B.C. families with children under 18 might be able to defer their property taxes as early as this June.
"That's our hope," Finance Minister Colin Hansen said this week in advance of Tuesday's provincial budget.
In its throne speech Feb. 9, the government announced the plan, intended to help make home-ownership more affordable for families. It was supposed to come into effect in 2011, but Hansen now says it could be sooner.
There are more than 300,000 B.C. families with children under 18, but the province is still looking at how much equity homeowners will require to qualify.
The seniors' deferral program requires 25 per cent, while the financial hardship deferral, due to end this year, requires 15 per cent equity. The interest rate is 0.25 per cent for seniors and disabled homeowners and 2.25 per cent for economic-hardship cases.
The province is not stipulating how many years families could defer their taxes, but wants the right to put in a time limit at some point. The same goes for a dollar limit. The deferred amount would be due when the home is sold.
The program has already garnered some criticism, with some saying it's a route to large accumulated debt on top of already high housing costs.
"My worry is that a lot of people are just going to grab this, because they're struggling right now, and are just going to deal with it when it comes up," said Scott Hannah, president and CEO of B.C.'s Credit Counselling Society.
Hansen said the province wanted to provide an opportunity for families without the income to acquire a second mortgage in the private sector.
The province holds about $350 million in deferrals on behalf of homeowners, including school, municipal, regional district and hospital district taxes.
