GST on New Homes in BC: Rebate Thresholds, Who Qualifies & How to Claim

To qualify, the buyer must be 18 or older, a Canadian citizen or permanent resident, and intend to occupy the home as their primary residence. The critical test is a 5-year lookback: the buyer, and their cohabitating spouse or common-law partner, cannot have lived in a home they owned (anywhere in the world) during the current calendar year or the previous 4.

The spousal rule trips people up. If one partner owned a condo in 2023 and sold it, neither partner qualifies as a first-time buyer until 2029, even if the other has never owned anything. The lookback applies jointly.

Key Dates and Eligibility Window

The purchase agreement with the builder must be dated on or after May 27, 2025 and before 2031. Construction has to begin before 2031 and be substantially complete before 2036. Most Metro Vancouver presales on the market today fall cleanly inside this window.

The Traditional GST New Housing Rebate (Still Active)

The older GST New Housing Rebate has not been replaced. It still applies to buyers who do not qualify as first-time buyers, and it covers homes priced well below what the new FTHB rebate cares about.

• Purchase price $350,000 or less: Rebate of 36% of GST paid, maximum $6,300.
• Purchase price $350,000 to $450,000: Partial rebate. Formula: $6,300 x [($450,000 - purchase price) / $100,000].
• Purchase price above $450,000: No federal rebate under this program.

On most Metro Vancouver presales the traditional rebate is irrelevant, because unit prices clear $450,000 easily. But it still matters in Chilliwack, Mission, parts of Abbotsford, and small Fraser Valley presales where a studio or junior one-bedroom might land under $450,000. In those cases a non-first-time buyer, an investor, or a second-home purchaser can still claim the partial rebate.

A buyer cannot claim both the FTHB rebate and the traditional rebate on the same purchase. The FTHB rebate is the larger number whenever it applies, so it wins automatically.

Investor, Assignment, and Presale Edge Cases

The rules change based on intent.

Investors Buying to Rent

A buyer purchasing a presale with the intent to rent it out, rather than occupy it, is not eligible for the FTHB rebate or the traditional rebate. Instead they can often apply for the GST/HST New Residential Rental Property Rebate, which has a similar formula to the traditional rebate but requires a signed 1-year lease. This is filed after possession, not at closing, and the rebate amount is paid by CRA directly.

Assignment Sales

Assignments of presale contracts can get complicated. GST applies to any profit portion of an assignment (not the original deposit). For assignments of an owner-occupied presale contract, the FTHB rebate may still apply to the final assignee if they meet the first-time-buyer test. For investor-to-investor assignments, GST applies to the full assignment price and typically neither rebate is available. See the Assignment Sale BC guide for the full mechanics.

Substantially Renovated Homes

A resale home usually carries no GST. But if the seller has "substantially renovated" the home (typically 90% or more of the interior rebuilt), the sale is treated as new construction and GST applies to the full sale price. This catches buyers off guard on flipped houses. Always ask whether the seller paid GST on their purchase and whether they are registered for GST on the resale.

Stacking GST Rebate with BC Newly Built Home PTT Exemption

BC has its own separate exemption from Property Transfer Tax for newly built homes. Effective April 1, 2024, the threshold was raised:

• Full PTT exemption: Newly built home valued $1,100,000 or less, owner-occupied.
• Partial PTT exemption: Valued between $1,100,000 and $1,150,000.
• No exemption: Above $1,150,000.

The PTT exemption stacks with the GST rebate. A first-time buyer purchasing a $1,050,000 new condo can potentially save:

• Full GST rebate: $50,000 (on the $50,000 GST charged).
• Full newly built home PTT exemption: approximately $21,000.
• Combined: around $71,000 saved at closing.

That is before any other first-time buyer programs like the FHSA, Home Buyers Plan, or BC first-time buyer PTT exemption (which applies to resale, not new, so it does not stack here). Detailed PTT math is in the Property Transfer Tax BC post.

Where to Find Presales in BC That Qualify

The $1,000,000 full-rebate ceiling is the right number to think about when browsing. Below is the active condo median in key BC markets to calibrate what a qualifying presale looks like right now, pulled live from MLS data:

• Metro Vancouver: Metro Vancouver housing market shows median active APT price $665,000. Presales typically $700K to $1.3M.
• Burnaby: Burnaby median active APT price sits in the $700K to $900K band. Most 2-bedroom presales clear $1M.
• Surrey: Surrey condo inventory sits well below the $1M threshold; most presales in Fleetwood, Clayton, and North Surrey qualify for the full rebate.
• Langley: Langley new condo presales largely under $1M, full rebate applies.

Buyers can filter for new construction and presale inventory directly on Zealty's map search, and use the Strata Browser to pull building-level data on upcoming completions, bylaws, and depreciation reports before committing to a deposit.

How to File and When

For most presale and new-home purchases, the buyer does not file the GST rebate separately. The builder applies the rebate at closing: the purchase agreement lists the price as including net GST after rebate. The builder files CRA form GST190 on the buyer's behalf and collects the rebate directly.

If the builder does not handle filing (less common, but happens on small builders and certain assignments), the buyer files within 2 years of the closing date using GST190 or GST524 (rental rebate). Late filings beyond 2 years are generally denied.

Critical documents the buyer should save for CRA:

• Purchase and sale agreement (the original and any assignment).
• Statement of adjustments showing GST charged and rebate credited.
• Final closing documents from the notary or lawyer.
• Proof of first-time buyer status (T1 returns for the 5-year lookback may be requested).

Bottom Line for BC Presale Buyers

The FTHB GST rebate is the single largest change to BC new-home math since the PTT exemption threshold was raised in 2024. For anyone buying a presale under $1,000,000, it is a $50,000 difference. For buyers between $1M and $1.5M it is still meaningful, just smaller. Above $1.5M it does nothing, and buyers should factor full 5% GST into their affordability model.

Before writing a presale deposit cheque, confirm three things: whether the builder has priced GST net of rebate or gross, whether the buyer's household clears the 5-year first-time-buyer lookback, and whether the home will be owner-occupied on possession. Any of those answered wrong can turn a $50,000 tax saving into a $50,000 bill at closing.

Browse Metro Vancouver homes on Zealty, with full MLS pricing history, strata building data, and live market stats updated throughout the day.