From 2015 to 2022, buying a presale in Metro Vancouver was mostly a bet on prices rising before completion, and it usually paid. Buyers who signed near the 2022 peak have spent 2026 learning what happens when the bet goes the other way: appraisals below contract prices, lenders lending less, assignments at a loss. That doesn't make presales a bad idea now. For a first-time buyer who plans to live in the unit, 2026 may be the best time to sign one in a decade. It does mean planning for completion before you sign, not after.
Why buying a presale in 2026 is different
Three changes have shifted the balance toward buyers.
Developers need buyers. According to MLA Canada figures reported in September 2026, Metro Vancouver developers released 1,426 presold homes in July 2021, 572 in July 2025, and 42 in July 2026. With investors largely gone, developers are courting end users. Some have publicly pointed to softer prices and incentives as reasons to buy now. In practice that means room to negotiate on price, deposits, parking and extras that didn't exist three years ago.
First-time buyers can skip GST entirely. The federal first-time home buyers' GST rebate became law on March 12, 2026. It refunds the full 5% GST on a new home worth up to $1 million, and phases out to zero at $1.5 million, for purchase agreements signed on or after March 20, 2025. Every presale you sign today falls inside that window.
The newly built home exemption removes transfer tax too. For a citizen or permanent resident who'll live in the home, BC's exemption eliminates property transfer tax on new homes worth up to $1,100,000.
Put those together on a $649,900 condo. A qualifying first-time buyer pays no GST and no transfer tax. A move-up buyer pays $32,495 of GST on the same unit. That gap is bigger than most negotiated discounts.
How a BC presale works, step by step
Here's the path from signing to the keys:
- You sign the purchase agreement. The developer gives you the disclosure statement, a legal document describing the development, the budget, the timeline and your rights. Since April 1, 2025, a new disclosure statement must start with BCFSA's "Summary of Pre-sale Risks and Buyer Rights," which you initial.
- You have seven days to change your mind. Under the Real Estate Development Marketing Act, you can rescind for any reason within 7 days of the later of signing and receiving the disclosure statement, and get your full deposit back. That's different from the 3-business-day, 0.25%-fee rescission on resale homes. Use the week: have a lawyer read the contract and a mortgage broker model your completion.
- You pay deposits on the schedule. They go into trust, as covered in the next section.
- Construction runs, usually for two to four years. Some projects are marketed before they have a building permit, during an "early marketing period." That's 12 months normally, or 18 under a BCFSA pilot. Your summary form shows the relevant dates and your cancellation rights if approvals don't arrive.
- The developer sends a completion notice. Typically you get a short window to close once occupancy is approved. Before closing, you do a pre-delivery inspection with the developer and list any deficiencies.
- You complete. Your lender appraises the unit, advances the mortgage, and you pay the balance, GST and closing costs through your lawyer.
Deposits, and where they sit
Presale deposits are larger than resale deposits and spread over time. A common Metro Vancouver structure is 5% at signing, 5% within 90 days and sometimes another 5% at a later date, for 10% to 20% in total. The calculator lets you pick a structure and dates each payment. In 2026, reduced deposit structures are one of the easier things to negotiate.
The law is protective about where the money goes. REDMA requires deposits to be held in trust by a brokerage, lawyer, notary or prescribed trustee. They can't be released to the developer except in limited circumstances. The main exception: a developer can use deposits for construction if it has a deposit protection contract in place, which is essentially insurance covering you if the project fails. Your disclosure statement will say which applies.
Deposits also have a cost: the return that money could have earned while it sits. The default $97,485 in deposits, paid between October 2026 and October 2027 and held until a mid-2029 completion, gives up about $9,185 at 4% a year. That's worth weighing when you're offered a lower price against a bigger deposit. Whether any interest earned on the deposits goes to you or to the developer depends on your contract.
GST, the first-time buyer rebate and transfer tax
Presale prices in BC are almost always quoted before GST. At completion, you pay 5% GST on the purchase price. Two rebates can reduce it:
- The first-time home buyers' GST rebate. It covers up to 100% of the GST on a new home worth up to $1 million, to a maximum of $50,000, and phases out to zero at $1.5 million. Your agreement must be signed on or after March 20, 2025. Builders can credit it at completion, or you can claim it from CRA.
- The older GST new housing rebate. It phases out completely at $450,000, which means it rarely helps in the Lower Mainland.
Property transfer tax is paid at completion when title registers. For a qualifying buyer who'll live in the home, the newly built home exemption removes it completely up to $1,100,000, and phases out by $1,150,000. You can't combine it with the first-time buyer exemption, but on a new home the newly built exemption is the bigger of the two anyway.
