Buying a new home involves many important decisions, but here’s some welcome relief. The First-Time Home Buyer GST Rebate – a federal program, can refund a portion of the GST paid on a newly built home. This helps you save money and reduce your overall purchase cost.
What is the First-Time Home Buyer (FTHB) GST Rebate?
The federal government has expanded the GST rebate for first-time buyers of recently built homes in Alberta. This rebate enables eligible first-time buyers to eliminate the 5% GST on recently built homes. This rebate is only available to those buyers who have entered into a purchase agreement between March 20, 2025, and 2031. This offers potential savings of over $50,000. This update makes new construction more accessible by allowing buyers to recover a significant portion of the GST paid.
Who is Eligible for the GST Rebate in Alberta?
To be eligible, you must meet these conditions –
- You’re a first-time home buyer. This means that you have not lived in a home possessed by you, your partner, or common-law partner in the current time or past four calendar years.
- The home must be your primary residence and not intended for rental purposes.
- You’re at least 18 times old and a Canadian citizen or permanent occupant.
- You have a new home that has a Purchase Agreement executed after March 20, 2025 up until March 12, 2031.
- You or your spouse or common-law partner has never received the First-Time Home Buyers (FTHB) GST rebate before.
How does the GST Rebate work?
Home Purchase Up to $1 Million:
You may receive a GST rebate of up to 100%, with maximum savings of $50,000.
Home Purchase Between $1 Million – $1.5 Million:
The GST rebate is gradually reduced on a sliding scale starting after $1 million, decreasing from the $50,000 maximum.
Home Purchase Above $1.5 Million:
No GST rebate is available for homes in this price range.
Here’s what you could save on your home!
Who Qualifies for the GST Rebate?
- Your Purchase Agreement was signed between March 20, 2025 – March 12, 2026
- Your Purchase Agreement was signed after March 12, 2026 (within the eligible program timeline)
This means you’ll have significantly reduced costs on your new home purchase. Whether you previously purchased with us from March. 20, 2025 to now, you are eligible!
Final Thoughts: How to Take Advantage
If you are a first-time home buyer in Alberta. This is a good time to act smart and become informed:
- Look for presales opportunities, as many of the newly built homes are included in the qualified price range.
- The program will run until 2030, but it is always wise for first-time home buyers to make the move as early as possible.
At Alberta Property Group, based in Calgary, we specialize in helping first-time home buyers across Alberta maximize savings like the GST rebate while finding the perfect home.
