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CRA Tax Arrears Mortgage: How Ontario Homeowners Are Using Home Equity to Stop CRA Action

If you’re behind on taxes and facing pressure from Canada Revenue Agency (CRA), you’re not alone — and you’re not out of options.
January 11, 2026 by
CRA Tax Arrears Mortgage: How Ontario Homeowners Are Using Home Equity to Stop CRA Action
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Across Toronto, Vaughan, the GTA, and Southern Ontario, homeowners are quietly using CRA tax arrears mortgages to pay off tax debt, remove liens, and protect their homes before CRA escalates enforcement.

At Lendworth, we specialize in equity-based mortgage solutions designed specifically for CRA tax arrears, even when banks say no.

CRA Tax Arrears: Why Homeowners Are Feeling the Pressure in 2026

CRA enforcement has intensified. Once arrears build up, CRA can:

  • Register a tax lien on your property

  • Freeze bank accounts

  • Garnish wages or rental income

  • Block refinancing or property sales

  • Force repayment timelines that are unrealistic

Many homeowners don’t realize that waiting makes the problem worse — but acting early creates leverage.

What Is a CRA Tax Arrears Mortgage?

A CRA tax arrears mortgage is a home equity loan, second mortgage, or refinance used to:

  • Pay CRA in full or negotiate settlement

  • Remove tax liens from title

  • Consolidate tax debt into one manageable payment

  • Stop enforcement actions immediately

Instead of dealing with CRA penalties and daily interest, homeowners convert tax debt into a structured mortgage solution.

Why Banks Usually Decline CRA Tax Arrears Files

Traditional banks often refuse tax arrears mortgages because:

  • CRA liens complicate title

  • Income verification is strict

  • Credit scores may be damaged

  • Timelines don’t align with CRA deadlines

That’s where private lending steps in.

How Lendworth Helps Homeowners With CRA Tax Debt

At Lendworth, approvals are based on equity — not perfect credit.

✔ Equity-Based Approvals

We focus on your property value and loan-to-value (LTV), not CRA history.

✔ First & Second Mortgages

We structure first mortgages, second mortgages, or bridge financing depending on urgency.

✔ Fast Funding

Many CRA tax arrears files are approved in 24–48 hours.

✔ CRA Coordination

We work alongside your accountant or lawyer to ensure CRA requirements are met.

✔ Confidential & Judgment-Free

Tax issues happen — we focus on solutions, not blame.

Common CRA Tax Arrears Scenarios We Solve

  • Self-employed homeowners behind on HST or income tax

  • Business owners with personal tax liens

  • Investors facing rental income garnishments

  • Homeowners blocked from refinancing due to CRA registration

  • Families needing immediate relief before enforcement

If you own property and have equity, there is almost always a solution.

Why Acting Early Saves You Thousands

CRA interest and penalties compound quickly. A CRA tax arrears mortgage can:

  • Stop enforcement immediately

  • Reduce overall financial stress

  • Restore borrowing flexibility

  • Protect your credit from further damage

Delaying often means higher costs, fewer options, and more pressure.

CRA Tax Arrears Mortgage Rates & Terms

  • Loan-to-Value: Up to 75% (case-dependent)

  • Terms: Short-term or flexible renewals

  • Payments: Interest-only or amortized options

  • Exit Strategy: Refinance back to a bank once CRA is cleared

Every file is customized — no one-size-fits-all underwriting.

CRA Problems Don’t Go Away — But They Can Be Solved

If CRA is calling, sending letters, or registering liens, the worst move is doing nothing.

Home equity is often the fastest, cleanest, and least stressful way to regain control.

Talk to Lendworth — Confidential CRA Tax Arrears Help

📍 Serving Toronto, Vaughan, Brampton, Mississauga & all of Ontario

📞 Speak directly with an equity lending specialist

⏱ Same-day approvals available

Your equity deserves more™

👉 Contact Lendworth today to discuss your CRA tax arrears mortgage — before CRA takes the next step.