Did you know most lenders will not allow you to refinance or purchase a house if you owe money(arrears) to revenue Canada? For this reason it is really important to pay off any balance owing to revenue Canada as soon as possible. Not only that you could be incurring late penalties also which can amount to quite a lot. Balances owing after April 30 are considered to be arrears even if you are self employed.
The tax filing date for most is April 30th and for self employed people it is June 15. More information can be found here. http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ll-dts/frms-eng.html
If you are attempting to refinance your house and include revenue Canada arrears you are not permitted in most cases. I am not completely sure why the rule, but most lenders including banks will not allow you to pay off revenue Canada arrears from the proceeds of the mortgage. In some cases there can be exceptions made. Alternatively we do have lenders which will allow us to do that.
There a bunch of things we can do if you owe revenue Canada. We can help you apply for a short term loan to pay it off. Also we can use the equity in your house to apply for a 2nd mortgage which we would then possibly pay out quickly with a new mortgage. We can also consider an equity take out. Another option would be for us to ask the new lender on the refinance to grant us an exception.
So as you can see there are things we can do. It is really important to deal with revenue Canada as quickly as possible so as not to incur unnecessary penalties and fees.
Contact me to find out how I can help.
Shawn Mooney | Broker of Record | Bayfield Mortgage Professionals Ltd.
Your Mortgage Broker for Life!!!!
Email: mortgages@shawnmooney.com
Phone: 403-945-8769
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