# GST on New Homes in BC — Rebate Guide > Canada charges 5% GST on new-construction homes. In BC you do not pay PST on top, but the GST applies to presale condos, newly built townhomes, and any home… **Source:** https://soldbycraig.ca/gst-on-new-homes-bc/ **Author:** Craig Johnston, REALTOR® (BC Licence V99960) · The MACNABS · Royal LePage Elite West **Site:** https://soldbycraig.ca --- New construction · GST · Canada ## GST on New Homes in BC — Rebates, Thresholds & What You Actually Pay Updated May 5, 2026 · Craig Johnston, REALTOR® · Coquitlam Canada charges 5% GST on new-construction homes. In BC you do not pay PST on top, but the GST applies to presale condos, newly built townhomes, and any home substantially renovated by the seller. The federal New Housing Rebate can claw back up to 36% of that GST — but only on homes priced at $350,000 or less, with the rebate phasing out entirely at $450,000. This page shows you the real math. Every figure below is drawn from Canada Revenue Agency GST/HST guide RC4028 and the BC Ministry of Finance new-home rules in effect June 2026. Craig has personally walked 200+ Coquitlam buyers through new-construction closings where GST was the single biggest line item on the final statement of adjustments. [Book a Strategy Call →](/book-a-strategy-call-with-craig-johnston/) [Get a Home Evaluation](/home-evaluation/) 1% Ranked Top 1% Team Member — Greater Vancouver REALTORS® 2% Nationwide Top 2% Team Member — Royal LePage nationwide 44 Local Tri-Cities resident 47+ years ★ Recognized 5.0 · five-star Quick Answer What should you know about Gst On New Homes Bc? Canada charges 5% GST on new-construction homes. In BC you do not pay PST on top, but the GST applies to presale condos, newly built townhomes, and any home… **Craig Johnston, Top 1% Team Member — Greater Vancouver REALTORS®** and 47+ year Tri-Cities resident, can walk you through the local context. Free Strategy Call ends with a written one-page plan in 24 hours. The definition ## Short answer: when GST applies — and when it does not GST applies at 5% on the purchase price of any 'new home' — which in Canada Revenue Agency terms means a home sold by the builder, a substantially renovated home, or a home being assigned before first occupancy. GST does not apply on resale of a previously owner-occupied home. On a $900,000 new condo in Coquitlam, that is $45,000 in GST — reducible to about $38,775 if you qualify for the reduced BC-thresholded New Housing Rebate. Tri-Cities Monthly ## Want the new-construction market read each month? One email per month from Craig Johnston, REALTOR® — new-home pricing, builder incentives, GST/rebate-threshold changes, and what's actually closing on Burke Mountain and the Tri-Cities. No spam. Unsubscribe anytime. **5.0** across 34+ Google reviews · Top 1% Team — Greater Vancouver REALTORS® · 47+ year Tri-Cities resident. Official sources ## Where the rules live. Every figure on this page is drawn from primary BC and federal sources listed below. For a live, government-maintained version of each rule, click through — the internet can drift, the official source is always authoritative. - [CRA Guide RC4028 — GST/HST New Housing Rebate ↗](https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/rc4028.html) - [BC Ministry of Finance — New home tax rules ↗](https://www2.gov.bc.ca/gov/content/taxes/property-taxes) - [CRA — Form GST190 (Rebate Application) ↗](https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/gst190.html) By the numbers ## GST + New Housing Rebate math on common Coquitlam price points | Price (pre-GST) | 5% GST | Federal rebate | Net GST owed | | --- | --- | --- | --- | | $350,000 | $17,500 | $6,300 (full 36%) | $11,200 | | $400,000 | $20,000 | $3,150 (50% phase-out) | $16,850 | | $450,000+ | $22,500+ | $0 (phased out) | $22,500+ | | $700,000 | $35,000 | $0 | $35,000 | | $900,000 | $45,000 | $0 | $45,000 | | $1,200,000 | $60,000 | $0 | $60,000 | Step by step ## How to claim the New Housing Rebate on closing 1. 1 Confirm eligibility before you write the offer. The home must be newly constructed or substantially renovated, bought from the builder as principal residence, and priced at $450,000 or less to qualify for any federal rebate. 2. 2 If you qualify, most builders credit the rebate against the purchase price at closing — the rebate is assigned to the builder in the contract. Your deposit and down-payment math should reflect the net price. 3. 3 If you are buying an investment or second property, the federal GST rebate does not apply, but you may qualify for the GST/HST New Residential Rental Property Rebate instead (separate form GST524). 4. 4 Your BC real estate lawyer handles the CRA filing (Form GST190) and ensures the rebate is applied correctly on the Statement of Adjustments. Ask for the GST line-by-line breakdown before you sign the transfer documents. 