Property Tax Arrears Solutions in Ontario
Behind on Property Taxes? We Can Help You Clear Them
If you have fallen behind on your property taxes, you are not out of options. TurnedAway.ca helps Ontario homeowners use their home equity to pay off tax arrears, stop a municipal tax sale, and protect the home they have worked hard for, regardless of credit or income.
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No credit check to get started · Approvals in as fast as 24 hours · Financing from $25,000
Property tax arrears are unpaid municipal property taxes that accumulate interest and penalties until they are paid. In Ontario, if arrears remain unpaid long enough, the municipality can register a tax arrears certificate and eventually sell the property through a tax sale. Homeowners with equity can clear the arrears with a home equity solution before that happens.
24 hrs
Approvals possible in as little as 24 hours in urgent tax sale situations
80%
Maximum loan-to-value we arrange, leaving equity protected as a buffer
No
Income verification required — approval is based on your home equity
$25K
Financing available from $25,000 to clear arrears and stabilize your situation
What Property Tax Arrears Mean for Your Home
Property tax arrears are unpaid municipal property taxes that have carried over past their due date. Municipalities depend on these taxes to fund local services, and they have strong legal tools to collect them. Once you fall behind, interest and penalties begin accumulating on the outstanding balance, and the amount owed can grow quickly.
If arrears remain unpaid, your municipality can register a tax arrears certificate against your property. In Ontario, this typically becomes possible once taxes have been in arrears for a defined period set by the Municipal Act. A registered certificate restricts your ability to sell or refinance and, if the balance is not cleared, can ultimately lead to a municipal tax sale of your home.
The good news is that property tax arrears are resolvable. If you have built up equity in your home, that equity can be used to pay the arrears in full and stop collection action before it escalates. For an overview of homeowner rights and consumer protections, the Financial Consumer Agency of Canada is a helpful independent resource.
How It Works
Resolving property tax arrears through TurnedAway.ca is straightforward, and in urgent cases it moves quickly. Here is what to expect from your first call through to funding.
Apply Online
Complete our secure application at apply.turnedaway.ca. Tell us your property location, estimated value, mortgage balance, and the amount of tax arrears owing. No credit check required to begin.
We Review Your File
Our team reviews your application, often within hours, and confirms your equity position against our 80% loan-to-value cap. We identify which solution fits best: a home equity loan, second mortgage, or refinance.
Property Appraisal
An independent appraisal confirms your home's current market value, which determines how much equity is available to clear your arrears. We subsidize appraisal costs wherever possible.
Approval and Legal Work
Once approved, your lender issues a commitment with all terms and costs disclosed in writing. Your lawyer completes the legal work and confirms the payout amount with your municipality.
Arrears Paid in Full
Funds are advanced and your outstanding property taxes are paid in full through your lawyer, clearing the arrears and stopping collection action. In urgent tax sale situations, files can close in as little as 24 to 72 hours.
Who Qualifies for a Property Tax Arrears Solution?
Property tax financing is secured against the equity in your home. That means approval is based primarily on your equity position, not your credit score or income. Many of our clients were declined by their bank before coming to us.
Homeowners with Equity
If you have built up equity in your home, that equity can be used to pay off your arrears. We arrange financing up to a maximum of 80% of your home's value, leaving a protective buffer in place.
Bad Credit or No Credit
Missed payments, collections, consumer proposals, and past bankruptcies do not automatically disqualify you. Your equity is the primary approval factor.
Self-Employed or Fixed Income
No income verification or tax returns required. Whether you are self-employed, retired, or between jobs, you can qualify based on your home equity alone.
Facing a Tax Arrears Certificate
If your municipality has already registered a tax arrears certificate, we can still help. Fast access to funds can clear the certificate before a tax sale proceeds.
Declined by Your Bank
Banks often refuse to refinance or renew a mortgage when property taxes are in arrears. We specialize in exactly these situations and work with lenders who understand them.
Also Facing Other Debts
If you are dealing with tax arrears alongside other high-interest debt or CRA debts and liens, we can often consolidate everything into a single solution.
or call 1-855-668-3074
How Much Can You Borrow to Clear Your Arrears?
The amount available depends on your home's value and your existing mortgage balance. We do not arrange financing above 80% of your home's value, which protects you if property values decline. The example below shows how equity is calculated.
