Once tax arrears hit your file, interest compounds daily, penalties stack quickly, and CRA enforcement powers are far stronger than most Canadians realize. Wage garnishments. Bank account freezes. Property liens. Even forced sale proceedings.
What many homeowners don’t know is this:
👉 Your home equity can be used to stop CRA interest and late fees immediately — without selling your property.
This is where Lendworth steps in.
Why CRA Tax Arrears Escalate So Fast
CRA is not a typical creditor. Once your taxes go unpaid:
Interest accrues daily (compounded, not simple)
Late filing penalties are added on top
CRA can register a lien on your home
CRA can freeze accounts or garnish income
Payment plans do not stop interest
Waiting only makes the balance grow — even if you’re “communicating” with CRA.
The Mistake Most Homeowners Make
Many Canadians try to:
Stretch CRA payment plans
Borrow from credit cards or lines of credit
Delay filing or negotiating
Unfortunately, CRA interest continues regardless, and unsecured debt often worsens cash flow.
Meanwhile, homeowners are sitting on untapped equity that could permanently stop the damage.
How Home Equity Can Solve CRA Tax Arrears
A second mortgage or equity-based loan allows you to:
✅ Pay CRA in full
✅ Immediately stop interest and penalties
✅ Remove liens or pending enforcement
✅ Consolidate the debt into one clear monthly payment
✅ Protect your credit and property
This is often cheaper long-term than letting CRA interest compound.
Why Banks Usually Say No (And Why That’s Okay)
Banks typically decline CRA-related financing because:
Tax arrears signal “risk” on paper
Income may be inconsistent or self-employed
Timelines are urgent
Private lenders focus on equity, not bureaucracy.
How Lendworth Helps With CRA Tax Arrears
At Lendworth, we specialize in equity-based solutions for homeowners dealing with CRA debt.
What Makes Lendworth Different:
Fast approvals (often within 24–48 hours)
Equity-first underwriting — not credit-score driven
Second mortgages designed for CRA payouts
Clear terms, no surprises
Discreet, professional handling
🔗 Learn more about CRA-specific solutions here:
👉 https://www.lendworth.ca/cra-tax-arrears
🔗 Explore second mortgage options:
👉 https://www.lendworth.ca/second-mortgages
Common CRA Scenarios We Help With
Self-employed tax arrears
HST/GST balances
Payroll source deductions
Investment or capital gains taxes
CRA liens already registered
Imminent garnishments or freezes
If you have equity, you have options — even if CRA pressure feels overwhelming.
Why Acting Early Saves You the Most Money
The biggest cost of CRA tax arrears isn’t the principal — it’s the time.
Every month you wait:
Interest compounds
Penalties stack
Enforcement risk rises
Using home equity early can save tens of thousands in avoided interest and stress.
Final Word: CRA Debt Doesn’t Mean You’re Out of Options
CRA tax arrears don’t make you irresponsible — they make you human.
But letting them spiral is avoidable.
If you own property and need a fast, practical solution, speak to Lendworth before interest and enforcement escalate.
Your Equity Deserves More™