Downsizing on the North Shore: selling the family house and staying close
Checked 6 October 2026 · next review January 2027Many owners who move out of a family house on the North Shore want to stay near the people and places they know. Before you choose the next home, four government rules are worth reading: how CRA treats the sale of your principal residence, the BC property tax deferment program for people 55 and older, the home owner grant for seniors, and the property transfer tax on the home you buy next. This page says what each government page says, and where to check it.
These rules change, and everything below is subject to change. This page is not tax or legal advice. Confirm the details with the Province, CRA and your accountant or lawyer before you rely on them.
| Property tax deferment and home owner grant, Province of BC | 1-888-355-2700 · 250-387-0555 |
| Province of BC, property transfer tax | 1-888-841-0090 · 236-478-1593 · PTTENQ@gov.bc.ca |
- Selling your house: CRA says that if the property was solely your principal residence for every year you owned it, you do not have to pay tax on the gain. For 2016 and later tax years, you must report the sale and the designation on your tax return to get the exemption.
- Property tax deferment: the Province’s regular program is open to owners 55 or older during the current year, among other conditions. It is a loan with interest, and it must be repaid in full when you sell.
- Home owner grant: for 2026 the threshold is an assessed value of $2,075,000, and on the North Shore the grant is up to $570, or up to $845 for owners 65 or older. From 1 January 2027 the amounts are $570 and $845 across B.C. You must apply every year.
- Property transfer tax: the Province’s list of exemptions has none for downsizers, seniors, or people who sell one home and buy another. On a $1,200,000 purchase the tax is $22,000.
Money you may be able to keep
Three government programs can matter when you sell a family house and buy a smaller home. Each has its own conditions, and only the Province or CRA can confirm that you qualify.
| Program | Who qualifies, in the government’s words | What it does | Check with |
|---|---|---|---|
| Principal residence exemption (CRA) | You can designate your home as your principal residence for all the years that you own and use it as your principal residence. | If the property was solely your principal residence for every year you owned it, you do not have to pay tax on the gain. You must report the sale to get it. | Your accountant and CRA |
| Property tax deferment, regular program (Province of BC) | 55 or older during the current year, a surviving spouse, or a person with disabilities; a Canadian citizen or permanent resident who has lived in B.C. for at least one year; a registered owner; the home is your principal residence; at least 25 percent equity. | The Ministry of Finance pays your property taxes after the due date, as a loan with interest, and places a restrictive lien on the property. | Province of BC, 1-888-355-2700 |
| Home owner grant for seniors (Province of BC) | 65 or older in the current year, the registered owner, a Canadian citizen or permanent resident, living in B.C., and occupying the home as your principal residence. | Reduces the property tax on your principal residence. In 2026 on the North Shore, up to $845 for seniors and up to $570 for other owners. | Province of BC, 1-888-355-2700 |
These are summaries of the government pages listed under Sources. They do not tell you whether you qualify. That depends on your own facts, so ask your accountant or lawyer.
Selling the family house: what CRA says
CRA says that if the property was solely your principal residence for every year you owned it, you do not have to pay tax on the gain. If it was not, for example because part of it was rented or you owned another home you could designate for some years, the answer depends on your own facts. That is a question for your accountant.
| What CRA says | Detail |
|---|---|
| You must report the sale | For 2016 and later tax years, CRA will only allow the principal residence exemption if you report the sale and the designation on your income tax and benefit return, on Schedule 3 and Form T2091(IND). |
| If you forget | Ask CRA to amend your return for that year. CRA will accept a late designation in certain circumstances, but a penalty may apply: the lesser of $8,000, or $100 for each complete month from the original due date to the date your request was made in a form satisfactory to CRA. |
| Selling and buying in the same year | CRA’s “plus 1” rule lets both properties be treated as eligible for the exemption for the year one is sold and the other is bought. |
Tell your accountant the date of sale and the price as soon as the sale completes, so the sale is reported on the return for the year you sold.
Property tax deferment for owners 55 and older
Under the Province’s property tax deferment program, the Ministry of Finance pays your property taxes on your behalf after the tax due date and places a restrictive lien on your property. The regular program is for people who are 55 or older, a surviving spouse, or a person with disabilities.
- Be 55 or older during the current year.
- Be a Canadian citizen or permanent resident and have lived in B.C. for at least one year before applying.
- Be a registered owner, and the home must be your principal residence. Cottages, summer homes and rental homes are not eligible.
- Have a minimum equity of 25 percent of the property’s assessed value: all charges registered against the property, plus the taxes you want to defer, cannot be more than 75 percent of the BC Assessment value.
- Have paid all previous years’ property taxes, utility user fees, penalties and interest.
| What the Province says | |
|---|---|
| Interest | On taxes deferred for 2026 and later years: prime plus 2%, compounded monthly. The rate is set on 1 January, 1 April, 1 July and 1 October. |
| Fees | $60 to apply and $10 to renew |
| When to apply | Online, between 1 May and 31 December each year. Renew each year unless you have set up automatic renewal. |
| When it must be repaid in full | When you sell the property, refinance, subdivide, add someone other than a spouse to title, or remove an owner other than a deceased owner. You can repay all or part at any time. |
On a sale, ask the Province for a payout letter. It shows the amount outstanding and how to pay it, so the loan can be cleared from the sale proceeds.
