Property taxes were built into my mortgage payment and I have only just reached the minimum age to qualify for deferral. Now that I no longer have a mortgage, I'll have to decide how I want to deal with paying property taxes going forward. Personally, I don't like owing money, and while I often disagree with how the CoV spends my tax dollars, I also feel a certain obligation to pay my share.
Deferring does not deprive your local government of your full tax amount. The province pays them your full amount.
The simple interest rate this year is only 0.45%.
https://www2.gov.bc....t-interest-fees
You'd be foolish not to defer.
You'd be much better off deferring, then putting the tax amount into a GIC.
Let's say your tax bill is $4,000.
YEAR #1:
$4,000 at the deferral rate will cost you $18 in interest, plus the $60 first-year fee. At the end of year #1, you will owe $4,078.
Now, instead put your $4,000 into a one-year fixed GIC at 4.32%. At the end of year #1, you will have $4,172.
YEAR #2:
$4,000 at the deferral rate will cost you another $36 in interest, plus the $10 renewal fee. At the end of year #2, you will owe $8,106.
Now, instead keep your $4,000 into a one-year fixed GIC at 4.32%. At the end of year #2, you will have $8,344 (more if you left the entire $4,172 in, to compound in year #2).
Rates will of course change, but the simple interest rate charged by the province is always at least 2% below the best prime rate, so you will always be ahead with the above plan.
Edited by Victoria Watcher, 16 July 2022 - 10:29 PM.