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Mortgage With a Lien

Mortgage With a Lien on Title? Refinance to Clear It

A lien on your title blocks a bank from financing you — but an equity-based lender can refinance against your home to pay the lien out and hand you back clean title. Any lien type: construction, tax, judgment or support.

Equity-based approvalAny lien typePays the lien outClears your titleB-lender + privateConfidential
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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

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A lien on your title is a wall. It doesn’t matter how strong your income or credit is — a bank can’t register a clean mortgage behind a registered lien, so a refinance or switch is declined automatically, and you can’t sell without paying the lien from the proceeds. Whether it’s a contractor’s claim, a tax lien, or a judgment creditor’s writ, the fix is the same when you have equity: refinance to pay it out, and get your title back clean.

The short answer

A mortgage with a lien on title isn’t possible at a bank — a lien clouds your title and blocks A-lender financing. But an equity-based lender (B-lender or private) will refinance against your home to pay the lien out and discharge it, so your title clears. It works for any lien type — construction, tax, judgment or support — and depends mainly on your equity.

Can you get a mortgage with a lien on title?

Not from a bank — a lien is a registered claim that clouds your title, and A-lenders won’t register a mortgage behind one. But an equity-based lender will refinance specifically to pay the lien out: the mortgage funds, your lawyer pays the claimant and registers the discharge, and the lien comes off title. Whether it’s possible depends mainly on your equity, plus the lien type and your title position.

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Why a lien stops a bank from financing you

When a lender funds a mortgage, it registers a charge against your title and needs a clean priority behind it. A lien — any registered claim securing a debt — sits ahead of that new charge and threatens the lender’s security. So an A-lender’s underwriting simply won’t allow a refinance, a switch, or new money to fund until the lien is cleared. There’s no manual override at that tier, and it has nothing to do with how good a borrower you are.

That’s the wall. And it’s exactly the gap alternative lenders exist to fill: with access to B-lender and private capital, we don’t need clean title to start — we use your equity to clear it, then hand the clean title to a bank later.

The lien types we clear

The route to clear a lien is similar across types, but the urgency differs. A construction (contractor’s) lien is the most time-sensitive: strict statutory deadlines apply and the claimant can sue to enforce ite-Laws; see our dedicated construction lien mortgage page. A judgment creditor’s writ attaches after a lawsuit and blocks financing until paid. A tax lien (from the CRA, which certifies the debt before registering a lien and generally removes it once paidCRA, or municipal property tax arrears) can take priority on title and must be cleared before a bank will fund. Support or family arrears can be enforced against property and are handled sensitively. We identify which you’re facing and the fastest affordable way to clear it — the full breakdown is on our judgment & lien mortgage hub.

How the payout clears your title

The mechanism is clean, and the money never passes through your hands. An alternative lender advances a mortgage sized to cover your existing balance plus the lien payout plus costs. At funding, the money flows to your real estate lawyer in trust, who pays the claimant, obtains a discharge (or, for a genuinely disputed construction lien, pays the amount into court to vacate it), and registers it so the lien is removed from title.

When it’s done, you hold clean title and a single new mortgage in place of the lien. 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. Every fee is disclosed in writing before you commit.

After the lien is cleared: back to a bank

Clearing the lien is the first move, not the finish line. Once your title is clean and your file heals, the plan is to refinance back to A-lender pricing — typically 12–24 months. If a paid judgment was behind the lien, it reports as ‘satisfied’ and ages off your bureau over time; meanwhile you re-establish credit with on-time payments.

We set a refinance trigger at funding and monitor the file so you move back to prime pricing the moment you qualify. That mapped exit is what separates this from open-ended short-term borrowing — see our exit-strategy guide.

What you get

Why Canadians choose Mortgage Squad Advisors.

Works with any lien type — construction, tax, judgment/writ, or support arrears
Equity-based approval — your home’s value drives it, not just income or credit
Pays single or multiple liens out in one consolidated refinance
Existing first mortgage can stay in place — second-mortgage payout where cheaper
Private capital funds quickly when a lien has a hard deadline
Disputed construction liens can be vacated by paying into court
All lender, broker and legal fees disclosed in writing before you commit
Plan to refinance back to A-lender pricing once title is clean
How it works

Three simple steps, no pressure.

