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CRA Lien

Mortgage With a CRA Lien — Clear It and Restore Clean Title

A registered CRA lien clouds your title and stops a bank from funding — but an equity-based lender can refinance to pay CRA out and clear the lien, restoring clean title and reopening the path back to prime.

Equity-based approvalClears the CRA lienB-lender + privateFast where enforcement loomsRestores clean titleConfidential
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FSRA #13737| 5-min pre-qualification

Written by the Mortgage Squad Advisors Editorial Team · Reviewed by Surrayya Afzal, Principal Broker, FSRA #13737 · Updated August 2026 · Reviewed quarterly; next review November 2026

Today’s best 5-yr fixed
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Your estimated payment
$3,202/mo
Property value$750,000
Down payment$150,000
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FSRA #13737| 15+ languages

A CRA lien is a wall. It doesn’t matter how strong your income or credit is — a bank can’t register a clean mortgage behind a CRA charge, and for unremitted HST/GST or payroll the deemed-trust priority can rank ahead of your existing mortgage entirely. You can’t sell or refinance normally, CRA interest keeps compounding, and enforcement can escalate. If you have equity, that equity is exactly what clears the lien.

The short answer

A registered CRA lien (and, for HST/GST or payroll, a deemed-trust priority) blocks a bank from funding. A B-lender or private lender will refinance against your equity to pay CRA out and clear the lien at closing, restoring clean title. It costs more than an A-lender and is temporary — the plan is to refinance to A pricing once your file stabilizes. General information, not legal or tax advice.

Can you get a mortgage with a CRA lien on your title?

Not from a bank — a CRA lien clouds your title and A-lenders won’t register a mortgage behind an enforceable Crown claim. But an equity-based lender will refinance specifically to pay CRA out and clear the lien: the mortgage funds, your lawyer pays CRA, and CRA removes the lien once the debt is paid.CRA It depends mainly on your equity.

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Why a CRA lien is different from an ordinary lien

Most liens come from a creditor who had to sue, win a judgment, and register a writ. CRA doesn’t need a lawsuit or a trial: it certifies the debt with a Federal Court certificate or a provincial judgment, an administrative step, and can then register a lien against your property.CRA And for amounts you collected on the Crown’s behalf — HST/GST and payroll source deductions — CRA can assert a deemed trust that can rank ahead of your existing first mortgage, not behind it, and it doesn’t have to be registered on title at all.CRA

That priority is why lenders treat a CRA claim so seriously and won’t fund into a live one. It also means these files should be treated urgently, especially where payroll or HST/GST is involved. The precise scope of deemed trust and priority is a legal question for your tax lawyer — we coordinate the financing around that advice. This is general information, not legal or tax advice.

How the payout clears the lien

The mechanism mirrors any lien payout, and your money never passes through your hands. An alternative lender advances a mortgage sized to cover your existing balance plus the CRA payout plus costs. At funding, the money flows to your real estate lawyer in trust, who pays CRA directly. CRA confirms the payment and, in most cases, removes the lien once the debt is paid;CRA the discharge is registered and your new lender holds a charge against clean title.

Qualifying is equity-first — generally the new mortgage stays under about 80% loan-to-value at alt-A, or 65–75% on private*basis — so meaningful equity is what makes it work. You don’t need clean title to start; clearing it is the point. A private lender can fund quickly where enforcement is close; a B-lender is cheaper where the timeline allows.

The cost — and the exit back to prime

Clearing a CRA lien through a B-lender or private mortgage costs more than a bank refinance would have before the lien. Illustratively, a B-lender prices above A-lender rates plus a fee; the 25 largest private MIEs averaged about 9.6% on single-family loans in Q3 2025 per CMHC, plus lender and broker fees.CMHC It’s a real but temporary premium — and almost always cheaper than a CRA balance compounding daily under an enforceable lien.

The plan is always to exit: once CRA is cleared, your title is clean, and you’ve maintained a clean tax and credit history, we refinance you back to A-lender pricing — commonly around 12–24 months, subject to lender criteria. See refinancing back to an A-lender after CRA debt. For the full picture across all CRA debt, see our CRA debt mortgage hub.

What you get

Why Canadians choose Mortgage Squad Advisors.

Equity-based approval — driven by your home's value, not just income or credit
Pays CRA out in full and clears the registered lien at closing
Handles income tax, HST/GST, payroll and corporate tax liens
Private capital funds quickly where enforcement is imminent
Existing first mortgage can stay in place — a second where it's cheaper
Written confirmation of the paid balance and the lien discharge for your new lender and title
All lender, broker and legal fees disclosed in writing before you commit
Plan to refinance back to A-lender pricing once your file stabilizes
How it works

Three simple steps, no pressure.

