If your clients are deferring their property taxes, interest rates and fees will increase the amount they owe.
Who is eligible to defer property taxes
Regular program
- Seniors age 55+.
- A surviving spouse of any age.
- Persons with disabilities.
Families with Children program
- Parents, step-parents or anyone financially supporting a child.
Financial Hardship program
- This program was only available in 2009 and 2010 (some older clients may still use this program)
Interest charged
Interest is charged on the tax deferment loan from the date the property tax is due or the date your client applies to defer their taxes, whichever is later.
The interest rate charged depends on the tax deferment program. The interest rates are:
- set every April 1 and October 1 and arn’t changed outside of these dates;
- calculated on the 23rd of each month; and
- not compounded.
Interest rate
The current interest rates apply until March 31, 2024.
Interest rates for property tax deferment programs
| Tax deferment program | Interest rate |
| Regular Program | 4.95% |
| Families with Children Program | 6.95% |
Under the Regular Program, clients are charged simple interest at a rate not greater than two per cent below the Bank of Canada prime rate.
Under the Families with Children Program, clients are charged simple interest at a rate not greater than the prime rate of our principal banker.
How interest is calculated
The property tax deferment program uses simple interest, which means clients:
- are charged interest on the principal deferred amount that has been borrowed;
- aren’t charged interest on top of interest; and
- aren’t charged interest on application or renewal fees.
Program participants who make a payment on their property tax deferment account have it applied in this order:
- Fees (if applicable).
- Interest.
- Principal.
Estimate interest
Clients can use the government’s interest calculator to estimate their annual and daily interest amounts.
Fees
Regular Program
- $60 administrative fee when the application is approved.
- $10 renewal fee for each year the participant renews.
These fees are added to the loan balance.
Family and Children Program
Anyone applying for the Families with Children Program, isn’t charged any fees.
Example of how interest and fees accumulate
Regular program
| Year | Deferral Amount | Principal | Interest (4.95%) | Fees | Total |
| Year 1 | $3,000 | $3,000 | $148.50 | $60.00 | $3,208.50 |
| Year 2 | $3,000 | $6,000 | $297.00 | $10.00 | $3,307.00 |
| Year 2 Total | $6,000 | $445.50 | $70.00 | $6,515.50 |
Families with Children program
| Year | Deferral Amount | Principal | Interest (4.95%) | Fees | Total |
| Year 1 | $3,000 | $3,000 | $208.50 | 0 | $3,208.50 |
| Year 2 | $3,000 | $6,000 | $417.00 | 0 | $3,417.00 |
| Year 2 Total | $6,000 | $625.50 | 0 | $6,625.50 |
Apply for or renew the Property Tax Deferment program.
Learn about:
If you have questions about the Property Tax Deferment Program, contact Harriet Permut, director of government relations at hpermut@rebgv.org.