Our mortgage brokerage has serviced homeowners in Mississauga, Brampton and in the rest of the GTA for many years and have run into consumers who have all different types of financial difficulty.
One common financial problem we run into is individuals who have income tax debt with the Canada Revenue Agency. Generally those who have an income tax debt outstanding with the CRA fall into two categories:
1. They are not paying because they believe they don’t owe the money.
2. They think they do not have the resources to pay off the CRA.
In both cases, the best answer is to raise the money to pay off your tax debt. The primary reason we say this is because as long as you owe the CRA money they will continue to compound interest and penalties and will also pursue you for the money. This could include freezing your bank account, garnishing your wages or even placing a lien on your home.
Homeowners are in an especially precarious position because the very mention of a tax lien or tax problem could cause the bank to call in their mortgages.
So who will loan money to a homeowner with a tax problem? Homeowners in Brampton, Mississauga and other urban centres have more options than those in rural areas. Outside of major banks and financial institutions, there are many mortgage investment corporations and private lenders who approve a home equity loans to homeowners who have an income tax problem.
We reiterate that these companies and individuals are more likely to approve this type of financing when the property is located in an urban centre and is on city plumbing.
What's most important is that you do not wait. The longer you sit on your tax debt the greater the problem will become. It simply will not go away by itself. If you are a homeowner, contact a mortgage broker who is seasoned in dealing with individuals who have tax problems, this could save you big!