Pitt Meadows city council is complaining the province is making property tax deferrals too expensive for cash poor homeowners.
A letter from the city to Finance Minister Brenda Bailey expresses “significant concerns” about the Property Tax Deferment Program, and asks “how the province plans to mitigate the impact of these changes on our community’s most vulnerable residents.”
The tax concession allowed seniors with limited income to stay in their homes, putting off property taxes until the eventual sale of their property. Formerly, they would pay simple interest of two per cent below prime – with no compounded interest. The same offer was available to families with children at prime interest rates.
Now, with changes to the provincial budget this year, those using the program will pay back the government with monthly compounded interest, like a mortgage, and at two per cent above prime.
Critics say the change will result in those using the program for many years losing most of the equity in their home.
“These changes effectively transform a public support program into a high-cost loan, and we are concerned that many residents will be caught off guard by the long-term financial implications,” said the letter from Pitt Meadows.
The letter signed by Pitt Meadows CAO Mark Roberts noted the Tax Deferral Program has been an essential support.
“Any modifications to eligibility criteria, interest rates, or repayment conditions risk placing additional strain on those already navigating significant economic challenges,” he said.
Roberts said the city is hearing from residents who had bee enrolled in the program who are opting out. He asked that the province confirm how residents should opt out of the program.
Rick Halas, a Maple Ridge senior, wrote to provincial officials, including Maple Ridge-Pitt Meadows MLA Lisa Beare, saying the increased cost of property tax deferrals has him “angry and appalled.”
“I saw it as one of the only way to gain access to the equity stored in a residential home without having to endure the personal upheaval of selling the home and moving to cheaper accommodation,” he said. “I find your government’s action to be petty and mean-spirited.”
“And, it is just a deferral, after all. The government will get their payment, plus interest, upon the ultimate sale of the house.”
Bailey said the program was being misused by some well-off homeowners who took advantage of what amounted to a cheap loan.
The changes only apply to taxes deferred from 2026 on.
The Ministry of Finance noted participants who decide to stop deferring their taxes this year will not have to immediately repay past deferred amounts.
“However, as normal they must pay their 2026 and future property taxes to their municipality or rural tax office on or before the tax due date to avoid penalties,” the statement said.
“Deferment applicants who make partial payments towards their tax deferment loans will be able to pay off their higher interest loans first.”