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Canada-wide · FSRA #13737

Tax Arrears Certificate Mortgage —
Redeem Before an
Ontario Tax Sale.

A registered tax-arrears certificate starts a redemption clock. Equity-based financing can pay the arrears in full and cancel the certificate before the window closes — banks won’t fund with one on title, but a B-lender or private lender can.

Why Choose Us

How we redeem a
tax-arrears certificate.

A registered certificate means an A-lender is off the table — but equity is still the way out, and a clear plan matters more than ever.

Equity-based

Lend with a certificate on title

A-lenders won't fund with a tax-arrears certificate registered — the certificate clouds your title. B-lenders and private lenders assess on equity, so financing is possible while the certificate is there, subject to appraisal, title review and lender approval.

Full cancellation

Pays the full amount — certificate cancelled

Partial payments don't cancel the certificate. The financing covers the full cancellation price — arrears, current taxes, interest, penalties and municipal costs — so your lawyer pays the municipality directly and the certificate is cancelled at closing.

Keep your first

Second mortgage option available

If you have a low first-mortgage rate worth keeping, a second mortgage can fund just the arrears without touching the first. We model both paths side-by-side and pick the lower total cost for your file.

Exit strategy

Plan to return to A-lender rates

Equity-based financing is the bridge. Once the certificate is cancelled and your file stabilises — typically 12–24 months — the plan is to refinance back toward prime A-lender pricing. We set this target in writing at closing.

The Process

Three steps to
cancel the certificate.

Confirm the window first, fund the redemption second, plan the exit third. The order matters.

01

Confirm the certificate and window

Get from your municipality the exact cancellation price as of your expected payment date and the redemption deadline. Confirm the certificate details via title search. Send us the property address, the amount owing, and the date the certificate was registered.

02

Fund the redemption

A B-lender where you have time and provable income; a private lender that funds on equity where the deadline is close. We disclose rate, LTV, fees and timeline in writing before you commit a dollar. Your lawyer holds the funds in trust.

03

Cancel the certificate and plan the exit

Your lawyer pays the municipality the full cancellation price. The certificate is cancelled and comes off title. We set a target timeline to refinance back toward A-lender pricing once your file stabilises — commonly around 12–24 months.

Your Situation

We can help across every certificate scenario.

Tap any situation below to see how we approach it.

If you’re…

You just received notice that a certificate has been registered

You are early in the one-year redemption window — that is the best place to be. An alt-A or B-lender refinance may still be available, and there is time for a proper appraisal and lender search. Acting now keeps the cheaper options on the table.

Check my options now
If you’re…

The redemption deadline is approaching in weeks, not months

Private capital that funds on equity — not income — is the realistic option when the window is nearly closed. Private lenders typically fund in one to two weeks on straightforward files. Tell us the exact deadline date and we work back from there.

Urgent — reach us today
If you’re…

You have equity but bruised credit or interrupted income

Private lenders assess on equity, not income or credit score alone. If the new mortgage stays within the lender's LTV ceiling (typically 65–75% on private), a certificate on title does not automatically disqualify you.

See if I qualify
If you’re…

You have a low first-mortgage rate you don't want to break

A second mortgage funds only the arrears behind your existing first, leaving your low rate untouched. We model the blended cost of a second versus a full refinance and present both numbers before you decide.

Compare second vs refinance
If you’re…

You're weighing whether to redeem or sell the property

Selling before a tax sale usually preserves more equity than letting the municipality sell. A short bridge can sometimes buy time to list properly. We'll help you compare the numbers: redemption cost versus net-of-sale proceeds — both on the table.

Model my options
If you’re…

The municipality offered an extension agreement

An extension agreement lets you pay the cancellation price in instalments before the one-year period expires — it's the cheapest path if your income can carry it, because it avoids new borrowing. If the terms don't fit, equity financing that pays the full price is the alternative. We can model both.

Model the extension vs mortgage
The Math

What a redemption
looks like in numbers.

The cost of private capital is real. So is the alternative — losing the property at a tax sale for less than its value. Here’s a representative example.