Simple Example
| Detail | Amount |
|---|---|
| Estimated Property Value | $700,000 |
| Maximum Financing at 80% LTV | $560,000 |
| Existing Mortgage Balance | $420,000 |
| Available to Clear Arrears and Other Needs | $140,000 |
In this example, $140,000 is available, more than enough to clear typical property tax arrears with room left over for other obligations. Use our home equity calculator to get a personalized estimate based on your own property value and mortgage balance.
What Happens If Property Tax Arrears Go Unpaid
Property tax arrears do not resolve themselves. Left unaddressed, they follow a predictable path of escalation. Understanding the stages helps you see why acting early matters.
Stage 1
Interest and Penalties
From the moment taxes are overdue, interest and penalties accumulate on the balance. The longer arrears remain, the more you owe.
Stage 2
Municipal Notices
Your municipality sends letters and reminders about the outstanding balance and the consequences of continued non-payment.
Stage 3
Tax Arrears Certificate
After taxes have been in arrears for the period set by the Municipal Act, a certificate can be registered on title, restricting sale or refinance.
Stage 4
Municipal Tax Sale
If the arrears and certificate are not cleared within the redemption period, the municipality can sell your property to recover the taxes owed.
At any stage before a tax sale completes, arrears can be paid in full and the process stopped. The earlier you act, the more options you have and the less interest you pay. If a tax sale is already approaching, fast intervention is critical.
Our Commitment to Responsible Lending
TurnedAway.ca does not arrange financing above 80% loan-to-value. This is not a policy we advertise to attract business. It is a line we hold to protect our clients.
When a homeowner is already under financial pressure from tax arrears, taking them to the very edge of their equity creates risk we are not willing to accept on their behalf. Property values can fall, and every solution we arrange leaves meaningful equity in place as a buffer.
We also make sure you understand the full cost of any solution before you commit. The interest rate, lender fee, broker fee, legal fees, and appraisal are all disclosed in writing through a formal Cost of Credit Disclosure for your specific deal. Nothing is hidden.
And if a property tax loan is not the right answer for your situation, we will tell you. Sometimes a payment arrangement with your municipality or another path serves you better, and our job is to give you honest guidance, not just a transaction.
Your Options for Clearing Property Tax Arrears
There is no single right way to clear tax arrears. The best fit depends on your equity, your existing mortgage, your age, and whether you can manage monthly payments. TurnedAway.ca can arrange all of the options below.
| Option | How It Helps | Best For |
|---|---|---|
| Home Equity Loan | Lump sum secured by your equity to pay arrears and other debts | Clearing arrears plus consolidating other debt |
| Second Mortgage | Pays arrears without disturbing your existing first mortgage | Keeping a good first mortgage rate in place |
| Mortgage Refinance | Replaces your mortgage with a new one that includes the arrears | Restructuring everything into a single payment |
| Reverse Mortgage | Accesses equity with no monthly payments required (age 55+) | Retired homeowners on a fixed income |
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Real Client Results
Every situation is different. Here are three examples of how TurnedAway.ca helped Ontario homeowners clear their property tax arrears and keep their homes when traditional lenders could not help.
Case Study 1 | Clarington
Clarington Homeowner Stops a Potential Tax Sale
A homeowner in Clarington fell behind on property taxes after being laid off during a company restructuring. What started as a manageable balance gradually grew over several years as penalties and interest accumulated. By the time they contacted us, they owed approximately $22,000 in property tax arrears and had received multiple notices from the municipality warning of further collection action.
The homeowner had significant equity in their property but limited income due to ongoing employment challenges. Refinancing through a traditional lender was not an option because of income qualification requirements. We arranged a second mortgage secured by the home's equity, allowing the outstanding property taxes to be paid in full without disturbing the homeowner's existing first mortgage.
Result: The property tax arrears were cleared, municipal collection action stopped, and the homeowner remained in their home while working toward a longer-term financial recovery plan.
Case Study 2 | Durham Region
Durham Region Family Catches Up on Property Taxes and Other Debt
A family contacted TurnedAway after falling behind on several financial obligations following a lengthy medical leave. In addition to credit card debt and unsecured loans, they had accumulated approximately $18,500 in property tax arrears. The growing balance was creating significant stress and putting additional pressure on the household budget.
Their home had appreciated substantially over the years, providing enough equity to explore financing options despite credit challenges that had developed during the medical leave. We arranged a home equity loan that consolidated high-interest debt and paid the outstanding property taxes in full. This reduced the family's overall monthly obligations and eliminated the risk associated with the tax arrears.
Result: Property taxes were brought current, unsecured debts were consolidated, monthly cash flow improved, and the family avoided further collection pressure.
