Every year, thousands of qualified Ontario homeowners are declined mortgages — not because they lack equity, but because they don’t fit inside a rigid banking box.
This is exactly where private mortgage lenders like Lendworth step in.
In this guide, we’ll explain why banks decline mortgages, what criteria they care about most, and why private lenders approve deals banks won’t — often in days, not months.
Why Banks Decline Mortgages in Ontario
Banks are not designed to assess real-life situations. They lend based on policy, not people.
Here are the most common reasons banks say no:
1. Credit Score Below Bank Thresholds
Most banks require high credit scores, even if you have significant home equity.
Missed payments
Consumer proposals
Past collections
Temporary credit damage
👉 Even one recent issue can trigger an automatic decline.
Private lenders focus on equity first — not just credit scores.
2. Self-Employed or Irregular Income
Banks prefer:
T4 income
Long employment history
Predictable pay stubs
If you’re:
Self-employed
Paid in dividends
A business owner
Commission-based
Banks often discount or reject your income entirely.
Private lenders don’t rely on traditional income verification.
3. High Debt Ratios (TDS / GDS)
Banks follow strict formulas.
Even if:
Your mortgage is affordable
Your property has strong equity
High debt ratios can result in a decline.
Private lenders assess affordability differently — using equity, exit strategy, and property value.
4. Property Type or Location
Banks frequently decline mortgages for:
Unique properties
Rural or acreage homes
Mixed-use buildings
Older homes
Power of sale histories
Private lenders are far more flexible with property types.
5. Urgency or Timing Issues
Banks move slowly.
If you need funds:
Quickly
To stop enforcement
To consolidate debt
To close another deal
Bank timelines simply don’t work.
Private lenders can fund in days — not months.
Why Private Lenders Say Yes When Banks Say No
Private lenders operate under a completely different model.
At Lendworth, we ask one core question:
“Is there sufficient equity, and does the deal make sense?”
Here’s why approvals happen:
✅ Equity-Based Lending
We lend against the value of your property, not rigid formulas.
Strong Loan-to-Value (LTV)
Clear exit strategy
Real property value
Credit issues alone do not disqualify you.
✅ Flexible Income Review
We understand:
Self-employed income
Temporary income disruptions
Business cycles
No T4s? No problem.
✅ Speed & Certainty
Fast approvals
Short underwriting process
Clear conditions
Direct communication
This matters when timing is critical.
✅ Customized Solutions
Private mortgages can be used for:
Debt consolidation
Mortgage arrears
Renovations
Bridge financing
Refinancing out of high-interest debt
Banks rarely offer this flexibility.
Common Myths About Private Mortgages
Myth: “Private lenders are only for desperate borrowers”
Truth: Many clients use private mortgages strategically, then refinance back to a bank later.
Myth: “Private mortgages are unsafe”
Truth: When structured properly, they are short-term, strategic solutions.
Myth: “Once declined by a bank, you’re stuck”
Truth: A private lender can bridge the gap and restore options.
When a Private Mortgage Makes Sense
A private mortgage may be the right solution if you:
Were declined by a bank
Are self-employed
Have bruised credit
Need fast funding
Want to consolidate debt
Are behind on mortgage payments
Plan to refinance or sell in the future
How Lendworth Helps Ontario Homeowners
At Lendworth, we specialize in private mortgage solutions across Ontario, including:
First & second mortgages
Home equity loans
Debt consolidation
Power of sale prevention
Self-employed solutions
We lend based on common sense, equity, and real-world scenarios.
Final Thoughts
A bank decline is not a reflection of your worth or your property’s value.
It simply means the deal didn’t fit their narrow rules.
Private lenders exist to provide real solutions for real homeowners.
If your bank said no — we’re ready to say yes.
📞 Speak With a Private Mortgage Expert Today
Fast approvals. Flexible terms. Real solutions.
👉 Visit lendworth.ca or call us today to explore your options.