CRA Won't Wait — But Your Home Equity Can Clear the Debt
CRA interest compounds daily. A private mortgage using your BC home equity can discharge the lien, stop the clock, and give you a structured repayment path — in as little as 10 business days.
Rates as of May 2026. Actual rates depend on LTV, property type, and credit profile. Not a rate guarantee.
How a CRA Arrears Mortgage Works in BC
Cost Example
Hypothetical illustration only. Actual rates, fees, and approval depend on individual circumstances. BCPrivateLoans.ca does not provide mortgage or tax advice.
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We'll send a free breakdown of rates available for your situation.
Risks to Understand
Private mortgage rates are higher than conventional — understand the total cost before proceeding.
This is a secured debt against your home — defaulting on the private mortgage can lead to foreclosure.
A private mortgage does not resolve the underlying tax issue — consult a tax professional about your CRA obligations.
Short terms require a clear exit strategy — you must have a plan to refinance or sell before the term ends.
Always verify any broker arranging your mortgage holds a valid BCFSA licence.
BCPrivateLoans.ca does not provide tax, legal, or mortgage advice. Consult qualified professionals before proceeding.
Frequently Asked Questions
Can I get a mortgage to pay off CRA tax arrears in BC?
Yes. BC private lenders regularly fund mortgages specifically to discharge CRA tax arrears and liens. If you own property in BC with sufficient equity, a private mortgage can provide the capital to clear the CRA debt, stop interest accrual (which can reach 9–10% compounded daily), and remove the lien from title. This is one of the most common uses of private second mortgages in BC.
What happens if I don't pay my CRA tax debt?
If left unresolved, CRA can register a lien on your property, garnish wages and bank accounts, seize assets, and ultimately force the sale of your property. CRA interest compounds daily at the prescribed rate plus 4% (currently around 9%). The longer the debt sits, the more it grows. A private mortgage to discharge the debt often costs less than letting CRA interest compound for another 12–24 months.
What are BC private mortgage rates for CRA arrears?
In May 2026, BC private second mortgages for CRA arrears typically range from 10.99% to 13.99% annually, depending on your combined LTV, property type, and credit profile. Add lender fees (2–3%) and broker fees (1–2%). Compare this to CRA's compounding interest rate of approximately 9% — plus the risk of asset seizure.
How quickly can a CRA lien be discharged using a private mortgage?
Once a private mortgage is approved and funded (typically 5–10 business days), the lender's lawyer pays CRA directly and obtains a discharge of the lien. The discharge is registered on title, clearing the property. The entire process from application to lien discharge typically takes 10–15 business days.
Will a CRA lien affect my ability to get a private mortgage?
A CRA lien on title does not automatically disqualify you from a private mortgage — in fact, discharging the lien is often the purpose of the loan. Private lenders will require that the lien be paid out from the mortgage proceeds at closing. What matters most is whether you have sufficient equity to cover the CRA debt plus the new mortgage, and a clear exit strategy.
Stop CRA Interest From Compounding
Submit your scenario and we'll surface BC private lenders in our directory who can help discharge your CRA lien using your home equity.
Submit My CRA ScenarioBCPrivateLoans.ca is an educational directory and referral-intake platform. We are not a mortgage broker, lender, financial advisor, or tax professional. We do not approve loans or guarantee funding.