Removing a Judgment or Lien With a Mortgage in Canada (2026)

A judgment or lien registered against your home is a roadblock: it sits on your title and stops you from selling or refinancing through a normal lender until it's paid. The good news is that your home equity is usually the way to clear it — and specialized lenders will fund the payout even while the lien is registered. Here's how.

The short answer

You can remove a judgment or lien by paying it off — and if you don't have the cash, a refinance or private mortgage uses your home equity to pay it out at closing, after which it's discharged and clear title is restored. Because banks won't refinance over a registered lien, a private lender is often the route, funding in days. See judgment and lien financing.

What judgments and liens are

• Judgment: a court ruling that you owe a creditor money. The creditor can register it against your property, where it attaches like a lien.
• Lien: a registered claim against your home securing a debt — common types include a CRA tax lien, a contractor's construction lien, or a creditor's judgment.

Either way, the effect on your title is the same: it must be dealt with before clear title can pass.

Why it blocks you

Lenders and buyers need clear (or clearable) title. With a judgment or lien registered:

• A bank generally won't approve a refinance.
• You can't sell without paying the lien out of the proceeds at closing.
• Interest and legal costs on the underlying debt often keep growing.

How to clear it with your equity

1. Pay it in full

The cleanest route if you have the cash — the creditor provides a discharge that removes it from title.

2. Refinance to pay it out

If you have equity but not cash, a refinance pays the lien in full at closing; your lawyer coordinates the payout and discharge so clear title is restored. See how much equity you can access.

3. Private mortgage (works with the lien registered)

Because banks won't refinance over a registered lien, a private lender funds against your equity, the lawyer pays the creditor directly, the lien is discharged, and you typically get a short term to stabilize and move back to a bank. This mirrors the approach for removing a CRA lien.

How much equity do you need?

Banks lend up to about 80% of value; private lenders often to ~85%. Add up your mortgage, the judgment/lien, and any other charges and compare to roughly 80–85% of your home's value. If there's room, you can almost certainly clear it through financing — even with bruised credit, since these lenders weigh equity over score (see bad-credit options).

Frequently asked questions

Can I refinance with a judgment or lien on my home?

Not through a bank while it's registered, but a private lender will refinance against your equity to pay it out and clear the lien, often within a week.

How do I get a lien removed from my title?

Pay the underlying debt — directly, or via a refinance/private mortgage that pays it at closing. The creditor then files a discharge that removes it from title.

Can I sell my house with a lien on it?

Yes, but the lien must be paid out of the sale proceeds at closing before clear title can pass to the buyer. Your lawyer handles the payout and discharge.

Does a lien affect my credit?

The lien sits on your property title, but the underlying unpaid debt and related collection activity can affect your credit. Clearing it removes the title issue and stops further damage.

Have a judgment or lien on your home? Talk to us confidentially — we clear judgments and liens through refinances and private mortgages. See your options.