GST on New Homes in BC: What Buyers Need to Know in 2025

Buying a new build or pre-sale in BC? You're probably going to pay GST. It's one of the biggest costs that catches buyers off guard — especially on top of the purchase price, Property Transfer Tax, and closing costs.

Here's what you need to know before you buy.

Do I Have to Pay GST?

The short answer: if the home is new, yes. If it's resale, no.

GST applies to brand new homes and substantially renovated homes. "Substantially renovated" means most of the interior construction has been replaced — not just a kitchen reno.

GST does not apply to used residential homes that have been lived in as a principal residence or rented long-term. If you're buying a resale home through the MLS, you won't pay GST.

There are some grey areas — strata hotels, short-term rental properties, and mixed-use buildings can trigger GST even on resale. When in doubt, check with your lawyer.

How Much Is the GST?

The GST rate is 5% on the purchase price.

On a $500,000 new home, that's $25,000 in GST. On an $800,000 new home, that's $40,000. On a $1,200,000 new home, that's $60,000.

That's a significant amount of cash you need to have ready — on top of your down payment and closing costs. Use the mortgage calculator to see how this affects your budget.

The New Housing Rebate (For Owner-Occupiers)

If you're buying a new home to live in as your principal residence, you may qualify for a rebate of 36% of the GST paid. But there are limits.

Full rebate: homes priced under $350,000. Partial rebate: homes priced between $350,000 and $450,000. No rebate: homes priced over $450,000.

For example, on a $350,000 new home, the GST is $17,500. The rebate is 36% of that — $6,300 back. So your actual GST is $11,200.

Over $450,000? You pay the full 5% with no rebate.

Important: some developers will credit you the rebate on closing. Others won't — meaning you pay the full GST upfront and apply to CRA for the rebate afterward. Check your contract carefully. This can mean needing thousands more at closing.

NEW: First Time Home Buyer GST Rebate (2025)

This is brand new as of March 2025 and a big deal for first-time buyers.

If you're a first-time home buyer purchasing a new property, you may qualify for an additional GST rebate. Here's how it works:

Homes at or below $1,000,000: full rebate applies. Homes between $1,000,000 and $1,500,000: partial rebate. Homes over $1,500,000: no rebate.

To qualify you need to be at least 18, a Canadian citizen or permanent resident, and you (or your spouse) cannot have owned a home used as a principal residence in the current year or previous four years.

This rebate is available for contracts signed between March 20, 2025 and January 1, 2031. If you're looking at new construction or presales, this could save you a significant amount.

The Rental/Investor Rebate

Buying a new home as an investment to rent out? There's a separate rebate for that — also 36% of the GST paid. Same price thresholds as the owner-occupier rebate ($350K full, $350K–$450K partial, $450K+ nothing).

The key differences:

The tenant must use it as their primary residence for at least one year. You'll need a signed tenancy agreement showing a minimum one-year term. The developer cannot credit you this rebate on closing — you always pay the full 5% upfront and claim it back from CRA afterward. Plan your cash flow accordingly.

This rebate is not available to corporations or partnerships.

Does GST Apply to Vacant Land?

Sometimes. If you're buying land that was used for personal use by an individual seller, no GST. But GST applies if the land was used in a business, sold as part of a business, or if it was subdivided into more than two lots.

If you're looking at land for sale or acreages in the Fraser Valley, make sure your lawyer confirms the GST status before you finalize.

Does GST Apply to New Mobile Homes?

Yes. A newly constructed or substantially renovated mobile home is subject to 5% GST. The same rebates (New Housing, First Time Buyer, Rental) apply if you meet the criteria.

Browse Langley mobile homes or Surrey mobile homes for current listings.

Quick Checklist Before You Buy New

Before signing a contract on a new build or pre-sale, make sure you know:

Will the developer credit the GST rebate on closing, or do you need the full 5% in cash? Do you qualify for the New Housing Rebate, the First Time Buyer Rebate, or the Rental Rebate? Have you budgeted for GST on top of your down payment, PTT, and legal fees? Does your lender factor GST into your mortgage, or is it a separate cash requirement?

These details can mean the difference between being ready to close and scrambling for funds at the last minute.

This Is Not Legal or Tax Advice

Every transaction is different. GST rules have nuances depending on the property type, the buyer's situation, and how the contract is structured. Always confirm GST details with your real estate lawyer before committing.

For more information, visit the CRA website or call 1-800-959-8287 for GST rebate questions.

Have Questions About Buying a New Home in BC?

Whether you're looking at pre-sales, new builds, or resale, I can help you understand the full cost picture — including GST, PTT, and closing costs — before you make an offer.

Contact Jared Gibbons at (604) 928-1361.

Browse South Surrey new construction & presales or search all homes for sale.