Case collection

CRA and Tax Debt Mortgage Case Studies

Cases involving CRA arrears, HST liens, tax liabilities, payout requirements, and lender structuring considerations.

4 anonymized case studies

Recently FundedBrampton

Brampton Refinance to Consolidate CRA and Consumer Debt

Homeowners in Brampton had excellent credit, strong income, and meaningful equity, but they owed a large amount to CRA. They had already used their HELOC to partially pay CRA and still had a substantial balance outstanding, along with some credit card debt. HopeWell structured a major bank refinance that consolidated the existing mortgage, HELOC, credit card debt, and provided cash out to pay the remaining CRA obligation.

Solution: Major bank refinance
Purpose: Cash-out refinance and debt consolidation

CRA debtBramptoncash-out refinance

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Recently FundedBrampton

Brampton Private Second Mortgage Used to Pay CRA HST Lien

A Brampton client had a CRA liability for unpaid HST, and CRA registered a lien against the property. The client’s existing first mortgage was fixed for another year and was a closed mortgage. The lender would allow payout only in the event of a bona fide arm’s-length sale, so a normal refinance was not available. The only practical option was to arrange a private second mortgage behind the existing first mortgage to raise enough funds to pay CRA. When the first mortgage comes up for renewal, the plan is to revisit a full refinance and consolidate both mortgages if the file qualifies.

Solution: Private second mortgage
Purpose: CRA HST lien payout and short-term debt restructuring

Brampton Ontarioprivate second mortgageCRA debt

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Recently FundedCambridge

Cambridge Private Mortgage Used to Pay First Mortgage, CRA Debt, and Consumer Proposal

Clients in Cambridge had strong household income. The husband worked on commission, and the wife was salaried. However, after an accounting or tax-filing issue, they ended up with a major mid-six-figure CRA liability. They also had an active consumer proposal. Despite the income strength, conventional mortgage options were not workable because the liability and credit profile were too severe. We arranged a private mortgage that paid off the existing first mortgage, CRA dues, and the consumer proposal.

Solution: Private mortgage
Purpose: Existing mortgage payout, CRA liability payout, and consumer proposal payout

Cambridge Ontarioprivate mortgageCRA debt

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Recently FundedMarkham

Markham Private Mortgage for Legal Liability with Collateral Charge on Rental Property

Markham clients, both self-employed, were dealing with serious legal issues and had a massive legal liability that needed to be paid immediately. If they did not pay it, they could have faced further legal trouble and a lien against their home. Their credit was low, and the verifiable income on their T1s and T2s was not enough to qualify on the A side. Their credit was also too low for the B side. We arranged a private mortgage on their primary residence and added a collateral charge on their rental property for additional comfort to the lender. The planned exit was to sell a property back home and use the proceeds to pay off the private lender.

Solution: Private mortgage with collateral charge
Purpose: Urgent legal liability payout and lien prevention

Markham Ontarioprivate mortgagelegal liability

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