1

Confirm the lien

We (and your lawyer) confirm what CRA has registered, the amount owing by tax year and type, and its priority. A parcel register shows the title position.

2

Clear it with equity

A B-lender or private refinance is sized to pay CRA out and clear the lien. We disclose the rate, LTV, fees and timeline in writing before you commit.

3

Restore title + plan exit

Your lawyer pays CRA from the funds, and CRA generally removes the lien once the debt is paid, restoring clean title. We set a target to refinance to A pricing as your file stabilizes.

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FAQ

Common questions, answered.

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Can I refinance with a CRA lien on my title?
Not with a bank — a CRA lien clouds your title and A-lenders won't fund behind an enforceable Crown claim. But a B-lender or private lender will refinance against your equity to pay CRA out and clear the lien at closing, restoring clean title. It depends mainly on your equity.
What is a CRA deemed trust?
For amounts you collected for the Crown — HST/GST and payroll source deductions — CRA can assert a deemed trust that can rank ahead of your existing mortgage, not behind it, even though it isn’t registered on title.CRA That's what makes these claims uniquely serious for a homeowner. The precise legal scope is a matter for your tax lawyer.
How much equity do I need to clear a CRA lien?
Generally the new mortgage (existing balance + CRA payout + costs) needs to stay under about 80% of value at alt-A, or 65–75% on private.basis Illustrative and varies by file. Meaningful equity is what makes the payout work.
How fast can this close?
Private files can often fund within days once an appraisal is done and the lawyer is instructed; a B-lender takes longer. Timelines vary by file, title and legal requirements. If enforcement is scheduled, tell us — more runway means cheaper options.
What does it cost?
A B-lender prices above A-lender rates plus a fee; the 25 largest private MIEs averaged about 9.6% on single-family files in Q3 2025 per CMHC, plus fees.CMHC Temporary, and usually far cheaper than a CRA balance compounding under an enforceable lien.
Can I get back to a bank afterward?
Yes — that's the plan. Once CRA is cleared, title is clean, and you've kept a clean tax and credit history (commonly around 12–24 months), we refinance you back to A-lender pricing. See our recovery guide.
Is this the same as your CRA debt service?
It's the registered-lien version of it. For the full picture — active balances, all tax types, the pre-lien vs post-lien decision — see our CRA debt mortgage hub.

Related products

CRA debt mortgage (hub)Judgment & lien mortgagePrivate mortgageB-lender mortgageAlternative lendingGuide: how CRA liens affect mortgagesGuide: refinance back to A after CRACase study: cleared a registered CRA lienMortgage with a lien on titleHST/GST debt mortgage

Sources & references

Figures on this page are sourced below and re-checked each quarter. Rates, insurer rules and lender policies change — confirm anything you plan to act on with a licensed advisor.

  1. 1. Canada Mortgage and Housing Corporation (CMHC), Residential Mortgage Industry Report (Q3 2025) — Table 2, top 25 mortgage investment entities (MIEs, a private-lender type): average single-family lending rate 9.6% in Q3 2025.
  2. 2. Mortgage Squad Advisors rate desk (internal verification), Illustrative alt-A/private pricing and LTV ranges (reviewed August 2026) — Alt-A files typically to about 80% LTV and price above A-lender rates; private typically to about 65–75% LTV and fund faster. Illustrative, vary by file — not a quote.
  3. 3. Canada Revenue Agency (Government of Canada), Debt collection at the CRA (accessed September 2026) — CRA collects tax debts and can take legal action to collect if you don't pay. General information, not legal or tax advice.
  4. 4. Canada Revenue Agency, Putting a lien on or seizing your assets (accessed September 2026) — Before placing a lien on or seizing assets, CRA certifies the amount owed by obtaining a provincial judgment or a Federal Court certificate; in most cases CRA removes the lien when the debt is paid.
  5. 5. Canada Revenue Agency, Information on deemed trust (accessed September 2026) — Unremitted payroll source deductions and GST/HST are deemed trust amounts; a deemed trust debt becomes secured to the CRA over all your assets regardless of any security given to other creditors, and CRA does not have to register it in a land titles registry.

Ready when you are.

No obligation and no credit check to start. A licensed advisor reviews your file with you, and Maya, our AI assistant, can answer quick questions any time.

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