British Columbia seniors who own their own homes but are having difficulty with rising costs have the option of deferring their property taxes, freeing up those funds to use on other things.
B.C.’s seniors advocate, Dan Levitt, says the number one issue he hears about from older people is their struggle with affordability.
“In B.C., 80 per cent of seniors own their own homes, compared to 70 per cent of the overall population. The vast majority of seniors want to age in place and remain in their homes,” he says. However, the costs of home ownership such as taxes, maintenance, and insurance can be high, and 49 per cent of low-income senior homeowners report they cannot afford needed major repairs for safety or accessibility.
Levitt says that more and more seniors are taking advantage of the property tax deferment program, which is available to many B.C. homeowners via two programs: the Regular Program and the Families with Children Program. The Regular Program is for anyone who is 55 years (or turning 55 this year) or older, to a surviving spouse of any age, or to eligible persons with disabilities. The Families with Children Program is available for homeowners who are a parent, stepparent, or financially supporting a dependent child under the age of 18.
Property tax deferment is a provincial low-interest loan program that helps qualified homeowners pay their annual property taxes on their principal residence (secondary residences, such as cottages, summer homes, or rental homes are not eligible). Taxes can be deferred for any year the homeowner lives in the home and continues to qualify for the program, and are paid to your local government by the province. The total deferred amount is repaid to the province when the homeowner passes away or sells or transfers the property.
For the Regular Program, homeowners must have and maintain a minimum equity of 25 per cent of the property’s assessed value. For the Families with Children Program, homeowners must have and maintain a minimum equity of 15 per cent of the property’s assessed value.
When you defer your annual property taxes, the province charges interest (at below prime rate) on your tax deferment loan. Rates are set on April 1 and Oct. 1 each year, and are not compounded. The current interest rates are 3.45 per cent for the Regular Program and 5.45 per cent for the Families with Children Program, and are in effect until Sept. 30, 2025.
In order to qualify, your property tax account must be up to date; homeowners are not eligible if there is any debt owing from the previous taxation year (such as unpaid property taxes, penalties, or utility fees). You also do not qualify if your current year property taxes have already been paid in full, so it is important to apply before your current property tax bill is paid.
“Since 2019, the Consumer Price Index has risen 15.1 per cent in B.C., and seniors with fixed incomes are feeling the pressure when buying food, medical supplies and prescriptions, home support, personal care, and other necessities of life,” says Levitt. “Deferring property taxes could save older homeowners up to $400 or more each month, which could be spent on maintenance or modifying a residence to help a senior remain in their home longer.
“I encourage anyone eligible to consider deferring their property taxes. The best time to apply is after receiving your property tax bill and before the taxes are due.”
Because it can take some time to process tax deferral applications, those interested in taking advantage of the program in 2025 are encouraged to apply as soon as they are able. If your application is submitted before the property tax due date but is approved after the due date, you won’t be charged a late payment penalty. However, if it is found that you are not eligible for deferment and it is past the property tax due date, your property tax office may charge you a late payment penalty on the unpaid taxes.
Find out if you are eligible for either of the property tax deferment programs, as well as the guidelines, at https://bit.ly/4mtZ45B.
