What is the TIPP Program?
Short for the Tax Installment Payment Plan, the TIPP Program allows homeowners to pay their Property Tax over the course of 12 monthly installments, rather than in a single, lump-sum payment once a year.
Many of our partnered lenders offer this service to our clients directly, combining the tax into your total monthly mortgage payment.
How Does It Work?
Under the program, your monthly payment is calculated by dividing your overall annual tax levy by 12. From here, payments will automatically be withdrawn from your account on the first of every month, starting on January 1st. You may join any time during the year, however, your payment amount will be adjusted June 1st to account for any tax changes as a result of May’s annual tax levy. If this is the case, you will be notified of the total installment amount paid to date, as well as the amount required for the remainder of the year.
Is There a Fee to Join?
While not all municipalities offer the TIPP Program, those that do typically do not charge as long as you start the program on January 1st. Homeowners who join after this date will be subject to a 2% filing fee based on previously missed payments. This fee is paid at the time of application, along with an initial payment for the missed installments.
If the home you’re purchasing is already enrolled in the TIPP Program, you can take over the monthly installments (or cancel) by contacting the TIPP Customer Service Centre. Please feel free to get in touch with us for further information.
What Happens If There’s an Adjustment Made to My Tax Account?
Adjustments may be made to your tax account in accordance with your property’s assessed value (as determined by your municipality). In this case, you will be given 30 days’ notice, unless other arrangements have been made.
Adjustments work as follows:
The Current Year
Tax Decrease – Your monthly installments will continue until the owing amount is paid in full, at which time your final installment will bring your account balance to zero.
Tax Increase – Monthly installments will automatically be adjusted as a result of any increases received prior to November 1st. After this time, increases are subject to the provided due date, or you can make other arrangements by contacting the TIPP Customer Service Centre.
The Next Year
Every December, all TIPP Program accounts are reviewed and adjusted as necessary. You will be notified should any changes be made to your account.
The TIPP Program and Supplementary Taxes
A supplementary tax bill will be issued in the event a residence or building is completed or had additional renovations, additions and/or construction within the current tax year. On receiving a supplementary tax bill, your TIPP payments will be automatically recalculated, with your monthly payments reflecting these changes.
Mandatory Two Weeks Written Notice Is Required:
Any changes to banking information, as well as a new ‘VOID’ cheque
To stop withdrawals in the event you sell your home
Any program cancellation requests
Note: Once you withdraw from the program, or your plan is cancelled, unpaid balances are due and payable, subject to any penalties in accordance with the Penalty By-Law. All TIPP Program payments are non-transferrable and non-refundable.
Missed payments will be handled at the discretion of the municipality. Agreements may be subject to cancellation with requested payment for any outstanding balances.
What Do I Need to Join the TIPP Program?
A bank account
A filled-out copy of the TIPP application
A sample cheque marked ‘VOID’
Note: Lines of Credit and credit card accounts are not valid for the TIPP Program. If you’re paying Principal Interest and Taxes (PIT) your mortgage company must be contacted prior to joining the program. Otherwise, your tax account will be overpaid (in this case, by two monthly payments).