The short answer
The Headline Math: Why New Construction Got Cheaper in 2026
Until March 2026, GST was a major reason most first-time buyers in BC defaulted to resale. A new $800,000 townhome carried $40,000 in GST on top of the purchase price. A resale townhome at the same price carried none. That was a $40,000 head start for resale, every single time.
That math is gone. Bill C-4 received Royal Assent on March 12, 2026, and the new first-time buyer GST exemption is now law. Eligible buyers pay $0 GST on newly built homes priced up to $1,000,000, with a sliding scale up to $1,500,000. The maximum benefit is $50,000.
✅ Bill C-4 is in effect
| Feature | $800K New Home (Before March 2026) | $800K New Home (After March 2026, FTB) |
|---|---|---|
| Purchase price | $800,000 | $800,000 |
| GST payable | $40,000 | $0 |
| Total to finance | $840,000 | $800,000 |
| FTB benefit | $0 | $40,000 saved |
Key Takeaway
When New Construction Wins (And By How Much)
For an FTB shopping the under-$1M price band in Surrey and the Fraser Valley, the four presales I track most closely all qualify for the full GST exemption. Here is what each one actually saves a first-time buyer at the starting price:
| Project | Location | Starting Price | GST Saved (FTB) |
|---|---|---|---|
| Queens at King George | Surrey (Newton) | $744,990 | $37,250 |
| Bromley | Langley | $799,900 | $39,995 |
| Charlton | Cloverdale | $829,900 | $41,495 |
| Renfrew South | Langley | $869,900 | $43,495 |
Queens at King George is a 3,478-home master-planned community by Dawson + Sawyer in Newton, with townhomes selling now from $744,990 and condo phases launching through 2037. Bromley by Leone Homes offers 3-bedroom townhomes from $799,900 with tandem garages, and 4-bedroom plans from $849,900 with double garages. Charlton by Warwickshire Homes is a boutique Cloverdale collection with three plans from $829,900. And Renfrew South by Castlehill Homes brings Belgian farmhouse-inspired townhomes from $869,900.
Run your own numbers
See exactly what you'd save on any new home in BC with the first-time buyer toggle.
When Resale Still Wins
I am not going to pretend new construction is the right call for every first-time buyer. There are real reasons to choose resale even with the GST math now flipped in favour of new.
- More square footage per dollar. Resale townhomes in Cloverdale, Fleetwood, and central Langley often offer 1,600 to 1,900 sq ft at the same price as a 1,250 to 1,450 sq ft presale. If space matters more than finishes, resale usually wins.
- Move in within 60 to 90 days. Presale completions are 2 to 4 years out. If you are renting, your landlord is selling, or your family situation requires a quick move, resale is the only path.
- Known strata, mature trees, settled neighbours. A 10-year-old townhome complex has a known monthly fee history, completed landscaping, and a track record of how the council runs. A new build has none of that for the first few years.
- No construction risk. Delays, downscoped features, and market shifts between contract signing and completion are all real. The GST savings only materialize at closing — you carry the risk in between.
- Capital flexibility. A presale ties up 5 to 15 percent of the purchase price for years before you get the keys. Resale lets you close in 60 to 90 days, then put your remaining savings to work.
Key Takeaway
The Full Cost Stack: $830K Head-to-Head
Here is the same purchase price compared two ways: a new build (using Charlton in Cloverdale as the reference) versus a comparable Cloverdale resale townhome. Both buyers are first-time buyers in BC putting 10 percent down.
| Feature | $830K Charlton (New Build) | $830K Cloverdale Resale |
|---|---|---|
| Purchase price | $830,000 | $830,000 |
| GST (FTB exemption applies to new only) | $0 | $0 |
| BC PTT (full FTB exemption under $835K) | $0 | $0 |
| Notary/legal fees (estimate) | $1,800 | $1,800 |
| Title insurance + adjustments | $1,200 | $1,200 |
| CMHC insurance (10% down) | $23,684 | $23,684 |
| GST on CMHC insurance (5%) | $1,184 | $1,184 |
| BC Home Owner Grant (Year 1) | −$570 | −$570 |
| Net 'at the keys' cost (excluding down payment) | $3,614 | $3,614 |
💡 Why the at-keys totals match
Now run the same comparison at $920,000 — a more typical Cloverdale price band:
| Feature | $920K New Build (FTB) | $920K Resale (FTB) |
|---|---|---|
| Purchase price | $920,000 | $920,000 |
| GST | $0 (FTB exemption) | $0 (resale always exempt) |
| BC PTT (partial — phases out above $835K) | −$6,800 saved | −$6,800 saved |
| PTT actually paid | $11,600 | $11,600 |
| GST you would have paid without FTB exemption | Saved $46,000 | N/A |
| True FTB benefit vs. non-FTB new buyer | $52,800 | $6,800 |
Key Takeaway
Deposit Structure: The Part Most First-Time Buyers Underestimate
Resale deposits are simple. You hand over 5 percent (sometimes more) at offer-accepted, your deposit sits in the seller's brokerage trust account, and you close in 30 to 90 days.
