How The Mortgage Centre Helped a Client with Mortgage Financing on a Home with a CRA Lien
Have you ever felt like financing your dream home is an impossible dream?
At The Mortgage Centre, we have a wide range of clients who approach us with the ambition of owning a house or real estate but need assistance with financing their dream. We understand that different people have different mortgage needs and hence, in an effort to serve you better, we provide customized mortgage solutions to assist you with your mortgage process.
Keep reading to learn how The Mortgage Centre helped one client buy his dream home.
The Challenge: A CRA lien on the property.
A client approached us seeking financial solutions to help him purchase a new home. The only problem was that the Canada Revenue Agency (CRA) had placed a lien on the property. As a result, all ‘Schedule A’ banks wouldn't allow us to refinance and pay the CRA out.
The Solution: Using a short-term second mortgage.
After thinking over the problem, our team of experts decided that the best way around it was to obtain a second mortgage. It was a challenge but we convinced the client to look at the big picture as the CRA liens would only get worse.
We explained that though the liens may be at a lower rate, they will compound on a daily basis and that there would be a constant escalation in collection efforts that would include garnishment of pay.
To avoid this, our client worked with us and we successfully arranged a short-term second mortgage on the property and negotiated to remove the liens from the property. We then waited for a period of thirty days for the liens to be removed.
We then went ahead and arranged for a new mortgage that we obtained for at a new lower rate that would replace both the existing first and second mortgages.
Within a period of just forty-five days, we not only had the client back on track but we had lower financing rates as well.
The Bottom Line
Irrespective of whether it is refinancing an existing mortgage, buying a new home or commercial/investment property mortgage, or making available ready cash for emergencies, the specialists at The Mortgage Centre always have an answer for you. To get started, get in touch with us by clicking here. To learn more about how we can help you, please click here.