Money owed to Revenu Québec or the CRA isn’t like other debt. The tax authority can register a legal hypothec on the property, and that halts financing.
The exact balance owing, proof of a payment arrangement if you have one, and tax returns filed and current. Many lenders want the debt cleared at disbursement, paid out of the financing itself.
Fix what can be fixed, then apply
Some things move in weeks: card utilisation down under 30%, a collection paid off. Others take months of clean payments. Knowing which is which tells you when to apply.
If you need an alternative lender
Then the plan counts more than the rate. What does it cost, how long does it last, and what has to change before you can go back to a regular lender?
Documents to gather
What the lender will ask for.
Goal of the file
Income and documents
Debts and credit
Property or security
Target timeline
Lender options
Frequently asked
Does a tax debt prevent a mortgage?+
Not always, but it has to be paid or covered by an arrangement. The real danger is the legal hypothec: once it’s registered, it ranks on the property and blocks financing. A refinance can sometimes clear it at closing.
Which documents should I gather?+
Your last two notices of assessment, recent pay stubs, an employment letter, three months of bank statements and proof of your down payment. Add a list of your debts with balances and monthly payments. Ready before you make an offer, they keep a short financing window realistic.
Current rates
Today’s rates, with the fine print.
These rates are indicative. Yours depends on your file, the type of mortgage (insured or not) and the lender. And look at the penalty too, it matters as much as the number.
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.
