“Did something go wrong?”
In Ontario in 2026, this is happening far more often than borrowers expect — and it’s one of the biggest reasons mortgage closings get delayed or fall apart entirely.
If you’re staring at a last-minute email asking for updated pay stubs, bank statements, letters, or explanations, here’s what’s really happening — and what you should do next.
Yes, This Is Normal Now — But It’s Dangerous
Borrowers assume that once a mortgage is approved, the hard part is over.
That used to be true.
It’s not anymore.
In 2026, many lenders perform a final verification stage days (sometimes hours) before funding. That’s when new document requests appear — often without warning.
And once the clock is ticking, delays get expensive fast.
Why Lenders Ask for Documents at the Last Minute
📄 “Final Review” Is Basically a Second Underwrite
Most approvals today are conditional until funding.
Right before closing, lenders often:
re-verify income
re-check bank balances
re-confirm employment
re-assess liabilities
re-open conditions they already cleared
Even small changes can trigger new requests.
📉 Appraisals or Values Get Revisited
If:
the appraisal came in low
the lender changed risk assumptions
the property type raised flags
They may request additional documentation to justify the file — or reduce the loan amount.
🧾 Self-Employed & Variable Income Files
If you’re self-employed or commission-based, lenders often:
request updated financials
question deposits
ask for letters or explanations
scrutinize business accounts
This happens late, not early.
🏦 Internal Policy Changes (Quiet but Real)
Sometimes, nothing about you changed.
The lender did.
Banks regularly:
tighten risk rules
reduce exposure
remove exceptions
change what they’ll fund
When that happens, documents become a way to buy time or justify a decline.
How Document Requests Delay or Kill Closings
Here’s the part most borrowers don’t realize.
When documents are requested late:
underwriting timelines reset
funding can be paused
lawyers can’t release funds
closing dates get missed
A “simple request” can turn into:
a delayed closing
a reduced mortgage
or a full cancellation
And sellers don’t wait.
What Happens If Your Closing Is Delayed in Ontario
If your mortgage is delayed close to closing day, you could face:
loss of deposit
legal action from the seller
bridge financing penalties
emergency borrowing at worse terms
Waiting for the bank to “finish reviewing” is often the most expensive option.
What Borrowers Are Doing When Lenders Stall
This is where strategy matters.
When banks slow down or keep asking for documents, many borrowers turn to short-term, equity-based solutions to keep deals alive.
✅ Bridge Loans
Used to:
close on time
buy days or weeks
transition between lenders
👉 Related page: /bridge-loans
✅ Private Mortgages
Private lenders focus on:
property value
loan-to-value (LTV)
exit strategy
Not endless document loops.
👉 Related page: /private-mortgage-ontario
✅ Short-Term Solutions to Close First, Fix Later
Most borrowers don’t stay in these solutions long-term.
They’re used to:
close the deal
protect deposits
avoid legal fallout
refinance later under less pressure
The Biggest Mistake Borrowers Make
The most common mistake is waiting too long.
Borrowers assume:
the documents will satisfy the lender
approval means funding is guaranteed
delays are harmless
By the time they explore alternatives, the closing date is already at risk.
How Lendworth Helps When Banks Stall
Lendworth specializes in time-sensitive Ontario mortgage solutions when:
lenders keep asking for documents
approvals are being re-reviewed
closings are delayed
timing matters more than rate
We focus on:
equity-based underwriting
fast decisions
clear exit strategies
closing deals when others stall
👉 Get help before the delay becomes a default:
https://www.lendworth.ca/borrow
Final Thought
A last-minute document request isn’t always a problem —
but it’s always a warning sign.
In 2026, the borrowers who close are the ones who act early, understand their options, and don’t wait for the bank to make up its mind.