Are Paying Property Taxes with my Mortgage Good for Me?

After working for Scotiabank and other financial institutions, I knew that I would want to pay my City of Hamilton property taxes separately from my mortgage payments. This was something that I advised to my valuable clients at the time and something that I still advise today.

Life was good and I would have a great day until I opened my mail. My quarterly property taxes were due, $900 (ugh!!). So much for my happy day. It happened two more times and each time it felt like a punch to the gut. There had to be a better way.

I was helping my mother at City Hall and I asked for different payment plans. Imagine my surprise when I learned that the city will debit your account each month if you provide a void cheque. That was fifteen years ago. The payment comes out automatically, I’m not stressed and most importantly, I do not have to worry about it.

When Property Taxes Must Be Included in your Mortgage

1. For borrowers who have less than a 20% down payment.
2. Sub-prime clients with sub-prime mortgages.

In both of the above instances, the banks and financial institutions rate you as a higher risk and thus, they control the payments for you. Once you have established a track record, it may be possible to shift the payments to the borrower mid term. Ask us how!

Robert Floris is a Mortgage Broker. His office is located at 651 Fennell Avenue East in Hamilton, Ontario. If you would like to speak with Robert, he can be reached at 905-574-9200 #215. Alternatively, you can contact Robert here.

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