How to Save on Property Taxes in Burnaby

Property taxes are an essential but significant annual expense for every homeowner in Burnaby. Paid to the City of Burnaby, the Province of BC (for school taxes), TransLink, and Metro Vancouver, these funds support the vital services that make our communities in Metrotown, Brentwood, and North Burnaby thrive.

However, paying property taxes doesn't have to break the bank! As your trusted Burnaby Realtor & Real Estate Agent, I guide my clients through both buying and owning a home, which includes understanding how to legally and strategically reduce or manage your annual property tax burden.

Here is an informative and easy-to-understand guide on how to save on or defer your property taxes in Burnaby.

1. Claim the BC Home Owner Grant (HOG)

This is the single most effective way for most Burnaby residents to save on their property taxes, and yet it is a step that must be taken every year. The Home Owner Grant is a provincial program that reduces the amount of property tax you pay on your principal residence.

Who Qualifies for the Grant?

To be eligible for the grant, you must meet the following basic criteria:

• You must be a Canadian citizen or permanent resident of Canada.
• The property must be your principal residence (the place where you live and conduct your daily activities).
• You must be the registered owner of the property.
• Your property’s assessed value must be at or below the provincial grant threshold for the current year (note: this threshold changes annually).

Basic vs. Additional Grant

• Regular Grant: The base amount available to all eligible homeowners who meet the criteria above.
• Additional Grant: A higher grant amount is available if you meet the regular criteria and are a:
• Senior aged 65 or older during the current year.
• Veteran or surviving spouse of a veteran.
• Person with a disability or living with a spouse or relative with a disability.

Crucial Action Point: You must claim the Home Owner Grant directly with the provincial government (not the City of Burnaby) by the property tax due date to avoid penalty! It is not automatically renewed, even if you claimed it last year.

2. Challenge Your Property Assessment (BC Assessment)

Your property tax bill is calculated by multiplying the Burnaby tax rate (or "mill rate") by your home’s assessed value (as determined by BC Assessment). If your assessment is too high, you are paying more in taxes than you should be.

BC Assessment mails out your property assessment notice in early January each year, reflecting the market value as of July 1st of the previous year.

How to Evaluate Your Assessment

1. Review the Details: Check the classification, size, and features listed on your assessment notice for errors. Did they miss a fire or a flood that damaged the value?
2. Comparative Analysis: The best way to check for accuracy is to compare your assessed value against similar properties (comparables) in your immediate Burnaby neighbourhood (e.g., Brentwood, Edmonds, or Government Road). Look for:
• Homes that sold around July 1st (the valuation date).
• Homes with similar square footage, age, and features.
3. Find the Best Comps: BC Assessment provides an online tool to check comparable sales. Focus on homes that are truly similar to yours, ignoring sales of renovated or much older homes that skew the data.

The Appeal Process

If you believe your assessment is too high compared to your true market value or comparable properties, you have a very short window to file a Request for Review (appeal).

• Deadline: The deadline to appeal is typically the end of January each year.
• Initial Step: Contact BC Assessment directly to discuss your concerns and provide your comparable sales data.
• Formal Appeal: If you are not satisfied, you can file a formal complaint with the Property Assessment Review Panel (PARP), which is the first level of independent appeal.

Remember: Successfully reducing your assessed value is a long-term win, as it reduces the base for all future property tax calculations.

3. Utilize Property Tax Deferment Programs

The Property Tax Deferment Program is not a tax reduction, but a low-interest loan program from the provincial government that allows eligible homeowners to delay paying their annual property taxes until the property is sold or changes ownership. This is a powerful tool for those who are "house-rich but cash-poor."

Two Main Deferment Programs

1. Regular Program:
• Who Qualifies: Homeowners who are 55 or older, a surviving spouse of any age, or a person with disabilities.
• Equity Requirement: You must maintain a minimum of 25% equity in your Burnaby home.
• Interest Rate: Simple interest is charged at a rate typically lower than a commercial loan.
2. Families with Children Program:
• Who Qualifies: A parent, stepparent, or financial supporter of a child who lives with or is supported by the applicant.
• Equity Requirement: You must maintain a minimum of 15% equity in your Burnaby home.
• Interest Rate: Simple interest is charged at a rate typically the bank's prime rate.

Key Considerations

• It is a Loan: Interest accrues annually on the deferred amount, but it is simple interest (not compounded), which is a significant advantage.
• Lien on Title: The deferred amount becomes a restrictive lien on your property, meaning it must be repaid when you sell the property.
• Annual Renewal: You must re-apply or renew your enrolment in the program each year.

Deferring taxes can free up cash flow for seniors on a fixed income or for families facing temporary financial strain, all while keeping your principal residence in your possession.

4. Other Strategic Considerations for Burnaby Homeowners

Principal Residence Exemption (Capital Gains)

While not a direct property tax saving, minimizing capital gains is a massive financial saving when you eventually sell your Burnaby home. Your principal residence is exempt from capital gains tax. This is why claiming the Home Owner Grant (which requires the property to be your principal residence) is so important, it reinforces the principal residence status and provides a major tax break upon sale.

Local Area Service Levies

The City of Burnaby may charge a Local Area Service Levy for specific neighbourhood improvements, such as new sidewalks or streetlights. This charge is added to your property tax notice. You often have the option to:

1. Pay the annual levy over a set term (e.g., 5, 10, or 15 years).
2. Pay the levy in full in the first year to realize interest savings.

If you can afford the lump sum, paying the levy upfront will save you money on interest over the long run, thereby reducing your overall property costs.

Final Thoughts from Your Burnaby Real Estate Expert

Managing property taxes is an ongoing process that requires attention to detail and awareness of provincial and municipal programs. By consistently claiming the Home Owner Grant, strategically reviewing your BC Assessment notice, and understanding your options for tax deferment, you can significantly reduce the annual financial pressure of homeownership in Burnaby.

Don't wait until the due date to think about your property taxes, the time to act is when you receive your assessment notice in January!

Ready to Maximize Your Home's Value and Minimize Your Costs?

Whether you are looking to buy a new home in Burnaby with lower property taxes, or want to ensure you are paying the absolute minimum on your current property, I am here to help. A comprehensive real estate strategy goes beyond the purchase or sale, it includes smart financial ownership.

Contact us today for a no-obligation discussion about your property's current assessment and tax strategy. Let's ensure you are getting the most out of your Burnaby home investment.

Click here to schedule a private consultation with Yinon Filler, your Burnaby Realtor. | Call me directly at +1(778) 325-1861