On March 12, 2026, Bill C-4 — the Making Life More Affordable for Canadians Act — received Royal Assent and became law. For first-time buyers purchasing new construction on Vancouver Island, one provision stands out: the federal GST on newly built homes is now eliminated for eligible buyers on homes up to $1,000,000, with savings of up to $50,000. This is the most significant federal housing affordability measure in years.
What the Rebate Does
Canada charges a 5% Goods and Services Tax on the purchase of newly constructed homes. On a $900,000 new build, that adds $45,000 to your purchase price — on top of your down payment, property transfer tax, legal fees, and inspection costs. Bill C-4 eliminates that tax entirely for qualifying first-time buyers on homes priced up to $1,000,000. For homes between $1,000,000 and $1,500,000, the rebate phases out on a sliding scale. At $1,500,000 the rebate reaches zero.
Rebate at a Glance
- Home price up to $1,000,000 — full GST rebate, up to $50,000
- Home price $1,000,000–$1,500,000 — partial rebate, sliding scale
- Home price above $1,500,000 — no rebate
- Resale homes — not applicable (resale homes are not subject to GST)
New construction in Langford, Colwood, and Saanich is where Victoria buyers are most likely to benefit from the Bill C-4 GST rebate.
Who Qualifies
The rebate applies to first-time buyers purchasing newly constructed or substantially renovated homes. To be eligible you must meet all of the following conditions at the time ownership transfers:
- You are at least 18 years of age
- You have never previously owned a home in Canada — or, if you have a spouse or common-law partner, neither of you has owned a home that you occupied as your principal place of residence
- You intend to occupy the home as your primary place of residence
- The agreement of purchase and sale was entered into on or after March 20, 2025, and before January 1, 2031
- Construction or substantial renovation begins before 2031 and is substantially complete before 2036
- Ownership transfers to you before 2036
The CRA is now able to begin processing rebate claims following Royal Assent on March 12, 2026.[1]
Rebate Amounts by Purchase Price
| Purchase Price | GST at 5% | Rebate Amount | Net GST Payable |
|---|---|---|---|
| $600,000 | $30,000 | $30,000 | $0 |
| $800,000 | $40,000 | $40,000 | $0 |
| $1,000,000 | $50,000 | $50,000 (maximum) | $0 |
| $1,250,000 | $62,500 | $25,000 (50% phase-out) | $37,500 |
| $1,500,000+ | $75,000+ | $0 | Full GST applies |
What This Means for Victoria Buyers
The rebate is most impactful in markets like Victoria where new construction prices frequently sit between $700,000 and $1,100,000. Langford, Colwood, Sidney, and parts of Saanich have active new construction pipelines — condos, townhomes, and single-family homes — where first-time buyers are most likely to benefit.
Combined Savings Example — Victoria First-Time Buyer
A first-time buyer purchasing an $800,000 new townhome in Langford could stack two programs: the Bill C-4 GST rebate ($40,000) plus the BC Property Transfer Tax first-time buyer exemption (partial, up to $8,000 on the first $525,000). Combined potential savings: up to $48,000 — before factoring in FHSA or Home Buyers' Plan RRSP contributions toward the down payment.
A few practical notes specific to BC buyers:
- BC does not charge PST on new residential construction, so the 5% federal GST is the only consumption tax on new homes here. Unlike Ontario, there is no provincial HST component — the federal rebate covers the entire tax amount for eligible buyers.
- The rebate is separate from BC's PTT exemption. As a first-time buyer in BC you also pay zero Property Transfer Tax on homes up to $500,000, with a partial exemption up to $525,000. These programs can be stacked.
- Pre-sale agreements signed after March 19, 2025 qualify.If you signed a pre-sale agreement last year and haven't yet taken possession, your purchase may already be eligible once you close. Confirm with your real estate lawyer.
- Resale is unaffected. The vast majority of Victoria MLS listings are resale properties. GST does not apply to resale homes, and this legislation does not change that.
How to Claim the Rebate
There are two common scenarios for how the rebate is received:
Two Ways to Receive the Rebate
Builder assigns the rebate at closing
Many builders apply the rebate on behalf of eligible buyers and reduce the purchase price accordingly. This is already common practice under the existing GST new housing rebate. Your lawyer will confirm the treatment in your specific contract.
Buyer claims directly with CRA
If the builder does not assign the rebate, you file a claim with the CRA after closing using the updated rebate forms now being published following Royal Assent. Work with your accountant to ensure the claim is properly documented.
The Rest of Bill C-4
The GST rebate is the provision most relevant to real estate, but Bill C-4 contains three other measures worth knowing about:
Middle-Class Income Tax Cut
The federal marginal income tax rate on the lowest bracket was reduced from 15% to 14.5% for 2025 and to 14% for 2026 and subsequent years — applying to taxable income up to $58,523 in 2026. Savings are up to $420 per person or $840 for two-income households.[2]
Federal Consumer Fuel Charge Eliminated
The consumer carbon price, cancelled effective April 1, 2025, is now permanently removed from federal legislation. Gasoline prices have dropped by up to 18¢/L compared to 2024–2025 levels. Industrial carbon pricing remains in place.
Canada Groceries and Essentials Benefit
Replacing the former GST Credit, this benefit pays families of four up to $1,890 in the current year and approximately $1,400 annually for the following four years. Single Canadians receive up to $950 this year, delivered automatically through the CRA.
Buying a New Build on Vancouver Island?
If you are considering new construction in Greater Victoria — Langford, Colwood, Saanich, Sidney, or elsewhere on Vancouver Island — the GST rebate is one more reason to run the numbers carefully. Contact Dallas King at (250) 858-5465 or browse active new construction listings at IslandSold.com.
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