Understanding Completion Risk with Presale Condos in Vancouver

Presale condos in Vancouver have long been marketed as a way to “lock in today’s price for tomorrow’s home.” But while presales can offer flexibility and opportunity, they also carry unique risks — especially when it comes time to complete. Many buyers assume that if they cannot close, the worst case is losing their deposit. The reality is more serious. Developers have legal rights to pursue damages, and in a falling market, those damages can be significant.

What is Completion Risk?

Completion risk refers to the possibility that you will not be able to finalize (or “complete”) the purchase of your presale condo when the building is finished and title transfers. Common reasons buyers fail to complete include:

• Not qualifying for a mortgage under stricter lending rules
• Changes in financial situation (job loss, income reduction, higher debt)
• Market conditions shifting, making the purchase less attractive
• Interest rates rising, leading to higher monthly payments

Why It’s More Than Just Your Deposit

A common misconception is that walking away from a presale means you simply forfeit your deposit. In British Columbia, most presale contracts allow developers to do much more:

• The developer can resell your unit on the open market.
• If they achieve a lower price than your original contract, they can pursue you for the difference.
• They can also claim additional costs, such as legal fees, marketing expenses, and carrying costs until the unit sells.

Example: When Prices Fall

Imagine you signed a presale contract for a condo in Burnaby in 2022 at $850,000, paying a 15 percent deposit of $127,500.

By 2025, market conditions shift, and comparable condos are reselling at $780,000. You cannot qualify for financing and fail to complete.

• The developer resells your unit for $780,000
• The shortfall compared to your contract is $70,000
• The developer may come after you not just for your deposit but also for the $70,000 loss plus costs

This means you could lose your deposit and still owe damages, leaving you financially exposed.

Why Developers Pursue Damages

Developers are businesses with lenders and investors to answer to. If dozens of buyers default in a slowing market, the financial impact is massive. Pursuing damages is a way to recover losses and maintain project stability.

In fact, in past market downturns in Vancouver, there have been legal cases where buyers were held responsible for hundreds of thousands in damages after failing to complete.

How Buyers Can Reduce Completion Risk

• Get pre-approved and stress test early: Do not assume today’s financing will be available at completion.
• Consider future interest rates: Mortgage rates in 2025 may be higher than when you signed.
• Be realistic about your finances: If the deposit feels like a stretch, completing will feel even harder.
• Work with experienced advisors: Realtors, lawyers, and mortgage brokers who specialize in presales can help you navigate risks.

Completion Risk in Today’s Market

In 2025, with Vancouver presale condos often priced above resale equivalents, completion risk feels higher than in past years. Buyers are locking in at ambitious pricing, betting the market will rise. If it does not, they could be left exposed.

The Bottom Line

Presale condos in Vancouver can still be a smart investment, but buyers must understand the risks. Failing to complete is not just about losing your deposit — it can mean being on the hook for large financial damages if the market shifts.

The best protection is to do your homework, know your numbers, and plan for different scenarios before signing.

How Much GST Do You Pay on a New Condo in BC?

Buying a new or presale condo in British Columbia comes with an extra cost that often surprises buyers — the federal Goods and Services Tax (GST). At 5 percent of the purchase price, GST can add tens of thousands of dollars to the total cost of your home. In a province that is already the most expensive housing market in Canada, this tax makes affordability even tougher.

But recent changes have introduced new exemptions for first time buyers, though with important limits. Here is what you need to know about GST on new condos in BC in 2025.

The Basics: GST on New Homes

• Amount: GST is charged at 5 percent of the purchase price on all new and presale condos.
• Example: On an $800,000 presale condo in Burnaby, GST adds an extra $40,000 to the price.
• When it applies: GST is due at completion, when the unit is registered in your name.

This makes new condos significantly more expensive than resales, since resale homes are exempt from GST (the tax was already paid when the property was first sold).

