Seniors and others who defer their property taxes and use the savings for living expenses will now face higher interest rates.
The province has announced that the rate is rising to prime plus two percentage points, up from prime minus two percentage points, and the loan will now be subject to compound interest rather than simple interest.
The prime rate is currently 4.45% per cent, which means those in the program will now pay 6.45% per cent interest.
The program was designed for people aged 55 and older who are house-rich but cash-poor — they own homes but have little income.
The BC Finance Ministry pays the deferred taxes to municipalities on behalf of homeowners enrolled in the program. The amount must be repaid, with interest, when the home is sold.
Information on the changes to this program can be found here: https://www2.gov.bc.ca/gov/content/taxes/property-taxes/annual-property-tax/property-tax-deferment-program/tax-deferment-interest-fees
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