If the CRA has registered a lien on your home, or your property taxes have fallen behind, refinancing can pay the debt in full at closing. We connect GTA homeowners with lenders who look at the equity in your home first and the lien second.
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When You Owe the CRA, Your Home Can Become Part of the Collection
How the Property Tax Arrears Clock Works in Ontario
How a Refinance Pays Off CRA Debt, Arrears or a Lien
Three Ways This Comes Up
Ready to Deal With the CRA Before They Deal With You?
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View ChecklistWhen You Owe the CRA, Your Home Can Become Part of the Collection
The CRA does not need to go to court before it starts collecting. Once a tax debt is confirmed, it can garnish wages directly from an employer, freeze a bank account without warning, and register a lien against any real property you own, including your house.
A CRA lien attaches to the title in roughly the same position a second mortgage would. A lawyer running a title search before closing will find it immediately, and most banks will not fund a purchase or a refinance until it is paid out or formally discharged.
We see this most often with self-employed homeowners and business owners, since CRA installment estimates are based on last year’s income and rarely match a year when revenue drops. If that sounds familiar, our self-employed mortgage programs use the same lenders who are comfortable underwriting around a CRA balance.
A registered lien does not stop you from refinancing, but it changes who will lend. Most A-lenders require the lien to be paid off at closing directly from the new mortgage proceeds, with your lawyer sending funds to the CRA before the deal funds.
If the lien is large relative to your income, or your bank has already declined because of it, alternative and B-lenders are usually the better fit. They weigh the equity in your home and your exit plan more heavily than a clean credit bureau file.
The lien itself does not need to stay a mystery. Ask your broker for a payout statement from the CRA collections office handling your file; that number is what every lender will build the deal around.
How the Property Tax Arrears Clock Works in Ontario
Ontario municipalities give homeowners real time before a tax debt becomes an emergency, but the clock does move. After roughly two years of unpaid property tax, the municipality can register a tax arrears certificate directly on title.
Once that certificate is registered, you typically have about a year to pay the cancellation price, which is the arrears plus interest and fees, before the municipality can list the property for a public tax sale.
A tax sale is not a foreclosure by your lender. It is the municipality selling the property to recover what it’s owed, and it can proceed even if your mortgage payments are otherwise up to date. Refinancing before that deadline is usually the cheapest way out.
How a Refinance Pays Off CRA Debt, Arrears or a Lien
A mortgage refinance works the same way here as it does for any other debt: you borrow against the equity in your home, and your lawyer uses part of the proceeds to pay the CRA or the municipality directly at closing, then registers the discharge.
If refinancing the whole first mortgage means breaking a low rate or paying a large penalty, a second mortgage behind your existing one can cover just the CRA or arrears amount instead.
Three Ways This Comes Up
CRA Tax Debt
A finalized tax debt with wage garnishment or a bank freeze already underway, and a lender who can move before it escalates further.
Property Tax Arrears
Two or more years behind on municipal property tax, with a tax arrears certificate already on title or on the way.
Lien on Title
A CRA lien or arrears certificate turning up on a title search, blocking a sale or a renewal with your current bank.
Many of the people we help are managing CRA debt alongside other bills. If that’s you, our debt consolidation refinancing can roll the CRA balance in with higher-interest consumer debt into one payment.
Ready to Deal With the CRA Before They Deal With You?
Talk to a broker who has cleared CRA liens and tax arrears for GTA homeowners before, discreetly and on a deadline.
Amy Asadullah
Toronto, Ontario
A++++.
I had the pleasure of working with Manzeel at Everything Mortgages. After dealing with 2 other brokers, Manzeel made this purchase happen for me and my family. He has been professional, approachable and sincere. I couldn’t be happier and highly recommend him.
Hovig Tchaderian
Toronto, Ontario
I was extremely pleased with the service I received!! The communication from start to finish could not have been any better.
I would recommend the whole team for anyone that’s looking for a mortgage!!
Thanks again!
Sarah Paul
Toronto, Ontario
My experience with Everything Mortgages was excellent. My mortgage broker was very knowledgeable, professional, and personable. Also, the process was smooth and uncomplicated. I would recommend Everything Mortgages for any type of buyer, new or seasoned, residential or commercial.
Varun Kalia
Canada, Toronto
Manzeel and his team at Everything Mortgages are fantastic! Buying a house can be quite an ordeal but these guys made it stress free and painless. Not only did they take the time to answer all the questions I had but they were also respectful and diligent in keeping me informed through out the closing process. They were mindful of my time and worked around my schedule. It was an excellent experience from end to end. I highly recommend them for anyone in need of a mortgage. Thanks Manzeel and team!
Rahee G
Canada, Toronto
My experience with Everything Mortgages was excellent. Manzeel and his team are best in class. They were very professional and really simplified the process for me. I would recommend Everything Mortgages for everyone!
Melissa Emond
Toronto, Ontario
I’ve personally dealt with Everything Mortgages for years now and they have done many transactions for me (purchases and refinances). They are competitive, tech savvy, and trustworthy. I highly recommend them for all your mortgages needs.
Yes, in most cases. Lenders look at the equity in your home and your ability to carry the new mortgage payment. A CRA balance is treated as a debt to be paid out at closing, not an automatic decline.
A registered lien has to be paid or discharged before or at closing. Many A-lenders will fund this directly through your lawyer; if the bank declines, alternative and private lenders will often still work with a filed lien as long as there’s enough equity.
Once you have a payout statement and an appraisal, most refinances close in two to four weeks. A file that’s close to a tax sale deadline can sometimes be expedited with a private lender.
Traditional banks usually want the arrears paid out at or before closing. If a tax arrears certificate has already been registered, some banks pass and an alternative lender picks up the file instead.
The refinance itself is reported like any other mortgage. Clearing a CRA debt or lien generally helps your credit and your ability to sell or borrow in the future, since the lien is what was holding things back.
The lender can only advance what the appraised value and loan-to-value ratio allow. If the payout is larger than your available equity, we look at a partial payout with the CRA alongside the refinance, or a repayment arrangement for the remainder.
The mechanics are the same, but the payout goes to the CRA or the municipality instead of a credit card or line of credit, and the closing has to happen before any lien deadline or tax sale date on file.
A consumer proposal doesn't have to keep you out of the housing market. We work with lenders across Toronto and the GTA who look past the R7 rating on your credit bureau, whether you're still making payments or already discharged. If the bank says no, we say yes.
A discharge doesn't have to mean years on the sidelines. We place GTA borrowers with the right lender at each stage of recovery, from private financing the week after discharge to bank-rate approvals once credit is rebuilt.
Private mortgage lenders in Toronto approve applications that banks and B lenders decline. Approval is based primarily on property equity and loan-to-value ratio rather than credit score or income documentation. At Everything Mortgages, we connect borrowers with private mortgage lenders across Toronto and Ontario, structure the application to present the file in the strongest light, and manage the process through to funding.
A second mortgage in Toronto lets you access your home equity without breaking your existing first mortgage or triggering a prepayment penalty. It sits behind your first mortgage on title and advances funds as a lump sum at closing. At Everything Mortgages, we place second mortgages for Toronto and GTA homeowners with strong credit and those with bruised credit, accessing B lenders, private lenders, and MICs to find the right fit for each file.
Bank said no? A B lender mortgage gives creditworthy borrowers a regulated path to approval when the major banks decline. At Everything Mortgages, we match clients across Ontario with the right B lender mortgage based on their credit profile, income type, and property, not just their credit score.