If you have been watching the North Shore presale market this year, you have probably heard people talking about a new GST rebate. It is one of the biggest changes to hit new construction buyers in years, and it is worth understanding before you put a deposit down on a project like Parkside at Lynn or Morrison on the Park.GST Still Applies to New Construction
Here is the part that catches a lot of buyers off guard: resale homes in BC are exempt from GST, but presale and other new construction purchases are not. A 5% federal GST applies to the purchase price of a new condo, townhome, or spec built house. It is one of the real trade offs of buying new versus buying an existing home, and it is worth factoring into your budget from day one.
The New First Time Buyer Relief
In 2026, a new First Time Home Buyers GST Rebate came into effect for agreements signed on or after March 20, 2025. It changes the math significantly for eligible buyers:
* Purchases up to $1,000,000 can qualify for a full GST rebate, worth as much as $50,000
* Between $1,000,000 and $1,500,000, the rebate phases out on a sliding scale
* Above $1,500,000, there is no rebate available
To qualify, the purchase agreement has to be dated on or after March 20, 2025, and buyers need to meet ownership history requirements that go back several years. Because eligibility rules can be detailed and change with federal budgets, I always recommend confirming your specific situation with your mortgage broker or accountant before you write an offer. I am happy to connect you with people I trust on the North Shore.
How Presale Deposits Actually Work
Unlike a resale purchase, where you typically put down 5% with your offer and are done, a presale purchase spreads your deposit out over the construction timeline. A common structure looks something like this:
* An initial deposit with your offer, often in the $5,000 to $10,000 range
* An additional installment shortly after your offer is accepted
* Further installments at set intervals, often every six months, until you reach a total deposit of roughly 15 to 25 percent of the purchase price
This staged structure is one of the reasons presale can be appealing if you are planning ahead. You are not committing your full down payment on day one, which gives you time to save while the building goes up.
Know the Risks Before You Commit
Presale buying comes with real protections under BC's Real Estate Development Marketing Act, including a mandatory disclosure statement from the developer and a seven day rescission period after you sign, during which you can walk away without penalty. That said, presale still carries risks that resale does not, including construction delays, changes to final finishes, and the possibility a project does not proceed at all. If you are considering an assignment, meaning selling your contract before the building completes, that comes with its own tax and timing complications worth planning for in advance.
Is Presale Right for You?
Presale makes the most sense for buyers who can plan several years ahead, who want a brand new home with a full warranty, and who are comfortable with some uncertainty in exchange for potential appreciation during the build period. Resale tends to suit buyers who want certainty now, who want to see exactly what they are getting, and who are not able to take advantage of the new GST relief because of the price point or ownership history rules.
Every situation is different, and the right answer depends on your timeline, your budget, and how much risk you are comfortable carrying. If you are trying to decide between a presale project on the North Shore and something on the resale market, I would love to walk through the numbers with you and help you figure out which path gets you into your happy home sooner.
Let's Unlock Your Happy.
Figures reflect rules as of mid 2026 and should be confirmed with a mortgage or tax professional before you rely on them for a purchase decision.
