Property tax payments are a core part of homeownership, yet many buyers are unsure whether to roll them into the mortgage or pay the municipality directly. As a mortgage broker in Edmonton, I see both approaches work, depending on the lender and the borrower.

Keep reading or watch my video for more details:

How Do Property Tax Payments with a Mortgage Work?

Some lenders set up an account that collects a portion of your property tax payments with each mortgage instalment. Funds accumulate and the lender remits to the municipality when due. This can simplify budgeting and reduce the risk of missing a deadline.

Why Fewer Lenders Collect Property Tax Payments Today

Many mainstream lenders have reduced or eliminated in-house property tax administration because of cost and complexity. That is why homeowners often pay the city directly now, even for first time homebuyers.

When Lenders Still Require It

Alternative lenders often insist on collecting property tax payments. Their priority is ensuring taxes stay current, since municipal tax arrears can take priority on title ahead of the mortgage. If your file is with an alternative lender, expect property tax payments to be bundled with your mortgage.

Pros and Cons to Consider

Pros
• Predictable cash flow, since property tax payments are smoothed across the year.
• Lower risk of penalties from late or missed remittances.
• Simpler for some first time buyers who prefer one combined payment.

Cons
• Less flexibility if you prefer to manage property tax payments directly with the municipality.
• Possible administration adjustments if the lender’s estimates differ from the actual bill.
• Not all lenders offer the service, which can limit your options at approval or renewal.

How to Decide What Fits Your Situation

Start with your lender options and your budget habits. If you value automation, property tax payments inside the mortgage can help. If you prefer control and already use a monthly payment plan with the city, direct management may be better. Ask your broker to confirm lender policy before you write the offer or sign renewal papers.

What To Do Next

Before you purchase or refinance, clarify whether your chosen lender collects property tax payments, what the monthly estimate will be, and how shortages or surpluses are handled. If your lender does not collect them, enroll in your municipality’s monthly plan so your property tax payments stay current without large lump sums.

Whether you are preparing to buy your first home or your fifth, if you’re looking to get pre-approved for a mortgage in Edmonton, fill out my online application. I’m here to help you every step of the way.

About Jason Scott, Edmonton Mortgage Broker

Looking for a personalized mortgage solution? As an Edmonton Mortgage Associate, I’m trusted partner who will help you get the right mortgage for your home or investment property. I’m Jason Scott, and I’ll be your Mortgage Broker in Edmonton.