Hey Nanaimo! If you’ve been scrolling through listings, dreaming of that perfect first home by the ocean or tucked away in a quiet neighbourhood, you’re in for some fantastic news. The federal government just dropped a major game-changer that could make Nanaimo homeownership a much more attainable reality for many of you: a brand-new GST exemption on newly built homes.
This isn’t just an exemption – it’s a boost that could put tens of thousands of dollars back into your first-time home buyers’ pockets. Let’s dive into what this means for Nanaimo and the impacts on our local real estate market.
Unpacking the New Federal GST Exemption: Your Key to Savings!
Get ready to mark your calendars! As of May 27, 2025, the federal government is effectively waving the Goods and Services Tax (GST) for first-time home buyers on new construction homes in Canada valued up to $1 million. And for those looking at new homes priced between $1 million and $1.5 million, there’s still a valuable reduced GST. This means potential GST savings of up to an incredible $50,000!
Think of that! That’s a huge chunk of change that can go towards your down payment, furnishing your new space, or simply breathing a little easier.
Here are the details you need to know about this new GST rebate:
EXCLUSIVELY FOR NEW BUILDS
This GST relief is specifically for newly constructed homes, custom-built homes, or shares in co-operative housing corporations. It does not apply to resale) properties. So, if you’re eyeing a brand-new condo or townhouse in Nanaimo, this is for you!
IMPORTANT DATES
– Must be entered into on or after May 27, 2025, and before 2031
– Construction must also begin before 2031 and be substantially completed before 2036.
– One-time opportunity per individual.
How this new GST exemption for new homes can impact home purchasing in Nanaimo:
Making New Construction More Affordable: This federal GST exemption directly reduces the upfront costs of buying a new build in Nanaimo. Imagine the impact of saving $40,000 in GST on an $800,000 new home; that’s a huge financial relief that could be the deciding factor in homeownership. This makes new condos in Nanaimo, new townhouses in Nanaimo, and certain detached properties much more accessible.
Boosting New Housing Numbers: With GST savings, expect an increase in new developments throughout Nanaimo. This is great news for our city, as it pushes more contractors to launch new housing projects, addressing the ongoing housing supply challenges and housing costs in Nanaimo.
Layering Benefits with BC Home Buyer Programs: This federal GST rebate is an amazing addition to the existing BC first-time home buyer programs you might already be considering:
– BC Property Transfer Tax (PTT) Exemption
– BC Home Owner Grant
– First Home Savings Account (FHSA)
– Home Buyers’ Plan (HBP)
– 30-Year Mortgage Terms (for new builds)
Ready to Make Your Nanaimo Home Dream a Reality?
Don’t hesitate to connect with a Nanaimo mortgage broker (we recommend Damien Ross – click here to check out his site) and Gillette and Associates today to find information on how this can benefit you.
