If you own a home in British Columbia, you should have received your 2022 Property Assessment in the mail; in these assessments, we have seen increases in assessed value across the province. While the assessed value is no substitute for a proper assessment by a realtor or appraiser, it does give some insight into real estate trends & more importantly is the value used to calculate your property taxes for the year.
Paying property taxes is never something we look forward to, but to help with the cost, BC has several “Homeowners Grants” available to lower your tax obligation.
What does this mean?
In 2022, the province’s Homeowner Grant threshold is set at $1.975 million which accounts for approximately 90% of all residential property in BC. The grant is effectively a credit towards your property taxes for the year.
Who is the grant for?
There are several different grants available, and of course, there are different requirements to qualify for each.
For the “basic grant” of $570, provided your assessed value is below the $1.975M threshold, the only other requirement is that the property itself must be your principal residence. If you have multiple properties, the grant can only be claimed for the one you live in.
In addition to the basic grant, there are additional grants for seniors and/or persons with disabilities, as well as a higher basic grant that is available for properties in some rural areas. The basic grant is increased to $770 in rural and northern communities, and goes up to $1045 for seniors or people who have a disability.
If you meet all the above-listed criteria but have a home that is valued above $1.975M, note that the grant is reduced by $5 for every $1,000 of assessed value above the threshold, meaning you may still qualify for a partial exemption. With that being said; low-income seniors, veterans, and people with disabilities who lose some or all of their grant due to the high value of their homes may apply separately for a low-income grant supplement that can replace any grant amount lost due to the threshold.
Homeowners may also be eligible for property tax deferment if they are 55 or older or if they are financially supporting a dependent child and meet certain criteria.
When to apply?
The best time to apply for the grant is as soon as you have your property tax notice, which is typically sent out in April or May. Your assessment roll and jurisdiction numbers from your property tax notice are needed to apply.
How to apply?
The simplest way to apply for the Home Owner Grant is on the B.C. government website. Homeowners that have more complicated situations or are seeking a person-to-person application process, can get help over the phone at 1-888-355-2700.
To find out more about the B.C. Home Owner Grant, visit www.gov.bc.ca/homeownergrant
If you would like to learn more about these grants, contact AHA Mortgages at firstname.lastname@example.org! Our team will be happy to walk you through the entire process and answer any questions you may have along the way. Connect with us today to learn how we can help!