Homeownership comes with its fair share of responsibilities and one of them is paying property taxes. No matter where you call home in Canada, property taxes will be something you’ll want to plan and budget ahead for. Here are some things to keep in mind when preparing for your property taxes.
An Overview of Property Taxes
In most municipalities across Canada, homeowners are responsible for paying property taxes in installments throughout the year. Property taxes are calculated based on the market value of your property and the residential tax rate of your area. The funds are then used to provide important services and create infrastructure in the area such as police and fire services and road construction and maintenance.
Different Options to Pay Your Property Tax
1. Pay your taxes with your mortgage payments
Some lenders make paying your property taxes easier by adding a property tax portion to your regular mortgage payment and then paying the property tax on your behalf come tax time.
If you’re an MCAP homeowner, MCAP offers a complimentary Property Tax Service that takes the pain out of paying property taxes. Here are some of the benefits of using MCAP:
MCAP’s Property Tax Service is completely free for our homeowners. |
 The payments that MCAP collects are smaller and easier to handle than the direct bills you receive from your municipality. |
 Your account is reviewed at the end of each tax year to make sure we have collected enough, but not too much. We will notify you in advance if we need to change the amount we are collecting. |
 Each year, MCAP will send you a property tax statement advising of the amounts we have paid on your behalf so you can stay in the know. |
Want to learn more about paying your property taxes with MCAP? Check out this video:
2. Set up pre-authorized payments with your city or town
Once you receive your first property tax bill, most municipalities will give you the option to set up pre-authorized payments to be withdrawn from your bank account. The payment schedule may vary from monthly, bi-monthly to bi-annually, depending on your municipality.
3. Save on your own and pay at tax time
Some homeowners prefer to pay their taxes on their own either electronically or by cheque when tax time rolls around. One tip is to set up a separate savings account and set aside money each month. You’ll earn interest while you save and, once you get your tax bill, the funds are already ready to go.
Whether you’re a new or seasoned homeowner, property taxes can creep up on you quickly. Visit MCAP’s Property Tax Service page and see if this service is right for you.
