Self-employed with HST arrears — refinanced before a lien and kept an A-lender rate

HST arrears are time-sensitive: because HST is collected on the Crown's behalf, CRA can assert a deemed trust and tends to enforce faster than on income tax. The window to use the cheapest financing was closing.

The client's bank had declined twice — once on the write-down income, once on the arrears — even though the business was healthy and there was no lien on title yet.

Because title was still clean, we moved quickly for an A-lender business-for-self (BFS) refinance rather than an alternative lender. We documented true income from business bank statements and corporate financials with legitimate add-backs, and confirmed via parcel register that no lien was registered.

The refinance was sized to pay the HST balance in full; funds flowed lawyer-to-CRA at closing and a clearance certificate confirmed settlement — all before CRA escalated to a lien.

By acting before a lien, the client kept the A-lender business-for-self rate that a registered CRA lien would have closed off — clearing the HST balance at the lowest available cost instead of a B-lender or private premium.