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First-Time Home Buyer GST Rebate: What Alberta Home Buyers Need to Know

Tips for Buyers

Learn how Canada’s First-Time Home Buyers’ GST/HST Rebate works, who may qualify, and what it could mean when purchasing a new UrbanAge home.

At a glance:

  • Up to $1M → Up to 100% of GST rebated
  • Maximum rebate → Up to $50,000
  • $1M–$1.5M homes → Partial rebate may apply
  • Primary residence → Required
  • First-time buyers → Eligibility requirements apply

 

Buying your first home is an exciting milestone, and a major financial decision. For eligible first-time buyers considering a newly built home, a federal rebate could make that next step more affordable.

Canada’s First-Time Home Buyers’ (FTHB) GST/HST Rebate provides eligible buyers with a rebate of up to 100% of the GST paid on a new home valued at $1 million or less, to a maximum rebate of $50,000.

For new homes valued between $1 million and $1.5 million, eligible buyers may still receive a partial rebate, with the amount gradually reduced as the purchase price increases.

For first-time home buyers in Edmonton and surrounding communities, this could mean one less significant cost to consider when purchasing a new home.

What is the First-Time Home Buyer GST Rebate?

The First-Time Home Buyers’ GST/HST Rebate is a federal program designed to reduce the cost of purchasing or building a first home in Canada.

For eligible first-time buyers purchasing a newly built home:

  • Homes valued at $1 million or less: Up to 100% of the GST may be rebated, to a maximum of $50,000.
  • Homes valued between $1 million and $1.5 million: A partial GST rebate may be available, with the maximum rebate gradually reduced as the home’s value increases.
  • Homes valued at $1.5 million or more: The First-Time Home Buyers’ GST/HST Rebate is not available.

For example, the Canada Revenue Agency provides the example of an eligible buyer purchasing a new home valued at $1.25 million. Because this falls halfway between the $1 million and $1.5 million thresholds, the buyer could qualify for 50% of the maximum rebate –  up to $25,000.

The new rebate can also work alongside the existing GST/HST New Housing Rebate. Where both apply, the First-Time Home Buyers’ rebate acts as a top-up to the existing rebate.

Who is Considered a First-Time Home Buyer

You may be surprised to learn that “first-time home buyer” does not necessarily mean you have never owned a home before.

Under the CRA’s current eligibility criteria, you are generally considered a first-time home buyer if:

  • You are at least 18 years old.
  • You are a Canadian citizen or permanent resident of Canada.
  • You have not lived in a home that you or your spouse or common-law partner owned or jointly owned as your primary residence during the current calendar year or the previous four calendar years.
  • You meet the first-time home buyer requirements when ownership of your new home is transferred to you.
  • Neither you nor your spouse or common-law partner has previously received the First-Time Home Buyers’ GST/HST Rebate.

This means someone who owned a home in the past may potentially qualify again after enough time has passed, provided all of the CRA’s other requirements are met.

What Types of Homes Qualify

The rebate is specifically intended for newly built or substantially renovated homes that will be used as the buyer’s primary place of residence.

For someone purchasing a new home directly from a builder, the CRA states that the rebate may be available when the required conditions are met, including:

  • The home is newly built or substantially renovated.
  • The home will be used as your primary place of residence.
  • You are the first individual to occupy the home as a residence after construction or substantial renovation is completed.
  • Your agreement of purchase and sale with the builder was entered into on or after March 20, 2025, and before 2031.
  • Construction begins before 2031 and is substantially completed before 2036.
  • Ownership of the home is transferred to you before 2036.
  • Neither you nor your spouse or common-law partner has previously received the rebate.

Additional requirements can apply depending on how the home is purchased or built, so buyers should review their individual eligibility with the Canada Revenue Agency.

How This Rebate Helps Alberta First-Time Home Buyers

In Alberta, GST is charged at 5%, which means the GST on a newly built home can represent a significant portion of the overall purchase cost.

The First-Time Home Buyers’ GST/HST Rebate is designed to reduce that cost for eligible purchasers. 

This can make purchasing a thoughtfully designed new home more attainable – and leave first-time buyers with more flexibility as they begin their next chapter.

How To Apply for the GST Rebate

The application process can vary depending on your home purchase and individual circumstances. Eligible buyers may be able to receive the rebate through their builder or apply directly through the Canada Revenue Agency (CRA).

For current eligibility requirements, application instructions, and required forms, visit the CRA’s official First-Time Home Buyers’ GST/HST Rebate page.

We recommend confirming your eligibility directly with the CRA and your legal or financial professional.

Looking for a New Home in St. Albert or Edmonton?

If you’re a first-time home buyer exploring a new build in Riverside, St. Albert or Edmonton areas such as Kinglet and Crystallina Nera, the GST rebate could make purchasing a new home more attainable.

UrbanAge offers thoughtfully designed new homes in growing communities throughout the Edmonton area, with functional floor plans, elevated finishes, and options designed for different lifestyles and stages of life.

Explore our available homes and find your fit with UrbanAge.

First-Time Home Buyer FAQs

Q: How much is the first-time home buyer GST rebate in Canada?

A: Eligible first-time home buyers may receive up to 100% of the GST paid on a qualifying new home valued at $1 million or less, up to a maximum rebate of $50,000.

Q: Does the rebate apply to homes over $1 million?

A: Yes, potentially. For eligible new homes valued between $1 million and $1.5 million, the maximum rebate is gradually reduced. Homes valued at $1.5 million or more are not eligible for the First-Time Home Buyers’ GST/HST Rebate.

Q: Does the GST Rebate apply to new builds in Alberta?

A: Yes. Eligible first-time home buyers purchasing qualifying newly built homes in Alberta may qualify for the federal First-Time Home Buyers’ GST/HST Rebate, provided all CRA eligibility requirements are met.

Q: Does the new home need to be my primary residence?

A: Yes. The program requires the qualifying home to be purchased for use as your primary place of residence. For a new home purchased from a builder, you must also generally be the first individual to occupy the home as a residence after construction or substantial renovation is completed.

Q: Can I qualify if I owned a home before?

A: Potentially. The CRA’s definition considers whether you lived in a home owned by you or your spouse or common-law partner during the current calendar year or previous four calendar years. If you owned a home further in the past, you may qualify again, provided you meet the remaining requirements.

Q: Can the GST rebate apply when buying directly from a home builder?

A: Yes. Eligible first-time buyers purchasing a qualifying newly built home from a builder may be able to receive the First-Time Home Buyers’ GST/HST Rebate, provided the CRA’s requirements are met. Buyers should confirm their individual eligibility with the CRA.

Your First Home Could Be Closer Than You Think

Buying your first home is about more than a purchase. It’s choosing the space where your routines take shape, milestones are celebrated, and your next chapter begins.

At UrbanAge Homes, we believe thoughtful design should make everyday living feel better. From functional floor plans and elevated finishes to homes built within growing Edmonton-area communities, we create spaces designed around the way you want to live.

If you’re considering purchasing your first new home, the federal GST rebate could make now an exciting time to explore your options.

Find your fit with UrbanAge and discover a home designed for what comes next.

The information provided in this article is for general informational purposes only and does not constitute tax, financial or legal advice. Eligibility for government rebate programs depends on individual circumstances and Canada Revenue Agency requirements. Program details may change. Buyers should confirm current eligibility and requirements directly with the CRA and their professional advisors.