GST Break for First-Time Buyers: What It Means for Homeowners in Coquitlam, the Lower Mainland, and Beyond

On May 27, 2025, the federal government announced a major tax incentive aimed at first-time home buyers: a new GST rebate on newly built homes. For buyers in high-cost areas like Metro Vancouver and the Fraser Valley, this is a significant opportunity to save thousands of dollars and improve affordability.

What’s the Deal?

First-time buyers in Canada can now receive up to $50,000 in GST relief when purchasing a newly built home priced under $1 million. For homes between $1 million and $1.5 million, the rebate is gradually reduced. Homes priced at or above $1.5 million are ineligible.

This new policy could be a game-changer in areas like Coquitlam, Burnaby, Surrey, and Port Moody where many pre-construction townhomes and condos fall within this range.

Who Qualifies?

To be eligible for this GST rebate, you must:

• Be at least 18 years old
• Be a Canadian citizen or permanent resident
• Not have owned (or lived in a home owned by your spouse/partner) in the last 4 calendar years
• Use the home as your primary residence
• Be the first person to occupy the home

What Types of Homes Are Covered?

This GST rebate applies to:

• Newly constructed homes purchased from a builder, where the purchase agreement is signed on or after May 27, 2025
• Owner-built homes where construction starts on or after May 27, 2025
• New cooperative housing units under similar timelines

Note: Construction must begin before 2031 and be substantially completed by 2036.

Important Limitations

• The rebate can only be claimed once per individual
• If your spouse or partner has already claimed a first-time GST rebate, you cannot
• You cannot backdate by canceling and re-signing a contract signed before May 27, 2025

Why This Matters in BC

For first-time buyers in BC, especially those targeting pre-sale opportunities or new construction homes, this rebate could free up a significant portion of your closing budget. Whether used toward your down payment, legal fees, or moving costs, it’s money that stays in your pocket.

Let’s Talk About What This Means for You

Wondering how this affects your mortgage pre-approval or down payment strategy? I’d love to walk you through it and help you take advantage of this program.

Book a Free Discovery Call

This policy is expected to deliver nearly $4 billion in tax savings over the next five years. Don’t miss your chance to benefit.

If you’ve ever wished your mortgage could work smarter, not just harder, then the Manulife One program might be worth a closer look. Designed to simplify your banking and potentially help you become debt-free sooner, this unique all-in-one mortgage product combines your mortgage, chequing, savings, and even other debts into a single, flexible account.

What is Manulife One?

At its core, Manulife One is a secured line of credit attached to your home that functions like a combined mortgage and bank account. Instead of keeping your mortgage, savings, and everyday banking separate, it wraps everything into one account. This means your income deposits and savings immediately reduce your outstanding mortgage balance, and interest is only charged on the net amount you owe.

Manulife One is structured in two parts: a line of credit portion and a fixed-rate mortgage portion. The line of credit portion is where your day-to-day banking happens your income goes in, your expenses come out, and any money sitting in the account automatically reduces your interest costs. The fixed portion, on the other hand, acts like a traditional mortgage with regular payments and a locked-in interest rate. You can choose to allocate part of your mortgage into this fixed portion if you want rate stability or a more predictable repayment schedule, while the remaining balance stays in the flexible line of credit.

How It Works Day-to-Day

Manulife One functions just like your everyday chequing account: You can deposit your income, pay bills, and make purchases using debit or e-transfers. But here’s the difference: every time you deposit money, that amount instantly goes toward lowering your mortgage balance. Spend money, and the balance goes back up. Interest is calculated daily and charged monthly, so the more money you leave in the account, even temporarily, the less interest you pay.

Let’s say you owe $300,000 on your mortgage, with $100,000 in a fixed portion and $200,000 in the line of credit. When you deposit a $5,000 paycheque, it reduces the $200,000 line of credit balance to $195,000. You’ll pay less interest on the lower balance, and that $5,000 is still available to spend if needed. If you spend $4,000 that month, the balance climbs back up to $199,000, but you still saved interest on the days that $5,000 was sitting in the account.

Key Benefits

• Interest Savings: Every dollar you keep in the account reduces your debt and interest costs.
• Flexibility: You can access your available equity at any time for renovations, emergencies, or even to consolidate higher-interest debts.
• Simplicity: Instead of juggling multiple accounts and payments, you manage everything from one place.
• Faster Payoff: With consistent deposits and responsible spending, you can reduce your mortgage years faster than with a traditional setup.
• Rate Stability (Optional): You can allocate part of your balance to a fixed-rate sub-account for predictable payments and protection from rising rates.

Things to Consider

Manulife One isn’t for everyone. It offers flexibility, but it also demands discipline. If you consistently re-borrow what you pay down, you may not make real progress on reducing your debt. And because it usually carries a higher interest rate than traditional mortgages, the savings only come if you’re actually reducing your balance.

Currently Manulife is waiving all the fees for this product. There is no fixed amortization schedule on the line of credit portion-you need to create your own plan to become debt-free. The fixed portion does provide more structure, but it’s optional and must be actively chosen.

Final Thoughts

Manulife One can be a powerful tool for homeowners who are financially disciplined and want more control over their mortgage. By putting every dollar to work the moment it hits your account, you can save on interest and simplify your finances. And with the option to secure part of your mortgage at a fixed rate, you can enjoy both flexibility and peace of mind. But like any tool, it’s most effective when used wisely.

Curious if Manulife One is the right fit for your financial goals? Let’s chat. I’d be happy to walk you through it.