Blog by Betsy Carstairs

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Defer your Property Taxes

I was visiting with a friend discussing the Olympics & finances over coffee. The topic of mortgages & monthly bills came into the conversation. I was surprised that she had no idea that she could defer her property taxes. I think that for people over 50 who have a mortgage that this program is very useful. Defer your property taxes & use that money to pay down your mortgage Here is the information on this program:

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About Property Tax Deferment

The British Columbia Property Tax Deferment Program is a loan program that allows you to defer your annual property taxes on your home if you meet certain eligibility criteria.

The program is available to Canadian citizens and permanent residents who have lived in British Columbia for at least one year prior to applying for the program. You must occupy the home as your principal residence. Second residences, such as summer cottages or rental properties, do not qualify for tax deferment.

After deducting your Home Owner Grant, you can defer all or part of the unpaid balance of your residential property taxes for the current year. All penalties, interest, previous years' property taxes, and utility user fees must be paid to your municipal Tax Collector or the Surveyor of Taxes (rural properties), as these cannot be deferred.

You can defer your taxes as long as you own and live in your home and continue to qualify for the program. The deferred taxes must be fully repaid, with interest:

  • before your home can be legally transferred to a new owner, other than directly to your surviving spouse
  • upon the death of the agreement holder(s)

If you refinance your home, your mortgage holder may require full repayment of the deferred taxes upon refinancing. You may repay all or part of the deferred taxes, fees and interest at any time without penalty.

See How to Apply for information on applying for the Property Tax Deferment Program. A one-time administration fee of $60 is applied to new approved deferment agreements. You can renew your agreement each year. A $10 fee applies to approved renewals. Interest is not charged on these fees.

See Account Repayment and Interest Rates for more information about the repayment of your deferred taxes and administration fees, and the interest that applies during the deferral period.

 

 
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