Property Tax Deferment Q&A
The property tax deferment program exists to help seniors, people with disabilities, and families with young children stay in their homes. The program allows eligible homeowners to retain more money for monthly expenses by indefinitely deferring their property taxes until sale of their home. Recent changes may understandably raise a lot of questions for people. Here are some of the most common questions our office receives about the changes to this program.
What is changing?
Prior to the 2026 tax year, the interest rate charged to most homeowners was prime minus 2%, with simple interest. Going forward, the interest rate will be prime plus 2%, with compounding interest. Click here to learn more.
What isn't changing?
To be clear: the government is not calling in any loans. People continue to have the opportunity to defer property taxes until they sell their house, refinance their mortgage (renewals are unaffected), or make certain specific changes to title.
Are the changes retroactive?
No. The changes are not retroactive and only applicable on the 2026 tax year going forward.
Why are these changes being made?
Changes are being made to ensure the program can continue to be delivered sustainably to help seniors, people with disabilities, and families with children stay in their own homes. It closes loopholes that previously allowed investors to exploit the program at other taxpayers' expense.
My taxes are automatically deferred every year. What if I don't want to defer them anymore?
Contact the Ministry of Finance before June 1, 2026, if you do not want your 2026 taxes automatically deferred.
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