Home owner grant for seniors
The home owner grant reduces the property tax you pay on your principal residence. The threshold for 2026 is an assessed value of $2,075,000. Above that, the grant is reduced by $5 for each $1,000 of assessed value over the threshold. You must apply every year.
| 2026 | From 1 January 2027 | |
|---|---|---|
| Regular grant | Up to $570 in the Metro Vancouver Regional District, which includes the North Shore | $570 across B.C. |
| Owners 65 or older | Up to $845 in the Metro Vancouver Regional District | $845 across B.C. |
| Threshold | $2,075,000 assessed value | Not yet published |
| What the Province says | |
|---|---|
| Who gets the higher seniors’ grant | Owners who are 65 or older in the current year, are the registered owner, are a Canadian citizen or permanent resident, live in B.C. and occupy the home as their principal residence |
| Above the threshold | A partial grant may be available. Seniors with an adjusted net income of $32,000 or less may qualify for a low income grant supplement. |
| Before you claim | You must pay at least $100 in property taxes before claiming the grant |
The threshold is compared with the assessed value of the home you claim the grant on, so check the value of the home you plan to buy. How assessed value differs from market value.
Property transfer tax on the home you buy next
When you buy, you pay property transfer tax on the fair market value unless you qualify for an exemption: 1% up to and including $200,000, 2% above $200,000 up to and including $2,000,000, and 3% above $2,000,000, with a further 2% on residential value above $3,000,000. The Province’s list of exemptions does not include one for downsizers, seniors, or people selling one home to buy another. The first time home buyers’ exemption is only for people who have never owned a principal residence anywhere in the world. You or your lawyer or notary file the return, and the tax is paid when the transfer is registered.
| Price of the next home | How it is worked out | Tax |
|---|---|---|
| $1,200,000 | 1% of $200,000 = $2,000 2% of $1,000,000 = $20,000 | $22,000 |
| $1,800,000 | 1% of $200,000 = $2,000 2% of $1,600,000 = $32,000 | $34,000 |
| $2,500,000 | 1% of $200,000 = $2,000 2% of $1,800,000 = $36,000 3% of $500,000 = $15,000 | $53,000 |
These figures assume the price is the fair market value, the whole property is residential, and no exemption applies. Your lawyer or notary confirms the amount before completion.
Sell first or buy first
The order you do things in changes your risk, and the choices are set out in Should I sell before I buy?. The table below only shows which rules on this page come into play either way.
| Sell first | Buy first | |
|---|---|---|
| The risks and the steps | See Should I sell before I buy? | See Should I sell before I buy? |
| Rules on this page that apply | Report the sale to CRA. Repay any deferment from the sale. Pay transfer tax on the purchase. | The same, and if you sell and buy in the same year, ask your accountant about CRA’s “plus 1” rule. |
Moving to a condo or townhouse
If your next home is in a strata building, the costs work differently from a house. These pages cover the parts that matter most, with the figures and sources:
The building’s plan for repairs
The strata depreciation report: what it is and how to get it before you buy.
Insurance deductibles
Strata insurance deductibles in BC: how a deductible can reach an owner, and what to check.
Monthly running costs
What it costs to own a condo in North Vancouver: property tax, strata fees and utilities.
Which type of home
Condo, townhouse or house: what you give up and what you gain with each.
A short checklist, with timing
| When | What to do |
|---|---|
| Before you list | Ask your accountant whether the house was your principal residence for every year you owned it. Decide whether to sell first or buy first. |
| Before you make an offer | Look up the assessed value of the home you are considering and compare it with the home owner grant threshold. Budget for property transfer tax on the purchase. For a strata home, read the strata documents before you remove subjects. |
| Before completion of the sale | If you have deferred property tax, ask the Province for a payout letter so the loan is repaid from the sale. |
| After you move | Apply for the home owner grant on the new home, and apply again every year. If you want to defer the new home’s taxes, apply online between 1 May and 31 December. |
| When you file taxes for the year of sale | Report the sale and the principal residence designation on Schedule 3 and Form T2091(IND). |
This page repeats what the government pages say. It is not tax or legal advice. Confirm the tax on your sale with an accountant and with CRA, confirm the deferment and grant with the Province on 1-888-355-2700, and confirm the property transfer tax with your lawyer or notary before you sign.
- Canada Revenue Agency, Principal residence and other real estate. Checked 6 October 2026.
- Canada Revenue Agency, Designating a principal residence. Checked 6 October 2026.
- Canada Revenue Agency, Reporting the sale of your principal residence for individuals. Checked 6 October 2026.
- Province of British Columbia, Property tax deferment program. Checked 6 October 2026.
- Province of British Columbia, Property tax deferment eligibility. Checked 6 October 2026.
- Province of British Columbia, Tax deferment interest and fees. Checked 6 October 2026.
- Province of British Columbia, Apply for the property tax deferment program. Checked 6 October 2026.
- Province of British Columbia, Repaying your property tax deferment loan. Checked 6 October 2026.
- Province of British Columbia, Home owner grant. Checked 6 October 2026.
- Province of British Columbia, Home owner grant for seniors. Checked 6 October 2026.
- Province of British Columbia, News release on the 2026 home owner grant threshold and amounts. Checked 6 October 2026.
- Province of British Columbia, Property transfer tax. Checked 6 October 2026.
- Province of British Columbia, Property transfer tax exemptions. Checked 6 October 2026.
- Province of British Columbia, First time home buyers’ exemption. Checked 6 October 2026.