The New GST Exemption for First Time Buyers

In 2025, the federal government introduced a targeted GST exemption for first time homebuyers purchasing new housing. On paper, this looks like a game changer. But here are the details:

• The exemption only applies up to a set purchase price threshold (for example, homes up to $600,000 may qualify).
• Once the home price exceeds the threshold, the exemption phases out quickly.
• In Metro Vancouver, where the average new condo is often $750,000 to $900,000 or higher, many buyers are priced out of the benefit.

This means while the exemption helps in smaller markets across Canada, it has limited impact in BC, where even entry level condos often exceed the cutoff.

Why BC Feels the Heaviest Impact

BC is the most expensive province for real estate, with Vancouver leading the country in both presale and resale pricing. Because the GST is a fixed 5 percent tax, the absolute dollar amount buyers pay here is far higher than in other provinces.

• A new condo in Vancouver priced at $900,000 = $45,000 GST
• A new condo in Calgary priced at $400,000 = $20,000 GST

Same tax rate, very different financial hit.

Can You Avoid GST on a New Condo?

There are a few scenarios where GST may not apply:

• Resale units: If you buy a condo that is not brand new, GST is not charged.
• Assignments: Depending on how the contract is structured, assignments can sometimes reduce the GST impact, but buyers should review carefully with an accountant.
• Rebates: If you live in the home as your primary residence, you may qualify for a partial GST rebate, though again, higher priced homes in Vancouver often exceed the eligibility range.

What Buyers Should Watch For

• Always budget for GST in addition to the purchase price — do not assume it is included.
• Ask the developer or your realtor to clarify whether listed prices are “plus GST” or “GST included.”
• Factor in closing costs such as legal fees, property transfer tax, and GST when planning your total budget.

The Bottom Line

In British Columbia, GST adds a significant extra cost to buying a new or pre sale condo. While the new first time homebuyer exemption offers relief on paper, most Metro Vancouver condos are priced too high to qualify. For buyers here, the GST remains a major consideration, and one reason why resale condos continue to look attractive compared to presales.

Top Vancouver Developers for Presale Projects: Who Has the Best Reputation?

When it comes to buying a presale condo in Vancouver, the developer behind the project matters just as much as the location or floor plan. A strong reputation can give buyers confidence that the home will be delivered on time, with quality construction, and with fewer headaches down the road. In 2025, the market has matured to the point where buyers are asking: which developers in Vancouver can I trust the most?

Why Reputation Matters in Presales

Presales are unique because you are buying years before a project is complete. Unlike resale, you cannot inspect the finished product. That means you are relying on the developer’s track record. Key factors include:

• On-time delivery: Did the developer complete previous projects when promised?
• Quality of construction: Are there consistent complaints about building deficiencies?
• Customer care: How responsive is the developer when issues arise?
• Financial stability: Can the developer handle market slowdowns without cancelling or stalling?

Leading Vancouver Developers in 2025

Concord Pacific

One of the largest and most recognized developers in Vancouver, Concord has built entire communities such as Concord Pacific Place and Brentwood’s Concord Brentwood. Their projects are known for large scale master plans and extensive amenities. Buyers trust Concord for financial stability, though some note that finishes can feel standardized.

Bosa Properties

With decades in the Vancouver real estate market, Bosa has a reputation for solid construction and delivering on promises. They often design with functionality in mind and build in prime locations. Resale values for Bosa projects generally hold well over time.

Anthem Properties

Anthem has grown into a major force across Metro Vancouver with projects in Burnaby, Coquitlam, and Richmond. Known for creative master planned communities and strong architectural presence, Anthem has gained a reputation for balancing design with livability.

Polygon Homes

Polygon has been a staple in Greater Vancouver for more than 40 years. They are respected for townhouse communities and mid-rise condos, especially in suburban markets like Richmond, Burnaby, and Coquitlam. Buyers value Polygon for straightforward designs and reliability.

Wesgroup Properties

Wesgroup is shaping some of Vancouver’s largest new neighbourhoods, including the River District in South Vancouver. Their focus on creating entire communities rather than single towers sets them apart, and many buyers appreciate the long-term vision.

