CRA Arrears – Can I Use My Equity To Pay CRA Tax Arrears?

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CRA Debt – I Need Help Paying My Revenue Canada Debt

Have you been turned away by the bank, credit union, or mortgage lender because of debt owed to the Canada Revenue Agency CRA? Likewise, has your bank ever declined you because you have outstanding tax returns? Generally speaking, no problem with the Canada Revenue Agency is a small problem. Especially, if you are trying to get any kind of mortgage.

The CRA is quick to act and has a lot of power. And, if your bad debt to them is large enough or severely overdue you can expect serious collection efforts.

To elaborate, the CRA has the ability to enact a number of options that are available to them. For example, the Canada Revenue Agency may elect to:

  • Garnishee your wages.  They reserve the right to take up to 50 percent of your gross earnings.
  • Freeze on your bank account and seize any funds within the account
  • Withhold any eligible tax credits such as GST or refunds that you may have otherwise received.
  • Register a lien on your property to ensure the debt gets paid upon sale or financing

Certainly, the last entity you want to owe is the CRA.  In other words, it is wise to pay your taxes on time and keep your tax returns up to date.

Can I Make A Payment Arrangement On My CRA Tax Debt?

If you have found yourself in financial hardship and require tax relief, there are options. Although not abundant or simple, some of your options include:

  • Consulting with a licensed insolvency trustee about bankruptcy or consumer proposal
  • Contact the CRA for a payment arrangement to explore debt relief options
  • Consult a tax lawyer (if you are disputing what is owed)

To point out, the CRA is not known for its leniency. Consequently, bankruptcy, consumer proposals, and payment plans are rarely an option for people who own homes.  And, a tax lawyer can’t really help unless you are disputing what you owe.

In fact, paying your outstanding tax debt in full is the only way to ensure you don’t incur penalties and interest.  Lastly, it is also the only way to ensure they don’t try to sell your home to recoup your bad debt with the CRA.

How Can I Use My Equity To Pay Off My CRA Debt?

Using a mortgage broker who specializes in CRA tax debt is crucial.  Especially, if you want to deal with your problems in a timely fashion.  Moreover, an experienced high risk mortgage broker will know how to handle the CRA. Additionally, they will have access to a variety of lenders who will help you deal with your CRA debt.

Surprisingly, a home equity loan is one of the best ways to eliminate tax debt.  But, you can’t just walk into one of the traditional big banks and expect them to bail you out.  Specifically, you will need to work with a mortgage broker who specializes in home loans to pay CRA debt.

How Can Provide Help Paying CRA Tax Debt? deals routinely help clients who are experiencing problems from overdue arrears, reassessments, and CRA liens. Having said that, we have access to a large pool of lenders.  Our lenders include Alternative institutional lenders, Mortgage Investment Corporations, and Private Mortgage Lenders. As a result, we have access to one of the largest, most flexible groups of mortgage lenders in Canada.

I Have Bad Credit & Need a CRA Debt Lien – Can I Get Help?

In short, yes. We work diligently to educate our staff & lenders on the benefits and ways we can assist homeowners in paying the CRA. Our lenders understand the importance of common-sense approvals.

With this in mind, they place little to no emphasis on credit or income.  To clarify, they approve CRA debt loans almost exclusively on the amount of equity you have in your home.

Certainly, there is perhaps no worse feeling in the world than owing the Canada Revenue Agency. To sum up, if your application has been turned away by another lender, don’t hesitate to call us for a no-obligation quote. Call toll-free at 1-855-668-3074 or apply online!

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