GST Cut for First-Time Buyers: A Tailwind for Vancouver’s New Condo Market

A new federal policy promises tax relief for first-time homebuyers purchasing new homes, with Vancouver’s presale condo market among the prime beneficiaries.

Effective May 27, 2025, the Government of Canada will eliminate the Goods and Services Tax (GST) on newly constructed homes priced up to $1 million for eligible first-time buyers. Homes priced between $1 million and $1.5 million will see a phased-out rebate, with no relief beyond the $1.5 million threshold.

This is not merely a symbolic gesture. In a city where housing prices remain elevated and new builds often hover around the $1 million mark, the savings—up to $50,000—could tip the scale for buyers sitting on the sidelines.

What is GST on New Homes?

The GST is a 5% federal tax applied to most goods and services in Canada, including the purchase of new or substantially renovated homes. Resale homes are typically exempt. For new developments—whether high-rise condos in Brentwood or townhomes in South Vancouver—the GST is charged on top of the purchase price and is often a surprise cost for first-time buyers unfamiliar with new construction taxation.

Until now, the only GST relief available was through the GST New Housing Rebate, which was limited to homes under $450,000—a price point effectively irrelevant in Vancouver’s condo market. The updated policy finally adjusts to contemporary realities.

Find out how much GST you would pay on a new home with this calculator for GST on New Homes.

Eligibility Criteria: Who Qualifies?

To qualify for the new GST relief:

• Buyers must be first-time homeowners, defined as not having owned a home in Canada in the past four years.
• They must be Canadian citizens or permanent residents.
• They must be 18 years or older.
• The home must be intended as the buyer’s primary residence.
• The purchase agreement must be signed on or after May 27, 2025.
• Construction must begin before 2031 and reach substantial completion by 2036.

The policy applies to a range of property types: new condos, townhomes, laneway houses, and co-operative housing shares, provided they are new builds and not resales.

Ready to take advantage of the GST rebate?

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Why It Matters for Vancouver’s New Condo Market

VancouverNewCondos.com has tracked the shift in buyer sentiment over the years. Today’s young professionals are priced out of the detached housing market and are increasingly turning to presale condos as a viable entry point. Projects like Oakridge Park, Concord Metrotown, and The SkyTrain-adjacent towers in Brentwood now fall within the rebate range, especially for one- and two-bedroom configurations.

The GST relief may also shift developer strategy. With enhanced appeal to first-time buyers, developers could refocus on smaller unit mixes, phase launches, and ramp up projects that were previously delayed due to muted presale demand. It also creates new momentum for underperforming launches and yet-to-be-announced mid-rise projects.

Strategic Timing for Buyers and Builders

For buyers, the opportunity is clear: lock in a presale unit at or under $1 million and receive a full rebate on GST. At this price tier, especially outside the downtown core, buyers will find a wider selection of new inventory—without compromising on transit access, build quality, or long-term upside.

For developers, marketing campaigns that explicitly incorporate the tax savings—and recalculate post-GST pricing—will likely gain traction. Expect renewed interest in projects in transit-oriented zones like Burquitlam, Marine Gateway, and Surrey City Centre.

Conclusion: Policy with Teeth

The GST relief initiative, while imperfect in its thresholds, represents one of the more tangible affordability measures in years. It aligns with Vancouver’s densification goals and supports housing starts in a market where supply lags persist. For first-time buyers eyeing the new condo market, the window to act has opened—if only for a while.

Frequently Asked Questions About GST Rebates and Vancouver Condos

What is the GST rebate for first-time buyers?

As of May 27, 2025, first-time homebuyers can receive a full rebate on the 5% GST for new homes priced up to $1 million, with a reduced rebate up to $1.5 million.

Do resale homes qualify for the GST rebate?

No. GST is only charged—and therefore only rebated—on newly constructed or substantially renovated homes, not on resale properties.

Which new condos in Vancouver qualify for the rebate?

Any new or pre-construction condo priced under $1.5 million may qualify, depending on the purchase date and other buyer eligibility criteria.

How much could I save?

For homes priced near $1 million, the GST rebate can save you up to $50,000—substantially reducing your closing costs or upfront cash required.

Does this apply to presale condo projects?

Yes. Most presale projects are eligible as long as construction begins before 2031 and completes by 2036, and the buyer meets first-time ownership criteria.