BC Property Tax
Kelly Hudson • April 7, 2021
BC Property Tax - What You Need to Know When Buying a Home
When you own, lease or gain an interest in a property (e.g. land, home, etc.) located in the province of B.C. you must pay property taxes for every year you own your home.
Property taxes in B.C. are due the first business day after July 1.
Home Owner Grant
The home owner grant reduces the amount of annual property tax you pay for your principal residence.
Find out what you may qualify for
as a B.C. resident.
If you buy a home at another time, for example in September, unless the property seller has stated they are responsible for pay property taxes in the Contract of Purchase and Sale, then you must pay your share of the year to avoid a penalty.
Consider these examples:
Before July 1
If you buy your home before July 1 or before the taxes are fully paid, you’ll receive the sellers part of the property taxes. You’ll be responsible for paying the total amount of the property taxes.
• Possession date: April 1
• Taxes: $3,500 less $570 (Home Owner’s Grant) = $2,930
• January 1 to April 1, 2015 is 90 days. $2,930.00 x 90 days = 26,370 ÷ 365 days in a year = $722.46
You’ll receive $722.46 from the seller towards total cost of the property taxes, which you will pay in full by July 1.
After July 1
If you buy your home after the seller has paid for the full tax year, you’ll have to reimburse them.
• Possession date: September 1
• Taxes: $3,500 less $570 (Home Owner’s Grant) = $2,930
• September 1 to December 31, 2013 is 122 days. $2,930 x 122 days = 35,746 ÷ 365 days in a year = $979.34
You’ll need to reimburse the seller $979.34 on the Statement of Adjustments to compensate them for already paying the taxes for the full year.
BC Property Tax updates:
February 16, 2021
Retroactive home owner grant applications for 2020 are now being accepted online. Learn more about applying for a retroactive grant and about other information updates at gov.bc.ca/homeownergrant
December 31, 2020
The home owner grant application process has changed.
Effective 2021, residents in municipalities no longer apply for the home owner grant through their municipal office. Everyone will now apply directly to the province using a new online system that’s easy to use and will process applications faster.
The system will be available in early 2021. Visit gov.bc.ca/homeownergrant
for more information.
Mortgages are complicated, but they don’t have to be… Engage an expert!
Kelly Hudson
Mortgage Broker
Mortgage Architects
Mobile: 604-312-5009
Kelly Hudson
MORTGAGE ARCHITECTS
RECENT POSTS
Separation and divorce are major life events that significantly impact finances—including homeownership. In Canada, approximately 40% of marriages end in divorce , making it a common challenge for homeowners. As a mortgage broker, I work with many clients who are navigating the challenges of keeping or selling their home, refinancing, or qualifying for a new mortgage post-separation. Lenders assess these applications differently than standard ones, particularly when it comes to income, debts, and liabilities . Whether you want to stay in your current home or move on to a new one, understanding your mortgage options is essential. How Separation & Divorce Impact Your Mortgage When separating from a spouse, one of the biggest financial decisions is what to do with the family home. Here are some common scenarios: 1. Keeping the Home If one spouse wants to stay in the home, they must refinance the mortgage to remove the other person’s name from title and buy out their ex’s share of the equity. 2. Selling the Home In some cases, selling the home and splitting the proceeds is the best financial option. This provides a clean break but requires both parties to qualify for new mortgages if they wish to buy separate homes. 3. Co-Owning After Separation Some ex-partners choose to co-own the home for a period, often for the sake of stability for children. While this may work temporarily, it will complicate future borrowing power . 4. Existing Mortgage Responsibilities Even if a separation agreement states that one party is responsible for the mortgage, lenders will still consider both parties liable unless the mortgage is refinanced and the ex’s name is removed from the title & the mortgage. Important : If both names remain on the mortgage and your ex stops making payments, your credit score and future borrowing ability will be affected .
What is BC Assessment? It’s January and in BC homeowners are receiving their property assessments. BC Assessment is a provincial Crown corporation that values all real estate property in British Columbia. Every year, BC Assessment sends property owners a Property Assessment Notice telling them the fair market value of their property as of July 1 the prior year . To see the most recent assessment for a property, click on BC Assessment and type in the property address. The real estate market is the single biggest influence on market values. Market forces vary from year to year and from property to property. The market value on an assessment notice may differ from that shown on a bank mortgage appraisal or a real estate appraisal because BC Assessment’s appraisal reflects the value as of July 1 of 2024 , while a private appraisal can be done at any time. The assessed values are based on limited information and are a result of algorithms and mass appraisal techniques which have their limitations. BC in general A new report forecasts the average price of B.C. home in 2025 at just over $1 million — the highest in Canada, some $280,000 above the national average. These figures appear in the latest forecast from the Canadian Real Estate Association released Jan. 15, 2025. Factors The increase in home prices was driven by a decrease in fixed mortgage rates and expectations for future Bank of Canada rate cuts. Use your BC Assessment as a starting point for the value of the property you’re planning to purchase… Do not rely on BC assessment for the exact value of the property you’re considering purchasing. Markets in BC change quickly both increasing and decreasing in value depending on the area and the economy.
