CRA debt payout mortgages.
Tax arrears, liens, and garnishments cleared through home equity — before enforcement takes the decision away. BC and Alberta.
CRA debt is the one debt that gets stronger the longer you ignore it: interest compounds daily, penalties stack, and the collection powers escalate from letters to liens to garnishment without a courtroom. And it comes with a cruel catch-22 — most banks won't lend to pay the CRA, and won't lend while you owe them. Home equity breaks the loop: the right structure pays the tax bill in one move, lifts the lien, ends the garnishment, and leaves a file a normal lender will refinance once the dust settles.
Every stage of a tax problem.
Personal tax debt refinanced into the mortgage before interest and penalties compound further.
A registered lien paid out and lifted — restoring your title and your options.
Business tax debt cleared against home equity so the company keeps operating.
Requirement-to-pay notices and garnished accounts resolved at the source.
The cheapest fix where ratios and credit still allow a bank or B-side refinance.
Equity-based first or second mortgages when banks won't touch the file until the debt is gone.
The classic pairing — business income plus a tax bill; both problems solved in one structure.
Acting before the CRA escalates — every stage of enforcement removes options.
Three ways to clear the CRA.
The right lane depends on the size of the debt, what's registered on title, and how good your current mortgage is. We run all three before recommending one.
The cheapest fix — but here's the catch-22: most banks won't advance funds to pay CRA debt, and won't lend while it exists. Placement and sequencing are the whole game.
The surgical option: your low-rate first mortgage stays untouched, the second clears the CRA in one move, the lien lifts, and the refinance out happens once the file is clean.
When the whole balance sheet needs one reset: mortgage, CRA, and collections consolidated into a single position with a dated exit back to cheaper capital.
Rates, ratios, and leverage are typical ranges for illustration — last reviewed July 2026 — and depend on the file. Estimate borrowing costs with the financing fee calculator or read how we structured a CRA payout against a commercial estate.
Files like yours.
Common tax-debt questions.
Can I get a mortgage to pay off CRA debt?+
Yes — it's one of the most common files we run. The route depends on the stage: a refinance clears smaller arrears cheaply, a private second surgically pays out a lien without touching a good first mortgage, and a private first restructures the whole picture when the debt is large. Waiting is the only bad option — CRA interest compounds daily and enforcement narrows your choices.
Why won't my bank help with tax arrears?+
Most banks won't advance mortgage money to pay CRA debt and won't lend while it exists — the classic catch-22. It isn't personal; it's policy. Alternative and private lenders fund CRA payouts as a matter of course, which is why these files are placed, not applied for.
The CRA registered a lien on my home — is it too late?+
No, but the clock matters. A lien doesn't force a sale by itself, yet it blocks refinancing and grows with interest. Equity-based lenders pay the lien out directly — the payout is built into the mortgage advance, the lien lifts on funding, and your title is clean again.
My wages or account are being garnished — can that stop?+
Paying the debt is what stops it — and a mortgage-funded payout is usually the fastest full stop. Once the CRA is paid from the advance, garnishments and requirement-to-pay notices end because there's nothing left to collect.
I have unfiled years — can anything happen before I file?+
File first, or at least in parallel — the real balance has to be known before it can be paid. We work alongside your accountant routinely: they bring the returns current, we structure the payout, and the lender advances against the confirmed figure.
Should I use a second mortgage or break my first?+
Arithmetic decides. If your first mortgage carries a low rate and a big penalty, a private second that clears the CRA usually costs less overall than breaking it. If the first is renewing anyway, one clean refinance often wins. We run both numbers before you choose.
What happens after the CRA is paid?+
The rebuild: the lien is gone, enforcement ends, and the file is suddenly bankable again. Private and B-side money on these files is a bridge — the plan from day one is a refinance to conventional pricing once the tax story is closed, typically at the first clean renewal window.
Clearing tax debt? Have these ready.
The CRA statement of account is the anchor document — everything else structures around the real number.
- CRA statements of account — the current balance, by year and by type (income tax, GST, source deductions)
- Any lien registration, requirement-to-pay, or garnishment paperwork
- Current mortgage statement and property tax bill
- Proof of income — or business financials if self-employed
- T1s and Notices of Assessment (filed years), last 2 years
- Unfiled years, if any — flagged honestly; lenders care more about the plan than the past
- List of other debts — balances and monthly payments
- Your accountant's contact — we routinely coordinate the payout figure directly
The CRA charges interest daily. Start today.
Tell us the balance, what's on title, and your current mortgage — confidentially — and we'll show you the cheapest clean exit before enforcement escalates.