What are your options when you owe money to the CRA

If you’ve been there you know how much these phone calls suck. This first thing you’ll want to do is to speak to an accountant you know and trust (if you don’t know anyone, message us and we can connect you with some awesome ones!). They can help you to fully understand what you owe and ideally, what options you have for repayment.


Owing money to the CRA is less likely when you are a salaried employee as your employer typically deducts taxes from your pay on your behalf. However, if you’re self-employed and responsible for paying your own taxes and you fall behind, this is where things can become stressful.


When it comes to tax arrears, traditional “A” lenders (in most cases) will not allow you to take equity out of your home to pay it out. When you are self-employed a lender will always ask to see your NOA (Notice of Assessment) as part of your income confirmation, to ensure that you have no back taxes owing.


If you have tax arrears and owe money to the CRA, your options will depend on a few things:

1️⃣ How much you owe

2️⃣ What your current mortgage rate is

3️⃣ When your current mortgage is up for renewal


When trying to decide the bet course of action, ALWAYS do the math. A potential solution will either make sense or it won’t and you won’t know until you can review the numbers.

In an ideal world we’d file our taxes and pay on time and never have to worry about this stuff. But sometimes s*it happens, and we do our best to figure it out. If you find yourself in this type of situation, always feel free to reach out. We are here to help not judge.

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