Property Tax Deferment

Important Information About Property Tax Deferment

• Regular Property Tax Deferment Program

  (Information taken directly from the Province of BC's website on Property Tax Deferment)

  The regular tax deferment program is a low interest loan program that allows you to defer paying all or part of your property taxes on your principal residence if you're:

  • 55 or older,
  • a surviving spouse of any age, or
  • a  person with disabilities.

  Find out what the program qualifications are for:

  • You (the applicant)
  • Your property
  • Equity in your property

  Applicant Qualifications

  To qualify for this program, you must:

  • Be a Canadian citizen or permanent resident of Canada
  • Be a registered owner of the property
  • Have lived in B.C. for at least one year prior to applying
  • Pay property taxes for the residence to a municipality or the province
  • Have paid all previous years' property taxes, utility user fees, penalties and interest

  and you must be either

  • age 55 or older this year (only one owner must be 55 or older any time during the current calendar year), or
  • a surviving spouse of any age who isn't currently the spouse of another person, or
  • designated as a person with disabilities under the Employment and Assistance for Persons with Disabilities Act, or
  • a person with disabilities and in the opinion of a physician, your severe mental or physical impairment:
  • is likely to continue for at least two years, and
  • directly and significantly restricts your ability to perform daily living activities, either continuously or periodically for extended periods, and
  • as a result of those restrictions, requires you to have an assistive device, the significant help or supervision of another person, or the services of an assistance animal to perform those activities

  Property Qualifications

  To qualify for this program, your eligible property must:

  • Be your principal residence (where you live and conduct your daily activities), and
  • Be taxed as residential (class 1)

  Your property doesn't qualify for tax deferment if:

  • You don't meet ALL program qualifications
  • Your current year property taxes have already been paid in full
  • You owe overdue property taxes in arrears for previous years
  • It's a second residence like a cottage, summer home or rental home
  • The property is taxed by a First Nation
  • The property title is entirely in the name of the executor/executrix, or an administrator of the deceased owner's estate
  • The property title is entirely in trust
  • The property is leased from the Crown or Municipality
  • It's a float home or a home on stilts that doesn't have a property title registered with the Land Title Office
  • It has a Caveat other than Public Guardian and Trustee
  • It has a Certificate of Pending Litigation or an Injunction
  • It has a judgment registered on title (judgments expire two years after registration or renewal unless it’s non-expiring)

  Contact your lender prior to applying to ensure approval into the program does not conflict with the terms of your loan.

  Note: If there's an option to purchase on the property title, the property may not qualify for deferment. Contact us for more information before you apply.

  Equity Requirements

  You must have and maintain a minimum equity of 25% of the property's assessed value. This means that all charges registered against your property plus the amount of taxes you want to defer can’t be more than 75% of the BC Assessment value of your property in the year you apply.

  Find out how equity is calculated.

• Families with Children Tax Deferment Program

  (Information taken directly from the  Province of British Columbia's website on Property Tax Deferment)

  The families with children tax deferment program is a low interest loan program that allows you to defer paying all or part of your property taxes on your principal residence if you are financially supporting a child under certain circumstances.

  Find out what the program qualifications are for:

  • You (the applicant)
  • Your property
  • Equity in your property

  Applicant Qualifications

  To qualify for this program you must:

  • be a Canadian citizen or permanent resident of Canada,
  • be a registered owner of the property ,
  • have lived in B.C. for at least one year prior to applying,
  • pay property taxes for the residence to a municipality or the province, and
  • have paid all previous years' property taxes, penalties and interest

  and you must be financially supporting:

  • any child who is under the age of 18 and living with you full time or part time or who doesn't live with you but you pay support for the child, or
  • your own child or stepchild of any age that is attending an educational institution (e.g. college or university), or
  • your own child or stepchild of any age who is designated as a person with disabilities under the Employment and Assistance for Persons with Disabilities Act, or
  • your own child or stepchild of any age that, in the opinion of a physician, has a severe mental or physical impairment that:
  • is likely to continue for at least two years, 
  • directly and significantly restricts their ability to perform daily living activities, either continuously or periodically for extended periods, and
  • as a result of those restrictions, they require an assistive device, the significant help or supervision of another person, or the services of an assistance animal to help perform those activities

  Note: You may need to show proof that you're financially supporting a child under the age of 18 who doesn’t live with you.