One more tax matters if your plans change. BC's home flipping tax applies to presale contracts and homes sold within 730 days, and the clock starts at signing. On a presale that completes more than two years after you sign, you're outside that window by the time you get the keys. On standing inventory or a fast build, you aren't. Our closing cost calculator handles the full completion-day math, and the new home GST calculator goes deeper on the rebates.
Completion risk: the part to plan before you sign
The contract price is fixed. What you'll be able to borrow at completion isn't.
The appraisal. Your lender lends on the lower of the price and the appraised value at completion. If values fall while the building goes up, you make up the difference in cash. The default scenario has 15% in deposits and a plan for an 80% mortgage:
| Value at completion | Cash needed at completion | Equity on day one |
|---|---|---|
| Same as the price ($649,900) | $34,495 | $129,980 |
| 5% lower | $60,491 | $123,481 |
| 10% lower | $86,487 | $116,982 |
| 15% lower | $112,483 | $110,483 |
A 10% drop more than doubles the cash you need. Buyers from 2021 and 2022 are facing exactly this in 2026, with lenders reportedly seeing appraisals on some completing units well below contract prices. If you're signing today, you're buying at 2026 prices rather than 2022 peaks, but the risk doesn't disappear. Keep a cash buffer, or a family backstop, that could cover at least a 10% gap.
The mortgage itself. You'll qualify for it at completion, not at signing. That means at whatever rates, income and debts you have in two or three years, stress-tested at your contract rate plus two points. On the default unit, an 80% mortgage at 4.5% over 30 years is about $2,622 a month. Qualifying for it on housing costs alone takes roughly $115,000 of household income. A pre-approval today doesn't guarantee that. Few lenders will hold a rate for years, and if your job, income or debts change before completion, so does your approval. Our affordability calculator models the stress test.
Timing. Completion dates drift. Contracts typically give the developer an estimated completion window plus the right to extend for delays. Plan your lease and savings around the outside date in your contract, not the brochure date.
A seven-day checklist
The rescission week is short. Here's how to use it:
- Day 1: Send the purchase agreement, the disclosure statement and every amendment to a real estate lawyer or notary. A presale review usually costs a few hundred dollars to about $1,500.
- Days 1–2: Ask a mortgage broker to model completion. Run it at today's rate plus a point, with the appraisal 10% below your price, and check whether you'd still qualify if your income stayed flat.
- Days 2–3: Check the developer's record. Look at completed projects, delays, and deficiency complaints from owners in their past buildings.
- Days 3–4: Compare the price per square foot with resale and unsold completed units nearby, not just with other presales.
- Days 4–5: Read the clauses listed below: completion dates, changes to the plans, assignment rights, deposits and default.
- Days 5–6: Run this planner with your real deposit dates and a pessimistic appraisal. Confirm where the completion cash would come from.
- Day 7: Decide. If anything is unresolved, rescind in writing, following the notice method set out in the agreement.
What you can negotiate in 2026
When developers are selling a fraction of what they used to, more is on the table. Things buyers have been asking for and getting in the current market include:
- A lower price, or a price held while incentives are layered on.
- A smaller or later deposit structure.
- Parking or storage included.
- Upgrades or appliance packages.
- Assignment rights at a low or no fee.
- A cap on your closing costs.
- For some buyers, a period of strata fees covered.
Compare the whole package. A $15,000 discount and a $15,000 parking stall aren't worth the same thing if you'd never have paid for the stall.
Your agent's commission on a presale is normally paid by the developer. Having your own representation, rather than dealing only with the sales centre, costs you nothing and puts someone on your side of the table.
Contract clauses worth reading twice
- The outside date and extension rights. How long can completion be delayed before you can walk away with your deposit?
- Changes to plans. How much can the unit's size, layout, finishes or the building's amenities change, and does a change give you any rights?
- Assignment. Is it allowed, when, and at what fee? Can you market the assignment publicly? Do you stay liable after assigning? The assignment calculator shows what an exit would return.
- Deposit terms. Where the deposits are held, whether there's a deposit protection contract, and who gets the interest.
- Strata budget. The first-year budget is set by the developer and is often lean. Expect fees to rise after the owners take over.
- Rentals and short-term rentals. Since November 2022, BC stratas generally can't restrict long-term rentals. Short-term rentals are a separate matter, governed by strata bylaws and BC's principal-residence rules for short-term rentals. If renting it out is part of your plan, check both.
