Understanding Property Tax Escrow in Mortgages: A 2025 Guide for Canadian Homeowners

When you pay your mortgage, you're often also paying property tax—indirectly. This 2025 guide explains how escrow accounts work in Canadian mortgages. Learn how lenders collect property tax monthly and forward it to municipalities on your behalf. We explain how to check balances, audit statements, and ensure your lender isn't over- or under-collecting. This guide also covers what happens if you refinance, pay off your loan, or switch banks. For homeowners looking to track their real expenses more clearly, understanding escrow is key. This guide ensures you know where your money goes and helps you avoid surprises at tax time.