At a Toronto panel, bank and broker-channel leaders said they’re approving qualified borrowers but files with multiple income streams, unexplained deposits and incomplete paperwork are taking longer to process — and brokers can reduce delays by packaging stronger, clearer applications.
Banks report unchanged risk appetite for prime borrowers but are spending more time on files that are complex, highly leveraged, or have documentation gaps.
Brokers should submit complete applications that tell a clear borrower story and engage clients well ahead of renewals to avoid surprises.
Lenders pointed to two main drivers of delay. First, borrower finances have become more layered. Multiple jobs, side hustles and non-traditional income streams require extra time to verify and reconcile. TD's vice-president of broker services said the bank's risk tolerance hasn't materially changed, but files are drifting toward greater complexity because of the economy and shifting work patterns.
Second, anti-money-laundering (AML) and regulatory checks now demand detailed source-of-funds tracing when deposits are unexplained. National Bank's broker-channel lead said AML obligations add substantial time and work to file reviews. A good credit score does not replace the need for due diligence on where funds originated.
High leverage, elevated debt-service ratios and gaps in applications attract the most scrutiny. Lenders said they focus on alignment between the borrower's story, the documentation and the numbers. If those elements don't line up, the file will require follow-up and can stall.
Panelists said well-documented files with a coherent story can still receive favourable treatment even when ratios look high. National Bank noted it can assess high-ratio applications positively when mitigating factors are documented. TD highlighted that its business-for-self policy is competitive and that brokers should take time to understand it before directing clients to alternative lenders.
Banks are stepping up retention efforts as more mortgages approach renewal. BMO's broker-channel head said banks are proactively sending renewal offers, often focused on rate. Brokers should contact clients at least six months ahead of renewal to discuss changes in their finances, new debt, or refinancing needs. Owning the renewal conversation increases the broker's chance to retain business before bank retention teams intervene.
Lenders are still approving qualified borrowers, but the review process now requires clearer, fuller file packaging and extra time for regulatory checks. Brokers who gather complete documentation, explain non-traditional income and anticipate AML questions will shorten turnaround and improve approval odds.
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