Using Your Home Equity to Pay Off CRA Tax Debt
It’s not unusual to owe money to the Canada Revenue Agency (CRA) after filing your personal tax return. But there are situations where there is a significant amount owed. This most often happens to self-employed Canadians and those who haven’t filed their returns for a few years.
When a large amount is owing to the CRA, and it has been outstanding for some time, your credit can be impacted, and there may even be liens registered against your home.
In these situations, you will find your bank’s hands are tied, and they are unable to help you, even though you’ve been a great client. However, CRA debt is taken very seriously by most institutional lenders.
If you are a homeowner, there are options to help you get back on track
The team at Ross Taylor Mortgages will work with you to help navigate the best way to pay back the CRA, as well as the accumulated interest and penalties, by leveraging your home equity. Our goal is to clear up your taxes owed and put you in a better credit position.
Providing you with solutions for your unique situation
Many factors lead to a solution, and every circumstance is different. For example, while most financial institutions prefer not to refinance a mortgage to repay the CRA, some alternative lenders are willing to cover the debt and all associated costs.
The cost? In these scenarios, we often work with private mortgage lenders who have higher than usual interest rates. They also have additional lenders, brokerage and legal fees. Read more about private mortgage lender costs.