The new BC NDP government says it has has no plans to review a program that allows seniors and families to defer property taxes, even though some are using it to cash in.
The property tax deferment program is designed to help seniors and families stay in their homes, even when skyrocketing home values push property taxes out of an affordable range.
The province lends seniors and people with disabilities money to cover those taxes at an interest rate of 0.7 per cent, and the money is collected when the home is sold.
Certain other British Columbians can also qualify for the program, but at a higher interest rate of 2.7 per cent.
But with the ultra-low rate being offered to seniors, some are borrowing the money when they don’t need the help.
Critics argue the rules need to be tightened, or rates need to be increased.
READ MORE: How to legally defer paying your property taxes in British Columbia
But in a statement, the Ministry of Finance said a means test would create a barrier that could keep some people from staying in their homes.
The province has loaned out a total of more than $822 million as a part of the program so far.
It said the program, which costs $1.4 million a year to administer, has a near zero default rate on repayments.
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