Cost of Buying
What it costs to buy a new home in BC
The list price is not the price. Here is every other dollar, where each one comes from, and the two exemptions that can remove most of the tax if you qualify.
The short answer
Beyond the list price you pay GST at 5% on a new home, property transfer tax, a down payment, and closing costs. Two exemptions can remove most of the tax: the first-time home buyers' GST rebate, worth up to $50,000, and the newly built home property transfer tax exemption. Their thresholds do not line up, so the total steps rather than rises.
- GST on a new home
- 5%
- First-time buyer GST rebate
- up to $50,000
- PTT exemption, new home
- to $1,100,000
- Insured mortgage cap
- $1,500,000
New: the first-time buyers' GST rebate
Bill C-4 received Royal Assent on 12 March 2026 and this rebate is open now. A qualifying first-time buyer can recover up to 100% of the GST on a newly built home, capped at $50,000, at a price of $1,000,000 or below. Between there and $1,500,000 the maximum reduces on a straight line, and above that there is nothing. The test for who counts as a first-time buyer is stricter than most people assume, and the rebate page works through it.
The total does not rise smoothly
Three thresholds sit at three different prices and none of them line up. The result is that the tax and cash you need step up at several points by far more than the price change that triggered them. These four examples straddle the steps.
A $900,000 newly built home
| Minimum down payment Cash, before anything else. | $65,000 |
|---|---|
| GST at 5% | $45,000 |
| First-time buyer GST rebate If you qualify. The test is stricter than it sounds. | -$45,000 |
| Property transfer tax Fully exempt under the newly built home exemption. Would otherwise be $16,000. | $0 |
| Cash and tax, before legal fees | $65,000 |
A $1,100,000 newly built home
| Minimum down payment Cash, before anything else. | $85,000 |
|---|---|
| GST at 5% | $55,000 |
| First-time buyer GST rebate If you qualify. The test is stricter than it sounds. | -$40,000 |
| Property transfer tax Fully exempt under the newly built home exemption. Would otherwise be $20,000. | $0 |
| Cash and tax, before legal fees | $100,000 |
A $1,400,000 newly built home
| Minimum down payment Cash, before anything else. | $115,000 |
|---|---|
| GST at 5% | $70,000 |
| First-time buyer GST rebate If you qualify. The test is stricter than it sounds. | -$10,000 |
| Property transfer tax Newly built home exemption does not reach this price. | $26,000 |
| Cash and tax, before legal fees | $201,000 |
A $1,600,000 newly built home
| Minimum down payment Cash, before anything else. | $320,000 |
|---|---|
| GST at 5% | $80,000 |
| First-time buyer GST rebate No rebate available at this price. | $0 |
| Property transfer tax Newly built home exemption does not reach this price. | $30,000 |
| Cash and tax, before legal fees | $430,000 |
Legal fees, title insurance, and adjustments are excluded because they vary by lawyer and by transaction. The GST rebate line assumes you meet the first-time buyer conditions; if you do not, that line is zero and the older GST new housing rebate may apply instead.
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How these figures are kept honest
Every rate, threshold, and exemption in this hub was read off the government or regulator page rather than written from memory, and each page names its sources with the date they were checked. These rules change by legislation rather than with the market, so the whole hub is on a quarterly re-check. Where an outcome depends on your personal circumstances, the pages send you to the source instead of implying a certainty we do not have.
Common questions
What do you pay beyond the list price of a new home?
GST at 5%, property transfer tax, the down payment, legal fees, title insurance, and adjustments. On a new home the GST and the property transfer tax are usually the two largest, and both can be reduced or removed entirely by an exemption if you qualify.
What is the biggest saving available?
For a qualifying first-time buyer, the GST rebate, worth up to $50,000 on a home at or below $1,000,000. It received Royal Assent in March 2026 and applications are open. Separately, the newly built home exemption can remove property transfer tax entirely below its own threshold.
Why does the total cost jump at certain prices?
Because three thresholds sit at three different prices and none of them line up. The GST rebate ends at $1,500,000, the newly built home property transfer tax exemption ends at $1,150,000, and mortgage insurance stops at $1,500,000. Crossing any of them costs far more than the price change that triggered it.
Can any of this go on the mortgage?
Property transfer tax, legal fees, and adjustments are cash at closing and cannot be financed. GST forms part of the purchase price for financing purposes, so its treatment differs. Confirm with your broker on the specific purchase.
How current are these rules?
Every rate, threshold, and exemption on this hub was read from the government or regulator page and the source is named at the foot of each page with the date it was checked. They change by legislation rather than by market, and the hub is re-checked quarterly. Market figures were last measured on 7 September 2026.
Where these figures come from
- Canada Revenue Agency, first-time home buyers' GST/HST rebate
Up to 100% of GST recovered to a maximum of $50,000 at or below $1M, reducing on a straight line to nothing at $1.5M. Royal Assent 12 March 2026.
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- Canada Revenue Agency, GST/HST new housing rebate
GST applies to new homes. The rebate reduces it on qualifying purchases.
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- Government of BC, property transfer tax rates
1% to $200,000, 2% to $2M, 3% above $2M, plus a further 2% on residential value above $3M.
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- Government of BC, newly built home PTT exemption
Full exemption at $1,100,000 or less, partial to $1,150,000. Effective 1 April 2024.
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- Government of BC, first time home buyers' PTT exemption
Full exemption at $835,000 or less, partial to $860,000. Effective 1 April 2024.
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- CMHC, mortgage loan insurance for consumers
Insurance is unavailable at a purchase price of $1.5M or more, where 20% down is required.
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- CMHC, mortgage loan insurance premiums
2.80% at 80.01 to 85% LTV, 3.10% to 90%, 4.00% to 95%.
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- Government of BC, home owner grant
Reduces annual property tax on a principal residence, subject to an assessed value threshold.
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- Government of BC, speculation and vacancy tax
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- BC Assessment
Assessed values, which drive the municipal property tax bill.
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Work the numbers on a real home
Every figure here comes from government sources and from listings you can open. Search the market and check the costs against a specific price rather than a hypothetical one.