TIPP Program or Property Tax included?

[Engine09]

Applied for a mortgage with a broker, approved and went through Scotia. While completing the paperwork they asked if I wanted to pay my property taxes myself or have them included in the mortgage payment. I preferred to pay myself, they said no problem and they forwarded the TIPP forms to me. I got them done, no problem. City of Calgary has taken 2 property tax payments so far.

2 mortgage payments in and Scotia is also taking a property tax payment. Called them and was referred to some woman downtown, faxed in proof on my TIPP enrollment, proof of payment, etc. She said she would issue a refund, didn't hear back, faxed all information again and asked for confirmation. No word back

Got handed off to someone else at Scotia today and they're "not sure" but think because I put less than 20% down that I must pay through them. But she'll have to find out for sure and call me back on Tue.

I'm getting different answers from everyone. What's the story? Put less than 20% down and you cannot use the TIPP program?

This entire process has been incredible, I don't know how many times I've asked a simple question of the mortgage broker or realtor and was met with silence or "I'm not sure". As if it's the first time the question has ever come up.

[flamesrule_kipper34]

Originally Posted by Kryzsky

Applied for a mortgage with a broker, approved and went through Scotia. While completing the paperwork they asked if I wanted to pay my property taxes myself or have them included in the mortgage payment. I preferred to pay myself, they said no problem and they forwarded the TIPP forms to me. I got them done, no problem. City of Calgary has taken 2 property tax payments so far.

2 mortgage payments in and Scotia is also taking a property tax payment. Called them and was referred to some woman downtown, faxed in proof on my TIPP enrollment, proof of payment, etc. She said she would issue a refund, didn't hear back, faxed all information again and asked for confirmation. No word back

Got handed off to someone else at Scotia today and they're "not sure" but think because I put less than 20% down that I must pay through them. But she'll have to find out for sure and call me back on Tue.

I'm getting different answers from everyone. What's the story? Put less than 20% down and you cannot use the TIPP program?

This entire process has been incredible, I don't know how many times I've asked a simple question of the mortgage broker or realtor and was met with silence or "I'm not sure". As if it's the first time the question has ever come up.

I put less than 20% down on my condo 3 years ago and am paying and always have paid for my taxes through the TIPP program.

[Ducay]

The only thing that your mortgage really has to do with your property taxes is if your lender requires themselves to make payments for you (to ensure it gets paid) and you pay them back for it. Sometimes they'll make you pay some/all at closing aswell, but TIPP has nothing to do with it. As long as you're the registered owner, you can enrol in TIPP. The city's application doesn't even mention mortgages, let alone your equity %.

[troutman]

Depends on the lender I think. Most give you the option of paying TIPP or with your mortgage. In a few cases the lender requires you pay with the mortgage. I'm not sure what conditions cause them to impose that.

OP - you should be getting a credit back from the city or lender once it is determined how you have to do it.

[OMG!WTF!]

Scotia does have a 20% down rule where they automatically take out your tax instalment. It will say as much in your documents if you have a look. Someone should have pointed it out. They do this because they are ultimately responsible for all taxes in the case of a foreclosure. They don't want a surprise tax lien that can cause a legal headache and extra costs that may not be covered with the equity of the property.

I wouldn't worry about not getting your money back. Someone will figure it out soon enough. Annoying though. I'd cancel TIPPS in the mean time.

[4X4]

Welcome to dealing with Scotia. Hilarious that they're so anal about something like that, and yet, they forgot to register their mortgage on my title. Six months after taking a mortgage with them, I pulled my title for some reason, and they weren't on it. I should do it again to see if they ever bothered to register.

[Engine09]

Originally Posted by OMG!WTF!

Scotia does have a 20% down rule where they automatically take out your tax instalment.

Thanks. I actually take more stock in and trust this answer more than any response given to me by Scotia. I must have talked to 4 people and none of them could give me a solid answer.

The last phone message I got the from the main person was asking me for the dollar amount of the tax payment so she could work on a refund. I already sent her a fax with this amount 2 times. What a waste of time.

Guess I need to get in touch with the city instead.

Thanks!

[Deegee]

It's been a long time since I reviewed the high ratio mortgage terms that are registered at LTO (or maybe it is a guideline item from CMHC/Genworth), but I think that lenders are supposed to receive an annual update that taxes are paid.

By paying them on behalf of the borrower, they don't need to ask for the confirmation annually.

That being said, I know our organization doesn't collect taxes for anyone anymore and sends people to do TIPPs programs instead because of how much better it is for members (and frankly, us) to deal with municipalities instead of letting us collect for them.

[Cuz]

The wife and I have the mortgage for our condo through Scotia and they include our property taxes in our monthly payments. We also pay through the TIPPS as well so for the second half of the year, we essentially don't pay anything through the TIPPS.

[troutman]

Originally Posted by Cuz

The wife and I have the mortgage for our condo through Scotia and they include our property taxes in our monthly payments. We also pay through the TIPPS as well so for the second half of the year, we essentially don't pay anything through the TIPPS.

I'm confused. You are paying twice? You should pay one way or the other, but not both.

If you pay one lump annually, the bill comes mid-year, but is for the entire calendar year.

[Engine09]

I still didn't get a straight answer on if this was a standard policy for Scotia, but after sending faxes 3 different times with my paperwork, numerous calls and waiting 5 weeks they finally refunded my property tax payments 2 days ago. Unreal.

Will be another issue to wait and see if removed from future payments.

[onetwo_threefour]

Hey, sorry to necro this thread, but since it's less than a year old, this info may still be of some use.

As troutman said, it's often lender policy that dictates. I happen to have a bit more specific info that may be of hep to Kryzsky or others getting either a TD or Scotia mortgage.

For Scotia, the policy as I understand it is that all high ratio mortgages have to be PIT (taxes included in mortgage payment) for at least the first year. If you establish a good payment history, Scotia will allow you to switch to TIPP upon request after the year is up.

For TD, they require PIT for all high ratio mortgages and allegedly won't switch. They have actually gone against the flow where most lenders would prefer not to manage property taxes, even on high ratio mortgages, TD used to allow you to go on TIPPs but did a 180 on it about 9-10 years ago.

If you are dealing with a non-bank lender, they often do mandate PIT although many will accept TIPP if you provide proof of enrollment and they reserve the right to demand that you provide proof of payment at any time during your mortgage. My own mortgage company, Street Capital, required me to prove that my TIPP payments were up to date earlier this year, 2 years after I got my mortgage with them.

[MacDaddy77]

Can someone explain why we cant pay be credit card for property tax and utilities?

i think it's BS you can pay by interact but not use a points card

Thanks

[I-Hate-Hulse]

Originally Posted by MacDaddy77

Can someone explain why we cant pay be credit card for property tax and utilities?

i think it's BS you can pay by interact but not use a points card

Thanks

The City doesn't want to lose out on the 2% (or more) processing fee that the credit cards charge people. Same reason why some businesses don't accept credit cards.

Those points aren't free I'm afraid...