxes, or new condo fees can quietly push ratios over internal limits.
Nothing changed for you — everything changed for the bank.
4. Property Type or Location Is Flagged
Certain properties now trigger additional scrutiny:
Rural or edge-city homes
Mixed-use properties
Older homes needing updates
Small condos or unique layouts
This affects homeowners across Ontario, especially in Hamilton, the Niagara Region, and surrounding municipalities.
5. The Bank’s Risk Appetite Shrunk
This is the one no one tells you.
Even if you didn’t change, the bank’s internal risk tolerance may have.
When that happens, refinances are the first thing to get cut.
Why Switching Banks Rarely Fixes This
Many homeowners try:
Applying elsewhere
Re-running appraisals
Waiting it out
Most discover the same outcome:
New appraisal, similar value
Same income scrutiny
Same stress-test math
Time is wasted. Frustration rises.
What Actually Works When You Can’t Refinance Home Equity
When banks stop refinancing, private lending becomes the solution — not the backup plan.
Private lenders approach refinancing differently.
They focus on:
Total loan-to-value
Real-world property value
Equity position
Exit strategy (future refinance or sale)
Not rigid stress-test math.
This is why private refinancing often succeeds where banks stall.
When a Private Refinance Makes Sense
A private refinance is commonly used to:
Consolidate high-interest debt
Refinance after a bank decline
Buy time to stabilize income
Bridge to a future bank refinance
Unlock equity for renovations or investments
Used correctly, it’s a strategic move — not a desperate one.
Why Ontario Homeowners Call Lendworth
At Lendworth, refinancing blocked by banks is one of the most common calls we receive.
Homeowners come to us when:
They have equity but can’t refinance
Income doesn’t fit bank formulas
Appraisals come in low
Timing matters
Our approach is simple:
✔ Equity-based approvals
✔ Clear structure and exit planning
✔ Fast decisions
✔ Ontario-focused underwriting
No endless conditions.
No last-minute surprises.
If You’re Equity-Rich but Refinance-Poor, Act Now
If you can’t refinance your home equity in Ontario, the issue usually isn’t your property — it’s the lending model.
A different approach can unlock options you didn’t know existed.
👉 Apply now at lendworth.ca/borrow
📞 Or speak with a Lendworth advisor today
Your Equity Deserves More™