In today’s age of credit and debt, it’s not unusual that some people get caught in a financial undertow. Unpaid taxes can pile up quickly and to an astronomical amount. In some cases, homeowners risk losing their beloved homes to Canada Revenue Agency. But what if that very thing you worry about losing can be the key to gaining everything back?
Use Your Home to Your Advantage
Transferring unsecured debt, like credit cards, to secured debt, like a mortgage, can put you at risk of losing your home. Unpaid taxes to the CRA already create that risk, so in these instances, transferring that debt to your home may actually save it. Even homeowners who already have a lien on their home can still refinance to pay off their debt. Once the CRA is paid, the lien will be removed.
Activate the Equity in Your Home
For this refinancing program, you will be paired with a mortgage specialist who will help you determine if this is right for you and exactly how much you can afford to refinance. Depending on the equity of your home, the maximum amount you can access is 80% of the value. This amount must be enough to pay off the current mortgage plus what is owed to CRA.
More Manageable Debt Repayment
CRA is not gentle with its interest rates. If you owe tax for 2017 and you file your return for 2017 after the due date, they will charge you a late-filing penalty. The penalty is 5% of your 2017 balance owing, plus 1% of your balance owing for each full month your return is late, to a maximum of 12 months. Late-filing penalties for 2014, 2015, or 2016 may boost that 2017 interest rate to 10% of your 2017 balance owing, plus 2% for each full month your return is late.
Refinancing with Source Mortgage gives you access to the best possible rates on the market. Through this program, we can help protect you from having your property seized and get you back on your feet. Contact us today to get started!