Will they take my house?
Will I be fined?
Will I go to jail?
So now that property tax notices have been issued, and most property values are seeing HUGE gains, I've had a few people tell me that their taxes are getting crazy. One specific example I want to touch on, is seniors. Seniors who have lived in their same homes for years and years, our parents, our grandparents etc are being hit with these huge bills for taxes, and are on a fixed pension. These increases are enough to really put a damper in a seniors quality of life. To this, I have a solution.....Don't pay. Yep, you heard me correct, do not pay. No you will not get fined, no you will not go to jail.
Let me explain,
Many people do not realize that if you are over 55 years old, you can defer your taxes.....forever really (well until the senior, or their kids, beneficiary etc sells the home.) So instead of forking out $5,000 per year for the next 30 years if you are 55 years old you can defer all those payments yearly and never pay. When the senior decides to sell the home and move to an old folks home, move in with their kids, or worse.... and the house sells for a million dollars, $150,000 of deferred taxes would then go to the city to pay all those years of taxes, and the balance of $850,000 goes to the senior (or their kids etc). Most peoples homes are worth 10x more than what 30 years of deferred taxes would be. So imagine never having to pay your property taxes from this point onwards! Not only is this totally legal, its a government instated program (that many people don't know about, or take advantage of).
There is an interest to use this service, but its really really small in the grand scheme of things. For example, to not pay this years $5,000 property tax bill, it would cost you only $42 per year. Yep, that's it.
To qualify for this you must be
- 55 years of age or older
- Be a Canadian Citizen
- Have 25% equity in the property
- Have current fire insurance
- Live in your home
That's it! Really easy to qualify and this article could make your parents, or grandparents life a lot more comfortable!
Feel free to contact me with any questions