You found the perfect home, made an offer, supplied all your documents, removed conditions, and started planning your move. Everything seems locked in — until your broker or lawyer calls with bad news. How can a lender cancel an approval after conditions are removed?

See how small financial changes can cause a lender to withdraw your mortgage at the last minute. 👇

Your mortgage approval is based on your financial profile at the time of application — if anything changes before closing, the lender can legally cancel the approval.

1️⃣ Changing Jobs Before Possession

Employment changes are one of the fastest ways to lose your mortgage.

✔️ new employers often impose probation

✔️ variable income (overtime/bonus) may not be usable

✔️ switching industries raises lender concerns

✔️ moving from employee to contractor is often disqualifying

Lenders want stability — and last-minute employment changes are seen as high risk.

2️⃣ Taking On New Debt Before Closing

Your lender rechecks your credit before you take possession.

✔️ new car loans increase your debt ratios

✔️ “no payments for 12 months” still counts as debt

✔️ new furniture or appliances reduce affordability

✔️ rising balances can kill your approval

Do **not** make any major purchases until after you have the keys in hand.

3️⃣ Changing Your Down Payment Source

Lenders must verify where your down payment comes from.

✔️ switching from savings to gift funds can cause issues

✔️ unreported transfers raise red flags

✔️ new funds must be documented and approved

Any change in source must be disclosed **before** closing — not at the lawyer’s office.

4️⃣ Missing Payments or Damaging Your Credit

Your credit must remain stable throughout the process.

✔️ late payments drop your score

✔️ increased balances raise risk

✔️ insurers can withdraw approval for high-ratio mortgages

One late payment can lead to a denial, even after your offer is accepted.

5️⃣ Identity Document Mismatches

Your legal name must match the mortgage and legal documents.

✔️ using a nickname during application creates problems

✔️ middle names can cause confusion

✔️ new Canadians must use their legal passport name

If your ID doesn’t match the mortgage paperwork, the deal can collapse on closing day.

💬 Final Thought

Your mortgage approval is not final until the day you sign at the lawyer’s office. Any change to your employment, credit, debt, or down payment can immediately jeopardize your financing. Staying in close contact with your mortgage professional ensures a smooth and stress-free closing.

If you’d like us to review your financing and avoid last-minute pitfalls, send The Frontline Mortgage Group a message anytime.