The key points in the following read include:
- Interest and fees increase the amount owed for property tax deferment.
- Seniors (55+), surviving spouses, persons with disabilities, and families with children are eligible for deferment.
- Interest rates vary by program, and interest is calculated using simple interest on the deferred amount, with no compounding.
If you are deferring your property taxes, interest rates and fees will increase the amount you owe.
Who is eligible to defer property taxes
Seniors age 55+.
-A surviving spouse of any age.
-Persons with disabilities.
Families with Children program
-Parents, step-parents or anyone financially supporting a child.
Financial Hardship program
-This program was only available in 2009 and 2010 (some older clients may still use this program)
Interest is charged on the tax deferment loan from the date the property tax is due or the date your client applies to defer their taxes, whichever is later.
The interest rate charged depends on the tax deferment program. The interest rates are:
-set every April 1 and October 1 and are not changed outside of these dates;
-calculated on the 23rd of each month; and
The current interest rates apply until March 31, 2024.
Interest rates for property tax deferment programs
How interest is calculated
The property tax deferment program uses simple interest, which means clients:
-are charged interest on the principal deferred amount that has been borrowed;
-aren’t charged interest on top of interest; and
-aren’t charged interest on application or renewal fees.
Program participants who make a payment on their property tax deferment account have it applied in this order:
1. Fees (if applicable).
Clients can use the government’s interest calculator to estimate their annual and daily interest amounts.
-$60 administrative fee when the application is approved.
-$10 renewal fee for each year the participant renews.
These fees are added to the loan balance.
Family and Children Program
Anyone applying for the Families with Children Program, isn’t charged any fees.
Example of how interest and fees accumulate
Director of Government Relation. Real Estate Board of Greater Vancouver