5 Hidden Red Flags That Can Damage Your Mortgage Approval (It’s Not Just Credit Score)

Josh Perez • December 11, 2025

When most people think about getting denied for a mortgage, they assume the problem is a low credit score.
But in today’s lending environment, five lesser-known red flags are far more likely to derail your approval.

As a mortgage professional, I review hundreds of files every year — and these are the issues I see quietly hurting clients the most.


1. Payday Loans (Even Tiny Ones)

Even a short-term or small payday loan leaves a mark on your credit report.
To lenders, it signals financial strain or cash-flow pressure.


Why it matters:
Payday loan history can make lenders question your ability to manage monthly mortgage payments, even if everything else looks strong.


2. Gambling or Sports Betting Activity

If your bank statements show frequent betting charges, lenders may see it as a risk factor.


Why it matters:
It’s not about judging you — it’s about stability. Betting transactions can make lenders unsure about long-term money management habits.


3. Unpaid Taxes (Owing CRA)

This one is huge. Any outstanding balance with the CRA is treated seriously.


Why it matters:
Lenders know the government always gets paid first.
If CRA debt shows up, they’ll question whether your mortgage will truly be a priority.


4. Frequent Bank Overdrafts

Even with strong income, dipping into the negative too often can raise concerns.


Why it matters:
Overdraft patterns suggest inconsistent cash flow or a lack of financial cushion.
Lenders look closely at 90 days of banking — and overdrafts stand out.


5. Co-Signing Loans for Someone Else

You may not be making the payments… but lenders treat that debt as if you are.


Why it matters:
Co-signed loans directly reduce your borrowing power and lower your maximum approval amount.


If One of These Red Flags Applies to You… Don’t Panic

Having these on your file doesn’t mean you can’t get approved.
It simply means we need a strategy.


I help clients build personalized action plans to strengthen their file, improve their approval odds, and position them to purchase sooner.


Want a plan that fits your situation?

Schedule a call with me using the link in my bio.
Let’s get you mortgage-ready — without the stress.

“Most mortgage roadblocks don’t come from bad credit—they come from small financial habits that lenders read as risk signals.” — Josh Perez

Josh Perez
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Bank of Canada Rate Announcement Dec 10th, 2025

By Josh Perez • December 10, 2025
Bank of Canada maintains policy rate at 2.1/4%. FOR IMMEDIATE RELEASE Media Relations Ottawa, Ontario December 10, 2025 The Bank of Canada today held its target for the overnight rate at 2.25%, with the Bank Rate at 2.5% and the deposit rate at 2.20%. Major economies around the world continue to show resilience to US trade protectionism, but uncertainty is still high. In the United States, economic growth is being supported by strong consumption and a surge in AI investment. The US government shutdown caused volatility in quarterly growth and delayed the release of some key economic data. Tariffs are causing some upward pressure on US inflation. In the euro area, economic growth has been stronger than expected, with the services sector showing particular resilience. In China, soft domestic demand, including more weakness in the housing market, is weighing on growth. Global financial conditions, oil prices, and the Canadian dollar are all roughly unchanged since the Bank’s October Monetary Policy Report (MPR). Canada’s economy grew by a surprisingly strong 2.6% in the third quarter, even as final domestic demand was flat. The increase in GDP largely reflected volatility in trade. The Bank expects final domestic demand will grow in the fourth quarter, but with an anticipated decline in net exports, GDP will likely be weak. Growth is forecast to pick up in 2026, although uncertainty remains high and large swings in trade may continue to cause quarterly volatility. Canada’s labour market is showing some signs of improvement. Employment has shown solid gains in the past three months and the unemployment rate declined to 6.5% in November. Nevertheless, job markets in trade-sensitive sectors remain weak and economy-wide hiring intentions continue to be subdued. CPI inflation slowed to 2.2% in October, as gasoline prices fell and food prices rose more slowly. CPI inflation has been close to the 2% target for more than a year, while measures of core inflation remain in the range of 2½% to 3%. The Bank assesses that underlying inflation is still around 2½%. In the near term, CPI inflation is likely to be higher due to the effects of last year’s GST/HST holiday on the prices of some goods and services. Looking through this choppiness, the Bank expects ongoing economic slack to roughly offset cost pressures associated with the reconfiguration of trade, keeping CPI inflation close to the 2% target. If inflation and economic activity evolve broadly in line with the October projection, Governing Council sees the current policy rate at about the right level to keep inflation close to 2% while helping the economy through this period of structural adjustment. Uncertainty remains elevated. If the outlook changes, we are prepared to respond. The Bank is focused on ensuring that Canadians continue to have confidence in price stability through this period of global upheaval. Information note The next scheduled date for announcing the overnight rate target is January 28, 2026. The Bank’s next MPR will be released at the same time.

First-Time Buyer? Here’s How to Tell If You’re Ready

By Josh Perez • December 3, 2025
Ready to Buy Your First Home? Here’s How to Know for Sure Buying your first home is exciting—but it’s also a major financial decision. So how can you tell if you’re truly ready to take that leap into homeownership? Whether you’re confident or still unsure, these four signs are solid indicators that you’re on the right path: 1. You’ve Got Your Down Payment and Closing Costs in Place To purchase a home in Canada, you’ll need at least 5% of the purchase price as a down payment. In addition, plan for around 1.5% to 2% of the home’s value to cover closing costs like legal fees, insurance, and adjustments. If you’ve managed to save this on your own, that’s a great sign of financial discipline. If you're receiving help from a family member through a gifted down payment , that works too—as long as the paperwork is in order. Either way, having these funds ready shows you’re prepared for the upfront costs of homeownership. 2. Your Credit Profile Tells a Good Story Lenders want to know how you manage debt. Before they approve you for a mortgage, they’ll review your credit history. What they typically like to see: At least two active credit accounts (trade lines) , like a credit card or loan Each with a minimum limit of $2,000 Open and active for at least 2 years Even if your credit isn’t perfect, don’t panic. There may still be options, such as using a co-signer or working on a credit improvement plan with a mortgage expert. 3. Your Income Can Support Homeownership—Comfortably A steady income is essential, but not all income is treated equally. If you’re full-time and past probation , you’re in a strong position. If you’re self-employed, on contract, or rely on variable income like tips or commissions, you’ll generally need a two-year history to qualify. A general rule: housing costs (mortgage, taxes, utilities) should stay under 35% of your gross monthly income . That leaves plenty of room for other living expenses, savings, and—yes—some fun too. 4. You’ve Talked to a Mortgage Professional Let’s be real—there’s a lot of info out there about buying a home. Google searches and TikToks can only take you so far. If you're serious about buying, speaking with a mortgage professional is the most effective next step. Why? Because you'll: Get pre-approved (and know what price range you're working with) Understand your loan options and the qualification process Build a game plan that suits your timeline and financial goals The Bottom Line: Being “ready” to buy a home isn’t just about how much you want it—it’s about being financially prepared, credit-ready, and backed by expert advice. If you’re thinking about homeownership, let’s chat. I’d love to help you understand your options, crunch the numbers, and build a plan that gets you confidently across the finish line—keys in hand.