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    Dthomsen's Avatar
    Dthomsen Posts: 1, Reputation: 1
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    #1

    Nov 24, 2011, 01:06 PM
    If I re-finance our home will tax dept a lien for $18k for our equity of say $40K?
    We have a lien on our home in Ontario from the Retail Sales tax department (PST) for $18k. I am considering re-financing the home to pay off various high interest debts and should receive about $40K in total. Will the tax dept automatically take their $18K and will they even know about the re-finance? If not, am I doing something illegal by not paying them off? To enable us to continue paying off the credit card debts I must refinance at about 4% vs 20%+ on some.
    Many thanks for your comments.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #2

    Nov 24, 2011, 01:09 PM
    This lien will have to be paid off to refi, so at closing they will get their money first along with the current loan. Then you will get the balance left over.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #3

    Nov 24, 2011, 08:02 PM
    Your lender will do a search for any liens. If it finds any, they will require that they be paid off before they refinance.
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