- Default. What the developer can claim if you don't complete. It's usually your deposit plus any shortfall on resale and costs, and in 2026 developers are pursuing those claims.
Presale, standing inventory, or resale
In 2026 there's a fourth option that barely existed a few years ago: finished units developers haven't sold, known as standing inventory.
- Standing inventory. You get the same tax breaks as a presale, including GST with the first-time buyer rebate and the newly built home exemption. There's no two-year wait, no appraisal gap, and you can walk through the actual unit. Developers carrying finished units are often the most flexible on price.
- Presale. You lock in a 2026 price for a home delivered in 2028 or 2029, with a small upfront commitment. The trade-off is completion risk, and time for your plans to change.
- Assignment. You take over someone else's contract, often at a discount in 2026. But you pay GST on the original price and inherit their terms and the appraisal risk.
- Resale. There's no GST, and you can see what you're buying. Transfer tax applies unless you're a first-time buyer, and even then only the $8,000 exemption.
For a first-time buyer who needs to move within a year, standing inventory often wins. For one who's renting cheaply and can wait, a well-negotiated presale can make sense.
Warranty, deficiencies and the first year
New homes in BC must come with third-party home warranty insurance, the "2-5-10" coverage: two years for materials and labour defects, five for the building envelope, and ten for structural defects.
At the pre-delivery inspection, write down everything, however small. Photograph the unit before you move in. Report new defects in writing, within the warranty timelines.
The first year in a new building also brings the first real strata budget, the first annual general meeting, and often the first fee increase. Go to the meeting.
Mistakes we see with presales
Planning only for the deposits. The deposits are the easy part. Budget for completion under a lower appraisal and a higher rate.
Letting the seven days pass unused. The rescission period is the one point where you can walk away for free. Get the contract reviewed inside it.
Assuming a pre-approval covers completion. You'll be qualified again at completion, on the facts at that time.
Signing at list price in a buyer's market. In 2026, ask for the incentives, the deposit reduction, the parking and the assignment terms before you sign.
Forgetting GST if you're not a first-time buyer. On a $649,900 unit that's $32,495 due at completion.
Not checking standing inventory first. The same tax benefits, without the wait or the appraisal risk.
Questions people ask us
How much deposit do I need for a presale condo in BC?
Typically 10% to 20% of the price, paid in instalments, for example 5% at signing, 5% within 90 days and sometimes 5% more later. In 2026 many developers will negotiate a smaller or later deposit structure. Deposits are held in trust under the Real Estate Development Marketing Act.
Can I cancel a presale contract in BC?
Yes, within 7 days of the later of signing and receiving the disclosure statement, for any reason, with a full deposit refund. After that, you're generally bound unless the contract or REDMA gives you a specific right, for example if approvals aren't obtained in time or completion passes the outside date.
Do first-time buyers pay GST on a presale in BC?
Not if they qualify for the first-time home buyers' GST rebate. It refunds 100% of the GST on a new home up to $1 million (to $50,000), phasing out to zero at $1.5 million, for agreements signed on or after March 20, 2025. Other buyers pay 5% GST at completion.
Do I pay property transfer tax on a presale?
Not if you qualify for BC's newly built home exemption: a citizen or permanent resident who'll live in the home, with a value up to $1,100,000. It phases out by $1,150,000. Otherwise transfer tax is due at completion on the full value.
What happens if my presale appraises lower than what I paid?
Your lender lends on the lower value, and you cover the difference in cash at completion. On a $649,900 unit with 15% deposits and an 80% mortgage, a 10% lower appraisal raises the cash needed at completion from about $34,500 to about $86,500.
Are presale deposits safe if the developer goes bankrupt?
Deposits must be held in trust and generally can't be released to the developer before completion, unless it has a deposit protection contract that insures them. Check your disclosure statement for which applies. Projects with very few units may fall outside REDMA and carry more risk.
Is it better to buy a presale or a completed new condo in 2026?
For many buyers, unsold completed units are the better deal right now. They carry the same GST rebate and transfer tax exemption for qualifying buyers, with no wait and no appraisal risk. Presales make sense if you can wait, have a cash buffer for completion, and negotiate well.
Who pays the realtor on a presale?
The developer normally pays the buyer's agent commission on a presale. Having your own REALTOR® doesn't cost you anything extra, and you get someone reviewing the deal from your side.
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Buying new in 2026?
Dan can show you presales and finished unsold units side by side, negotiate the deposit structure and incentives with the developer, and have the contract read inside your seven-day window. The developer pays the buyer's agent commission. Your planner inputs come along with the message.
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