The 90-day rule.
It’s not advertised.
It’s not on bank websites.
And most borrowers only learn about it after their refinance collapses.
If you’re planning to refinance, consolidate debt, or access equity, this rule can stop you cold.
What Is the 90-Day Rule?
The “90-day rule” refers to internal seasoning requirements used by banks and institutional lenders.
In simple terms:
Banks often require 90 days to pass after certain events before they will refinance your mortgage.
Those events include:
Purchasing a property
Paying off debts or arrears
Title changes (adding/removing an owner)
Mortgage renewals or switches
Large credit clean-ups
Recently discharged consumer proposals or bankruptcies
Even if your situation is now “fixed,” banks want to wait and observe.
Why Banks Use the 90-Day Rule (But Don’t Tell You)
From a bank’s perspective, the rule is about risk stabilization.
They want to see:
Consistent payments after a change
Stable credit behaviour
No reversals or surprises
Time separation between “problem” and “solution”
From a homeowner’s perspective, it feels like:
“Everything is resolved — why can’t I refinance?”
Because banks don’t lend on logic.
They lend on time-based risk models.
Common Scenarios Where the 90-Day Rule Kills Refinances
🔻 You Just Bought the Property
Even with equity, many banks will not refinance:
Within 90 days of closing
Regardless of market value increase
Flips, assignments, or rapid equity access?
Most banks won’t touch it.
🔻 You Just Cleaned Up Debt
Paid off credit cards?
Cleared tax arrears?
Settled collections?
Banks often require 90+ days of clean credit activity before approving a refinance — even if balances are now zero.
🔻 You Recently Renewed or Switched Lenders
Renewals don’t always reset risk.
Banks may:
Block immediate refinances
Require seasoning post-renewal
Reduce refinance amounts
Yes — even after signing new terms.
🔻 Title or Ownership Changes
Adding a spouse.
Removing an ex-partner.
Estate or family transfers.
Any title change often triggers a mandatory waiting period before refinancing is allowed.
Why This Rule Is So Dangerous for Homeowners
The 90-day rule doesn’t just delay refinances — it creates pressure.
Homeowners get stuck with:
High-interest debt they planned to consolidate
Temporary mortgages that can’t be replaced
Renewal deadlines approaching
Cash-flow stress they thought was solved
And by the time the 90 days pass, something else changes:
Appraisal comes in lower
Income shifts
Bank policy tightens again
Waiting can cost you options, not just time.
Why Private Lenders Don’t Follow the 90-Day Rule
Private lenders underwrite differently.
They focus on:
Real property value
Current loan-to-value
Clear exit strategy
Borrower intent
They don’t need arbitrary seasoning periods to feel comfortable.
That’s why many homeowners use private financing as:
A bridge past the 90-day window
A way to stabilize cash flow now
A path back to traditional lending later
How Smart Homeowners Navigate the 90-Day Rule
Instead of waiting blindly, informed borrowers:
Structure short-term equity solutions
Use time strategically, not passively
Avoid stacking penalties and interest
Protect ownership while waiting out bank rules
It’s not about avoiding banks.
It’s about not being trapped by their timelines.
Where Lendworth Financial Comes In
At Lendworth, we identify seasoning issues before a refinance fails.
We help homeowners:
Understand hidden bank rules
Access equity when timing blocks approvals
Structure temporary solutions with defined exits
Re-enter bank lending from a position of strength
Most clients don’t have a bad file.
They just have bad timing — and no one explained it.
The Bottom Line
The 90-day rule is real.
It’s widespread.
And it’s quietly killing refinances across Canada.
If your refinance was delayed, reduced, or declined “for no clear reason,” this may be why.
Before waiting another 90 days and hoping nothing changes, it’s worth knowing what your real options are now.
📞 Talk to someone who understands timing
Call 905-597-1225 or visit www.lendworth.ca
Your equity deserves more™