5. 5 Save every builder-supplied document — the Disclosure Statement, the Agreement of Purchase and Sale, and the Statement of Adjustments — for your CRA records. GST rebates can be re-audited up to four years after the purchase date. ![Craig Johnston, REALTOR® — Coquitlam](https://soldbycraig.ca/wp-content/uploads/2026/03/DSC1119-1-scaled.jpg) Craig's take > Every Coquitlam presale buyer hits GST sticker-shock at least once. It is a real, cash-on-closing expense — it is not financeable as part of the mortgage unless the builder rolls it into the purchase price. Budget for it from day one of the search, not the week before completion. — Craig Johnston, REALTOR® · Macdonald Realty · Tri-Cities resident 47+ years ### Ready to turn this knowledge into a real transaction? Whether you're a first-time buyer trying to master the rules or a move-up family planning your next step, a 30-minute strategy call maps out exactly what applies to your situation. [Book a Strategy Call →](/book-a-strategy-call-with-craig-johnston/) [Get a Home Evaluation](/home-evaluation/) Frequently asked ## Everything buyers and sellers ask Craig about this. Do I pay GST on a resale home in Coquitlam? No. GST does not apply to the resale of a previously owner-occupied home. You only pay GST if you buy from a builder, buy a substantially renovated home, or buy via presale assignment before first occupancy. What is the BC New Housing Rebate? The New Housing Rebate is a federal program. It refunds 36% of the GST paid, to a maximum of $6,300, on homes priced $350,000 or less. Between $350,000 and $450,000 the rebate phases out linearly. Above $450,000 the rebate is zero. Is GST due on a presale assignment? Yes — when you assign a presale contract before first occupancy, the Canada Revenue Agency treats it as a new-home sale. Both the assignment fee and the full purchase price become subject to 5% GST. Can GST be financed as part of my mortgage? Only if the builder includes it in the purchase price. If GST is listed as a separate closing-day cost, it must be paid in cash on closing — mortgage lenders do not advance funds against GST separately. What if I buy a new home as a rental property? The federal New Housing Rebate does not apply. Instead, you may qualify for the New Residential Rental Property Rebate — same 36% formula, same phase-out thresholds, but you claim it directly from CRA after closing using form GST524. Does the PTT replace GST in BC? No. Property Transfer Tax (PTT) and GST are separate. On a new home under $500,000 a first-time buyer may qualify for both the First Time Home Buyers' Program (PTT exemption) and the New Housing Rebate (GST). What is a 'substantially renovated' home for GST purposes? CRA considers a home substantially renovated if 90% or more of the interior (excluding load-bearing walls, the roof, the foundation, stairways and floors) has been replaced. A full gut-renovation flip typically meets the test. Does a builder-held PST or development levy change my GST? No — PST does not apply to residential real estate in BC, and development cost charges (DCCs) are typically rolled into the builder's base price. They do not change the 5% GST calculation. What happens if the builder offers to 'cover GST' in their incentives? In practice this means the builder is either reducing the sale price by 5% and absorbing the GST on their side, or inflating the list price. Always check the Statement of Adjustments — GST is always charged on the actual sale price, not the incentive math. When is GST due? GST is payable at the moment of completion — the day the title transfers to you. It appears on the Statement of Adjustments prepared by your lawyer. Next reads ## Build the full picture. [Next Read #### New Construction Hub →](/new-construction-homes-coquitlam/) [Next Read #### Foreign Buyer + Speculation Tax →](/foreign-buyer-speculation-tax-bc/) [Next Read #### Coquitlam REALTOR® Commission Rates →](/coquitlam-realtor-commission-rates/) [Next Read #### Moving to Coquitlam →](/moving-to-coquitlam/) [Next Read #### First Time Home Buyer →](/coquitlam-first-time-buyer-guide/) [Next Read #### Subjects & Conditions Guide →](/subjects-and-conditions-bc-real-estate/) ![Craig Johnston, REALTOR®](https://soldbycraig.ca/wp-content/uploads/2026/03/DSC1119-1-scaled.jpg) Your REALTOR® ## Craig Johnston, REALTOR® BCFSA-licensed REALTOR® (V99960). 47+ years Tri-Cities. Top 2% Team Member — Royal LePage nationwide. Specialist in Coquitlam, Port Moody, and Port Coquitlam transactions across resale, new construction, and strata. The same rules above apply on every single deal — the difference is having someone who's done them hundreds of times in your corner. 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