Quick answer: Yes. First-time home buyers who buy a new or substantially renovated home can get back 100% of the GST, up to $50,000, when the home is valued at $1 million or less. The rebate shrinks between $1 million and $1.5 million and ends at $1.5 million. BC charges only 5% GST on new homes, so many new condos and townhomes in Surrey can end up with no federal GST at all.
If you’re shopping for a new condo, townhouse or home in Surrey, Langley or Delta, you’ve seen “plus GST” next to the price. On a $900,000 home, that’s $45,000 on top of the price. A new federal rebate for first-time buyers can erase most or all of it.
But the rebate has rules, and it doesn’t change how your mortgage works. Here’s what first-time buyers in Surrey and the Lower Mainland need to know before signing a contract.
What Is the First-Time Home Buyer GST Rebate?
The First-Time Home Buyers’ GST Rebate is a federal rebate for people buying their first new home. It became law in March 2026 under Bill C-4, the Making Life More Affordable for Canadians Act. It acts as a top-up to the older GST/HST New Housing Rebate, which only helped on homes priced under $450,000.
It covers newly built and substantially renovated homes: condos, townhomes and detached houses bought from a builder, plus homes built on your own land. It does not apply to resale homes, which usually don’t carry GST in the first place.
BC has no HST. Buyers pay 5% GST on a new home, so the rebate can cover the full amount on homes up to $1 million.
How Much Can You Get Back?
Homes valued up to $1 million get the full rebate, to a maximum of $50,000. Between $1 million and $1.5 million, the maximum drops in a straight line, by $10,000 for every $100,000 over $1 million. At $1.5 million or more, there is no rebate.
| New home price | GST at 5% | Rebate | GST you still pay |
|---|---|---|---|
| $700,000 | $35,000 | $35,000 | $0 |
| $1,000,000 | $50,000 | $50,000 | $0 |
| $1,250,000 | $62,500 | $25,000 | $37,500 |
| $1,400,000 | $70,000 | $10,000 | $60,000 |
| $1,500,000+ | $75,000+ | $0 | Full GST |
Examples are estimates based on the price before GST. The CRA’s rules and your builder’s contract decide the final number.
Who Qualifies?
You can generally claim the rebate if:
- You’re a Canadian citizen or permanent resident.
- Neither you nor your spouse or common-law partner has lived in a home you owned in the current year or the four calendar years before.
- Neither of you has claimed this rebate before.
- You buy in your own name, not through a corporation or partnership.
- The home meets the usual new housing rebate rules, which generally means it’s meant to be your main home.
- The home is valued under $1.5 million.
The CRA also sets a cut-off date for when your purchase agreement was signed. Confirm yours with your builder or lawyer before you count on the rebate.
When Do You Actually Get the Money?
It depends on your contract and your builder:
- Builder credit at closing. Your builder may apply the rebate on your completion statement, which lowers the cash you bring on closing day.
- Claim from the CRA. If the builder doesn’t credit it, you pay the GST first and apply to the CRA, using its builder-purchase rebate form (GST190). Some buyers have reported waits of up to six months, and claims can be audited, so keep every document.
Ask your builder in writing which route applies before you sign. It changes how much cash you need on completion day.
How the Rebate Fits With Your Mortgage
The rebate lowers your tax bill. It doesn’t replace your down payment, and lenders still qualify you the same way. Here’s what matters on the mortgage side.
- Down payment rules still apply. The minimum is 5% of the first $500,000 and 10% of the amount between $500,000 and $1.5 million. Our guide on how much down payment you need for a first-time home buyer mortgage walks through the numbers.
- New-build buyers get longer amortizations. First-time buyers and buyers of new builds can use a 30-year amortization on insured mortgages, and the insured price cap is $1.5 million. A longer amortization lowers your monthly payment and can help you pass the stress test.
- The stress test still applies. Lenders qualify you at the higher of 5.25% or your contract rate plus 2%.
- Presales need a plan. If you sign a presale today, you may not close for two or three years. Pre-approval rate holds usually last up to 120 days, so you’ll need to re-qualify close to completion. A new car loan, a job change or a dip in your credit score can change that approval. See why your pre-approval amount isn’t your real home-buying budget.
- Other savings can stack. The FHSA, the RRSP Home Buyers’ Plan, and BC’s property transfer tax exemptions for first-time and new-home buyers may work alongside the GST rebate. Confirm current limits with your mortgage broker Surrey.
If you’re new to the process, start with our guide on how first-time home buyers mortgage in Surrey get approved.
New Builds in Surrey, Langley and Delta
New construction is spread across the region: Clayton Heights, Fleetwood, Cloverdale, South Surrey and City Centre in Surrey, Willoughby in Langley, and North Delta. Buyers in White Rock, Burnaby and Coquitlam are looking at new builds too.
The market gives you room to compare. In July 2026, the Fraser Valley Real Estate Board reported an apartment and condo benchmark price of $469,500, down 9.1% from a year earlier. Active inventory was about 32% above the 10-year seasonal average.
That means you can price a resale condo against a new one. A resale home has no GST. A new home has GST, but the rebate may wipe it out. Run both sets of numbers before you choose. Not sure where to start? Read what to ask before buying your first home in Surrey.
Mistakes to Avoid
- Assuming a resale home qualifies. It doesn’t.
- Buying through a company or partnership.
- Forgetting that a spouse’s past home ownership can affect your eligibility.
- Counting the rebate as part of your down payment.
- Not asking the builder how the rebate is handled.
- Skipping a lawyer’s review of the purchase contract.
Planning to Buy a New Build in Surrey? Contact Neeraj Kathuria
Buying your first home involves more than understanding the GST rebate. Neeraj Kathuria can help you explore mortgage options, assess your borrowing capacity, and prepare for the down payment and closing costs associated with a new-build purchase. Contact Mortgage Broker Neeraj Kathuria to discuss your mortgage financing options and plan your next steps with confidence.
Call Neeraj Kathuria at (604) 353-5432 to discuss your first-home financing options.
Frequently Asked Questions
How much is the rebate on a $1.25 million new home?
About $25,000. Homes up to $1 million get the full rebate, up to $50,000. Between $1 million and $1.5 million the maximum drops in a straight line, and at $1.5 million it's zero. A $1.25 million home sits at the midpoint, so you get half of the maximum.
Can I qualify if my spouse has owned a home before?
It depends on when. The test looks at whether you or your spouse or common-law partner lived in a home that either of you owned this year or in the previous four calendar years. A spouse who already claimed the rebate also blocks a new claim. Check with your lawyer or accountant before you sign.
Will the builder give me the rebate at closing, or do I apply to the CRA?
It depends on your builder and your contract. Some builders credit it at closing. If yours doesn't, you pay the GST first and claim it from the CRA, which can take months. Ask for the answer in writing.
Can I use the GST rebate as part of my down payment?
No. Lenders want to see your down payment come from your own savings or other approved sources. Presale deposits are also due long before the rebate is credited or paid, so plan your savings and deposit schedule separately.