Deposits held for paying taxes on mortgaged properties
We cover deposits held separately to pay property taxes on mortgaged properties held in Canadian dollars at a CDIC member. Some people pay monthly instalments into a mortgage tax account. Their financial institution draws money from that account to pay municipal taxes on their property.
Up to $100,000 held in eligible mortgage property tax accounts.
If you have two mortgage property tax accounts for different properties in the same financial institution, how much would you get from CDIC if the institution were to fail? We would add up the amount in both accounts and pay up to $100,000 of the total. So:
- If you had $500 in one account and $300 in the other, for a total of $800 at the time the financial institution failed, you would receive deposit insurance of $800.