Property tax

llee · Nov 5, 2008

Hi,

My bank (TD) is collecting property tax monthly from me (I guess based on purchase price). Today I received the City notice that the property`s value will be phased in, over 4 years. For 2009, it is $X, which is approx $100/mo lower than what TD is charging me.

Can I ask my bank to lower the property tax? What will they do at year end if they have overbilled me (give me back the money, or apply to next year)?

Thanks,
Lucas

seanverret · Nov 5, 2008

On one mortgage I had, it seemed like the bank was taking too much for property taxes as well. When I sold that property, I ended up getting a large chunk of it back... I never did talk to them though...

For what it`s worth...

willy · Nov 5, 2008

I had this problem before with RBC. I went in and pointed it out to them. Reluctantly, they lowered the amount deducted and refunded some of the excess, but they still wanted a pretty fair margin over what was required.

You can always just pay the tax bill yourself.

w

dandoros · Nov 6, 2008

I had a similar issue with FirstLine. I set pre-authorized monthly payments with the city for each property and instruct the bank to stop collecting the property taxes.

Hope this help.

Dan

terri · Nov 6, 2008

QUOTE (dandoros @ Nov 6 2008, 09:43 AM) I had a similar issue with FirstLine. I set pre-authorized monthly payments with the city for each property and instruct the bank to stop collecting the property taxes.

Hope this help.

Dan

I prefer pre-autorized monthly payments with the city too, that way you are not overpaying.

Terri

FraservalleyTom · Nov 6, 2008

I worked for the Bank of Montreal. In the event that we collected to much tax we could advance a portion from your tax account and reimburse it to the client or you could lower your tax payment contribution. From my understanding most banks will not let you pay your own taxes if you are in a high ratio mortgage unless you have had the mortgage for at least one year.

llee · Nov 7, 2008

QUOTE (FraservalleyTom @ Nov 6 2008, 02:33 PM) I worked for the Bank of Montreal. In the event that we collected to much tax we could advance a portion from your tax account and reimburse it to the client or you could lower your tax payment contribution. From my understanding most banks will not let you pay your own taxes if you are in a high ratio mortgage unless you have had the mortgage for at least one year.

Alsolutely good info guys. Thanks!
I called TD. I was told the same message - since I am in high-ratio, the bank will have to collect tax for me (for at least 1-2 years). I cannot deal with the City directly. The monthly tax payment cannot be lowered. If I do pay more at the end of the year, I can apply for money back.

llee · Nov 7, 2008

QUOTE (FraservalleyTom @ Nov 6 2008, 02:33 PM) I worked for the Bank of Montreal. In the event that we collected to much tax we could advance a portion from your tax account and reimburse it to the client or you could lower your tax payment contribution. From my understanding most banks will not let you pay your own taxes if you are in a high ratio mortgage unless you have had the mortgage for at least one year.

Thanks for the good info here.
I called TD - I was told the same message. Since I am in high-ratio, the bank will collect tax from me. I cannot deal with the City directly. If I do pay more at year end, I can apply for a credit back.

RandyDalton · Nov 9, 2008

Hi,

I did a mortgage with BNS this year and they said I had to pre-pay the property tax to them. Since this muddied the waters for me, when I went in to sign my docs with the local branch I got to know the person in charge of the transaction. When I delivered my copy of the deed to the Town to setup bills for property taxes I spoke with them about the issue. Turns out they thought it muddied the waters for them as well. They wanted to deal directly with me so I gave them contact information at the local branch to call and discuss. Then after a month I contacted the local branch to discuss the overpayment of taxes issue. I guess in the end it just muddied the waters for them as well. In the end they were more than happy to stop taking extra monies for property taxes and issued me a money order for the amount deducted to date.

Regards...Randy Dalton