If you’re a BC homeowner, you may be able to defer (postpone) your current-year property taxes through a provincial loan program—so you can keep more cash on hand today and repay later (often when you sell or refinance). You apply online through eTaxBC (applications are accepted May 1 to December 31), and if approved the Province pays your property taxes and registers a restrictive lien on title. Whether it’s “worth it” depends on your cash-flow needs, your home equity, and whether you plan to refinance or sell soon.
What is the BC Property Tax Deferment Program?
BC’s Property Tax Deferment Program is not a grant. It’s a loan that allows eligible homeowners to defer current-year property taxes on their principal residence.
If approved:
The Province pays your eligible property taxes after the due date
You are charged simple (non-compounding) interest
A restrictive lien is registered on title, limiting certain changes until the loan is repaid
Who qualifies for property tax deferment in BC?
There are two main programs:
Regular Program (common for retirees and many downsizers)
You may qualify if you are:
55 or older in the current year, or
A surviving spouse of any age, or
A person with disabilities (as defined under the applicable BC legislation/program designation)
Families with Children Program
You may qualify if you are a parent/stepparent (or financially supporting a child) and meet the program’s criteria.
General requirements (applies to both programs)
You must also:
Be a Canadian citizen or permanent resident
Be a registered owner
Have lived in BC for at least one year
Have paid all previous years’ taxes, utilities/user fees, penalties, and interest
Equity requirements: how much “room” you need
The Province uses your BC Assessment value and the charges registered against title to confirm you have sufficient equity.
Regular Program: minimum 25% equity (total charges + taxes deferred can’t exceed 75% of assessed value)
Families with Children: minimum 15% equity (can’t exceed 85% of assessed value)
Practical Victoria example: If you have a larger mortgage, a secured line of credit, or you recently refinanced, the equity test can be the deciding factor.
What can (and can’t) be deferred?
Usually deferrable
Current-year residential property taxes for eligible properties (Class 1, or Class 1 + 9 for residential/farm)
Not deferrable (common surprises)
Property taxes for Classes 2–8 must be paid directly to your tax office before the due date
Utility fees/user fees on the tax notice typically must be paid on time to avoid penalties
Previous years’ amounts (taxes, penalties, interest) must be cleared first
Current interest rates and fees (what it actually costs)
Interest is charged from the tax due date or the date you apply, whichever is later. Interest is simple and not compounded.
Current program rates
Rates change on April 1 and October 1.
Regular Program: 2.95% (in effect until March 31, 2026)
Families with Children: 4.95% (in effect until March 31, 2026)
Fees (often overlooked)
Regular Program: $60 one-time administrative fee when you first apply, plus $10 renewal fee each year you renew (added to the loan balance if approved)
Families with Children: no application/renewal fees
How to apply for BC property tax deferment (step-by-step)
Applications are submitted online through eTaxBC between May 1 and December 31 each year.
Step 1: Time it correctly (avoid penalties)
Apply after you receive your property tax notice and before your property tax due date to reduce late-penalty risk.
If you apply before the due date but approval comes after, the Province notes you generally won’t be charged late penalties on the deferred taxes (assuming key items like the Home Owner Grant and utilities are handled properly).
Local note: In the City of Victoria, property taxes were due July 2, 2025. (Due dates vary by municipality and year—always confirm with your local tax office.)
Step 2: Gather what you’ll need
The Province typically requires:
Your jurisdiction and roll number (from the tax notice or BC Assessment notice)
SIN and date of birth for verification
Supporting documents in certain cases (e.g., applying as a surviving spouse or as a person with a disability)
Step 3: Check these common “gotchas” before you click submit
Don’t pay your current year taxes in full—if they’re fully paid, you can’t defer that year.
If you have a mortgage/secured debt, check with your lender first; some lenders may have requirements or restrictions.
Ensure all owners on title will provide consent in eTaxBC (typically within 28 days) or the application can be cancelled.
Step 4: Apply through eTaxBC
Submit the application online and monitor status through eTaxBC if needed.
Is deferring property taxes “worth it” in Victoria?
It can be, but it’s not a universal fit. In Victoria BC real estate—especially Oak Bay, Fairfield, Gonzales, Uplands, Broadmead, Cordova Bay, and parts of the Saanich Peninsula—many homeowners are “equity rich,” and this program can be a practical cash-flow tool.
Here’s a clear way to evaluate it.
It’s often worth exploring if you are:
On a fixed income and want to preserve monthly cash flow
Planning to stay in your home for several years (so the convenience outweighs the interest cost)
Comfortable with a lien on title and not planning major title changes soon
It may be less attractive if you are:
Likely to sell soon as part of downsizing (because the deferment must be repaid to complete the sale)
Planning to refinance or add/remove someone from title (often triggers repayment)
Tight on equity (you may not qualify, or you may prefer other options)
A simple “decision lens” we use with downsizers
Ask yourself:
Is my priority cash flow now, or minimizing borrowing cost?
Do I expect to refinance, transfer title, or sell within 12–24 months?
Would paying property taxes force me to dip into investments at an inconvenient time? (No guarantees here—just a planning consideration.)
How the lien affects selling, refinancing, and estate planning
This is the part that matters most for many families.
If you sell
You can defer while listed, but you generally can’t finalize the sale until the deferment balance is paid and the lien is dealt with.
If you refinance
Many lenders require repayment because the tax deferment lien has priority over new liens.
If you’re thinking about simplifying later
If a move to a condo, patio home, or a Saanich Peninsula bungalow is on the horizon, it’s wise to consider whether you want a lien on title during your transition planning.
If you’re in the early stages of downsizing, you may also find these helpful:
Frequently asked questions we hear in Victoria and Oak Bay
“Can I apply even if I haven’t received my tax notice yet?”
You can apply early in the season, but applications may be held until current-year property tax information is available.
“What causes late penalties?”
Late penalties can be triggered by applying after the due date, a denied/withdrawn application after the due date, claiming the Home Owner Grant late (if applicable), unpaid utilities, or unpaid non-deferrable tax classes.
“Can I pay it off anytime?”
Yes. You can repay all or part at any time, and you can request a payout letter to confirm your balance.
Important disclaimer (tax and legal)
Property tax deferment can affect refinancing, title transfers, and estate administration, and may interact with your broader tax and financial plan. Please consult a qualified accountant or lawyer for specific advice. This article is general information only and does not create any agency relationship.
Next Step
Thinking about deferring property taxes in BC—or weighing it against a downsizing plan in Victoria, Oak Bay, or Saanich? Reach out to The Webbers (Pemberton Holmes Real Estate) for a no-pressure conversation. Reach out if you have any questions. Contact Us