Property tax arrears
mortgage in Canada —
clear the arrears early.

By statute in most provinces, municipal property taxes are a priority lien on the property that generally sits ahead of every mortgage, registered or not. That's why lenders care so much about arrears — if a municipality forces a tax sale, the taxes are paid first, ahead of the bank, and it's why A-lenders generally won't refinance a property with arrears until they're cleared.

In Ontario, a municipality may register a tax-arrears certificate where taxes have been in arrears for a set period (generally about two years for most residential land), which opens a redemption period of about one year to pay everything owing before a tax sale may proceed. Timing and process vary by province and municipality — confirm yours. Acting early, before a certificate, keeps the cheapest options open.

Not from a bank — A-lenders generally require taxes to be current. But alt-A and private lenders will refinance specifically to pay the arrears out: the new mortgage funds, your lawyer pays the municipality, the tax account is brought current, and any certificate is discharged. It's equity-based — if there's room in the home, there's usually a solution.

Private files can often fund within days once an appraisal is done and the lawyer is instructed, but it depends on appraisal, title, legal steps, lender and documentation — no honest broker can promise a specific closing time sight-unseen. If your redemption window is closing, tell us the exact date; more runway means cheaper options and more lenders.

Generally the new financing (existing balance + arrears + penalty + costs) should stay under about 80% of value at alt-A, or 65–75% on private. On a $650k home with a $380k first mortgage, that's roughly $75k–$140k of room — usually enough to clear arrears and consolidate other debt. Illustrative and varies by file.

Yes. We size the payout to cover the full balance the municipality shows — base arrears plus accumulated penalty and interest — so you come out fully current rather than partially caught up. Catching up halfway is the most common mistake; the goal is a zero balance and a discharged certificate.

It depends on your first mortgage. If you have a low first-mortgage rate you want to keep (or a penalty to break it), a second mortgage that funds just the arrears is often cheaper overall. If your first is near renewal or its rate isn't worth keeping, a full refinance can be simpler. We model both, including any penalty and fees, and show you the lower total cost.

Often the smartest move. If you have CRA arrears, a judgment, or high-interest credit cards alongside the property taxes, we can consolidate everything into one payout so you exit with a single manageable payment. We model the blended cost so you see the real number before deciding.

Alt-A runs roughly 100–200 bps over A-lender pricing; private is higher — CMHC reported the 25 largest private lenders averaged 9.6% on single-family mortgages in Q3 2025 — plus lender and broker fees, all disclosed in writing. Weigh that against municipal penalty interest (up to ~15%/yr in many Ontario municipalities) compounding on the arrears and the equity at risk in a tax sale. For most files with real equity and a deadline, clearing the arrears is the cheaper path — but it depends on your numbers, which we model.

Yes. Once the municipality is paid in full, the tax account is current and any registered tax-arrears certificate is discharged, so the lien clears. With clean title and a stabilising file, A-lender pricing typically becomes available again over the following 12–24 months — a planning target, not a guarantee.

A property tax arrears refinance is a mortgage like any other; some private lenders don't report to the bureaus, others do. Clearing the arrears and staying current is what protects your position. We set a refinance-trigger target and plan the move back to A-lender pricing once your file qualifies.

Your file is handled confidentially and shared only with the parties needed to arrange the financing and pay the municipality — your lawyer, the lender, and the municipality. We don't disclose your situation beyond what's required to fund the deal and clear the arrears.