Things to Consider When Buying a New Construction Build in B.C.
Buying a brand new home in beautiful British Columbia? Congratulations! New construction builds offer exciting possibilities from modern layouts to energy-efficient features. But before you sign on the dotted line, here are some key things to consider:
1. Understand the Deposit Structure
Builders in BC often require a larger deposit than resale homes—sometimes 5-20% of the purchase price, depending on the project and stage of construction. Know the timeline and whether deposits are held in trust.
2. Get Pre-Approved Early
Even though the home won’t be ready for a while, let’s chat about a strategy plan to get you prepared ahead of time. Most lenders allow for pre-approvals 90-120 days prior to completion. It’s essential to chat with me sooner however to ensure you know what to expect when the time comes.
3. Factor in GST
New construction homes in BC are subject to 5% GST. This can be a big surprise if you're not prepared! There are rebates available for homes under $450,000 (some partial rebates up to $500,000) and there is a new proposed GST rebate for first time home buyers being proposed by the federal government. As of today (July 3rd 2025), this proposed rebate is awaiting parliamentary approval so stay tuned for further information on this. Be sure to ask how GST applies and whether it's included in the price.
4. Budget for Closing Costs
Aside from the down payment and GST, consider additional costs, such as:
Legal fees
Title insurance
Property transfer tax (PTT) – exemptions may apply for first-time buyers
Utilities hook-ups or strata move-in fees
5. Know Your Warranty Coverage
New homes in BC are protected under the 2-5-10 Home Warranty Program:
2 years on labour & materials
5 years on building envelope
10 years on structure
Always get a copy of the warranty and ask what's covered (and what’s not).
6. Choose a Reputable Builder
Do your homework! Look up the builder’s past projects, check reviews, and ensure they're licensed with BC Housing. A solid builder means fewer headaches down the road.
7. Understand the Completion Timeline
Delays happen. Ask for an estimated completion date and find out what happens if construction takes longer than expected. This is especially important if you're selling another property or have a lease ending.
8. Watch for Assignment Clauses
Buying pre-construction? Some contracts allow for assignment sales, meaning the right to sell the unit before it's complete. This could be a strategy for investors, but it comes with rules and risks—check with your real estate agent and lawyer.
9. Appraisal Surprises
Lenders typically order an appraisal before final mortgage approval. If the appraised value comes in lower than your purchase price, you’ll need to make up the difference in cash. Plan for this possibility!
10. Work With the Right Team
Work with me to find you the best financing options
A real estate agent with experience in new builds
A real estate lawyer to review the contract
Having professionals on your side will save you stress, time, and money.