Being declined by TD Bank or any other major financial institution for a mortgage refinance or a home equity line of credit (HELOC) can feel like a setback—especially if you’ve been a loyal customer. Many homeowners are shocked when their refinancing application or HELOC request is declined by TD Bank or one of the other big banks, despite having an existing mortgage or banking relationship with them. Unfortunately, being denied by TD Bank or its competitors is more common than you might think, often due to strict lending criteria that leave little room for financial hardship, bruised credit, or unconventional income.
If you’ve been declined by TD Bank for a mortgage or home equity product, it’s important to know that you still have options. At TurnedAway.ca, we specialize in helping homeowners who have been denied by TD, RBC, Scotiabank, and other traditional lenders. Whether you’ve been turned down by TD Bank for refinancing or rejected for a HELOC, we can help you unlock the equity in your home through alternative financing—such as private mortgages, home equity loans, and custom lending solutions.
This guide will break down the top reasons why you might be declined by TD Bank for mortgage refinancing or a HELOC, and what you can do to turn things around. We’ll also show you how TurnedAway.ca helps clients who have been rejected by TD Bank regain control of their finances and work toward becoming bankable again in the future.
Don’t let being declined by TD Bank be the end of your mortgage journey. Instead, let it be the beginning of a smarter path forward with solutions tailored to your unique situation.
Why You May Have Been Declined by TD Bank for Your Mortgage Refinance or HELOC Application
When you’re declined by TD Bank for a mortgage refinance or home equity line of credit (HELOC), it’s often the result of their strict internal lending policies. Like other major Canadian banks, TD Bank enforces conservative risk standards that can lead to denials—even for long-time customers. If your application has been declined by TD Bank, it likely stems from one or more of the following common factors:
-
Credit Score Below TD’s Lending Requirements
One of the most common reasons homeowners are declined by TD Bank for a mortgage refinance or HELOC is an insufficient credit score. TD Bank requires a minimum credit threshold, and if your score falls below their internal guidelines, your application may be rejected—even if you’re already an existing customer. Homeowners are often denied by TD Bank due to credit-related issues such as:
- Multiple missed payments on loans or credit cards.
- Credit utilization exceeding 50% of your limit.
- Past consumer proposals, bankruptcies, or charge-offs.
- Too many hard inquiries within a short period.
- Limited credit history with few established accounts.
-
Unstable or Insufficient Income
Another common reason borrowers are declined by TD Bank for a mortgage refinance or HELOC is inconsistent or difficult-to-document income. Like other major lenders, TD Bank prioritizes stable, verifiable earnings when assessing applications. If your income is variable, recently changed, or unconventional, there’s a higher risk of being denied by TD Bank. Some of the most frequent income-related reasons for being declined by TD include:
- Self-employment with fluctuating earnings.
- Short employment history or recent job change.
- Seasonal, gig, or contract-based income.
- Being on short-term disability or maternity leave.
- Heavy reliance on commission-based earnings.
-
Mortgage Arrears or Poor Payment History
If you have fallen behind on your mortgage payments, TD Bank will consider you a high-risk borrower and may deny any refinancing requests. Homeowners experiencing financial hardship often:
- Have missed or late payments on their mortgage.
- Are currently in arrears and at risk of foreclosure.
- Have previously refinanced but failed to make consistent payments.
- Have received multiple warning notices from their lender.
-
High Debt-to-Income Ratio (DTI)
Even if you have good credit, TD may reject your refinance application if your debt load is too high compared to your income. This means that a large portion of your earnings is already committed to paying off loans, credit cards, or other financial obligations. Common warning signs include:
- Carrying large balances on multiple credit cards.
- Paying high interest on payday loans or short-term financing.
- Having multiple car loans, student loans, or personal loans.
- Making only minimum payments on high-interest debts.
How TurnedAway.ca Can Help When TD Bank Denies Your Application
At TurnedAway.ca, we specialize in alternative mortgage solutions designed to provide short-term financial relief while positioning you to qualify for traditional bank financing in the future. If TD has denied your mortgage refinance or HELOC, here’s how we can help:
-
Home Equity Loans: Unlock Your Home’s Value Even If TD Says No
A home equity loan allows you to borrow against the value of your home, regardless of your credit score or income history. Benefits of a home equity loan include:
- Quick access to cash for debt consolidation, home repairs, or financial emergencies.
- Flexible approval criteria that focus on home equity rather than credit scores.
- A one-year term that gives you time to rebuild your credit and income stability.
- Interest-only payment options to help reduce your financial burden in the short term.
-
Private Mortgage Financing: A Temporary Alternative to TD Bank
If TD has denied your refinance due to income instability or excessive debt, a private mortgage lender can provide a short-term solution. Private mortgages allow you to:
- Secure financing even with low credit scores or high debt.
- Pay off urgent expenses like tax arrears, legal fees, or overdue bills.
- Avoid foreclosure by catching up on missed mortgage payments.
- Work toward improving your financial position before returning to traditional bank financing.
-
Alternative HELOC Options: Borrowing Without Refinancing Your TD Mortgage
If TD Bank has denied your HELOC, we can help you access alternative credit options that work similarly, including:
- Second mortgages that allow you to borrow without disturbing your first mortgage.
- Short-term equity-based lending that helps you get through financial hardships.
- HELOC-like products from non-traditional lenders, offering flexibility without strict bank requirements.
The 12-Month Plan: Rebuilding Your Mortgage Eligibility with TD
At TurnedAway.ca, our goal is to help you return to traditional bank financing within 12 months. Here’s our step-by-step process:
- Secure Immediate Financing – We connect you with the best short-term loan solution based on your home equity and financial needs.
- Consolidate High-Interest Debt – We help you simplify your debt load, reducing your monthly financial obligations.
- Repair Credit and Improve Payment History – We guide you in making on-time payments to boost your credit score.
- Requalify for a TD Mortgage Refinance – After 12 months of financial improvement, you’ll be in a stronger position to refinance with TD Bank at a lower interest rate.
Success Stories: How Homeowners Regained Mortgage Eligibility
Case Study #1: Recovering from Mortgage Arrears
Michael and Lisa had fallen behind on their TD mortgage after Lisa lost her job. Facing foreclosure, they turned to TurnedAway.ca. We secured a one-year private mortgage that brought their loan current, giving Lisa time to return to work. After a year of consistent payments, they refinanced back with TD Bank at a prime rate.
Case Study #2: Self-Employed Homeowner Gets Approved
Sam, a self-employed contractor, was denied a HELOC by TD due to fluctuating income. We helped him obtain a short-term second mortgage that allowed him to consolidate business debt and stabilize cash flow. After improving his credit and showing stronger income records, he refinanced with TD one year later.
Ready to Get Back on Track? Let’s Get Started Today!
If TD Bank has denied your mortgage refinance or HELOC, you still have options. TurnedAway.ca specializes in alternative mortgage solutions that provide the financing you need while positioning you for future approval with TD.
Apply Now or Schedule a Free Consultation today with our expert team at TurnedAway.ca.