Case Study 3 | Oshawa
Oshawa Senior Uses a Reverse Mortgage to Resolve Property Tax Arrears
A retired homeowner living on a fixed income had gradually fallen behind on property taxes after several years of rising living costs. Although the home was mortgage-free, increasing expenses and limited retirement income made it difficult to keep up with municipal taxes. Over time, the homeowner accumulated approximately $15,000 in property tax arrears and was becoming increasingly concerned about the growing balance and municipal collection efforts.
The homeowner had substantial equity but did not want to take on monthly mortgage payments during retirement. After reviewing the available options, we determined that a traditional home equity loan was not the best fit. Instead, we arranged a reverse mortgage, allowing the homeowner to access a portion of the home's equity without requiring monthly mortgage payments. The proceeds were used to pay the outstanding property taxes in full and provide additional funds to help manage future expenses.
Result: The property tax arrears were eliminated, municipal collection concerns were resolved, and the homeowner remained comfortably in the home they had spent decades paying off without adding a new monthly payment to their budget.
or call 1-855-668-3074
Where We Serve
TurnedAway.ca helps homeowners resolve property tax arrears across Canada. The cities below represent areas we serve regularly, but they are not an exhaustive list. We work with homeowners in every province and territory with the exception of Quebec, Newfoundland, Yukon, the Northwest Territories, and Nunavut.
Call us at 1-855-668-3074 or get started online today.
Frequently Asked Questions About Property Tax Arrears
What are property tax arrears?
Property tax arrears are municipal property taxes that remain unpaid past their due date. Once taxes are overdue, interest and penalties accumulate on the balance. If left unpaid long enough, the municipality can register a tax arrears certificate against your property and, ultimately, sell it through a tax sale to recover the amount owed.
Can I lose my home over unpaid property taxes?
Yes. If property tax arrears remain unpaid through the full collection process, your municipality has the legal authority to sell your home through a tax sale, even if your mortgage is fully paid off. However, arrears can be cleared at any point before a tax sale completes, which stops the process entirely.
Can I get financing to pay my property taxes if I have bad credit?
Yes. TurnedAway.ca works with lenders who approve based on your home equity, not your credit score. Missed payments, collections, and past financial difficulty do not automatically disqualify you. The equity in your home is the primary approval factor.
How quickly can property tax arrears be paid off?
In urgent situations, such as an approaching tax sale, financing can often be approved within 24 hours and funded within a few business days. The funds are paid toward your municipal taxes to clear the arrears. Timing depends on the appraisal, legal work, and how quickly documentation is provided.
What is a tax arrears certificate?
A tax arrears certificate is a document a municipality registers on your property's title once taxes have been in arrears for the period set out in the Municipal Act. It indicates that the property will be sold if the arrears are not paid within the redemption period. It also restricts your ability to sell or refinance until the arrears are cleared.
My bank won't renew my mortgage because of tax arrears. What can I do?
This is a common situation. Banks often refuse to renew or refinance when property taxes are in arrears. TurnedAway.ca works with lenders who specialize in these cases. We can arrange financing that clears the arrears and, in many cases, restructures your mortgage at the same time.
How much equity do I need to qualify?
The more equity you have, the more options are available. As a general guide, you need enough equity to cover the arrears and associated costs while staying within our 80% loan-to-value cap. Use our home equity calculator to get a personalized estimate.
What does a property tax loan cost?
The full cost includes the interest rate, lender fee, broker fee, legal fees, and in most cases an appraisal fee. TurnedAway.ca provides a complete written cost breakdown before you commit to anything, and your lender provides a formal Cost of Credit Disclosure for your specific deal. For a general overview of mortgage costs, visit Canada.ca.
Can I appeal my property tax assessment?
Yes. If you believe your property has been assessed unfairly, you can file an appeal with your provincial assessment review body. An appeal addresses the assessed value going forward, but it does not pause existing arrears or collection action, so if you are behind, it is important to address the outstanding balance at the same time.
I also owe CRA. Can you help with both?
Often, yes. If you are dealing with property tax arrears alongside CRA debts or liens, we can frequently arrange a single solution that clears both, depending on your equity position. Apply and we will review your full situation.
Don't Let Property Tax Arrears Put Your Home at Risk
Apply online and we'll review your situation and arrange a solution to clear your arrears, often with approval in as little as 24 hours. No obligation, no pressure, full transparency on cost.
Get Approved Nowor call 1-855-668-3074