Property Tax Deferral Loan

Some provinces and municipalities offer the ability to not pay your property tax bill. There are limits to eligibility for these loans, tied to age, income, the value of the property, and your equity share of it. If you apply and qualify, the property tax amount owed, usually with fees and interest, accrues and will be paid when the property is sold or at the death of the owner. This can involve a lien put on your property.

So far, we've implemented the plans available in British Columbia and Alberta for these users only. We do not check eligibility, and the implementation is an approximation.

The BC and AB plans are simple interest plans. That is, they charge interest (the rate is variable, tied to prime) only on the principal amount owed: the total property tax owed. There is no interest charged on previous interest or fees.

If you currently have such a loan, or plan to start one in the future, we ask you for the principal amount to date, the total balance of loan to date, the yearly property tax charged per year (today), the fees charged per year (today), and the interest rate (above or below prime). The TIME MACHINE will increase the property tax and fees charged with inflation annually.

The TIME MACHINE will continue this loan from the later of today or the future start date, to the property being sold (which could be at the death of the property owner). Although it is allowed to pay off these loans before the sale of the property, that is rarely done, so the end date of the LOAN is always set to the sale of the property.

You can preview what the TIME MACHINE will do as once the PropTax LOAN is entered, you can View table for that LOAN in your list of LOANS. It's a kind of reverse amortization table, as you'll see the Principal going up with added property taxes deferred each year, and the interest and fees applied, so the total balance of the loan increases until paid off due to the sale of the property.