Being denied by RBC (Royal Bank of Canada) can come as a shock—especially when you’ve built a strong relationship with the bank. Your mortgage, chequing account, and credit cards are all with them, so when it came time to refinance your mortgage or access a home equity line of credit (HELOC), you likely assumed it would be a seamless process.
Then came the surprise: you were denied by RBC.
Unfortunately, being denied by RBC is more common than many homeowners realize—particularly if you’re dealing with credit challenges, temporary income disruption, or elevated debt levels. But here’s the good news: a denial isn’t the end of the road. In fact, for many of our clients, being denied by RBC is the first step in a short-term plan that ultimately leads them back to traditional financing within 12 months.
At TurnedAway.ca, we specialize in helping homeowners who have been denied by RBC or other major lenders. We provide fast, equity-based mortgage solutions that allow you to tap into your home’s value—even when banks say no. Whether you’ve been denied by RBC for a refinance or a HELOC, we can help you regain control of your finances now and get you back on track to requalify with RBC down the line.
Why You May Be Denied by RBC for a Refinance or HELOC Application
Credit Score Doesn’t Meet Their Threshold
RBC applies credit-based risk filters to all mortgage and HELOC applications. Even if you’ve never missed a payment, a drop in your credit score—often below 680—can disqualify you.
Triggers include:
- Late or missed payments
- High credit utilization
- Accounts in collections
- Past consumer proposals or bankruptcies
- Limited credit history
🔎 RBC uses automated decision tools that often flag applications with even mild credit blemishes.
Unstable or Non-Traditional Income
RBC tends to be conservative when evaluating income. If you:
- Are self-employed
- Work on contract or seasonal terms
- Are on maternity leave or disability
- Recently changed jobs
- Rely on non-guaranteed income sources (tips, commissions, gig work)
…your income may not be accepted in full or at all. This can severely reduce your borrowing power—even if you’ve always managed your payments responsibly.
High Debt Load or Missed Payments
Even with decent income and credit, RBC will deny applications where:
- Debt service ratios (GDS/TDS) exceed their internal limits
- You carry large balances on revolving credit
- You’ve missed mortgage payments or are behind on other bills
- There are active writs, liens, or collections on your file
They’re focused on minimizing risk—and when the numbers don’t fit neatly into their policies, they’ll decline the file.
What to Do After an RBC Refinance or HELOC Denial
Your next steps matter. You could wait 6–12 months and hope your profile improves—or you can act now and regain control.
At TurnedAway.ca, we work with clients every day who are denied by RBC but have significant equity in their homes. We offer flexible, one-year lending solutions designed to:
- Pay off urgent debts
- Catch up on missed payments
- Rebuild credit
- Stabilize finances
These solutions allow you to preserve your relationship with RBC by keeping your existing mortgage intact while solving the problem in the short term.
How TurnedAway.ca Helps RBC Clients Get Back on Track
Home Equity Loans (No Need to Break Your RBC Mortgage)
A home equity loan allows you to borrow against your home’s value without touching your existing RBC mortgage.
Perfect if:
- Your RBC mortgage is locked in at a great rate
- You want to avoid penalties
- You only need short-term access to capital
Benefits:
- Fast approval—even with bad credit or reduced income
- Terms as short as 12 months
- Interest-only options to keep payments low
- Fees often rolled into the loan, not paid upfront
Alternative HELOC or Second Mortgage Options
Denied by RBC for a HELOC? That’s where we come in.
We can arrange:
- A second mortgage behind your existing RBC first mortgage
- A private HELOC solution for flexible borrowing
- A customized equity-based loan structured to match your goals
Explore second mortgage solutions here
Private First Mortgage (If RBC Is Calling the Loan or You’re in Arrears)
If you’re already in power of sale proceedings or facing legal action from RBC due to missed payments, we can arrange a full refinance through a private lender.
This solution:
- Stops foreclosure immediately
- Pays off your RBC mortgage, property tax arrears, or debts
- Buys you time to get back to work, fix credit, and regroup
- Prepares you to refinance with RBC or another bank within 12–18 months
See how we help stop foreclosure in Canada
The 12-Month Return Strategy: Back to RBC
We don’t believe in long-term band-aids. Our goal is to help you: ✅ Solve the immediate problem
✅ Rebuild your financial standing
✅ Return to RBC with a strong profile
Step-by-step:
- Get a 1-year equity loan, second mortgage, or refinance
- Pay down your highest-interest debts
- Catch up on any arrears or bills
- Improve credit through consistent payments
- Requalify for an RBC mortgage or HELOC—on your terms
Most clients are bankable again within 12 months—sometimes faster.
