Deferring your property taxes – if you’re eligible – can be a smart way to get equity out of your home. Interest rates are simple (not compounded) and generally reasonable but the program does require a lien on your title which may impact your ability to acquire a mortgage.
There are some rules, for starters one spouse must be 55 or older (or turning 55 in the year of application) where a home is registered in both names. You also need to have minimum equity of 25% in your home based on assessed values determined by the province, applicants must have fire insurance and only Canadian citizens or permanent residents under the Immigration Act who have lived in British Columbia for at least one year need apply.
The decision to do this is a personal one. The following information has been extracted from the Government of BC website and is provided for preliminary information purposes only. You should contact the government directly if you are interested in this program.
Once you receive your property tax notice, you may be able to apply for a low interest loan to pay your current year property taxes on your principal residence if you are one of the following:
You can apply to defer a portion or all of the residential (class 1) or residential and farm (class 1 and 9) property taxes after the home owner grant is deducted. If you qualify for the home owner grant, you must apply for it separately every year.
If your application is approved, the province pays your current year unpaid property taxes on your behalf.
Some deferment applications can take several months to process because of the need to gather all the necessary information. If your application is received before the property tax due date but is approved after the due date, you won’t be charged a late payment penalty.
You will be charged a late payment penalty if:
You can make a payment or repay the loan at any time without penalty.
While you carry a property tax deferment balance, you will have a restrictive lien registered against your property. Once the lien is registered, you can only change your property title to add your spouse. You must repay the outstanding balance of your agreement before you:
Other title changes may require repayment. Contact us for information.
Interest is calculated every month starting from the date your property taxes are due or the date you applied to defer, whichever is later. You will be charged simple interest on the taxes you’ve deferred. You won’t be charged interest on interest or any application or renewal fees.
Interest rates are set every six months. The interest rates until March 31, 2015 are:
|Regular Program: 1%|
|Families With Children Program: 3%|
|Financial Hardship Program: 3% For more information:Phone Victoria: 250 356 8121 or 250 356 8121
Toll Free: I 800 663 7867 or 1 800 663 7867