Region served
Paying a tax debt through a refinance in Gaspésie-Îles-de-la-Madeleine: the lender requires Revenu Québec and the CRA to be paid out of the funds, and works from the official statement.
It all comes down to your ratios once the debts are paid off, not today’s. A tax debt weighs more than a credit card: Revenu Québec and the CRA can register a claim on the property, and most lenders require it to be paid out of the refinancing.
A list of your debts with exact balances and payments, your latest mortgage statements, your notices of assessment. If a tax debt is involved, ask for the official statement of account, the only figure the lender will work from.
The usual ceiling is 80% of the value, less your balance. Take a $500,000 home with $250,000 left to pay: about $150,000 available. Then subtract the penalty if you’re breaking the term.
Before comparing monthly payments, add up what the change costs: penalty, legal fees, appraisal, loan setup costs.
Tax debt gets paid first at closing. Revenu Québec and the CRA can register a claim against the property, and most lenders want it cleared from the refinancing itself.
Don’t confuse a smaller monthly payment with a cheaper mortgage. A longer amortization helps the budget today and costs you years of interest. Compare both figures before signing.
To prepare
Yes. It all runs by phone, email or video call, and documents go through online. We can meet in person, but most files get settled without anyone having to travel.
Often yes, but not always with your cash. Paying down a card improves your ratios. Emptying your account to do it weakens the down payment. You have to run both numbers at the same time.
Pick the situation closest to yours.
Contact
Buying, renewing, refinancing, or something a bit out of the ordinary: tell us where you’re at, even if it’s still fuzzy. Mathieu gets back to you with next steps and the documents to pull together.