Brett: A Mortgage Solution to Clear His CRA Debt
Brett found himself in a tough financial spot—he owed money to the Canada Revenue Agency (CRA) and didn’t have the funds to pay them back. He turned to his bank, where he already had his mortgage, expecting to secure a loan or additional financing to clear the debt. But the bank declined his application.
The Challenge: CRA Debt and Bank Restrictions
What Brett didn’t realize was that unpaid taxes are treated like missed payments on a credit bureau by most banks. Because of this, his existing lender wasn’t willing to extend him any additional mortgage funds, leaving him stuck with a growing CRA balance and no clear solution.
The Solution: A Strategic Mortgage Plan
Instead of letting CRA debt pile up, Brett worked with ApproveU.ca, who secured a private second mortgage at a fair interest rate. This allowed him to pay off CRA in full, removing the financial strain and eliminating the risk of further penalties.
With his CRA debt resolved, Brett’s financial profile improved. He was then able to refinance into a single, competitive-rate mortgage, simplifying his payments and putting him in a stronger financial position for the future.
By taking the right steps at the right time, Brett turned a difficult situation into a fresh start—without losing control of his home.