Buyer Advice — Tri-Cities Presale Condos
Buying a Presale Condo in BC: How Deposits, GST, and Completion Really Work in the Tri-Cities
Buying a presale condo in BC sounds straightforward — sign now, move in later — but the mechanics are meaningfully different from buying a resale home. The deposit structure, the rescission window, the GST exposure, and the gap between signing and completion all carry real financial weight. Whether you’re eyeing a new tower in Coquitlam or exploring Port Moody presale condos, this guide walks you through exactly what to expect so you can decide whether a presale fits your situation — or whether it doesn’t. Browse current Tri-Cities listings →
The most important thing to understand about buying a presale condo in BC is that you are purchasing a promise, not a finished product. You sign a purchase agreement today for a unit that may not be ready for two, three, or even four years. That gap creates both opportunity and risk, and it shapes everything from how your deposit is held to how your mortgage is arranged.
Deposits on BC presales are staged, not paid all at once. Developers typically collect instalments tied to construction milestones — for example, 5% on contract signing, another 5% at groundbreaking, and a further 5–10% at various points during construction, with the total commonly landing between 15% and 20% of the purchase price before you ever take possession. These funds are held in trust under the Real Estate Development Marketing Act (REDMA), which provides some protection, but your money is still tied up and largely inaccessible until completion.
Unlike resale purchases — which carry a 3-business-day rescission right in BC — presale contracts governed by REDMA give buyers a 7-day rescission period after receiving a fully completed Disclosure Statement. That extra time matters. Use it to have a real estate lawyer review the contract, because presale agreements are long, developer-friendly documents that restrict your rights in ways a standard resale contract does not. Pay close attention to sunset clauses, which allow the developer to cancel the project and return your deposit if they miss their own completion deadline — with no compensation to you for years of held funds or rising prices.
Mortgage financing is another area where presales behave differently. You cannot lock a mortgage rate at signing. Your lender will assess your finances and qualify you again close to the actual completion date, which could be years away. Interest rates, lending rules, your income, and your existing debt could all look very different by then. This rate uncertainty is real and should factor into your planning. If you need help thinking through what can go wrong — or if circumstances have changed since you signed — the page on being stuck in a presale or assignment covers your options honestly.
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Key takeaways
Unlike resale condos, new presale units are subject to federal GST. On a $700,000 unit, that is $35,000 added to your cost. A partial rebate may be available if the home will be your primary residence and the purchase price falls below certain thresholds, but many Tri-Cities presales exceed those limits, meaning little to no rebate applies. Never assume the sticker price is all-in — confirm GST treatment with your lawyer before signing. For a full breakdown of how the rebate works and when it disappears, see the GST on new homes BC guide.
An assignment is when you sell your interest in a presale contract to another buyer before the building completes. It sounds like an exit strategy, but it is not always available or straightforward. Most developer contracts require written consent to assign, and some prohibit it outright during early phases. If permitted, the developer often charges an assignment fee — sometimes $5,000 to $15,000 or more — and may take a share of any profit. You will also owe income tax on your gain, and the CRA has been actively auditing presale assignment transactions. Factor these costs in before treating assignment as a backup plan.
Developers build in wide estimated completion windows for a reason: permitting delays, labour shortages, financing conditions, and construction complexity all push timelines. A project marketed as completing in late 2027 may not finish until 2029. If you are buying a presale while also owning or renting a home, you need a flexible housing plan that does not depend on a specific completion date. Bridge financing, lease flexibility, and family arrangements are all worth thinking through before you sign — not after the developer sends an updated completion notice.
Presales can make genuine sense for buyers who want a brand-new unit with modern finishes and a warranty, who have time on their side, and who can handle the financial uncertainty of a multi-year gap. They can also be an effective way to secure a unit in a desirable building before prices rise during construction. However, buyers who need certainty — about their mortgage rate, their move-in date, their unit’s exact finishes, or their personal finances — often find that resale properties serve them better. A presale is a long-term financial commitment made with incomplete information. Go in with that understanding, and get independent legal advice before you sign.
Frequently asked questions
Common questions answered
How much deposit do you need for a presale condo in BC?
Presale condo deposits in BC are typically paid in stages and total between 15% and 20% of the purchase price before completion. A common structure is 5% on signing, 5% at a construction milestone such as groundbreaking, and additional instalments tied to further stages. The exact schedule is set by the developer and written into the purchase contract. These funds are held in trust under REDMA, but they are committed for the duration of construction — which can be several years.
What is the rescission period for a presale condo in BC?
Under BC’s Real Estate Development Marketing Act (REDMA), buyers of presale condos have a 7-day rescission right, which begins when you receive a completed Disclosure Statement from the developer. This is longer than the 3-business-day rescission right that applies to resale homes. During this window you can withdraw from the purchase and recover your deposit without penalty. Use the full 7 days to have a real estate lawyer review the contract — presale agreements are complex and often contain clauses that significantly favour the developer.
Do you pay GST on a presale condo in BC?
Yes. GST applies to all new presale condos in BC because they are considered new residential construction. The GST rate is 5% of the purchase price. A partial federal rebate is available if the property will be your primary residence and the purchase price is below certain thresholds, but many presales in the Tri-Cities exceed those limits, reducing or eliminating the rebate. GST is a significant cost that must be budgeted separately from the purchase price. See the GST on new homes BC guide for a full breakdown of how the rebate thresholds work.
Can you get a mortgage before a presale condo is completed in BC?
No — you cannot finalize or lock a mortgage for a presale condo until close to the actual completion date, which could be years after you sign the purchase agreement. Lenders will re-qualify you based on your financial situation, income, debt, and prevailing interest rates at that future point in time. A rate you hold today does not apply to a presale completing in three years. This means your borrowing costs at completion could be higher or lower than current rates — and your ability to qualify could change if your income, credit, or debt levels shift during construction.
What happens if you want to sell a presale condo before it completes in BC?
Selling your interest in a presale contract before completion is called an assignment. Whether you can do this depends entirely on the developer’s contract — some allow assignments with written consent and a fee, others restrict or prohibit them, particularly in early phases. Assignment fees charged by developers commonly range from several thousand dollars to more than $10,000, and the developer may also take a share of any profit above your original purchase price. Any gain you realize is taxable income in Canada, and the CRA actively reviews presale assignment transactions. If you are already in this situation, the page on being stuck in a presale or assignment explains your realistic options.
Sebastian Czarkowski
REALTOR® · Royal LePage Elite West · Coquitlam, BC
Questions about buying or selling in the Tri-Cities? Reach out directly.
For educational purposes only. Not intended as financial or legal advice.
Sebastian Czarkowski, REALTOR® | Royal LePage Elite West | sebastianrealestate.ca