Revenue Canada Debts – Can I Use My Equity to Pay CRA Tax Arrears?
Have you faced rejection from banks, credit unions or mortgage lenders due to outstanding debt owed to the Canada Revenue Agency (CRA)? At TurnedAway.ca, we’re dedicated to helping you get approved for a loan, even if you have outstanding tax returns.
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What Is the CRA?
The Canada Revenue Agency (CRA) is the federal government body responsible for administering tax laws and collecting taxes in Canada. Often referred to as Revenue Canada, the CRA also oversees the delivery of various social and economic benefit programs tied to the tax system.
In addition to federal responsibilities, the CRA works in partnership with many provincial and territorial governments to manage income tax collection and related programs across Canada.
The CRA plays a powerful role in enforcing tax compliance. If taxes are unpaid, Revenue Canada has the authority to take legal action, register liens, garnish wages, freeze bank accounts, and seize funds to recover what is owed.
In French, the agency is known as Agence du revenu du Canada.
Understanding the Canada Revenue Agency (CRA)
The Canada Revenue Agency (CRA)—commonly referred to as Revenue Canada—is the federal body responsible for administering Canadian tax laws, collecting taxes, and managing key government benefit programs.
Types of Taxes Administered by the CRA:
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Personal Income Tax
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Business Income Tax
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Trust Income Tax
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Partnership Income Tax
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Excise Taxes
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Goods and Services Tax (GST/HST)
Social Programs Managed by Revenue Canada:
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The Canada Child Benefit (CCB)
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Contributions and compliance for the Canada Pension Plan (CPP)
In many ways, the CRA serves a role similar to the IRS in the United States, acting as the central authority for tax law interpretation, enforcement, and administration in Canada.
CRA Structure and Oversight
The Canada Revenue Agency is led by a Commissioner and Chief Executive Officer, who reports to a Board of Management. This board includes 15 members, 11 of whom are nominated by Canada’s provinces and territories.
Why Understanding the CRA Matters
For anyone dealing with Revenue Canada debt, understanding the CRA’s structure and authority is critical. The CRA has broad enforcement powers, including the ability to garnish wages, freeze bank accounts, and register liens on property. Staying compliant with tax obligations is essential to avoid these penalties and long-term financial consequences.
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CRA Debt – I Need Help Paying My Revenue Canada Debt
Have mortgage lenders turned you away because of unpaid taxes or missing returns? If you’re dealing with Revenue Canada debt, you’re not alone—and you’re not out of options. At TurnedAway.ca, we help homeowners resolve tax debt quickly, even if the banks have already said no.
No Revenue Canada problem is too complex. Whether it’s tax arrears, unfiled returns, or CRA liens, our team has experience helping homeowners access their equity to get back on track.
How the CRA Collects Unpaid Tax Debt
Revenue Canada has powerful tools at its disposal, and once you fall behind, their collection efforts can escalate quickly. If your Revenue Canada debt remains unpaid, you could face:
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Wage garnishment – The CRA can legally seize up to 50 percent of your pay directly from your employer.
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Frozen bank accounts – Any money in your account can be frozen or withdrawn without notice.
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Seizure of tax credits and refunds – GST, HST, and other tax benefits may be withheld.
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Liens on your property – The CRA can register a lien against your home, which must be paid out before any refinance or sale can happen.
Why You Should Act Now
The CRA will not wait. Interest, penalties, and enforcement action can increase quickly. If you own a home, the agency will expect you to use your equity to pay your Revenue Canada debt in full. Ignoring the situation will only limit your options and increase the financial pressure.
Can I Make a Payment Arrangement on My CRA Tax Debt?
If you’re struggling with Revenue Canada debt and need tax relief, you may be wondering whether a payment arrangement with the CRA is possible. While some options do exist, they are often limited—especially if you own a home.
Possible Options for Handling Revenue Canada Debt:
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Bankruptcy or Consumer Proposal
You can speak with a Licensed Insolvency Trustee about these formal processes, but both will severely impact your credit and may not fully protect your home if equity is available. -
CRA Payment Arrangement
The CRA may allow you to set up a structured repayment plan, but they will still expect full payment of the debt, along with penalties and interest. These arrangements are often difficult to negotiate and may be denied if you own property. -
Tax Lawyer
Hiring a tax lawyer is generally only worthwhile if you are actively disputing the amount of Revenue Canada debt you owe. Legal costs can be high, and they do not resolve the need for immediate payment.
