How to increase your chances of being approved for mortgage refinancing?
Like with any loan application, you’re not guaranteed to be approved for mortgage refinancing. Mortgage refinancing lenders consider factors like your credit score, assets, debt and income when deciding if you should be approved and at what interest rate.
Lenders often determine your eligibility by calculating your Total Debt Service (TDS) ratio – which is the percent of your monthly household income that’s used to cover both housing costs and any additional debts. Experts suggest that you should try to keep your TDS ratio under 42% for the best chance of approval. You can use the CMHC’s calculator to find out what your TDS ratio is.