Can I Get a Mortgage With a Judgment Against Me? (Canada)

Can I Get a Mortgage With a Judgment?

Yes, from an alternative lender — and the mortgage pays the judgment off

How a judgment affects a mortgage on two fronts (credit and title), the equity-first path to approval when a bank declines, what it costs, whether a paid judgment leaves your credit report, and the exit back to A-lender pricing.

Can I get a mortgage with a judgment against me?

Usually yes, but not from a bank, and the mortgage’s job is usually to pay the judgment off. If you own a home with equity, an alternative lender can lend against it to clear the judgment: the mortgage funds, your lawyer pays the creditor, any writ is withdrawn, and you’re left with clean title and one payment.

The deciding factor isn’t your income or even your credit score; it’s your equity. If you own a home with room in it, there is usually a path. This guide explains what a judgment does to a mortgage application and how to get financed anyway. For the service, see our judgment & lien mortgage page. General information, not legal advice.

What a judgment does to a mortgage application

A judgment is a court order confirming you owe money. On its own it doesn’t attach to your house, but it can show up in two places that matter to a lender. First, on your credit report: credit bureaus usually keep judgments for 6 years, and TransUnion keeps them for 7 years in Ontario¹. A-lenders treat an unpaid judgment as a serious negative. Second, once the creditor files a writ of seizure and sale with the sheriff, it binds land you own in that area², which blocks a bank because it can’t register a clean charge.

So a judgment can hit a mortgage on two fronts: creditworthiness and title. Banks are built for clean, standard files and usually decline both. Alternative lenders underwrite the whole picture and lend on equity rather than on a perfect bureau, which is why they can say yes where a bank says no.

The equity-first path to approval

Qualifying for a judgment payout mortgage is equity-first. A federally regulated bank can’t refinance above 80% of your home’s value³, and alternative lenders are usually at or below that too: the main test is how much equity remains after your existing mortgage, the judgment payout and costs, generally kept under about 80% loan-to-value at alt-A or 65–75% on private (illustrative; it varies by file). Income and credit still help, but they’re secondary; many of these files are arranged for borrowers whose credit was damaged by the very situation that led to the judgment.

You don’t need clean title to start; clearing it is the point. And you can usually consolidate at the same time: a judgment plus credit-card balances plus, say, CRA arrears can all be rolled into one payout, so you exit with a single manageable payment instead of a stack of creditors.

What it costs — and why it's still worth it

You pay an alternative-lender premium, deliberately and temporarily. As an illustration only, alt-A (B-lender) mortgages often price roughly 1–2 percentage points above A-lender rates, plus a lender fee. Private lending costs more: CMHC reported the largest private lenders averaged about 9.6% on single-family loans in Q3 2025⁴, and private mortgages usually carry lender and broker fees too⁵. Every fee is disclosed in writing before you commit.

It sounds steep until you weigh it against the alternative: accruing post-judgment interest, mounting legal and enforcement costs and, at the extreme, a forced sale of the home. Used as a short bridge with a plan to refinance back to a bank, the premium is often modest next to what it prevents. The cost is temporary; a lost home is not.

Will the judgment come off my credit once it's paid?

Not right away. Paying it means the record can show as paid or satisfied, which lenders view far more favourably, but credit bureaus usually keep a judgment for 6 years, and TransUnion keeps it for 7 years in Ontario¹.

What matters to a future A-lender is the combination: the judgment is paid, your title is clean, and you’ve re-established credit with on-time payments. Get those three lined up and prime pricing can reopen, often within 12–24 months (a planning target, not a guarantee), well before the record ages off. That’s the exit we plan from day one.

Your next step

If a bank has declined you over a judgment and you own a home with equity, a payout mortgage is often available. The questions are how much equity you have, how urgent the enforcement is, and which lender tier gets you the cheapest route to clean title.

Mortgage Squad Advisors (FSRA #13737) arranges these files, discloses every fee up front, and maps the refinance back to bank pricing. Start on our judgment & lien mortgage page, learn the terms in our judgment vs writ vs lien guide, or get a confidential assessment, with no obligation and no credit pull to begin.

Sources

Primary sources for the rules and figures above. Rules, rates and lender policies change, so confirm anything you plan to act on with a licensed advisor.

1. FCAC, What information is on your credit report and how long it stays: Credit bureaus usually keep judgments on a credit report for 6 years; TransUnion keeps them 7 years in Newfoundland and Labrador, Ontario and Quebec. Late/unpaid accounts up to 6 years. A consumer proposal is removed 3 years after it is paid off or 6 years after signing, whichever comes first; a bankruptcy usually 6 years after discharge (7 years at TransUnion in NL, Ontario, PEI and Quebec); 14 years for more than one bankruptcy.

2. Ontario e-Laws, Execution Act, R.S.O. 1990, c. E.24: Writs of seizure and sale and their enforcement against land by the sheriff.

3. Justice Laws (Canada), Bank Act, s. 418: Restriction on residential mortgages: A bank may not lend or refinance above 80% of a home's value unless the loan is insured.

4. CMHC, Residential Mortgage Industry Report: CMHC data on mortgage lenders and arrears; the top 25 mortgage investment entities (private lenders) averaged a 9.6% single-family lending rate at ~58% LTV in Q3 2025.

5. FSRA, Private mortgages: what consumers should know: FSRA consumer guidance on the risks, costs and disclosure for private mortgages in Ontario.

Frequently asked questions

Can I buy a house if I have an unpaid judgment?

It is harder but not always impossible. A bank or mortgage insurer will usually want the judgment paid first, and if the creditor has filed a writ with the sheriff, it can bind land you acquire in that area, so your lawyer will need it dealt with before or at closing. Many buyers pay or settle the judgment first, or use an alternative lender.

How long does a judgment stay on a credit report in Ontario?

The Financial Consumer Agency of Canada says credit bureaus usually keep judgments for 6 years, and TransUnion keeps them for 7 years in Ontario, Quebec and Newfoundland and Labrador. Paying the judgment does not remove it early, but a paid judgment is viewed much more favourably by lenders than an unpaid one.

What does a judgment payout mortgage cost?

More than a bank mortgage, for a limited time. As an illustration, B-lender (alt-A) rates are often roughly 1 to 2 percentage points above bank rates plus a lender fee, and private mortgages cost more again, with lender and broker fees. Your exact costs depend on equity, property and urgency, and every fee must be disclosed in writing before you commit.

Can I roll other debts into the same mortgage that pays off the judgment?

Often, yes, if you have enough equity. The new mortgage can be sized to pay the judgment plus other debts such as credit cards or CRA arrears, with your lawyer paying each creditor directly at closing. Everything must fit under the lender's loan-to-value limit, and consolidating can raise the total interest you pay over time.