First-time home buyer GST rebate in BC: what you need at closing

How much GST could you recover?

The federal first-time home buyers’ rebate can recover the GST on an eligible home valued up to $1 million, to a maximum of $50,000. The maximum falls between $1 million and $1.5 million; at $1.5 million or more, it is zero. Where the existing new housing rebate also applies, the first-time buyer rebate tops it up rather than paying the same GST twice.

Builder credit or later refund: the cash difference

If you and the builder agree to a rebate credit, the builder files the application. Ask your lawyer or notary to confirm the credit on the statement of adjustments. If the builder does not pay or credit the rebate, you apply yourself. For a typical house-and-land purchase, CRA gives you two years from ownership transfer to claim.

For the $900,000 example, $45,000 of potential relief is not necessarily $45,000 less to bring on closing day. With a confirmed closing credit, it can reduce the amount due. With a later refund, you need a plan for the GST payable first. Do not count both a builder credit and a second refund for the same relief.

Check the buyer and the property separately

CRA’s first-time buyer test includes age 18 or older, Canadian citizenship or permanent residency, and a primary-residence ownership lookback covering the current calendar year and the previous four. Your spouse or common-law partner’s ownership can matter, including a home outside Canada. Neither you nor your spouse or partner may have previously received this first-time buyer rebate. For a builder purchase, the buyer test is applied when ownership transfers.

• Confirm that the home is new or substantially renovated and will be your primary residence.
• Have all purchasers and ownership history reviewed before treating the rebate as available cash.
• A work permit or mortgage pre-approval alone does not establish eligibility for this tax rebate.

A presale closing in 2026 is not automatically eligible

For a qualifying purchase from a builder, the purchase agreement must generally be entered into on or after March 20, 2025 and before 2031. Construction must begin before 2031 and be substantially completed before 2036. An older contract does not become eligible just because the keys arrive later. Amendments, assignments, cancellations and replacement agreements need specific review; do not assume changing the paperwork creates entitlement.

• Bring the original agreement, amendments and assignment documents.
• Confirm the construction start and completion dates with the builder.
• Ask who is claiming the rebate, the application type and the deadline.

Keep four lines in your purchase budget

Use separate lines for the down payment, GST due, property transfer tax and other closing costs. A tax rebate does not replace the lender’s down-payment evidence or mortgage qualification. Ask the lender how the signed price, GST and any rebate credit are treated in your particular financing. Keep a reserve for adjustments and costs that are not covered by either rebate.