The BC Home Owner Grant (HOG): How It Works
The BC Home Owner Grant is a provincial program that reduces the amount of property taxes paid by eligible homeowners on their principal residence. Unlike a tax credit or deduction applied at year-end, the grant reduces the actual property tax owing for that year. Homeowners apply annually — the grant is never automatically applied.
2025 Grant Amounts and Thresholds
| Grant Type | Amount | Phase-Out Threshold | Full Phase-Out |
|---|---|---|---|
| Basic Grant (all eligible homeowners) | $570 | $2,150,000 assessed value | $2,264,000 |
| Additional Grant (seniors 65+, veterans, persons with disabilities) | $275 | $2,150,000 assessed value | $2,289,000 |
| Maximum Combined (additional grant eligible) | $845 | $2,150,000 assessed value | $2,289,000 |
Phase-Out Calculation
Basic grant reduction = ($Assessed Value − $2,150,000) ÷ 1,000 × $5
Example: Assessed value $2,200,000
Reduction = ($2,200,000 − $2,150,000) ÷ 1,000 × $5 = $250
Basic grant remaining = $570 − $250 = $320
Eligibility Requirements
To claim the Home Owner Grant, the applicant must:
- →Be a Canadian citizen or permanent resident
- →Be a resident of BC (principal residence must be in BC)
- →Own the property as a principal residence (live there, not rent it out)
- →Apply by December 31 of the tax year
- →Not have claimed a grant on another property in the same year
Who does NOT qualify: Investors (non-principal residence), corporations, trustees (unless the beneficiary lives there as principal residence), non-permanent residents, and properties used for commercial purposes. Properties rented out entirely do not qualify. Properties partially rented (e.g., basement suite) may qualify if the owner still lives in the home as their principal residence.
Application Process
The Home Owner Grant is claimed annually at gov.bc.ca/homeownergrant. The municipality sends a property tax notice (typically May) that includes a HOG application number — this unique number is required to apply online. The application asks for the applicant's Social Insurance Number, date of birth, and a declaration that the property is the principal residence.
Rural Grant (Low-Population Areas)
Properties in rural areas (not within a municipality) pay provincial property taxes directly to the BC government through the Surveyor of Taxes. The HOG process is the same, but the application is made directly to the Province rather than through the municipality.
The Home Owner Grant at Sale: Adjustments and Obligations
The Home Owner Grant follows the person, not the property. When a property is sold, both the seller and the buyer may be entitled to a portion of the HOG for the tax year in which the sale occurs — prorated to the days each party owns the property.
How Adjustments Work at Closing
Property tax is adjusted at closing on the Statement of Adjustments. The notary or lawyer calculates the per-day tax cost and credits or charges each party appropriately. The HOG affects this calculation:
- →Seller who claimed HOG: Received the full grant at the start of the year but is only entitled to the prorated portion for the days they owned the property. The excess grant (for the buyer's days) may be reflected in the property tax adjustment.
- →Buyer who will claim HOG: Entitled to the HOG for the remainder of the year. The buyer must apply for the grant after taking title. The tax adjustment at closing typically accounts for the expectation that the buyer will qualify.
- →Buyer who will NOT qualify (investor/non-resident): No HOG entitlement — property taxes for the buyer's period are not reduced by the grant. Adjustments should reflect full tax cost without HOG reduction for the buyer's days.
Practical Note for Listing Realtors
If your seller has been claiming the HOG and sells to an investor buyer, the tax adjustment at closing will be based on the full (no-HOG) property tax for the buyer's prorated period. This can create a larger tax adjustment credit to the seller than the seller expects — or it can create confusion. Make sure your seller and their notary understand the HOG implication when the buyer is an investor.
BC Property Tax Deferral Program
The BC Property Tax Deferral program allows eligible homeowners to defer their annual property taxes — essentially taking a low-interest loan from the Province secured by their home. Deferred taxes accumulate with interest (currently BC Prime rate) and become payable when the property is sold, title changes, or the owner no longer qualifies.
Regular Program
- • Age 55+ by December 31 of the tax year
- • OR surviving spouse of any age
- • OR person with a disability
- • Principal residence in BC
- • Minimum 25% equity in the property
- • BC resident
Apply by December 31 annually
Families with Children Program
- • Have a dependent child under 18
- • Child lives at the property
- • Principal residence in BC
- • Minimum 15% equity in the property
- • BC resident
- • Combined gross household income ≤$60,000
Apply by December 31 annually
Interest Rate and Accumulation
Deferred taxes accumulate interest at BC Prime Rate. This rate is set by the Province and historically has tracked the Bank of Canada prime rate. As of 2024–2025, BC Prime was in the 5–7% range during higher-rate periods — meaning significant interest can accumulate on large deferred balances.
