Private Mortgage Solution for Tax Arrears
What You Need To Know
The term “property tax arrears” refers to failing to pay taxes by the end of the due year. Many municipalities and counties impose penalties on properties that fall behind on their taxes. In most cases, delinquent tax debt is classified as a tax lien.
At Canadian Private Mortgage, our clients know that we won’t steer them into any products or financial terms that don’t fit their personal goals.
Our private mortgage solution for tax arrears is ideal for property owners who are willing to get out of debt and return their financial situation back to normal. The proposed solutions will include an exit strategy that enables clients to get back to normal as soon as possible.
Solution For Tax Arrears
Home Equity Line of Credit
A Home Equity Line Of Credit (HELOC) is a flexible way to tap into the equity in your house.
The fund drawn from a HELOC could help borrowers consolidate their personal debts, including tax arrears.
Borrowers just have to qualify once and have the option to withdraw funds multiple times from the HELOC at any time without requalifying for each draw.
Home Equity Loan
A home equity loan is the most straightforward financing option for property tax arrears.
A home equity loan is a type of secured loan.
However, unlike the Home Equity Line of Credit that allows multiple draws from the line of credit, with a home equity loan the lender proceeds the funds once on the Closing Day and borrowers are given a payment schedule for the entire duration of the mortgage term.
Financing Options for Residential and Commercial Properties
The process of obtaining financing for commercial properties with a private mortgage is much simpler than the process for traditional lenders. Although private lenders will still ask to verify some information to satisfy their internal lending guidelines, in general, it may actually be faster and easier.
Private lenders assess a mortgage loan application based on the allowable use according to the city by-law and its location in the neighbourhood. A property appraisal is certainly a requirement that borrowers will need to satisfy as part of the refinancing process.
Generally speaking, private lenders will allow higher loan-to-value (LTV) than traditional banks and lenders.
Private lenders are an ideal option since they are not tied to the same lending guidelines as traditional lenders which is limiting. Unlike bank loans, private lenders focus more on the value of the property and the borrower’s exit strategy to determine the terms of the loan. This means that they will not make any preconditions on the borrower’s credit score or debt to income ratio.
A big advantage of hard money lending is that you can beat traditional lenders’ interest rates and timeframes. While traditional banks are known for their long loan terms, hard money loans can close in just days or weeks. This is important in time-sensitive situations, such as paying off tax arrears immediately. Getting a mortgage loan approved faster helps you resolve your personal situation faster and avoid delays.
Origination fee can also be referred to as “commitment fee”, or any other name. It usually refers to the underwriting or processing fee. This fee can cover a variety of expenses, from processing the loan to underwriting the loan. The amount of this fee depends on the lender and the type of mortgage loan. It is always stipulated in writing so there is no bad surprise to the borrowers on the closing day. If you are not sure how much you are paying for your origination fee, it is a sign that you are not working with an ethical private lender. Be aware and find other private lenders who are transparent with their origination fees.
At Canadian Private Mortgage, we disclose our commitment fee clearly in writing from the beginning of the process.
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What Our Clients Say
Andrea Chase, Hamilton, ON
I had 2 yrs left on my consumer proposal, with the 2nd mortgage offer by Matrix Mortgage Global I was able to pay off the proposal and re-establish my credit
Steve Darcy - Surrey, BC
I own a historic mixed use commercial/residential building that I wanted to modernize. Matrix Mortgage Global provided me with a term loan to complete the renovations
Blake Taylor - Banff, AB
I own a family bed and breakfast just outside Banff and ran into some tax arrears. Our bank turned us down for a commercial loan. Matrix Mortgage Global provided us with a 2nd mortgage which we used to pay off the tax arrears.
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