GST on New Builds in B.C.: What Buyers (and Realtors) Need to Know in 2025 – 2030

Why this matters

Starting May 27 2025, Ottawa rolled out a brand-new GST break for first-time buyers of newly built homes. If your purchase contract was signed before that date, you’re stuck with the old rules. If it was on or after May 27 2025, the math changes—big-time.(Government of Canada, Dentons)

1. Deals signed ON or AFTER May 27 2025

Key point	New rule
Who qualifies	First-time buyers only (no home owned / occupied by you or your spouse / partner in the last four calendar years).
How much GST gets wiped out	Up to 100 % of the 5 % GST on homes priced ≤ $1 M.
Phase-out range	Rebate slides to zero between $1 M and $1.5 M.
Construction window	Home must start construction May 27 2025 – Dec 31 2030 and finish by 2036.
One-time use	Yes—you can only claim this rebate once in your lifetime.

How the money flows

Most builders in B.C. quote prices “GST included.”

Assign the rebate to the builder → you bring less cash to closing, builder files the paperwork.
Claim it yourself → you pay the full GST up front, then submit CRA’s new FTHB rebate form and wait for the cheque (about 4-12 weeks).

Either route works; just be sure the contract’s GST clause matches your plan.(Government of Canada, Fasken)

2. Deals signed BEFORE May 27 2025

These purchases fall under the old “New-Housing Rebate.”

Purchase price	Old rebate available?	Rebate amount
≤ $350,000	Yes	36 % of GST (max ~$6,300)
$350,001 – $450,000	Partial	Phases out linearly
> $450,000	No rebate	You pay the full 5 % GST

No matter when the home is built or transferred, the contract date locks you into this regime. Assignments inherit the original date, so the buyer of an older presale contract still can’t claim the new rebate.(Government of Canada)

3. Custom builds & owner-builders

If you’re building on your own lot (or hiring a GC), the contractor charges GST on each progress draw. You must pay it and file directly with CRA for any rebate—there’s no builder to assign it to. Same two-year filing deadline applies.(Government of Canada)

4. Quick checklist for Realtors & Buyers

Confirm the contract date.
Ask whether the advertised price is “GST-included.”
Decide who claims the rebate (buyer vs. builder) and put it in writing.
Collect proof of first-time status (no property owned/occupied since Jan 1 four years ago).
Budget for cash flow if the buyer chooses to front the GST and claim it later.

5. Bottom line

New builds signed May 27 2025 onward: first-time buyers can knock off up to the full 5 % GST on homes under $1 M, with partial relief up to $1.5 M.
Older contracts: the long-standing $6,300 max rebate still applies, but only on sub-$450 k homes—rare in today’s B.C. market.
Paperwork matters. Get the GST clause right up front to avoid last-minute surprises at the lawyer’s office.

Need help sorting out the numbers or lining up the right lender? Reach out anytime—happy to walk you through the fine print.

GST on New Builds in B.C.: What Buyers (and Realtors) Need to Know in 2025 – 2030