Deferral Accumulation Example
Annual tax bill (pre-grant): $6,000
Home Owner Grant reduction: -$845
Net annual tax: $5,155
Amount deferred per year: $5,155
BC Prime rate assumption: 5.00%
Balance after 5 years of deferral: ~$28,500 (with compound interest)
Balance after 10 years of deferral: ~$64,500 (with compound interest)
This balance registers as a charge on title and is repaid at sale
The Deferral Charge on Title
When a homeowner enrolls in the deferral program, the Province registers a charge (lien) against the property in the BC Land Title Office. This charge:
- →Appears on title searches and must be disclosed to buyers
- →Must be paid in full (principal + accumulated interest) when the property is sold
- →Cannot be assumed by the buyer — the new owner has their own tax obligations
- →Reduces the seller's net proceeds at closing
Seller Advisory: Deferral Balance Must Be Paid at Sale
A seller who has deferred taxes for 10+ years may have accumulated $50,000–$100,000+ in deferred taxes and interest on a high-value property. This balance is paid from sale proceeds — essentially like a second mortgage. Listing realtors should ask sellers if they have deferred property taxes, and if so, request the current balance from the Surveyor of Taxes. Failure to account for this at pricing can result in the seller receiving significantly less net proceeds than expected.
HOG vs. Tax Deferral: Quick Comparison
| Feature | Home Owner Grant | Property Tax Deferral |
|---|---|---|
| What it does | Reduces taxes owed by up to $845/yr | Postpones paying taxes (with interest) |
| Cost to homeowner | Free — no repayment required | Interest (BC Prime) on deferred balance |
| Eligibility (age) | Any age (additional grant: 65+) | 55+ (Regular); any age (Families) |
| Income test | No income test | Families: ≤$60,000 household income |
| Annual application | Required every year by Dec 31 | Required every year by Dec 31 |
| Impact at sale | Grant proportionately adjusted; no repayment | Full balance (taxes + interest) repaid from proceeds |
| Title impact | No charge on title | Lien registered on title |
| Can be combined? | Yes — claim HOG first, then defer remainder | Yes — claim HOG before deferring |
Best practice: Always claim the HOG first, then defer the remaining taxes. The HOG is free money (no repayment). Deferring the full tax before claiming the HOG means paying interest on money you could have had forgiven.
How Realtors Can Add Value: Advisory Opportunities
🏡 New Buyer Advisory
Remind first-time buyers to apply for the HOG after taking title. Many new buyers miss the deadline in their first year, losing $570 in free tax savings. Include a post-closing checklist that specifically flags HOG application as a first-year task.
👴 Senior Seller / Buyer
For senior clients (65+), proactively mention the Additional Grant ($845 max) and the Property Tax Deferral program. Many seniors qualify but do not know about deferral — potentially saving them thousands per year while they remain in the home.
📋 Listing Review
At the listing appointment, ask sellers if they have deferred property taxes. If yes, request a current deferral balance statement from the Surveyor of Taxes. Build this into your net proceeds calculation to avoid pricing surprises at closing.
💼 Investor Buyer Advisory
Remind investor buyers (non-principal residence) that they do not qualify for the HOG. When preparing offer analysis, use full property taxes (without HOG reduction) for income property cash flow calculations.
Client Advisory Scripts
Script 1 — Post-Closing Reminder to New Buyer
Script 2 — Senior Homeowner Considering Downsizing
Script 3 — Listing a Senior's Home (Deferral Check)
Script 4 — Investor Buyer (HOG Not Applicable)
Frequently Asked Questions
How much does the BC Home Owner Grant reduce property taxes?
The Basic Grant reduces taxes by $570 for properties with assessed values at or below $2,150,000 (2025 threshold). The Additional Grant (seniors 65+, veterans, persons with disabilities) adds $275 for a maximum of $845. The grant phases out at $5 per $1,000 above the threshold, disappearing at $2,264,000 (basic) or $2,289,000 (additional). Thresholds are adjusted annually.
What is the deadline to apply for the BC Home Owner Grant?
December 31 of each tax year. The grant is not automatic — homeowners must apply every year at gov.bc.ca/homeownergrant using the application number on their property tax notice (typically received in May). Retroactive applications for the prior year are available until December 31 of the following year.
What happens to the BC Home Owner Grant when a property is sold?
The grant is prorated to the days each party owned the property in that tax year. The seller's grant is adjusted on the Statement of Adjustments at closing. The buyer can apply for the grant after taking title if they meet eligibility requirements. Buyers who will not qualify (investors, non-residents) should use full taxes in cash flow calculations.
Who qualifies for BC Property Tax Deferral?
Regular Program: age 55+, surviving spouses, or persons with disabilities — with at least 25% equity and BC principal residence. Families with Children: any age, with a child under 18 living at the property, gross household income ≤$60,000, and at least 15% equity.
Does deferred property tax become a lien on the property?
Yes. The Province registers the deferred tax as a charge on title in the BC Land Title Office. This charge appears on title searches and must be fully discharged (taxes + accumulated interest) when the property is sold, refinanced, or when the owner no longer qualifies. The amount is paid from sale proceeds at closing.