A property owner in Ontario needs to pay property taxes – taxes that are used mainly for public education, local police, libraries, and firefighting. Your municipality will mail you a tax bill every year for every property that you own in Ontario.
How much you need to pay would depend on your property’s value and the municipality’s budget. Properties tax rules are standard across all municipalities in Ontario. This ensures the owner gets an accurate and concise summary of what needs to be paid.
Twice per year, property tax statements are issued. The first is mailed between Jan 11 and Jan 29. To avoid interest charges and other penalties, make sure that you pay before the due date. Final tax bills are sent in May.
Property tax penalties are never altered nor waived. Additionally, when you fail to settle your obligations in a timely fashion the municipality will add additional fees.
What Happens If You Don’t Pay Your Property Taxes in Ontario?
As a property owner, it’s your responsibility to pay your property taxes on time. Moreover, payment failure could result in serious repercussions such as a bad impact on your credit score. Your lender may also not renew your mortgage and you could end up losing your home.
Another severe consequence you need to avoid at all costs is a tax lien on your property. When your property has a tax lien attached, you will not be able to sell your home at all unless you have settled your obligations. They will exhaust all options to make you pay. If you still fail to settle your account, a lien will be applied.
When this happens, you should seek the help of a mortgage broker for assistance. If you don’t deal with overdue taxes, Municipalities are quick to enact municipal tax sales
Unpaid taxes come with punitive penalties and local governments are very serious about their local tax collection. Again, they will do whatever is necessary to recover whatever is owed on your property tax bill; even if it means selling your real estate.
Contact us right away as we have the best solution for your problems.
How Long Can Property Taxes Go Unpaid in Ontario
When a property owner does not pay the property tax, they will be contacted by the town through letters and generally via telephone. If your taxes remain unpaid, you will receive a final notice.
If you cannot pay your property taxes for two consecutive years, the city can register a Tax Arrears Certificate or a tax lien on the title.
The municipality will send you reminder notices 4 times a year – March, May, July, and October indicating the outstanding balance. And, if you still cannot pay, you will get a final letter indicating that your property is at risk of having a lien. Your tax bill indicates the amount of arrears on your statement.
If you have a lien on your property you will receive a notice by mail. You can always try to make payment arrangements with your town. However, there are simpler solutions that won’t impact your cash flow.
Thankfully, there is a way for you to pay your outstanding tax balances by using the equity in your home. A home equity loan is a simple solution that homeowners can use to pay off their property tax arrears.
Conversely, Canada’s big banks generally will not approve loans to pay property tax arrears. Fortunately, there are several mortgage lenders who provide home equity loans to pay property tax arrears. You just need to know where to go to find them. A good mortgage broker can help with this.
Help to Pay Property Tax Arrears
Our main objective is to help property owners get mortgage financing whether to settle property tax arrears or any financial obligation they might have. Our 30-year experience in the industry has helped us gain expertise. We take pride in our commitment and ability to find better financial solutions for all our clients.
If your property taxes are long overdue, it’s time you do something about it. You do not want to end up losing your home. With our help, you can avoid all the inconveniences and the negative impact of not being able to pay property taxes.
We offer flexible financing solutions through our vast network of lenders. These lenders do not place a high valuation on Income or credit. Instead, our lenders approve home loans using common sense and the amount of equity you have in your home, making them extremely easy to qualify for.
If you want to know how much you could qualify for, feel free to use our quick home equity calculator. Lastly, we also provide approvals in as little as 24 hours! Yes, we work that fast.