Other Notable Names

• Onni Group: Known for scale and amenities, with projects in Vancouver, Burnaby, and Coquitlam.
• Beedie Living: Strong reputation in Burnaby and Coquitlam, often delivering higher-end finishes.
• Townline: A smaller developer compared to Concord or Bosa, but respected for boutique projects and customer care.
• Boffo: Known for boutique buildings that are made to last with an phenomenal reputation for great amenities

What Buyers Should Watch For

Even with reputable developers, buyers should always read disclosure statements carefully and research previous projects. Online reviews and strata meeting minutes from older buildings can reveal patterns. For example:

• Were there common complaints about elevators or plumbing?
• Did the strata have to levy early special assessments?
• How responsive was the developer’s warranty team?

The Bottom Line

In 2025, Vancouver is home to several highly reputable developers, including Concord Pacific, Bosa Properties, Anthem, Polygon, and Wesgroup. Each brings a unique style and scale to the market, but what unites them is financial stability and experience.

For buyers, choosing a presale condo in Vancouver is not just about the home itself but about the trust you place in the builder. The best way to protect yourself is to research the developer’s history, ask about past projects, and understand how they handle customer care after completion.

Average Deposit Structures for Presale Condos in Burnaby Explained

When it comes to buying a presale condo in Burnaby, one of the first questions buyers ask is, “How much do I need for the deposit?” The deposit structure can make or break a deal, especially for first time buyers and investors. In 2025, developers are offering more flexibility than ever, but the numbers still vary widely depending on the project, location, and demand.

Here is a breakdown of what you can expect if you are considering a Burnaby presale condo this year.

The Standard Deposit Structure

Traditionally, Burnaby presale condos required 20 percent down before completion. This is usually broken into smaller payments, spread across the construction timeline. A common schedule looks like this:

• First deposit: 5 percent at the time of writing the contract
• Second deposit: 5 percent within 30 to 90 days
• Third deposit: 5 percent at 6 to 12 months
• Final deposit: 5 percent at 12 to 18 months or when construction reaches a major milestone

By the time the building completes in 2 to 4 years, buyers will have paid the full 20 percent.

More Flexible Options in 2025

With sales velocity slowing compared to previous years, many Burnaby developers are offering reduced deposit structures to attract buyers. Some recent projects in Brentwood and Metrotown have launched with just 10 percent total deposit, split into:

• 5 percent at contract signing
• 5 percent within 6 to 12 months

This lighter schedule can make presales more accessible to first time buyers who need more time to build savings.

Extended Deposit Timelines

Another trend is extended deposit deadlines. Instead of requiring the entire 20 percent within a year, developers may stretch payments across two or even three years. This strategy has become common in larger master planned communities in Burnaby, where developers want to keep pricing competitive while still moving inventory.

Incentives and Promotions

On top of reduced deposits, some developers are layering incentives like:

• Credit back at completion for early buyers
• Decorating allowances or upgrades in lieu of higher deposits
• Locking in deposit schedules as low as 5 percent for a limited number of homes

These strategies are becoming more frequent in 2025 as developers compete not only with other presales but also with attractive resale options nearby.

Risks to Consider

Lower deposits sound appealing, but they also come with considerations:

• Commitment: Once you sign, deposits are non refundable except under specific circumstances outlined in the disclosure statement.
• Market changes: If values soften before completion, you are still obligated to complete.
• Financing approval: You may qualify for a mortgage today, but final approval happens at completion, which could be years away.

Local Example: Brentwood vs Metrotown

In Brentwood, a recent tower launch offered a 15 percent deposit spread over 18 months. In Metrotown, a competing project attracted attention by offering just 10 percent total, with no additional payments until construction reached a certain stage. These competitive structures highlight how Burnaby developers are adjusting to current market conditions.

The Bottom Line

Deposit structures for Burnaby presale condos have become more flexible in 2025, but the standard still hovers around 15 to 20 percent. Buyers should pay close attention to the timing of payments, total deposit required, and what incentives are being offered.

For some, a lighter deposit schedule makes presales a smart entry point into the Vancouver real estate market. For others, resale condos may still offer more certainty and less risk.