British Columbia's property tax deferral program, long intended to help seniors stay in their homes, is now under scrutiny for providing generous benefits to multimillionaire homeowners. Critics argue that the lack of income testing and low-interest rates mean even the wealthiest can defer their taxes, adding pressure to the province's strained finances.
The property tax deferral scheme is open to all B.C. homeowners over 55 years old, with no income limitation. This makes B.C.’s approach more generous than many other provinces, like Ontario, where only lower-income seniors qualify.
Luxury homeowners in Vancouver and beyond—a number with properties valued at over $10 million—can take advantage of this, deferring tens of thousands of dollars in tax payments each year. These loans accrue only simple interest at an interest rate at least two percent below prime, making it a cost-effective option for those in the know.
Over the past decade, the amount of property taxes deferred has more than tripled. Critics argue that while originally designed to help cash-poor retirees, the program increasingly serves those who arguably don’t need help: wealthy, often high-earning seniors.
The mounting cost is shouldered by all taxpayers, including renters and lower-income residents who do not own homes. Provincial experts warn that this arrangement may further strain the public budget at a time when deficits are already significant.
Calls for reform are getting louder. Policy experts and some beneficiaries themselves suggest introducing an income limit or means test, similar to other provinces. Advocates stress the program should remain intact for those truly in need, while closing the door to high-income homeowners who can easily pay their taxes.
Proponents from the seniors' advocacy sector worry that the most vulnerable remain unaware of the program’s existence. They argue shifting the focus and outreach to low- and middle-income seniors and expanding eligible deferred costs (like utilities or strata fees) could help those facing real financial pressures.
Critics of the current policy emphasize that allowing affluent homeowners to defer substantial sums increases intergenerational inequities. Young families and renters, who already face barriers to home ownership, are effectively subsidizing the wealthy—an outcome many experts say is unfair and unsustainable, especially given B.C.’s housing and fiscal challenges.
As the provincial government comes under increasing pressure, many believe revisiting and reforming the property tax deferral program is only a matter of time.