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Property Tax Deferment in British Columbia


Blog by Arnold Shuchat | March 19th, 2020


BC has a Property Tax Deferment Program which in certain cases allows a property owner with a principal residence to apply and receive the right to defer all property taxes on that residence for a one-time application fee of $60 with an annual renewal (not automatic) fee of $10.  The interest rate charged on the amount deferred is prime minus 2% which is currently 1.5%- there is no cheaper money around.  There are certain prerequisites which must be met, most notable of which is that one of the property owners must be over 55 years of age and there must be at least 25% equity in the home based upon the BC property assessed value.

 

This process takes some time so it is best to start it as soon as you get your property assessment.  The 25% equity calculation is sometimes tricky as it may include authorized but not drawn down lines of credit and will include a previous bank’s undischarged mortgage amount even though the balance was refinanced.  Therefore, you need to obtain the discharge to be filed in the land titles office, not just a statement with a “0” balance.  Banks that do not have your current business are not often in a hurry to deal with this and it could take a few months.

You can access the relevant government site here and obtain the application form in the referenced links here as well:

 

https://www2.gov.bc.ca/assets/gov/taxes/property-taxes/forms/fin-51guide-property-tax-deferment-program-application-agreement.pdf

 

While you are enjoying the peace of mind from the simplicity and affordability of all this (better to use the deferred tax amounts for an RRSP deposit (and get the tax deduction as well) if you can earn greater than 1.5% on your plan) think about who you may know who is thinking or planning a move and who could use my help, and pick up the phone and call me right away at 778-227-7325 to see how you might introduce them to me.