BC homeowners 55 and over have a tool most other Canadians do not: the province's property tax deferment program. It lets you put off paying your annual property taxes, and the province registers a lien on your home until the deferred taxes are repaid. In 2026 the cost of that program changed, so it is worth comparing with a reverse mortgage again.
What changed in 2026
For taxes deferred in 2025 and earlier, the regular program charged simple interest at prime minus 2%. Starting with taxes deferred in 2026, both the regular program and the families program charge compound interest at prime plus 2%, compounded monthly. Balances from earlier years keep their old terms. The regular program also has a $60 application fee and a $10 renewal fee.
Source: Province of British Columbia. Rules and rates change, so confirm current terms at gov.bc.ca.
Side by side
| Property tax deferment | Reverse mortgage | |
|---|---|---|
| Who | 55+, a surviving spouse, or a person with disabilities (regular program), plus a separate families program | Every owner on title 55 or older |
| What it covers | Your annual property taxes only | A lump sum, later draws or monthly advances for any purpose |
| Interest | From 2026: prime plus 2%, compounded monthly | Typically higher than a regular mortgage, compounded |
| Fees | $60 to apply, $10 to renew (regular program) | Set up, appraisal and legal fees, and possible prepayment charges |
| On your title | A provincial lien | A registered mortgage |
| Payments | None while deferred | None required on most products |
General comparison only. Check gov.bc.ca for program details and eligibility, including equity and insurance requirements.
When deferment is the better choice
If your only pressure is the property tax bill, deferment is usually simpler and cheaper to set up than a reverse mortgage. There are no lender, appraisal or legal fees, and the amount you borrow each year is small.
When a reverse mortgage makes more sense
If you also need money for a mortgage payout, repairs, in-home care, monthly cash flow or helping family, deferment alone will not get you there. A reverse mortgage can cover the bigger picture. Some people use both, so it is worth asking how a deferment lien and a reverse mortgage would sit together on your title with the lender you choose.
Compound interest at prime plus 2% is no longer the bargain the old program was. For a few years of taxes it is still a reasonable tool. Over 10 or 15 years, the balance grows faster than many people expect, so compare the total cost against your other options.
Questions people ask
Do I have to repay deferred property taxes?
Yes. The deferred taxes, interest and fees are repaid when you sell or transfer the home, or from your estate, or earlier if you choose.
Can I defer taxes and have a reverse mortgage?
Possibly. Lenders have rules about other charges on title, so ask the lender how a deferment lien would be handled before you apply.
Did the 2026 change affect my old deferred balance?
According to the province, balances from 2025 and earlier keep their original terms. The new compound interest applies to taxes deferred in 2026 and later.
Is the deferment program the same as a reverse mortgage?
No. It only covers property taxes and is run by the Province of BC. A reverse mortgage is a loan from a private lender that can be used for any purpose.
About the author
Matt Blake is a licensed mortgage broker in British Columbia with BRX Mortgage Inc. He helps homeowners 55 and over, and their families, compare reverse mortgages with HELOCs, selling and downsizing, and he will tell you straight when a reverse mortgage is the wrong move.
Licence MB600487 · BRX Mortgage Inc., brokerage licence X301291 · Last reviewed October 2026
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