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 April 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.
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.
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.
| 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 |
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 44+ years
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.
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.
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.
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.
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.
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.
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).
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.
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.
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.
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.
BCFSA-licensed REALTOR® (V99960). 44+ years Tri-Cities. Top 2% Nationwide Team. 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.