First-Time Home Buyer GST Exemption in BC

Buying your first home? The GST exemption could save you thousands

If you’re a first-time home buyer and considering a new build, there’s a GST exemption that can reduce—or in some cases completely remove—the 5% GST on your purchase. On a home around $800,000, that works out to roughly $40,000. For a lot of buyers, that can be the difference between making a move now or holding off.

I’ve actually been having this conversation a lot lately with clients who didn’t realize this was an option.

What is the GST exemption for first-time buyers?

The federal government introduced a GST exemption to help first-time buyers get into the market.

In simple terms:

• Homes valued up to $1,000,000 may qualify for a full GST exemption
• Homes between $1,000,000 and $1,500,000 may qualify for a partial exemption
• The maximum GST savings can be up to $50,000

Do keep in mind, this applies to new homes only, not resale properties.

What types of homes qualify for this exemption?

The GST exemption typically applies to:

• Brand new homes purchased from a builder
• Homes you build or hire someone to build
• Shares in a co-operative housing corporation

That’s why this is coming up more in areas like Juniper, Orchards Walk, and Sun Rivers where there’s more new construction.

Do you qualify?

Most buyers will qualify if:

• You’re at least 18 years old and a Canadian citizen or permanent resident
• You (and your spouse, if applicable) haven’t owned a home in the past four years
• The property will be your primary residence

If you’re not completely sure, it’s worth checking early so you know what options are actually available to you.

What this looks like with real numbers

Here’s a quick example:

Purchase price: $800,000
GST (5%): $40,000
Potential GST exemption: up to $40,000

In some cases, that can mean no GST at all.

Why this matters right now

It matters because this is starting to shift how some buyers are approaching their search.

Before, GST was just an extra cost you had to absorb. Now, with the exemption, some buyers are finding:

• they need less cash upfront
• more flexibility with their budget
• new builds are closer to resale pricing than expected

For some, it completely changes the plan. For others, it just opens up a few more options.

Frequently Asked Questions from clients

Does this apply to resale homes?
No, this doesn’t apply to typical resale homes. It’s limited to new builds, owner-built homes, or properties that have been substantially renovated.

Can you combine this with the BC Property Transfer Tax exemption?
Yes, in many cases you can qualify for both, depending on the purchase price and your eligibility.

Can I still qualify if I’ve owned a home before?
Possibly. If you haven’t owned a home in the last four years, you may still be considered a first-time buyer.

Thinking about buying?

If you’re not sure whether you qualify for the GST exemption, or you want to see how this plays out with real numbers, I’m happy to go through it with you. Sometimes it just comes down to seeing the numbers clearly before making a decision.

Talk soon!
Sarah

Sources and additional information

• Department of Finance Canada – GST relief for first-time home buyers
• Canada Revenue Agency – First-time buyer GST/HST rebate
• Canada Revenue Agency – GST/HST new housing rebate