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.
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