A B.C. government overhaul of the property tax deferral program is raising concerns among seniors and financial experts.
The program allows eligible homeowners to defer annual property taxes, treated as a loan repaid upon sale. Under the old system, a homeowner who deferred taxes for 17 years would lose about 7% of their equity.
The new rules hike the interest rate from prime minus two percent to prime plus two percent. Interest now compounds like a mortgage-potentially increasing the equity loss to 70% after 17 years.
Paul Sullivan of Ryan Tax Firm warned seniors may not understand the financial implications. "The tax debt and the interest cost will take you to the point where you must sell your home," he said.
Finance Minister Brenda Bailey defended the move as preventing system abuse. However, B.C.’s Seniors Advocate Dan Levitt expressed concern, saying fewer seniors may use the program due to the changes.
