Region served
Paying a tax debt through a refinance in Grand Montréal: the lender requires Revenu Québec and the CRA to be paid out of the funds, and works from the official statement.
Lenders look at your ratios once the debts are cleared, not the current ones. A tax debt is worse than a credit card balance. Revenu Québec and the CRA can put a claim on the property, so most lenders insist it be paid from the refinance.
Every debt listed with its exact balance and payment, the latest mortgage statements, the notices of assessment. For tax debt, ask for the official statement of account. Nothing else counts with a lender.
As a rule you can refinance up to 80% of the value, minus what you still owe. A $500,000 home in Grand Montréal with $250,000 left on the mortgage works out to roughly $150,000, before you count the penalty for breaking the term.
Before comparing two monthly payments, add up what the change costs: the penalty, legal fees, the appraisal and the new loan’s fees. A lower payment that takes six years to pay back those costs is not a saving. Run the numbers for Grand Montréal first.
A 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 out of the refinancing itself.
A lower monthly payment and a lower total cost are two different things. Stretching the amortization eases the budget now and adds years of interest, so compare both figures before you sign anything.
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.