Being declined by TD Bank can feel like a punch to the gut, especially when you were counting on that mortgage or loan approval. Whether you were applying for a new mortgage, a refinance, or a home equity loan, a rejection from one of Canada’s largest banks can leave you feeling stuck and unsure of what to do next.
The good news? A decline from TD is not the end of the road. In fact, thousands of Canadian homeowners are turned down by the big banks every year and still go on to secure the financing they need. At TurnedAway.ca, we specialize in helping homeowners who have been declined by the banks find alternative solutions based on their home equity, not just their credit score.
In this guide, we’ll explain why TD Bank may have declined you, what your options are, and how you can still get approved.
Why Was I Declined by TD Bank?
Banks like TD follow strict federal lending guidelines, and even a small issue on your application can lead to a decline. Here are the most common reasons homeowners are turned down:
- Bad or bruised credit: A low credit score, missed payments, or collections can trigger an automatic decline. Learn more about bad credit mortgages.
- Insufficient or non-traditional income: If you’re self-employed or your income is hard to document, banks often say no. See our self-employed mortgage options.
- High debt-to-income ratio: If too much of your income goes toward existing debt, you may not qualify. Debt consolidation can help.
- Failing the mortgage stress test: Federally regulated banks must qualify you at a higher rate than you’ll actually pay, which pushes many applicants out.
- Property type or condition: Banks may decline financing on unique, rural, or fixer-upper properties.
Whatever the reason, the important thing to understand is that being declined by TD doesn’t mean you can’t get financing—it just means you need a different type of lender.
2026 Update: Why More Canadians Are Being Declined
Bank declines have become more common as Canada works through its mortgage renewal wave. According to CMHC’s Spring 2026 Residential Mortgage Industry Report, the national 90+ day mortgage delinquency rate rose to 0.24% by the end of 2025—still low by historical standards, but the sharpest increases were concentrated in Ontario and the Greater Toronto Area, up 35% and 45% year-over-year. As the big banks tighten their lending criteria in response to this rising financial stress, more homeowners with equity in their homes are turning to alternative and private lenders who approve based on the property, not just the credit score.
Source: CMHC, Spring 2026 Residential Mortgage Industry Report.
What to Do After Being Declined by TD Bank
If TD has said no, don’t panic—and don’t rush to apply at another big bank right away. Multiple applications in a short period can further hurt your credit score. Instead, take these steps:
1. Find Out Why You Were Declined
You have the right to ask TD why your application was rejected. Understanding the reason—whether it’s credit, income, or the property—helps you target the right solution. You can also check your credit report for free through Equifax or TransUnion.
2. Consider an Alternative or Private Lender
This is where TurnedAway.ca comes in. We work with a large network of alternative (B) lenders and private lenders who look at your situation differently than the banks. Instead of focusing only on your credit score, they focus on the equity in your home.
3. Use Your Home Equity
If you own a home with equity, you have options the banks won’t offer. A home equity loan or second mortgage lets you borrow against your home’s value—even with bad credit or non-traditional income. These funds can be used to consolidate debt, cover arrears, or simply give you breathing room.
4. Refinance With a More Flexible Lender
If your goal was to refinance, we can help you refinance your mortgage through a lender who’s willing to work with your circumstances, often with approvals in as little as 24 hours.
How TurnedAway.ca Helps Homeowners Declined by the Banks
For over 30 years, we’ve specialized in helping Canadian homeowners who’ve been turned away by the big banks. Our approach is simple:
- We focus on your home equity, not just your credit score or income.
- We work with a wide network of lenders, including alternative and private options the banks don’t offer.
- We move fast, with approvals often available within 24 hours.
- We keep it responsible, arranging financing up to 80% of your home’s value so you always keep a healthy equity buffer.
Not sure how much you could qualify for? Try our home equity loan calculator to get an estimate.
Case Study: Approved After Being Declined by TD
A homeowner in Ontario was declined by TD Bank for a refinance due to a drop in credit score after a period of unemployment. Despite having significant equity in their home, the bank’s rigid guidelines meant an automatic no.
The homeowner came to TurnedAway.ca, and within 48 hours we arranged a second mortgage through a private lender based on the home’s equity. This allowed them to consolidate high-interest debt, lower their monthly payments, and stabilize their finances—with a clear plan to return to a traditional lender once their credit recovered.
Frequently Asked Questions
Can I still get a mortgage after being declined by TD Bank?
Yes. Being declined by TD doesn’t disqualify you from financing. Alternative and private lenders approve homeowners based on their home equity, often regardless of credit or income challenges.
Will applying with another lender hurt my credit?
A single application typically has minimal impact. However, applying at multiple banks in a short window can lower your score. Working with a broker like TurnedAway.ca means we can match you to the right lender without unnecessary credit checks.
How quickly can I get approved?
In many cases, we can arrange approvals within 24 to 48 hours, depending on your situation and the property.
Do I need good credit to qualify?
No. Our lenders focus on the equity in your home rather than your credit score, which is why we can help homeowners who’ve been declined elsewhere.
Declined by TD Bank? We Can Help
A decline from TD Bank isn’t the end—it’s just a detour. If you have equity in your home, TurnedAway.ca can help you find a solution that works, even when the banks say no.
Apply now or call us today at 1-855-668-3074 for a free, no-obligation consultation. Let us help you get back on track.
