Buying a new home is exciting — but before you sign on the dotted line, it’s important to understand how the federal Goods and Services Tax (GST) applies to newly built properties in British Columbia, and what kinds of rebates or exemptions you might qualify for. Below is a clear, SEO-friendly overview of GST on new homes in BC, based on the information from a guide by Bridgewell Real Estate Group. Bridgewell Group+1

What Is GST — And When Does It Apply in BC

✅ GST is a federal tax applied at 5% on certain real-estate purchases

• GST is charged at 5% for goods or services used for personal use — and in BC, that applies to new homes. Bridgewell Group+1

• “New homes” generally include:

  • Pre-sale condos or townhomes sold by a developer, high-rise units, or newly constructed detached homes. Bridgewell Group+1

  • Substantially renovated homes (e.g. where 90% or more of the original structure has been rebuilt) may also be treated as “new,” in which case GST applies. Bridgewell Group+1

❗ Resale (“used”) homes are typically exempt

If a home has been lived in before — essentially, any resale property — it is not subject to GST. The assumption is that GST was already paid when the home was first sold new. Bridgewell Group+1

How Much GST Can You Expect to Pay

• The standard GST rate is 5% of the purchase price — meaning that the final cost will be the home’s price plus 5% GST, unless your contract states otherwise. Bridgewell Group+1

• Before you assume GST will be added on top, double-check the purchase agreement: sometimes developers list a “price inclusive of taxes,” which means GST might already be factored in. Overlooking this could lead to paying GST twice. Bridgewell Group

When Is GST Paid — And Who Is Responsible

• GST is due at the time of completion, per your contract of purchase and sale. Your notary or lawyer will typically handle this when preparing the statement of adjustments. Bridgewell Group+1

• The buyer (you) is responsible for paying the GST. Developers or sellers generally don’t cover GST — though some buyers choose to negotiate “GST-inclusive” pricing. Bridgewell Group+1

• For assignments of presale contracts (i.e. buying from someone who originally signed with the developer): the assignee (new buyer) is responsible for the GST, not the original buyer. Bridgewell Group

GST Rebates & Relief: Are You Eligible?

Because GST can add significantly to the cost of a new home, there are rebate programs — but they come with conditions based on purchase price and how you intend to use the home. Bridgewell Group+1

🏡 GST New Housing Rebate (for owner-occupied homes)

• If the purchase price is $350,000 or less (before GST), and you're planning to live in the home as your primary residence, you may qualify for a full rebate. This rebate reduces the 5% GST by 36%. Bridgewell Group+1

• For homes priced between $350,000 and $450,000, a partial rebate is available — the rebate declines gradually as the purchase price rises. Bridgewell Group+1

• For homes above $450,000, no rebate is granted — you’ll pay the full 5% GST. Bridgewell Group+1

Illustrative examples:

• If you buy a $350,000 home (before GST): GST is $17,500. With the 36% rebate, you’d get $6,300 back — bringing your net GST payment down to $11,200. Final cost: $361,200. Bridgewell Group

• If you buy a $400,000 home (before GST): Gross GST is $20,000. Partial rebate reduces it — net GST: $16,850. Final cost: $416,850. Bridgewell Group

🏢 GST New Residential Rental Rebate (for investment properties)

If you’re buying a new home to rent out — i.e. an investment property — you may be eligible for a similar rebate, under the condition that:

• The property is a standalone, self-contained residence. Bridgewell Group+1

• You’re not claiming input tax credits for GST on the acquisition. Bridgewell Group

• The unit is rented out, and tenants use it as their primary residence for at least a year. Bridgewell Group

Just like with owner-occupied homes: rebate amounts depend on purchase price (full rebate ≤ $350,000; partial for $350,000–$450,000; none above $450,000). Bridgewell Group+1

Important: Whether it’s the owner-occupied rebate or the rental rebate, you pay the full 5% GST at closing — and claim the rebate afterwards (i.e. you don’t get a discount at purchase). Bridgewell Group+1

Pro-Tips for Home Buyers in 2025

• ✅ Always check the purchase agreement carefully — make sure whether the listed price is “GST-inclusive” or “plus GST.”

• ✅ Factor GST (and possible rebates) into your budget. Even with rebates, you might still need to cover net GST out-of-pocket at closing.

• ✅ Confirm with your notary or lawyer who pays GST and when — you don’t want surprises at closing.

• ✅ If buying a presale or assignment property — remember that GST still likely applies.

• ✅ If the home qualifies for a rebate: be aware you first pay GST, then apply for rebate. It’s not automatic at purchase.

What’s New: Recent Federal Changes That Might Affect You

As of 2025, there has been a new move at the federal level: the government now offers a new rebate option for first-time home buyers purchasing new homes valued up to $1.5 million. Canada

Under this rebate:

• First-time buyers may recover up to $50,000 of the GST (or equivalent federal tax) when buying a new home from a builder. Canada

• For homes between $1 million and $1.5 million, the rebate is phased out gradually (e.g. a home at $1.25 M might qualify for about half the rebate). Canada

• Note: eligibility depends on first-time buyer status, and the home must be the purchaser’s primary residence. Canada

This could significantly reduce upfront costs for eligible first-time buyers — a helpful update if you’re entering the housing market now.

Conclusion

Understanding GST is a crucial component of budgeting and planning when buying a new home in BC. Whether you're buying for yourself or as an investment, knowing when GST applies, who pays it, and how rebates work can save you thousands — or shave unnecessary costs off your purchase price.

If you’re considering buying a new or presale home, it’s worth running the numbers carefully (purchase price + GST – potential rebate), and talking to your notary or realtor to make sure everything is handled properly.