Most home owners will receive their BC Assessment in the mail the first week of January. For the 2017 assessment many homeowners will see an increase in the value which will impact property taxes. For some, deferring property taxes may be an option.
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. There are two programs for deferring your property taxes you may qualify for:
- Regular Program
You may qualify for this program if you’re:
- 55 or older during the current year or
- a surviving spouse of any age or
- a person with disabilities
- Families with Children Program
You may qualify for this program if you’re a parent, stepparent or financially supporting a child.
You can apply for deferring your property taxes for either a portion or all of your 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.
Sometimes it can take several months to process tax deferment applications. 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’ll be charged a late payment penalty if:
- you apply after the property tax due date
- your application isn’t approved and it’s past the property tax due date
- you fail to provide the required information
- you sell your home before the taxes are paid on your behalf
- you cancel or withdraw your application for any reason at any time before the taxes are paid on your behalf
You can make a payment or repay the loan at any time without penalty
While you carry a balance in deferring your property taxes, you’ll 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:
- sell your property
- change property owners other than adding your spouse
- refinance with some financial institutions (check with your financial institution )
Interest is calculated every month while deferring your property taxes starting from the date your property taxes are due or the date you applied to defer, whichever is later. You’ll 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 31st, 2017 are:
|Families With Children Program:||2.70%|
Contacts with your questions about deferring property taxes.