Presale deposits are staged. A typical Surrey or Fraser Valley presale takes deposits in three or four steps:
- 5 percent at contract signing (the day you write).
- Another 5 percent at the 6-month mark.
- Another 5 percent at 12 months (some projects).
- Balance of the down payment at completion, 2 to 4 years later.
For an FTB, the staged structure is often a quiet advantage. You can buy a more expensive presale than you could afford today, because you have 2 to 4 years to save the balance of the down payment while you wait for the build to finish.
✅ The FHSA pairs perfectly with presales
See your down payment scenarios
Run different down payment percentages against any purchase price.
The Mortgage Math: What Changes Between New and Resale
Both new construction and resale qualify for high-ratio CMHC insured mortgages if you put down between 5 and 19.99 percent. The mortgage stress test applies equally — you qualify at the contract rate plus 2 percent, or 5.25 percent, whichever is higher. The qualifying math is the same.
What is different is timing. On a resale, you typically have a firm mortgage commitment and a rate hold of 60 to 120 days locked in at offer-accepted. The lender knows the exact property, the appraisal is current, and the file moves to closing on a predictable timeline.
On a presale, the mortgage approval process is split. At contract signing, most buyers get a soft pre-approval. The actual mortgage commitment with a rate hold gets locked in 90 to 120 days before completion — sometimes 2 or 3 years after you wrote your offer. If rates have moved significantly in the meantime, your qualification math can change.
Key Takeaway
Check what you qualify for
Run your income and down payment against current BC mortgage rates.
Future Value: New vs. Resale Appreciation
The honest answer here is that no realtor or developer can promise you appreciation numbers, so I will keep this section short.
Looking at the Fraser Valley over rolling 10-year periods, resale townhomes have appreciated roughly 4 to 6 percent per year on average. New builds depend on the spec, the developer's reputation, and the state of the market in the completion year. There is usually a settling-in period of 2 to 3 years post-completion where new inventory in the immediate area gets absorbed and prices flatten before tracking the broader market again.
Well-located townhomes in Cloverdale, central Langley, and Surrey transit-corridor neighbourhoods have generally tracked resale appreciation within a few percentage points over the long run. If you are buying to live in for 7+ years, the difference becomes noise. If you are buying to flip at completion, presale carries more risk.
Decision Framework: Which Is Right for You?
✅ Buy new construction if...
💡 Buy resale if...
⚠️ Wait if...
How to Claim the GST Exemption in 3 Steps
The exemption is straightforward to claim, but the paperwork has to be done at the right stage. Here is what every FTB client of mine goes through:
- Step 1 — Declare at deposit signing. Tell the developer's sales rep you are a first-time buyer when you sign the contract. They flag your file for the exemption from day one.
- Step 2 — Submit FTB documentation to your conveyancing lawyer pre-closing. About 30 to 60 days before completion, your lawyer prepares an FTB declaration and supporting documents (proof of citizenship/PR status, no prior home ownership attestation, BC residency proof).
- Step 3 — Builder applies the exemption at closing. The exemption is applied to your statement of adjustments. You simply pay less. There is no rebate cheque to wait for after the fact.
Key Takeaway
Still Deciding? Let's Talk Through Your Situation
I work with first-time buyers in Surrey and the Fraser Valley every week — some end up in a presale, some in a resale, and some realize they need 6 more months to qualify. There is no single right answer. The right answer is the one that fits your timeline, your income, and your appetite for waiting on completion.
If you want a second set of eyes on your specific decision, send me a note. No obligation.
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