Before — certificate registered
  • Property value$750,000
  • Existing first mortgage$390,000 @ 3.8% fixed
  • Tax arrears owing$31,000
  • Cancellation price~$34,500 (with costs)
  • Redemption deadline8 months remaining
  • Available equity (80% LTV)$215,500
After — second mortgage redemption
  • First mortgage (kept)$390,000 @ 3.8%
  • Second mortgage (new)$42,000 private
  • Second coversArrears + costs + legal
  • Combined LTV~58% — well within limits
  • Certificate statusCancelled at closing
  • Tax sale riskEliminated
Equity preserved vs. tax sale
~$290,000+
Municipal tax sales often realise below market value — acting inside the window protects your equity
Private rate range (illustrative)
~9–12%
Temporary — plan to refinance toward A-lender in 12–24 months
Check my equity

Illustrative only — property values, arrears amounts, and lender LTV limits vary by file. Private lenders averaged ~9.6% on single-family mortgages in Q3 2025 (CMHC Residential Mortgage Industry Report). Rate, term and fees disclosed in writing before you commit. General information, not legal advice. See the full tax arrears hub.

FAQ

Common questions,
clear answers.

Equity, speed, redemption windows, extension agreements — answered plainly.

Can I get a mortgage with a tax-arrears certificate on my title?

Not from a bank — the certificate clouds your title, so A-lenders won't fund until it's cancelled. But a B-lender or private lender will refinance on your equity to pay the arrears out and cancel the certificate at closing. It's equity-based.

How long is the redemption period?

In Ontario, one year from registration of the certificate, during which paying the full cancellation price cancels it and stops a tax sale. (Municipal Act ss.373, 379.) Timing varies by province and municipality — confirm yours. The amount to cancel rises over time as penalty and interest accrue.

How much equity do I need?

Generally the new mortgage needs to stay under about 80% of value at alt-A, or 65–75% on private. Illustrative and varies by file. Meaningful equity is what makes the redemption possible.

How fast can it fund?

Private funding typically takes 1–2 weeks; some straightforward files close in a few days. Not guaranteed — it depends on appraisal, title, legal steps, lender and documentation. If your deadline is close, tell us the exact date.

Can I pay in instalments instead?

Before the one-year period ends, you can ask the municipality for an extension agreement (Municipal Act s.378), which lets you pay the cancellation price over time. The municipality decides whether to offer one. Once the year expires you can still pay the full cancellation price until the property is sold, but options narrow.

Can I keep my existing first mortgage?

Often yes. If you have a low first-mortgage rate you want to keep, a second mortgage that funds just the arrears — behind your first — is frequently cheaper than a full refinance. We model both and pick the lower total cost.

What happens after the certificate is cancelled?

Your title is clean and the tax-sale process stops. We plan the refinance back toward A-lender pricing once the arrears are cleared and your file stabilizes — commonly around 12–24 months, a planning target subject to lender criteria.

How do I stop an Ontario tax sale?

By redeeming: paying the full cancellation price to the municipality, which cancels the tax arrears certificate and stops the sale. (Municipal Act s.379.) Partial payments generally don't redeem the account unless the municipality has agreed an extension agreement. If you have equity but not the cash, a mortgage against your home can fund the redemption.

Can I still sell instead?

Before the tax sale, you may still be able to sell the property yourself, with the arrears paid from the proceeds on closing, which usually preserves more equity than a municipal sale. A short bridge can sometimes buy the time to sell properly. We'll help you weigh redeeming against selling.

Does this apply outside Ontario?

The certificate, redemption and extension rules on this page are Ontario's (Municipal Act, 2001). Other provinces have similar but different tax-sale processes and timelines. We arrange financing for Ontario properties; elsewhere, speak with a locally licensed broker and confirm your province's process.

Is this the same as your property tax arrears service?

It's the registered-certificate stage of it. For the full picture — early arrears through tax sale, all provinces, second mortgage vs refinance — see our property tax arrears mortgage hub.

The Mortgage Squad Guarantee

We’ll try to beat your rate.
If we can’t, we pay you $500.¹

¹ Rate Beat: eligible Big-6 bank written offers only · same product, term & amount · $500 paid to you or your nominated charity at closing · conditions apply

Find a mortgage specialist in your city

Tax-arrears certificate situations need an advisor who knows equity-based lenders and Ontario's redemption rules. We work across Ontario — wherever your property is, we can help.