The BC Conservatives announced a provincewide rent and mortgage rebate if elected that would exempt up to $3,000 a month in housing costs from BC income taxes.
The program is designed to offer financial relief at a time when the cost of living continues to surge.
The measure dubbed the “Rustad Rebate” would start by exempting $1,500 per month in Budget 2026, increasing by $500 per year to $3,000 per month.
“The Conservative Party believes in hard work and opportunity. If you work hard here, you should be able to get ahead. Under the NDP, British Columbians have been stuck on an endless treadmill of rising costs and punishing taxes,” said Conservative Party of British Columbia leader John Rustad in a statement on Monday.
“The Rustad Rebate is a real solution to help families stay in their homes, support the middle class, and provide relief to those being squeezed by high housing prices and rents.”
Rustad said that people in BC have been “punished by having to pay for sky-high housing costs” with after-tax income.
“In 2017, David Eby and the NDP promised a $400 rent rebate for all renters, regardless of income. As usual, they broke that promise not once, but twice,” said Rustad. “Not only did they fail to deliver for five consecutive budgets, but when they finally introduced it in 2023, it was so severely income-tested that the average family in Vancouver can’t qualify.”
He argued that the NDP’s rebate only offered a “drop in the bucket” to those struggling with the increasing cost of living, saying it only covered “1% of the annual rent” for a one-bedroom in Vancouver.
The Real Estate Board of Greater Vancouver said the benchmark price of a Metro Vancouver home was $1,188,000 last year and a detached home was $1,953,600.
Condos were significantly less expensive, albeit not necessarily more affordable, at $760,800.
While many homebuyers in the city leverage existing home equity to move up the housing ladder, most of the city’s younger residents aren’t as fortunate.
“Families and individuals are being driven out of our cities because they can’t afford to live here anymore,” said Rustad.
According to the BC Conservatives, the rebate will be the “largest tax cut for renters and homeowners in BC history” by issuing a 5.06% tax credit that is “equivalent to the rate of BC’s base tax bracket.”
Rustad said that the relief will be “immediate,” included as part of Budget 2026 while remaining a “fair and fiscally responsible tax credit” that won’t exceed its $900 million budget.
“This is not another band-aid solution. This is real relief for British Columbians who are working hard but getting squeezed by rising housing costs,” he said.
“The NDP’s broken promises have left middle-class families behind, and enough is enough. The Rustad Rebate will provide meaningful support to renters and homeowners, allowing them to stay in the communities they love and keep more of their hard-earned money.”
NDP Premier David Eby also announced his latest housing plans ahead of the election which has drawn mixed reactions, with some realtors expressing doubt about whether the plan to offer “glorified rentals” in the form of long-term leases will address British Columbia’s housing crisis.
Eby plans to subsidize 2,600 homes available for purchase on a 99-year strata leasehold on First Nations land in Vancouver.
In partnership with MST Nations, the province announced a development of the homes at an “initial 40% below market value” last week with the expectation that the portion the government finances is to be paid back upon resale of the property or after 25 years in the form of a second mortgage.
Buyers will be able to pay a 5% deposit on 60% of the home’s “market value” for studio, one, two and three-bedroom homes on a 99-year strata leasehold. Unlike a freehold purchase agreement, the purchaser will not own the land where the property is situated – meaning the land title will remain with the First Nations.
The BC government evaluated “market price” for one a bedroom at $850,000, two bedrooms at $1.3 million and three bedrooms at $1.5 million. With the government’s finance scheme, the leases will cost $510,000, $780,000 and $900,000 respectively.