Guide, updated November 2026
How a home buyer rebate works, step by step
A home buyer rebate is money your own agent gives back to you out of the commission they earn on your purchase. Nothing about the home price changes, the seller does not pay extra, and you still get a full-service agent. The agent simply keeps less.
Where the money comes from
On most sales, the seller's proceeds pay a total commission that is split between the listing brokerage and the buyer's brokerage. In BC the buyer's side is commonly 3.22% on the first $100,000 and 1.15% on the rest. In the US, since August 2024, the buyer agent's pay is set in a written buyer agreement and is often paid by the seller as a concession, though sometimes by the buyer.
Either way, the buyer's brokerage ends up with a known amount. A rebate is a share of that amount, paid by the brokerage to you.
The five steps
- Agree the rebate before you start. It belongs in the buyer agreement, stated as a percentage of the commission the brokerage receives. A verbal promise is worth nothing at closing.
- Your agent tells you the commission on each home. Before you write an offer, ask what the buyer brokerage will receive and what your share comes to.
- The rebate is disclosed. In the US it appears on the closing disclosure or settlement statement. In BC your agent should disclose it in the contract of purchase and sale.
- The lender approves it if you have a mortgage. Lenders treat agent credits as interested party contributions and usually require the money to go toward closing costs.
- You get paid. In the US usually as a credit at closing. In Canada usually by cheque or e-transfer after completion, once the brokerage receives its commission.
A worked example
You buy a $900,000 townhouse in Langley. The buyer brokerage earns 3.22% of $100,000 plus 1.15% of $800,000: $3,220 + $9,200 = $12,420 before GST. With a 50% Lower Mainland rebate, you receive $6,210.
You buy a $480,000 house in Tampa with a 2.5% buyer agent commission paid by the seller: $12,000. With a 25% rebate, $3,000 is credited to you at closing.
What can reduce or cancel it
- The listing offers a lower commission than usual, or none. Your share shrinks with it.
- Your lender caps credits and your closing costs are lower than the rebate. The extra may need to become a price reduction instead.
- You buy without your agent, for example by walking into a new-construction sales centre alone before registering.
- You live in one of the few US states that ban rebates. We do not operate there.
Rule of thumb: get the percentage in writing, ask the dollar figure before every offer, and tell your lender early.