A pre-approval denial doesn’t mean you can’t buy a home. It simply means the lender found something that doesn’t meet their current criteria. The good news is, most of these issues can be fixed.

Common reasons for denial

  1. Low credit score – Most lenders prefer 650 or higher for the best rates.
  2. High debt-to-income ratio – If too much of your income goes toward debts, approval becomes difficult.
  3. Unstable employment – Frequent job changes or short work history can be a red flag.
  4. Insufficient down payment – If your savings or gift funds aren’t verified.
  5. Missing or inconsistent documents – Even one missing file can delay or block approval.

Read More: 5 Documents You’ll Need to Get Pre-Approved for a Mortgage in Canada

A denial isn’t the end.

How to fix it

  • Check your credit report: Correct errors and pay off late accounts.
  • Lower your debt: Focus on paying high-interest balances first.
  • Increase your income: Consider adding a co-borrower if possible.
  • Save for a bigger down payment: Even 2–3% more can make a difference.
  • Use a trusted advisor: Online brokers like Homewise can resubmit your file to another lender that may have different guidelines.

When to reapply

Once you’ve fixed the issue, you can reapply after 30 to 60 days. A good advisor will tell you exactly when and how to boost your chances.

Key takeaway

A denial isn’t the end. With a few smart adjustments and the right guidance, you can often turn it into an approval faster than you think.

FAQs

1. Can I get pre-approved with bad credit?

Yes. Some lenders specialize in alternative or B lenders who work with lower scores.

2. Does a denial hurt my credit?

No. The inquiry might show on your report, but it’s minor.

3. Should I reapply with the same lender?

You can, but it’s often better to try a broker who can access multiple lenders.

4. How long should I wait before reapplying?

Usually 30 to 60 days, depending on what needs to improve.