CRA Arrears
CRA debt doesn't have to end the conversation.
Tax arrears are one of the fastest ways to get a mortgage file declined — and one of the most common reasons people need a mortgage in the first place.
Why most lenders step back
CRA has collection powers other creditors don't, including the ability to register against your property. That makes lenders nervous in a way ordinary debt doesn't, and many simply won't proceed while a balance is outstanding.
The catch is obvious once you're in it: the borrowing that would clear the debt is the borrowing you can't get because of the debt.
How I work it
This is a file type I have pushed through before — a client with high total debt service and CRA arrears, where most lenders wouldn't engage at all.
It comes down to structure and to knowing which lenders will consider a file where the proceeds clear the arrears at closing. The submission has to answer the lender's objection before it's raised.
This is for you if
- You owe CRA and want to clear it through a refinance
- A lender has declined you specifically over tax debt
- You have a payment arrangement in place
- There's a lien registered against your property
Think this is your situation?
Send me the details and I'll tell you straight away where you stand — including if the answer is that it needs work first.