What Alberta First-Time Buyers Need to Know About the New GST Rebate
Renee Huse, founder of Spire Mortgage Team in Alberta, has one mission: to help Albertans buy smarter — with confidence, clarity, and maximum financial impact.
That’s why this new First-Time Home Buyers’ GST Rebate is such a game-changer. If you're a first-time buyer looking at new construction in Calgary, Edmonton, Red Deer, or Airdrie, this rebate could reduce your mortgage amount by tens of thousands of dollars.
- What Is the First-Time Home Buyers’ GST Rebate?
- Who Qualifies for the Rebate in Alberta?
- How Much Money Can You Actually Get Back?
- Eligible Property Types for Alberta Buyers
- Key Deadlines and Cutoffs You Can’t Miss
- Case Study: $950K New Build in Calgary
- Glossary of Key Terms
- Top FAQs About the Rebate
- Final Word from Spire
What Is the First-Time Home Buyers’ GST Rebate?
As of May 27, 2025, the federal government introduced a 100% GST rebate for qualified first-time home buyers who purchase or build brand-new homes in Canada. This rebate stacks with the existing GST/HST New Housing Rebate.
If eligible, you could recover up to $50,000 in GST.
Who Qualifies for the Rebate in Alberta?
- Be a first-time home buyer (no ownership in the year of purchase or prior 4 years)
- Be 18 years or older
- Be a Canadian citizen or permanent resident
- Use the home as your primary residence
- Be the first person to occupy the home
How Much Money Can You Actually Get Back?
| Home Price | GST Rebate Eligibility |
|---|---|
| Up to $1,000,000 | Full rebate – up to $50,000 |
| $1,000,001 – $1,499,999 | Partial rebate (linearly phased out) |
| $1,500,000 or more | No rebate |
Eligible Property Types for Alberta Buyers
Homes Purchased from a Builder
Includes quick-possession homes in Cochrane, townhomes in Edmonton, and single-family builds in Lethbridge — as long as the buyer is the first to occupy.
Owner-Built Homes
If you’re building on land you own (or lease), whether rural or urban, and plan to live in the home — you’re eligible.
Co-op Housing Units
Buyers purchasing shares in a co-op can claim the rebate if the unit will be their primary residence and it’s the first occupancy.
Key Deadlines and Cutoffs You Can’t Miss
- Purchase agreement or build start must be on or after May 27, 2025
- Must be signed before 2031
- Home must be substantially completed before 2036
- Assignments or re-signing agreements dated before May 27, 2025 are ineligible
Case Study: $950K New Build in Calgary, Before and After the Rebate
Before May 27, 2025 (No Rebate)
- Home price with GST: $997,500
- Down Payment: $49,875
- Mortgage before insurance: $947,625
- CMHC premium: $37,905
- Total Mortgage: $985,530
- Monthly Payment: ≈ $4,678
After May 27, 2025 (GST Rebate Applied)
- Effective Home Price: $950,000
- Down Payment: $47,500
- Mortgage before insurance: $902,500
- CMHC premium: $36,100
- Total Mortgage: $938,600
- Monthly Payment: ≈ $4,449
Strategic Impact:
- Saves over $82,000 in lifetime interest
- Lowers monthly payment by $229
- Improves mortgage qualification odds
Glossary of Key Terms
- First-Time Home Buyer: No owned home in current or past 4 calendar years
- GST Rebate: Refund of the 5% federal tax on new housing
- Insured Mortgage: Mortgage with <20% down, backed by CMHC
- Primary Residence: Your main living residence
- Assignment Sale: Transfer of purchase rights before closing
- CMHC Premium: Insurance cost added to the mortgage for low down payments
- Substantial Completion: 90%+ complete — ready for occupancy
- Linear Phase-Out: Gradual reduction of benefits between $1M–$1.5M
Top FAQs About the Rebate
- Can I stack this with other programs? Yes — it stacks with the RRSP Home Buyers’ Plan, First Home Savings Account, and other provincial programs.
- Does it apply to resale homes? No — only newly built homes and qualifying co-op units.
- What if only one buyer qualifies? Only one purchaser needs to meet all first-time buyer criteria.
- What if I move out or rent shortly after? You must intend to live there as your primary residence. Short-term changes won’t automatically disqualify you.
- How is the rebate claimed? Typically claimed through closing with builder documentation. Your mortgage advisor will guide the process.
Final Word from Spire
The GST rebate is more than just a bonus — it’s a tool for smart Alberta buyers to maximize their purchasing power, reduce debt load, and increase mortgage approval odds. Don’t leave money on the table.