KAMLOOPS, B.C. — British Columbia's finance minister says the threshold to claim homeowner grants will be raised to help the tax burden on those whose property values have soared.
Mike de Jong wouldn't say what the new ceiling would be for the grant, only that he'd have more to announce in the next few days.
Currently, the program offers a grant of $570 to those who own and live in homes with an assessed value of under $1.2 million.
De Jong says the government wants to make sure that as many families benefit from the grant as possible.
Last week, the Finance Ministry said it was looking at increasing the $1.2 million limit after new property assessments showed the values of some homes jumped by as much as 50 per cent in areas of Metro Vancouver and on Vancouver Island.
De Jong raised the limit by $100,000 last year following soaring real estate prices.
B.C. UPS HOMEOWNER GRANT BY A THIRD AS PROPERTY ASSESSMENT VALUES SKYROCKET
Relief is on the way for homeowners in British Columbia facing a jump in property taxes thanks to soaring home values.
B.C. Finance Minister Mike de Jong said the threshold to take part in the province's homeowner grant program will increase by a third this year, to include properties with an assessed value of up to $1.6 million.
The $400,000 jump from last year's limit will ensure nine out of 10 homes across the province are eligible to receive a basic grant of $570, he said. The program will apply to one-in-five homes in Metro Vancouver, he added.
"We are doing our part to help keep housing costs affordable for families," de Jong said in a statement.
"The strength of the province's economy and sound fiscal management have put us in a position to raise the threshold by such a large amount this year to help homeowners."
The announcement is the latest policy response to the red hot real estate in B.C.'s Lower Mainland, despite sales having tempered in recent months.
Last year, the province introduced a 15 per cent foreign buyers tax, while the federal government clamped down on mortgage rules, making it more difficult for homebuyers to secure financing. The move comes as B.C. prepares for a provincial election, with voters scheduled to head to the polls on May 9.
Last week, the province's finance ministry said it was looking to increase the $1.2-million limit to the homeowners grant after property assessments jumped by as much as 50 per cent for some single-family homes in the Lower Mainland and on Vancouver Island.
The program is expected to cost the province an extra $12 million compared to last year. The province reimburses municipalities for decreased revenues resulting from the homeowners grant so municipal coffers are not affected by the change.
In 2010, the homeowners grant applied to homes assessed at a little over a million dollars. That threshold rose to a high of nearly $1.3 million in 2013 and back down to $1.2 million in 2016 before catapulting to $1.6 million this year.
