On March 12, 2026, Bill C-4 — the “Making Life More Affordable for Canadians Act” — received Royal Assent. Among several affordability measures, the headline provision for housing is the elimination of GST for first-time home buyers on newly built homes priced up to $1,000,000.
This is now law. CRA is accepting applications. Here's what it means for buyers in BC and across Canada.
What Just Happened
Bill C-4 passed through the House of Commons and Senate, and received Royal Assent on March 12, 2026. The bill includes several provisions aimed at reducing the cost of living, but the biggest impact for homebuyers is the new GST exemption.
- The exemption applies to purchase agreements signed on or after March 20, 2025
- Full GST exemption on new homes up to $1,000,000 — saving up to $50,000
- Sliding scale for homes between $1,000,000 and $1,500,000
- No exemption above $1,500,000
- Eligible agreements must be signed by December 31, 2030
Key Takeaway
What It Means for Buyers
Here's what the savings look like at common new-build price points in BC:
| Purchase Price | GST (5%) | First-Time Buyer Savings | Net GST |
|---|---|---|---|
| $500,000 | $25,000 | $25,000 | $0 |
| $600,000 | $30,000 | $30,000 | $0 |
| $750,000 | $37,500 | $37,500 | $0 |
| $900,000 | $45,000 | $45,000 | $0 |
| $1,000,000 | $50,000 | $50,000 | $0 |
| $1,250,000 | $62,500 | $25,000 | $37,500 |
| $1,500,000 | $75,000 | $0 | $75,000 |
For homes between $1,000,000 and $1,500,000, the rebate is calculated on a sliding scale using the formula: Rebate = $50,000 × ($1,500,000 − Price) ÷ $500,000.
💡 Resale Homes Are Already GST-Exempt
Other Provisions in Bill C-4
While the GST exemption is the biggest news for homebuyers, Bill C-4 includes several other affordability measures:
- Income tax reduction: The lowest federal tax bracket drops from 15% to 14%, reducing taxes for all Canadians
- Fuel charge removed: The consumer carbon price is eliminated as of April 1, 2025
- Grocery benefit: A one-time payment for lower-income Canadians to offset food costs
What to Do Now
If you're a first-time buyer in BC considering a new-build purchase, here's what you should do:
- Check your agreement date: The exemption applies to agreements signed on or after March 20, 2025. If you already signed, you may be eligible
- Confirm your eligibility: You must be at least 18, a Canadian citizen or PR, and not have owned a home as your primary residence in the current year or the past 4 calendar years
- Talk to your builder: Most builders will assign the GST rebate at closing, meaning you never pay the GST in the first place
- Contact CRA if needed: If your builder already charged you GST, you can apply directly to CRA for a refund (GST/HST Rulings: 1-800-959-8287)
✅ Full Guide Available
I help first-time buyers in Surrey and the Fraser Valley navigate these incentives. Have questions about whether you qualify or how to claim the exemption? Reach out — I'm happy to help.
Have Questions About the GST Exemption?
Have Questions About the Market?
Whether you're thinking about buying, selling, or just want to understand what's happening in Surrey real estate — I'm here to help.
