The BC Government changed the terms of their Property Tax Deferment Program in their February 2026 budget.
In past, any eligible BC homeowner over age 55 could defer their property tax and have it paid by the Ministry of Finance. In exchange, the Province would place a lien on the property. The program arose out of the knowledge that some residents were “property rich, but cash poor.” The deferment became a loan that had to be repaid on death or when the property was sold. Simple interest, calculated once a year, accrued at a low rate.
With the 2026 BC Budget, any deferment balance at the end of 2025 is still charged Prime less 2% (the Prime rate at several banks is currently 4.45%), with simple interest calculated annually.
Interest on balances added in 2026 and beyond will be calculated at Prime PLUS 2% (or 6.45% today), and interest will be compound monthly.
BC residents enrolled in the program should review the new rules to determine whether the strategy still works for them.
