First-Time Buyer Savings: GST Rebate + PTT Exemption

The new GST rebate (March 2026)

Bill C-4, which received Royal Assent on March 12, 2026, created a first-time home buyer GST rebate that changes the math on buying new construction in BC.

For a qualifying first-time buyer purchasing a newly built home priced at $1,000,000 or less, the federal GST (5%) is fully rebated. On a $900,000 presale, that's $45,000 back. On a $1,000,000 purchase, it's $50,000 — the maximum.

Between $1,000,000 and $1,500,000, the rebate phases out. Above $1,500,000, no rebate. The old GST new home rebate — which topped out at $6,300 and only applied to homes under $450,000 — is still technically available but irrelevant for virtually every Metro Vancouver purchase.

Who qualifies

The eligibility rules are fairly specific. You must be a first-time buyer — meaning you haven't owned a home that you lived in as a principal residence anywhere in the world in the four years before your purchase. You must intend to occupy the home as your primary residence. And the rebate only applies to newly built homes — resale doesn't qualify.

If you're buying with a partner who has previously owned a home, it gets more complicated. Get advice from a lawyer or accountant before assuming you qualify.

One thing to know: if you're buying an assignment — a presale contract from another buyer rather than directly from the developer — the rebate may still apply, but only if the original agreement was signed on or after May 27, 2025. Assignments of older contracts don't qualify.

BC's Property Transfer Tax exemptions

On top of the GST rebate, BC has two PTT exemptions that can stack for first-time buyers of new construction.

The First-Time Home Buyers' PTT exemption gives full relief on the first $500,000 of a purchase up to $835,000 in fair market value — saving up to $8,000. It phases out completely by $860,000.

The Newly Built Home PTT exemption applies to any buyer (not just first-timers) purchasing a newly built home with a fair market value up to $1,100,000, with a partial exemption to $1,150,000. This can save significantly more than the first-time buyer exemption on higher-priced properties.

A first-time buyer of a new build can potentially claim both, depending on which thresholds their purchase falls within. Each has its own forms and eligibility tests — your lawyer handles the filing at completion, but you need to know what you qualify for before you sign.

What this looks like in practice

Take a first-time buyer purchasing a new presale condo in Surrey for $850,000. With the new GST rebate, they owe $0 in federal GST — a $42,500 saving. The Newly Built Home PTT exemption eliminates the property transfer tax on the full value. Combined, that's potentially $55,000+ in tax savings versus what they'd have paid two years ago.

That's not a rounding error. It materially changes affordability calculations, particularly for buyers who were close to qualifying but couldn't quite get there.

What people get wrong

The biggest mistake is assuming you qualify without checking. The first-time buyer definition is stricter than most people expect — the four-year lookback catches buyers who owned briefly or owned overseas. The principal residence requirement means investment purchases don't qualify. And buying through a corporation doesn't qualify either.

The second mistake is not pairing these savings with a realistic mortgage conversation. The rebate doesn't change your qualification — you still need to pass the stress test. But it does reduce how much cash you need at closing, which can matter a lot.

Talk to both a mortgage broker and a lawyer before you sign anything. The savings are real, but so are the conditions.