Property Tax Statement
WHAT IS AN PROPERTY TAX STATEMENT?
This is a document issued by your municipality stating what the total property taxes owing for the year are on your property. Even if your mortgage lender pays your property taxes on your behalf you are still issued this document.
WHY DO LENDERS REQUIRE A PROPERTY TAX STATEMENT?
The stress test takes into consideration the property taxes and so this document is required to ensure they have the correct amount of property tax to calculate your stress test ratios.
Property tax arrears could be placed on the title of your home and take priority over any mortgage financing in a sale of the property. If you are behind on property taxes the arrears may need to be paid before advancing mortgage funds or funds from the mortgage used to get this up to date (if it is a mortgage lender that can do this).
WHERE CAN I FIND MY PROPERTY TAX STATEMENT?
Typically this document is mailed to you around May of each year. If you have misplaced it or were not sent it you should be able to contact the municipality your property is located in and ask how to obtain a copy.