It starts small…
👉 A missed payment
👉 A balance carried forward
Then suddenly:
❌ Notices arrive
❌ Interest piles up
❌ The municipality takes action
If you’re searching “property tax arrears mortgage Ontario” or “behind on property taxes refinance” — here’s the reality:
Yes, you can still get a mortgage—even with tax arrears.
But timing matters more than anything.
🚨 What Happens When You Fall Behind on Property Taxes
In Ontario, municipalities have serious enforcement powers.
Once taxes are overdue:
- Interest and penalties are added
- Collection notices are issued
- The file can escalate quickly
👉 And if it goes too far…
⚠️ You Face a Tax Sale
A tax sale means:
- The municipality can sell your property
- Your ownership is at risk
- You lose control of the situation
👉 This is NOT something to ignore.
⏳ How Fast Can This Escalate?
Faster than most people think.
Typical progression:
- Year 1: Arrears build
- Year 2: Increased pressure and notices
- Around Year 2+: Tax sale process can begin
👉 By the time most people act…
👉 They’re already under pressure.
🧠 Why Banks Won’t Help
Here’s the problem:
Traditional lenders see tax arrears as a major red flag.
They view it as:
- A sign of financial distress
- A priority lien ahead of their mortgage
- Increased risk
👉 Result:
❌ Mortgage declined
❌ Refinance denied
❌ No flexibility
💡 The Solution: Using Equity to Fix the Problem
This is where private lending changes everything.
Instead of focusing on the problem…
👉 Private lenders focus on the solution
🔑 How It Works
A private mortgage can:
✔ Pay off property tax arrears in full
✔ Stop escalation immediately
✔ Remove municipal pressure
✔ Stabilize your situation
👉 All by using the equity in your home.
📊 Real Example
- Property value: $900,000
- Existing mortgage: $500,000
- Tax arrears: $40,000
Bank says:
❌ Too risky
Private lender says:
✔ Strong equity (under 65% LTV even after payout)
✔ Arrears can be cleared
👉 Mortgage approved
👉 Taxes paid off immediately
⚡ Why Timing Is Everything
If you act early:
✔ More equity available
✔ More lender options
✔ Lower stress
If you wait:
❌ Arrears grow
❌ Options shrink
❌ Risk increases
🔗 Explore Your Options Now
If you’re behind on property taxes:
🧠 The Truth Most Homeowners Miss
Property tax arrears don’t fix themselves.
👉 They accelerate.
But here’s the key:
Equity gives you a way out—if you act in time.
⚡ The Bottom Line
✔ Yes—you can get a mortgage with property tax arrears in Ontario
✔ Private lenders can step in when banks won’t
✔ The goal is to pay off arrears and regain control
📞 Take Control Before It Escalates
If you’re behind on taxes:
✔ No pressure
✔ No obligation
✔ No credit check to start
📞 Call: 905-597-1225
🌐 Visit: www.lendworth.ca