CRA Debt Mortgages

Paying CRA tax debt with your home equity

Leverage the value of your home to clear outstanding CRA taxes, offering you a practical solution to manage and eliminate your debt.

CRA Debt Mortgages

Use home equity to pay off CRA debt

Leverage the value of your home to clear outstanding CRA taxes, offering you a practical solution to manage and eliminate your debt.

Paying CRA tax debt with your home equity

If you are facing a significant amount of debt owed to the Canada Revenue Agency (CRA), leveraging your home equity can be a viable and effective solution to clear your tax obligations.

Why tap into your home's equity?

Accessing funds through your home means lower rates compared to CRA penalties or unsecured loans, helping you retain more of your hard-earned money.

Accessing funds through your home means lower rates compared to CRA penalties or unsecured loans, helping you retain more of your hard-earned money.

Promptly resolving CRA debts reduces the risk of property liens, garnished wages, or frozen accounts, ensuring your peace of mind and continued financial freedom.

Take the first step towards financial freedom

Don’t let CRA debt overwhelm you. Call now and get a free consultation

The advantages of clearing your CRA debt

End ongoing interest and penalties

Halt interest growth, end penalties, and prevent escalating financial burdens

Protect your home from liens

Avoid super-priority liens and protect your home's security and equity

Open doors to better financing

Improve lender confidence, enabling lower rates, better loan terms, and expanded borrowing options

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Prevent wage garnishments

Prevent wage garnishments and maintain control over your income

Understanding the risks of unpaid CRA debt

If your tax debt remains unpaid, the CRA can legally secure its interest against your home—outranking even your mortgage lender. This puts your property at serious risk.

Before granting a mortgage, most lenders require proof that your taxes are current. Outstanding CRA debts can limit your borrowing options and may result in less favorable terms.

Private Lenders and Higher Costs Private lenders may provide funds if you have sufficient home value to back the loan. However, they typically charge higher interest rates that can quickly become costly.

Refinancing can unlock funds from your property, allowing you to pay off CRA debts. This can lead to more manageable interest rates, improved cash flow, and greater peace of mind.

Don’t let CRA debts jeopardize your homeownership. Apply now to explore your options and move toward a more secure financial future.

Turning your home's value into a solution

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Find the best option for your situation

A lawyer will register your new mortgage and pay off your CRA debt

Key steps to resolving your CRA debt

Assess your financial situation

Our team will review your finances, determine the total CRA debt you owe, and decide if refinancing your home is the right solution for managing your debt.

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Appraise the property and collect documents

We will appraise your property and gather all necessary documents to prepare your application for submission, ensuring a smooth and efficient process.

Secure the best financing

We identify and present the most suitable financing options tailored to your financial situation and handle the submission process on your behalf.

Pay off the CRA debt

Our experienced lawyers will use the refinance funds from your lender to fully settle your CRA debt, ensuring a seamless and secure resolution that restores your financial stability.

Let's put an end to your CRA debt stress

Let our team assess your finances and have a practical, judgment-free conversation about all your available options

How to use your home's equity to settle CRA debt

By replacing your current mortgage with one at a higher amount, you can access the funds needed to pay off your CRA debt. This option may involve working with a B lender if you qualify. It’s ideal when you can secure a favorable interest rate and comfortably handle the new payment schedule.

Our team can secure a HELOC, which enables you to draw funds as needed to clear your CRA debt. Then, you repay on a schedule similar to a credit card—often at a lower interest rate. This approach provides ongoing access to funds and a manageable repayment structure.

If traditional refinancing isn’t feasible, private lenders may offer short-term loans based on your home’s value. While interest rates are typically higher, these loans can quickly settle your CRA obligations, helping you avoid additional penalties and regain financial stability.

CRA Debt Mortgages FAQS

Can I use home equity to pay off CRA tax debt?

Yes, you can use home equity to pay off CRA tax debt. If you own a home and have enough equity, you can refinance your mortgage, secure a Home Equity Line of Credit (HELOC), or take out a private loan to access the funds needed to clear your CRA debt

Using home equity to pay off CRA tax debt offers several benefits:

  • Immediate Clearance of Debts: Pay off the entire CRA debt promptly, stopping the accumulation of interest and removing the associated stress and uncertainty.
  • Lower Interest Rates: Loans secured against home equity typically have lower interest rates compared to unsecured loans or the CRA’s compounded interest.
  • Avoiding Legal Consequences: Prevent actions like wage garnishment, bank account freezes, and liens on your property.
  • Financial Flexibility: Solutions like HELOCs provide ongoing access to funds, allowing you to manage your financial situation more flexibly

There are several risks to consider:

  • Potentially Higher Interest Rates: If the interest rate on the home equity loan or HELOC is not lower than the 9% charged by the CRA, you might end up paying more interest.
  • Risk to Your Home: Your home secures the loan, so falling behind on repayments could risk losing your home to lender repossession

The CRA can collect a debt for either 6 or 10 years from the date the limitation period starts, depending on the type of debt. This period can be restarted or extended if certain actions are taken, such as making a voluntary payment, proposing a payment arrangement, or providing a written acknowledgment of debt

To apply, follow these steps:

  • Determine Your Eligibility: Ensure you have sufficient equity in your home and gather necessary financial documents.
  • Choose the Right Option: Decide between refinancing your mortgage, securing a HELOC, or taking out a private loan.
  • Consult a Mortgage Broker: Work with an experienced mortgage broker to guide you through the process and find the best lender.
  • Apply and Manage Repayment: Submit your application, use the funds to pay off the CRA debt, and manage your repayment plan to avoid any financial complications

Apply Now

After you submit the form, we’ll reach out to discuss your goals, address any questions, and provide customized, no-obligation quotes. Feel free to let us know if there’s anything else you need!

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You will benefit from the expertise of a Fortune Funding Mortgage Advisor, whether over the phone or at a time and place that is convenient for you.

We will contact you within 1 business day.

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