  Property Qualifications

  To qualify for this program, your eligible property must:

  • Be your principal residence (where you live and conduct your daily activities), and
  • Be taxed as residential (class 1)

  Your property doesn't qualify for tax deferment if:

  • You don't meet ALL program qualifications
  • Your current year property taxes have already been paid in full
  • You owe overdue property taxes in arrears for previous years
  • It's a second residence like a cottage, summer home or rental home
  • You pay the property taxes for the residence to a First Nation
  • The property title is entirely in the name of the executor/executrix, or an administrator of the deceased owner's estate
  • The property title is entirely in trust
  • The property is leased from the Crown or Municipality
  • It's a float home or a home on stilts that doesn't have a property title registered with the Land Title Office
  • It has a Caveat other than Public Guardian and Trustee
  • It has a Certificate of Pending Litigation or an Injunction
  • It has a judgment registered on title (judgments expire two years after registration or renewal unless it’s non-expiring)

  Contact your lender prior to applying to ensure approval into the program does not conflict with the terms of your loan.

  Note: If there's an option to purchase on the property title, the property may not qualify for deferment. Contact us for more information before you apply.

  Equity Requirements

  You must have and maintain a minimum equity of 15% of the property's assessed value. This means that all charges registered against your property plus the amount of taxes you want to defer can’t be more than 85% of the BC Assessment value of your property in the year you apply.

  Find out how your equity is calculated.

• Property Tax Deferment Annual Renewal and Statement of Account

  Please note: The Province has created a new online system for processing new Deferment applications and renewals effective starting 2020. Property owners will also need to complete the Home Owner Grant application with the Province. The City of Nanaimo will no longer be accepting Deferment applications or Home Owner Grants. 

  Visit the   Province of British Columbia's website  Province of British Columbia's website on Property Tax Deferment for details. 

• When to apply for the deferment of property taxes

  If you choose to start deferring your property taxes for the first time (or on a new property) you must wait until you receive your annual Property Tax Notice at the end of May. The City of Nanaimo will no longer be accepting deferment applications or Home Owner Grants. 

  To avoid penalty, the deferment application, payment for the other fees and charges listed on the Property Tax Notice, and the Home Owner Grant application must be received by the Province before the Property Tax due date. Late applications will be accepted until December 31, but late payment penalties will apply.

  **Please Note - If your Property taxes are paid in full (for example you are on the pre-authorized Property Tax prepayment plan or you have your mortgage company paying your Property Taxes on your behalf) there is nothing to defer for the current year.  You will have to make the necessary changes in order to defer your property tax the following year should you wish to do so.

• Where to apply for Property Tax Deferment

  All deferment applications and renewals must be completed online with the Province. Visit their website for details. 

  • All penalties and/or any arrears and/or delinquent Property Tax must be paid before your deferment application can be processed.
  • Your Home Owner Grant must also be completed before the deferment can be processed.
  • You must apply for deferment before the tax due date to avoid penalties.

• Processing time - How long does it take?

  As the Province has moved to a new online process it is unknown how long it will take for your deferment to be approved. 

  If your application is received by the property tax due date but is approved after the due date, you won’t be charged a late payment penalty.

  However, if the Provincial Property Deferment Office determines you are not eligible for deferment or cancels your application for any reason, and it’s past the Property Tax due date, late penalties will apply. 

• Property Title Changes While in Tax Deferment

  When you defer your property taxes the Provincial Property Tax Deferment office registers a lien on your property title.  A common example of a title change would be the sale of your home.  This deferment lien will have to be settled prior to the completion of the sale.  

  For more information please visit  Property Title Changes While in Tax Deferment on the Province of BC's website.

• Repay Your Deferment Loan

  You can repay all or part of your tax deferment loan balance at any time without penalty. Before you make a payment to your tax deferment account, please contact the Provincial Deferment Office to receive a payout letter. Your payout letter will include your account number, the current amount outstanding, interest charged per day and payment instructions.

  Provincial Deferment Office contact info:

  Telephone: 250 387-0555

  Or toll free 1 888 355-2700

  Email:  TaxDeferment@gov.bc.ca

  For more information and ways to repay your deferment loan, please visit the Province's web-page  Repay Your Deferred Property Taxes.

• Interest and Fees for Property Tax Deferment

  When you defer your annual property taxes, interest and fees may apply.  See  Interest and Fees for Property Tax Deferment for the most current interest rate and info regarding how the Provincial Deferment Office calculate their interest and fees.

  If you apply for the Regular Program, you will be charged a $60 administrative fee when your application is approved and a $10 renewal fee for each year you renew. These fees are added to your loan balance. Don’t send payment for these fees with your application or renewal forms.

  If you apply for the Families with Children Program, you won’t be charged any fees.

   

• Understanding Property Equity

  Equity is the percentage of property value remaining after all charges registered against your property and current year taxes have been deducted from the current assessed value.

  Assessed Property Value

  The assessed value of your property is determined by BC Assessment. You'll find the assessed value of your property on the property assessment notice that was mailed to you in January by BC Assessment. This statement shows you the value of both land and improvements. Improvements are any buildings on your land, such as your residence.

  Other appraised values are not accepted.

  To see how the Provincial Deferment Office calculates the equity of your home please click  Understanding Property Equity.