If you’re a first-time home buyer considering a new build, there’s some good news when it comes to GST.
As of March 12, 2026, the federal government’s new First-Time Home Buyers’ GST/HST Rebate is officially available. For eligible buyers in Alberta, this could mean up to $50,000 in GST savings on a new home.
Here’s what you need to know.
How much can you save?
Alberta has a 5% GST rate, so the potential savings can be significant.
For eligible first-time buyers:
- New home valued at $1 million or less: 100% of the GST can be rebated, up to a maximum of $50,000
- New home valued between $1 million and $1.5 million: a partial GST rebate is available
- New home valued at $1.5 million or more: there is no First-Time Home Buyers’ GST rebate
For example, on a $500,000 new build, the GST would normally be $25,000. If you qualify for the full rebate, that $25,000 could be put back in your pocket.
On a $1 million home, the potential savings could be as much as $50,000.
Who qualifies?
This is where things get important.
The rebate is specifically designed for first-time home buyers, and there are several eligibility requirements.
Generally, you must:
- Be considered a first-time home buyer
- Purchase a new or substantially renovated home from a builder, or build your own home
- Use the home as your primary residence
- Be the first person to occupy the home after construction
- For a home purchased from a builder, have entered into the purchase agreement on or after March 20, 2025, and before 2031
- Meet the other CRA requirements for the rebate
And “first-time home buyer” may not mean exactly what you think. For example, someone who previously owned a home could still potentially qualify if they have not lived in a home they or their spouse or common-law partner owned during the calendar year of purchase or the previous four calendar years.
What about investment properties or second homes?
The new First-Time Home Buyers’ GST rebate is intended for homes that will be used as the buyer’s primary residence, so an investment property or recreational property generally won’t qualify.
There are other GST/HST new housing rebate rules that may apply in certain circumstances, but the eligibility and price thresholds are different. If you’re considering a new build that won’t be your primary residence, it’s worth getting professional tax advice before assuming you qualify.
Do I have to apply for the rebate myself?
Not necessarily.
Many builders are set up to credit the eligible GST rebate directly to the buyer at closing, rather than requiring the buyer to pay the full GST and apply for the rebate afterward.
If the builder doesn’t provide the credit, eligible buyers can apply directly to the CRA.
This is one reason it’s important to understand the incentives available when you’re shopping for a new build. Different builders may structure their incentives differently, and the GST rebate can be a significant part of the overall savings.
Thinking about buying a new build?
The GST rebate is just one consideration when it comes to purchasing a new build.
Builder incentives, upgrades, deposit structures, lot premiums, closing costs, and current pricing can all have a major impact on the true cost of a new home.
If you’re considering a new build and aren’t sure what incentives you may qualify for, or whether a particular builder’s offer is actually a good deal, we’d be happy to help you compare the options and understand the numbers before you make a decision.
Thinking about a new build? Let’s talk.