1

Identify the lien

Send the property address and the lien details — type, claimant, amount and dates. A title search confirms exactly what’s registered and its priority. We estimate your available equity and options quickly.

2

Match the capital

Clean credit with equity → alt-A refinance or second at the lowest rate. Tight timeline or messier file → private capital. We pick the cheapest path that covers the full payout and disclose the rate and fees in writing.

3

Pay out + clear title

Your lawyer pays the claimant and registers the discharge (or vacates a disputed lien into court), so title comes back clean. We set a refinance trigger to move you back to A-lender pricing as your file heals.

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FAQ

Common questions, answered.

Don’t see yours? Ask Maya — instant answer, any time.

Can I get a mortgage with a lien on my title?
Not from a bank: a lien clouds your title and A-lenders won't register a mortgage behind one. But an alt-A or private lender will refinance against your equity specifically to pay the lien out, so it's discharged at closing and your title clears. It depends mainly on your equity.
What types of liens can you clear?
Any registered lien: construction/contractor liens (see our construction lien page), judgment creditors' writs, tax liens (CRA or property tax), and support/family arrears. The financing mechanism is the same; some liens (construction especially) are more urgent than others.
How much equity do I need?
Generally the new mortgage (existing balance + payout + costs) needs to stay under about 80% of value at alt-A, or 65–75% on private.basis Illustrative and varies by file. A home with meaningful equity can usually clear the lien and often consolidate other debt at the same time.
Do I have to pay off the whole lien, or can I dispute it?
If the debt is valid, the lien is paid out and discharged. If you genuinely dispute it — common with construction liens for defective or incomplete work — your lawyer can vacate it by paying security into court, which clears title while the dispute is litigated separately.e-Laws
Will clearing the lien remove it from my credit report?
Clearing a lien fixes your title immediately. If a judgment was behind it, paying it changes the status to 'satisfied,' but credit bureaus usually keep a judgment on your report for 6 years, and TransUnion keeps it longer in some provinces.FCAC Title and credit are separate — the refinance fixes title now; credit recovers over 12–24 months.
What does it cost?
Alt-A runs roughly 100–200 bps over A-lender pricingbasis; private is higher, plus lender and broker feesFSRA, all disclosed in writing. See our live rates for today’s prime benchmarks. It's temporary, and usually far cheaper than what a lien costs you left in place.
How fast can this close?
Private files can often fund within days once an appraisal is done and the lawyer is instructed; alt-A takes a little longer. If a lien has a hard deadline, tell us — more runway means cheaper options and more lender choice. Timelines vary by file.
Where do I start?
A quick title snapshot and equity estimate. For the full picture across all lien and judgment types, see our judgment & lien mortgage hub, or start an assessment — no credit pull to begin.

Related products

Judgment & lien mortgage (hub)Construction lien mortgageMortgage to pay off a judgmentPrivate mortgageCRA debt mortgageProperty tax arrears mortgageGuide: remove a lien from titleMortgage with a CRA lien

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. Financial Services Regulatory Authority of Ontario (FSRA), Alternative and private mortgages (accessed September 2026) — Private mortgages usually carry higher interest rates and fees than bank mortgages, are meant to be short-term, and need a clear exit strategy.
  2. 2. Government of Ontario (e-Laws), Construction Act, R.S.O. 1990, c. C.30 (accessed September 2026) — Construction lien registration deadlines, perfection, and vacating a lien by paying security into court.
  3. 3. Canada Revenue Agency, Putting a lien on or seizing your assets (accessed September 2026) — The CRA can certify a tax debt and register a lien against property; it is generally removed once the debt is paid.
  4. 4. Financial Consumer Agency of Canada, What's in your credit report (accessed September 2026) — Credit bureaus usually keep judgments on your credit report for 6 years; TransUnion keeps them longer in some provinces.
  5. 5. Mortgage Squad Advisors rate desk (internal verification), Illustrative alt-A/private pricing and LTV ranges (reviewed August 2026) — Alt-A second mortgages typically price roughly 100–200 bps above A-lender rates, to about 80% LTV; private files typically to about 65–75% LTV. Illustrative, vary by file — not a quote.

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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