GST New Housing Rebate (BC)

New construction in BC is subject to 5% federal GST on the purchase price (BC has no PST on resale homes; PST does apply to certain new-build inputs like appliances). The federal GST New Housing Rebate refunds 36% of the GST paid for owner-occupied new homes priced up to $350,000, with the rebate phasing out linearly to zero at $450,000. New homes priced at or above $450,000 receive no federal rebate under that original program — and because the $350,000 / $450,000 thresholds were set in 1991 and never indexed, virtually every new home in Metro Vancouver and the Fraser Valley sells above $450,000 and therefore qualifies for no rebate.

A developer's "GST inclusive" price does not necessarily account for the rebate. Many do — but the rebate is assigned to the developer at closing, and the buyer is on the hook to repay it if they don't actually owner-occupy or rent for at least one year (the federal "intended occupancy" test). Foreign nationals, corporations, and assignors often face the rebate clawback because they don't meet the occupancy test. Always confirm with your real estate lawyer whether the contract price is GST-inclusive or exclusive, and whether the rebate has been assigned. A "First-Time Home Buyers' GST Rebate" was enacted by Bill C-4 (Royal Assent March 12, 2026): for a qualifying first-time buyer it removes the full 5% GST on a new home up to $1,000,000 and reduces it on new homes from $1,000,000 to $1,500,000, to a maximum of $50,000, for purchase agreements entered on or after March 20, 2025 and before 2031.