Here are some of the most common reasons people can’t qualify for a mortgage:

1. Debts: by far the most common reason people can’t qualify for a mortgage is credit card debt and car loans. If you have $20K in credit card debt or a $600/mth car payment, that means you can afford about $150K less.
2. Credit: there are many more things that can go wrong with credit other than the score. It may be too thin. It may not have enough history. It may show past collections. It may show negative patterns of usage.
3. Income: sometimes the income may not be sufficient but it is also common for self-employed individuals to not claim very much income to the CRA.
4. Insufficient down payment or value of the home. You must have saved up enough money to make up at least 5% of the purchase price of the home and have some extra money on hand for closing costs (estimated at 1.5%).