Downsizing Myths

Written by Janet Helm, Realtor® and Seniors Real Estate Specialist (SRES®) 

Understanding the facts can reduce stress, open up options, and help you make confident decisions. Here are a few common myths and the truths you need to know.

Myth: Completing the BC speculation and vacancy tax form is optional.

False! Completing the BC speculation and vacancy tax form is mandatory. You can: Fill it out online: https://www.etax.gov.bc.ca/SVT/_/  Assist someone else: Special Circumstances GuideCall for assistance: 1-833-554-2323 (toll-free, 8 am to 8 pm)

Myth: You must always pay your property taxes annually

False!  Many older adults in British Columbia qualify to defer property taxes. The Office of the Seniors Advocate B.C. strongly encourages eligible homeowners (55+) to explore the low-interest Property Tax Deferment Program to ease financial strain. Many seniors are “cash-poor but home-rich,” yet only a portion take advantage of this option to help cover essentials.

Key details about the program: Eligible homeowners include those 55 and older, surviving spouses, or persons with disabilities. The program can provide meaningful financial relief,  freeing up over money for essential expenses. The interest on the deferral is set at 2% above prime, using simple interest that does not compound. Under the program, the province pays your property taxes, with repayment typically occurring when the home is sold. This program helps seniors remain comfortably in their homes without being forced to sell due to rising costs.

Myth: Reverse mortgages are always a bad idea.

False!  Reverse mortgages once had a poor reputation because early versions carried high fees and often included confusing terms. They sometimes used compounding interest, which could quickly reduce the home equity available to the homeowner, and were less regulated, leaving homeowners vulnerable if they didn’t fully understand the product. Today, reverse mortgages are safer, more transparent, and for some homeowners, a practical way to access home equity while staying comfortably at home. Modern products typically use simple interest, have clearer terms, and provide more control. As with any financial decision, the key is understanding whether it fits your situation.

Having accurate information reduces stress, facts create options, and understanding your choices makes planning easier. As part of HELM’s 55 AND BETTER process, we connect our clients with likeminded professionals who can assist, including mortgage brokers, lawyers, accountants, and senior outreach people who can provide expert guidance.