How does it work?
At RMG, we can help to ease the burden of paying taxes for our customers by collecting a portion of money for taxes in addition to each mortgage payment.
We take that tax portion, set it aside, and pay the bills when we receive them from the municipality. We don’t charge you for this service and we try to make the process as seamless and understandable as possible.
Your Tax Savings Account is separate from your mortgage account and gives you a way to save money to pay your property taxes. We take care of everything... just another service MCAP clients have come to count on.
If the tax estimate is less than the actual bills we receive, there may not be enough in your account to fully cover the tax bill. We will still pay the full amount but it will mean a shortfall in your account. This can be handled in one of two ways; cover the shortfall with a lump sum payment or we can roll the shortfall into calculations for the new tax portion at the next adjustment date.
We review the tax portion each year, after the final taxes are paid. If any changes are necessary we will let you know at that time.
BC Residents: Please note we will pay the NET amount of your property taxes, unless our records indicate otherwise. Eligible homeowners that qualify for the Home Owners Grant are responsible for applying directly to the municipality every year.
Why use RMG?
We all cringe at the thought of getting an unexpected tax bill in the mail. You can avoid that possibility by choosing to let RMG make the payments to the municipality on your behalf. Other benefits include:
- RMG does not charge for this service.
- The payments that RMG collects are smaller and easier to handle than the direct bills you receive from your municipality.
- Your account is reviewed at the end of each tax year to make sure we have collected enough, but not too much. We will notify you in advance if we need to change the amount we are collecting.
- Each year RMG will send you a property tax statement advising of the amounts we have paid on your behalf.
Include a Property Tax Portion
"I would like RMG to take over responsibility of paying my property taxes to my tax municipality. I understand that this will result in MCAP establishing a tax portion which will be added to my existing principal and interest payment."
We will calculate a tax portion based on the information you have provided us. If the information is incomplete, we will contact you vie e-mail and/or call your tax municipality to obtain the correct information. Billing dates vary by municipality therefore your initial tax portion may be adjusted to compensate for the way in which we are billed. We will send a confirmation to you via e-mail when your tax installment has been set up.