Introduction: Facing a CRA Lien on Your Home?
If you’re a Canadian homeowner struggling with a CRA lien, you’re not alone. Thousands of Canadians find themselves blindsided by Revenue Canada registering a lien against their property due to unpaid taxes. Whether it’s income tax debt, HST arrears, or small business-related penalties, CRA liens can escalate fast—and threaten your financial stability.
The good news? If you own a home, you may have a powerful tool to resolve this issue: your home equity. In this blog, we’ll explain exactly how CRA liens work, how they impact your home, and how to use home equity loans, second mortgages, or refinancing strategies to settle your debt quickly and protect your property.
What Is a CRA Lien and How Does It Work?
When you fall behind on your tax payments, the Canada Revenue Agency has the authority to register a legal claim, or “lien,” against your property. A CRA lien is not just a warning—it gives the government a secured interest in your home, similar to a mortgage.
Once registered, the lien becomes public and must be paid off before you can refinance or sell your home. CRA liens can:
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Damage your credit
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Prevent you from refinancing
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Lead to forced sale or foreclosure if left unresolved
Real-Life Example:
Natalie from Barrie owed $42,000 in back taxes after a failed business venture. She discovered a CRA lien when trying to refinance her home to cover expenses. With help from TurnedAway.ca, she accessed $85,000 in home equity via a second mortgage. This cleared the CRA lien and provided a buffer for future expenses.
Can You Use Home Equity to Pay Off a CRA Lien?
Yes—in fact, it’s one of the most effective solutions available. Home equity loans or second mortgages allow you to borrow against the value of your home, even if you have existing mortgage debt.
Many Canadians don’t realize that despite having poor credit or late payments, they can still qualify for a Home Equity Loan because approval is based on equity, not just credit score.
How it works:
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Assess equity: Subtract your current mortgage from your home’s market value.
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Get a new second mortgage or refinance: Access up to 80% of your home’s value.
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Pay off the CRA lien: Once the lien is discharged, you regain full control over your property.
Step-by-Step: Settling a CRA Lien Using Home Equity
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Get a current property appraisal
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Confirm the lien amount with CRA
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Contact a broker like TurnedAway.ca who specializes in tax debt and lien resolution
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Apply for a second mortgage or home equity loan
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Use loan proceeds to pay the CRA
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Have the lien removed from your title
Case Study:
Andre in Mississauga owed $65,000 in HST from a failed sole proprietorship. A CRA lien blocked his ability to refinance. Within 10 days, he received a private second mortgage for $110,000 through TurnedAway.ca. He paid off the CRA, avoided further penalties, and used the remainder to start a new venture.
Why Act Fast When a CRA Lien Is Involved
Delays can be costly. CRA interest and penalties accrue monthly. The longer a lien stays on your title, the greater the risk of forced legal action, including wage garnishment or property seizure.
Moreover, the lien decreases your refinancing power and reduces the lender pool willing to help you.
Tip: The sooner you act, the more options you have. TurnedAway.ca works with lenders who specialize in high-risk tax debt cases, including those with liens already registered.
Alternatives to Home Equity Loans for CRA Liens
While home equity is usually the best tool for lien resolution, here are some alternatives:
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Consumer Proposal: Can stop interest but won’t remove the lien until paid off.
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Bankruptcy: Can discharge some tax debts but not all—and the CRA lien stays in place.
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Payment Plans with CRA: Difficult to negotiate and often require full financial disclosure.
None of these alternatives remove the lien until the full amount is paid—which is why home equity is usually the fastest route to financial freedom.
FAQs: CRA Liens and Home Equity
1. Will a CRA lien affect my credit score?
No, but the unpaid tax debt leading to the lien likely already has. However, a lien on your home’s title will impact your ability to borrow.
2. Can I sell my home if there is a CRA lien on it?
Yes, but the lien must be paid out from the sale proceeds. This can complicate deals and lower net cash.
3. What if I have bad credit—can I still get a loan?
Yes. Home equity loans through TurnedAway.ca are based on property value, not just credit score.
4. How long does it take to resolve a lien with a home equity loan?
Approvals can happen in 24–48 hours, with funds released within 5–10 business days.
5. Is TurnedAway.ca experienced with CRA lien cases?
Absolutely. We specialize in tax lien solutions and work with one of Canada’s largest lender networks to secure fast, customized funding.
Additional Resources
Final Thoughts: Don’t Let a CRA Lien Threaten Your Future
A Revenue Canada lien can feel overwhelming, but you have options. If you own a home, your equity could be the key to resolving the debt, removing the lien, and moving forward with confidence.
Apply for a Home Equity Loan or Schedule a Free Consultation with TurnedAway.ca today. Get the expert help you need to take back control of your home and finances.