Why Homeowners Face Additional Pressure from Revenue Canada
If you own a home, Revenue Canada sees your property as a recoverable asset. In most cases, they will push for full repayment rather than approve a long-term payment plan. The CRA has broad authority and can:
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Garnish wages
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Freeze and seize funds from your bank account
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Withhold tax credits and refunds
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Register a lien against your home
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Force the sale of your property if the debt remains unpaid
Once a lien is registered, traditional lenders are unlikely to approve any financing until the Revenue Canada debt is cleared.
The Most Effective Way to Settle Revenue Canada Debt
For many homeowners, the fastest and most reliable option is to use home equity to pay off the debt. At TurnedAway.ca, we help clients access equity—even when they’ve been turned down elsewhere—to eliminate tax debt and prevent aggressive CRA enforcement.
We offer fast, flexible mortgage solutions specifically designed to:
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Pay out Revenue Canada debt in full
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Stop collections, penalties, and liens
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Protect your home from forced legal action
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Help you move forward financially
If you’re unsure where to start, our team can help you explore your options and determine the best solution based on your home equity and situation.
Apply today and take the first step toward resolving your Revenue Canada debt before it becomes more serious.
How Can I Use My Equity to Pay Off My CRA Debt?
With a few simple strategies, you can use your home equity to quickly and effectively pay off CRA debt.
- Refinance your mortgage with an alternative lender (B-lender) and use the funds from the new mortgage to pay off your outstanding debt with the CRA.
- Consider taking out a private mortgage from another lender and then refinancing it when the time is right.
- If you commit to saving money and paying off your HELOC balance, you can free up the amount to pay off your CRA debt.
- Reach out to a trusted friend and ask if they’d be willing to loan you money.
Let an experienced mortgage broker help you connect with the right lender to resolve your CRA debt. We are here to guide you through this process and provide tailored solutions that fit within your financial means.
With our expertise and network, we can connect you with a multitude of lenders who can help alleviate some of the burdens associated with debt payment.
Looking to Resolve Your Revenue Canada Debt?
We Can Help You Find the Best Solution!
Whether you’ve been turned away by other lenders or are simply looking for guidance on managing your tax debt, we’re here to help. Get in touch with us today to gain further insight into our services and how we can assist you.
Options When Dealing with Tax Debts in Canada
Dealing with tax debts can be a challenging and stressful experience. However, various options are available for those struggling to pay off their tax debts.
Repaying Taxes with a Voluntary Payment Plan
Consider making a repayment plan with the CRA to settle your tax debts, which requires paying the total amount plus penalties and interest over a specific term. It can be a complex process that may require assistance from a tax accountant.
Resolving Tax Debt through a Consumer Proposal
A consumer proposal is the only tax relief option accepted by the CRA to eliminate the amount owed. It can also help alleviate your debt situation, such as those due from credit card debt. A consumer proposal is filed with a Federally Licensed Insolvency Trustee, and the CRA requires filing all outstanding tax returns before voting in favor of the proposal.
Filing Personal Bankruptcy
If you are overwhelmed by tax debt along with other debts, and a proposal to settle them doesn’t seem feasible, filing for bankruptcy may be the best solution. Bankruptcy can discharge tax, government debt, and other unsecured debts.
These options vary in effectiveness and the amount of debt they can help you settle. We highly recommend seeking guidance from a professional mortgage broker who can provide expert advice that can help you decide your next course of action.
At TurnedAway.ca, our team is here to help you connect with an experienced financial advisor who can provide you with the resources to help you manage your CRA debt.
How Can TurnedAway.ca Provide Help Paying CRA Tax Debt?
At Turnedaway.ca, we specialize in assisting clients facing issues with:
- Overdue tax arrears
- Tax reassessments
- CRA liens
With access to a robust network of lenders, including alternative institutional lenders, Mortgage Investment Corporations, and Private Mortgage Lenders, we can offer flexible mortgage solutions that work for you.
I Have Bad Credit & Need a CRA Debt Lien – Can I Get Help?
Absolutely! Our team is committed to providing expertise in assisting homeowners with paying off their CRA debt. We take pride in our fast and easy approval process.
We base our approval decisions mainly on the equity you have in your home, and not on credit or income. This means that even if you have been turned away by another lender, you can still be eligible for a CRA loan with us.
Call us for a no-obligation quote or apply online. We’re dedicated to finding the best solution that works for you!