Seniors, others on a fixed income will bear burden of blanket interest rate increase
An opinion article in this paper on July 2 called advocacy by the Council of Senior Citizens’ Organizations of B.C. “tone-deaf,” described the campaign to reverse B.C.’s property tax deferment changes as “socially and economically repugnant,” and closed by urging us to stop. We wish, respectfully, to object.
COSCO B.C. is a volunteer-driven umbrella organization representing over 85,000 older adults located in all parts of the province.
We are honour-bound to the members of our 75-plus affiliate groups to advocate on issues that will allow seniors to age with dignity in their communities.
COSCO B.C. members and allies across this province want the public to know that the brunt of the impact of the increased interest rates on deferred property taxes will be on the backs of people living on fixed incomes — seniors, families and persons with disabilities.
Before it was reformed, the program allowed any homeowner over 55 years old to defer their property taxes until sale of their house, at two per cent below prime rates — with no compounded interest — and offered deferral to families with children at prime rates.
Approximately 500,000 seniors in this province are living on less than $3,000 per month, of which 250,000 are living on less than $2,000 per month. The $300 to $400 per month not spent on property tax is incredibly helpful to pay bills for everything from food to uncovered medical expenses, home support, and ongoing home repairs and maintenance. It is abundantly clear many older people are struggling, with reports of increasing numbers of seniors using the food bank.
The op-ed’s central assertion was that the program was “reformed in February to charge a market rate of interest.” It was not. The market rate for a loan secured against a home, a home equity line of credit (HELOC), is currently about 4.95 per cent. Mortgage rates are typically under five per cent.
The former property tax deferral interest rate was prime minus two per cent. The new deferment rate is prime plus two per cent, compounded monthly, for an effective rate of about 6.64 per cent. That is about 1.7 percentage points above the HELOC rate and substantially higher than market rate.
In addition, when investors borrow privately to invest, the interest is tax-deductible. Property tax deferral interest is not.
A high-income investor using a HELOC at 4.95 per cent for investment purposes could have an after-tax borrowing cost of approximately 2.3 per cent.
In other words, for the investor, private borrowing would already have been cheaper after tax than the former deferment rate.
The op-ed stated that the average household using the program “was worth $3.4 million.”
That household does not describe many users of this program.
Ministry of Finance data released in May 2026 show that half of all participant households defer less than $3,800. This corresponds to a home assessed at about $821,000 in Victoria, about $635,000 in Nanaimo, and around $488,000 in Prince George.
In other words, the typical participant household is far more likely to be a widowed 80-yearold in a Nanaimo bungalow.
An October 2025 Vancouver Sun article about mansion owners in Vancouver deferring their property taxes asserted that owners of “dozens of mansions ranging from $11 million to $43 million” were taking advantage of the system.
Some may well be, but even so, how does that justify gutting a program that serves 78,000 households?
As discussed, the wealthy have many options to borrow money at lower rates. They do not need the program.
Yet seniors, families, and people with disabilities with no options now bear the burden because the government chose to impose a blanket rate increase on all 78,000 households.
That’s why the province’s budget projections matter. Although the province states the property tax deferment change is about costs and fairness, its own projections estimate additional program revenues of $11 million next year, $23 million the year after, and $34 million the year after that.
These revenues will be taken from many of those least likely to afford it and put more onus on the entire system to pick up the pieces.
Finally, the generational framing. COSCO B.C. agrees that young British Columbians face a housing crisis, high costs, and diminished prospects. Our members are their parents and grandparents.
No one worries more about younger people’s futures than the generation who raised them, housed them, and are still quietly helping them. For the record, COSCO B.C. regularly advocates for better pension policies, among others, so that young people today have secure incomes and can live with dignity in their retirement years.
But the policy change does nothing for those young people. Not one young family will be housed by the government charging a widow above-market interest.
We are urging the B.C. government to reverse this change. We invite the Ministry of Finance to consult with COSCO, B.C.’s seniors advocate, other seniors’ organizations, and financial professionals to remove the target from the backs of seniors, families, and persons with disabilities.
That is not “tone-deaf.” That is what listening entails.
We were urged to stop. Respectfully, no.
- Vancouver Sun
- 23 Jul 2026
- LESLIE GAUDETTE Leslie Gaudette is president of the Council of Senior Citizens’ Organizations of B.C.