The BC Seniors Advocate says elderly homeowners should consider using the Property Tax Deferment Program as an option to reduce their living expenses.
The program lets homeowners 55 years and older, surviving spouses and persons with disabilities defer their property taxes until the owner passes away or sells the property.
Seniors Advocate Dan Levitt says in his meetings throughout the province, elderly people are telling him they want to age in place and remain in their homes as long as possible, but struggle with the high cost of living.
Levitt says the property tax deferral program can help them live independently and maintain their health, which significantly lowers healthcare costs for government.
Levitt says says most seniors are on fixed incomes and have limited ability to cut costs or earn more money, so they may try to save money by reducing medication and nutritious food, or avoid going out, risking social isolation and loneliness.
In many communities, moving to a smaller home isn’t an option due to a lack of affordable, appropriate housing for seniors.
Levitt says the current interest rate for seniors is 3.45%, non-compounding, and below the prime rate.
In many cases, the rising equity in the home covers the cost of the property taxes and interest owing when the home is sold or transferred.
The Advocate says deferring property taxes could save older homeowners up to $500 or more each month which could be spent on maintenance or modifying a residence to help a senior remain in their home.