Case Studies: Real Clients, Real Recovery
Case Study 1: HELOC Denied Due to Job Loss
📍 Situation:
Karen, a homeowner in Ottawa, applied for a HELOC through RBC to consolidate her credit card debt. Despite being a long-time client, she was denied by RBC due to a recent job loss that impacted her income stability.
💡 Our Solution:
TurnedAway.ca stepped in with a short-term solution. We secured Karen a 1-year home equity loan with interest-only payments, making it manageable during her period of unemployment. She used the funds to pay down high-interest credit cards and cover essential living expenses while she searched for a new job.
🎯 Outcome:
Within 11 months, Karen was back to work and in a stronger financial position. With improved credit and stable income, she successfully refinanced back with RBC, restoring her banking relationship and securing better long-term terms.
Case Study 2: Self-Employed and Declined for Refinance
📍 Situation:
Tom, a successful construction business owner in Mississauga, applied to refinance his mortgage through RBC. Despite strong cash flow, he was denied by RBC due to limited documentation and the challenges of being self-employed—a common roadblock for business owners seeking traditional financing.
💡 Our Solution:
TurnedAway.ca arranged a second mortgage tailored to Tom’s situation. This allowed him to pay off high-interest credit cards and reinvest in his growing business, without the rigid income verification required by the bank.
🎯 Outcome:
Within 12 months, Tom had strengthened his credit and built a clear, documented income history. He then refinanced back with RBC, securing a traditional mortgage and lowering his monthly payments.
Case Study 3: Mortgage Arrears and Foreclosure Threat
📍 Situation:
Maria and David, homeowners in Ontario, fell three months behind on their RBC mortgage after maternity leave and unexpected medical expenses strained their finances. When they applied for help, they were denied by RBC, and the bank initiated legal proceedings to start a power of sale.
💡 Our Solution:
TurnedAway.ca quickly arranged a private refinance using their home equity. This solution allowed them to pay off the mortgage arrears, cover unpaid property taxes, and immediately stop the power of sale process, giving them time to regain control.
🎯 Outcome:
With breathing room and a new financial plan, Maria and David stabilized their finances over the next year. After 13 months, they were able to refinance back with RBC—this time with improved credit and no arrears.
Frequently Asked Questions (FAQs)
Why was I denied a HELOC by RBC if I have lots of equity?
Equity alone isn’t enough. RBC evaluates credit score, income, and debt servicing ratios—and if you fall short in one area, you may still be denied.
Can I get a second mortgage and still keep my RBC mortgage?
Yes. That’s one of the most popular solutions we offer. You can keep your current RBC mortgage intact and take out a second mortgage with flexible repayment terms.
Is it better to refinance everything or just get a short-term loan?
It depends on your situation. If your RBC mortgage is in good standing and at a low interest rate, a home equity loan or second mortgage is often the smarter option—it lets you access your equity without disturbing your existing mortgage. However, if you’re in arrears, have been denied by RBC, or are facing legal action like a power of sale, a full refinance may be necessary to bring the account current and avoid further consequences.
How quickly can I get approved after RBC denies me?
We typically provide approvals in 24–72 hours, with funding shortly after. Urgent files (like foreclosure cases) are fast-tracked.
Can you help me get back to RBC in the future?
Yes. That’s our specialty. Our entire model is designed around getting you back to traditional bank financing—whether it’s RBC or another lender—after a short recovery period.
See how our one-year mortgage solutions work
Recommended Reading
For more insights on the future of the Canadian housing market, check out our blog:
How Will Canadian Home Sales Rebound Impact Prices
Take the First Step—We’ll Help You the Rest of the Way
Being denied by RBC may feel like a setback—but it doesn’t have to be. With the right strategy, the right lending partner, and a little time, you can rebuild, refinance, and return to your bank on stronger footing.
👉 Apply Online Now or Schedule a Free Consultation to speak with a member of our experienced team. We’re here to help you turn a “no” into a “not yet.”
