Presale Pro Tip Series: GST, Closing Costs, and Other Expenses Presale Buyers Forget to Budget For
Why Extra Costs Catch Buyers Off Guard
When buying a presale, it’s easy to focus on the sticker price. But when closing day comes, there’s a list of additional costs that need to be paid in full — and they can add up quickly.
Failing to budget for them can turn an exciting move-in into a stressful scramble for funds.
The Big One: GST on New Homes
In BC, all new construction homes are subject to 5% GST on the purchase price, unless you qualify for a government rebate.
- Rebate eligibility depends on the home’s price and whether you’ll use it as your principal residence.
- The rebate threshold and qualification rules are set by the federal government and can change over time — always confirm the current limits before you buy.
- UPDATE: Check out our blog on the Government's new 2025 ruling on GST exemptions for new construction HERE>>
- GST is due on completion, not at the time of contract signing.
- If you’re buying as an investment property, principal residence rebates don’t apply.
Other Common Closing Costs
- Property Transfer Tax (PTT)
- Calculated as a percentage of the purchase price, with higher rates for higher-value homes.
- First-time buyer exemptions may apply, but eligibility for presales depends on occupancy timelines.
Note: These exemption amounts and qualifications are set by the BC government and are subject to change. Always confirm the current rules before you buy.
- Legal Fees & Disbursements
Typically $1,000–$2,000 for conveyancing, title searches, and registering the property. - Adjustments
These can include prepaid strata fees, property taxes, or utility deposits, reimbursed to the developer. - Home Warranty Insurance
Required in BC and usually included in the purchase price — but confirm in your contract. - Moving & Setup Costs
Movers, insurance, furniture, blinds, and appliance upgrades can add up fast.
Local Insight: North Shore Presales
North Shore presale buyers face one unique budget factor: higher average purchase prices. That means both GST and Property Transfer Tax amounts are often larger, and PTT rebates are less likely to apply.
Additionally, some premium projects here include upgraded finishes or amenity packages that increase the taxable purchase price — something to confirm before signing.
Pro Tip: Budget Beyond the Purchase Price
Work with your realtor (and mortgage broker) to calculate a realistic total cost of purchase, factoring in GST, PTT, legal fees, and adjustments. Knowing your full financial picture in advance means no nasty surprises on closing day — and ensures you’re ready for the true cost of ownership.
Thinking of Buying a Presale on the North Shore?
Let’s make sure you’re getting the right unit, in the right project, at the right time — with no surprises. Reach out for expert guidance on North Vancouver and West Vancouver presales, and let’s walk through your options together.
