Let's talk tax debt
Tax arrears, whether from property taxes or CRA obligations, can create significant financial stress, especially when penalties and interest begin to add up. Falling behind on these payments can also lead to serious consequences, such as liens on your property or wage garnishments. Private lending offers a solution by providing quick access to funds, allowing you to pay off these overdue taxes and avoid further penalties. With flexible approval criteria and the ability to consolidate your tax debt into a manageable monthly payment, private mortgages can help you regain control of your finances and protect your assets.
Apply online effortlessly in just minutes!
Or experience the convenience of our Free Mobile App – try it today!
How Private Mortgage lending can consolidate tax debt
Tax arrears, including overdue property taxes and CRA tax obligations, can lead to significant financial distress if left unaddressed. When taxpayers fall behind on these payments, they may face accumulating penalties, interest charges, and the risk of serious consequences such as property liens or wage garnishments. Private mortgages provide a viable solution to help manage and eliminate these burdens. By consolidating tax arrears into a private mortgage, borrowers can access the necessary funds to pay off their outstanding debts quickly, preventing further financial repercussions. With flexible lending criteria, private lenders often approve borrowers who may have struggled with traditional financing options. This approach allows for a single, manageable monthly payment at a competitive interest rate, making it easier to regain control of finances. Overall, utilizing private mortgage solutions for tax arrears not only helps resolve immediate financial issues but also protects valuable assets and promotes long-term financial stability.
Example:
A borrower has the following debts:
-
$15,000 in overdue property taxes at 12%
-
$20,000 in CRA tax arrears with penalties and interest adding up to 10%
-
A first mortgage of $200,000 at 6%, with a monthly payment of $1,300
Their total monthly payments on the tax arrears alone are $1,250, plus their existing mortgage payment.
Solution:
By consolidating their $35,000 in tax arrears and the $200,000 first mortgage into one new private mortgage of $235,000 at 9%, the borrower would have a single monthly payment of $1,940. This consolidation reduces their overall monthly payments from $2,550 to $1,940, providing them with monthly savings of $610 while simplifying their debt into one manageable payment.
This helps relieve the financial burden of tax arrears, prevents further penalties, and protects their home from liens or other enforcement actions.