January 10, 2017
The BC Government announced on Tuesday, January 10 that it would be raising the Home Owner Grant threshold to $1.6 million from $1.2 million. This represents a 33 per cent increase compared to last year.
Anyone who owns a home valued at up to $1.6 million may be eligible to receive the full home owner grant of $570, while a partial grant may be available to owners of homes above the new threshold.
The increase means that province-wide, 91 per cent of homes will remain below the threshold. In Metro Vancouver, that includes 83 per cent of homes. For properties assessed above the threshold, the grant will be reduced by $5 for every $1,000 of assessed value in excess of the threshold.
There are two types of home owner grants:
- The basic grant can reduce residential property taxes on an owner’s principal residence by up to $570, or if the home is located in a northern and rural area, up to $770.
- An additional grant is available to home owners 65 years of age or older, or who qualify under the persons with disabilities category, or who are the surviving spouse of a veteran who received certain war-veteran allowances. This additional grant can reduce residential property taxes on an owner’s principal residence by up to $845, or if the home is located in a northern and rural area, up to $1,045.
- Home owner grant thresholds in recent years:
- 2016: $1.2 million
- 2015: $1.1 million
- 2014: $1.1 million (threshold lowered as a cost-savings measure)
- 2013: $1.295 million
- 2012: $1.285 million
- 2011: $1.15 million
- 2010: $1.05 million
Low-income home owners who would have received the additional home owner grant can apply for a low-income supplement, which replaces any reduction in the grant caused by having a property valued over the threshold. The low-income supplement is available to qualifying seniors, certain veterans or their surviving spouse and persons with disabilities.
Property tax deferment is another option that can help make home ownership more affordable. Property tax deferment is a low-interest loan program that allows qualifying BC home owners to use the equity in their homes to defer payment of their annual property taxes. Qualifying home owners can defer all, or a portion of, the annual property taxes on their principal residence.
For more information about home owner grants, visit: http://www2.gov.bc.ca/gov/content/taxes/property-taxes/annual-property-tax/reduce/home-owner-grant/under-65
or contact your municipality or the Province if your property is in a rural area.
For a current market evaluation on your home or investment property visit: http://brianwhite.ca/home-evaluation.html
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