If you have ever bought a pre-construction property in Ontario, then you’re probably used to hearing “HST rebate” as part of the conversation. But here’s where things get tricky: In Alberta, there’s no HST, no provincial sales tax—only 5% GST. That doesn’t mean you’re off the hook entirely and you need to understand how GST applies, whether you qualify for a rebate, and how to avoid surprise costs during closing.

What Is the GST on New Homes in Alberta?

All newly built homes in Alberta are subject to a 5% federal Goods and Services Tax (GST). So if you’re buying a $400,000 condo from a builder, $20,000 of GST would be added to your purchase price. Most of the time, the price you see advertised from builders is already inclusive of that tax and can be lumped into your mortgage—there is no separate GST Rebate component that you need to pay in cash as part of your closing costs like in Ontario.

Types of GST Rebates

There are two different types of GST rebates that you may qualify for based on your situation (note that you can only qualify for one rebate or the other - not both!)

1) GST New Housing Rebate for Primary Residence Buyers (i.e. End Users)

If live in the unit as your principal residence, then you should qualify for the GST New Housing Rebate, which can reduce the effective tax you pay. It’s usually already factored into the price when you sign the contract with the builder. However, don’t assume the builder is filing the rebate for you because some builders will automatically claim the rebate and adjust your purchase price accordingly, while others won’t factor in the rebate and you will be required to file for the rebate after closing, so always confirm how your developer is handling the situation.

To qualify, you’ll need to:

Sign a declaration stating you’ll occupy the home as your primary residence
Actually move into the unit as your principal residence (or have an immediate family member do so)

2) GST Rental Rebate for Rental Property Buyers (i.e. Investors

If you’re buying the property as an investor, there is a different rental rebate available for the same amount.

The investment property must meet ALL of the following criteria to qualify:

The unit is a self-contained residential unit
You have a Purchase and Sale agreement (or assignment contract with original copies of the purchase agreement).
You have closed on the unit, have legal title, and a copy of your Statement of Adjustments
You rent the unit for at least a 1 year lease

You Will Not Qualify for the Rebate If

This applies to both the GST New Housing Rebate and GST Rental Rebate:

You apply for the rebate more than 2 years after your closing date
If you rent the unit for less than a 1 year lease (e.g. 6 months)
If you rent the unit on a short-term basis using Airbnb or VRBO
If you are in a Rental Guarantee with a developer (you can still try but it’s unlikely you will qualify)
If you sell the property right away after closing
If you assign the property (although the new buyer might still qualify)
If you do not close on the property
If the developer claims the rebate for you but you no longer qualify at closing you will need to pay the GST rebate

Note: always confirm with a rebate expert to determine your qualification because there can be some special situations.

How is the GST Rebate Calculated:

The GST Rebate is based on the purchase price of the property. The maximum benefit is $6,300 reached at a purchase price of $350k before GST. For purchase prices higher than this, the GST rebate declines until it reaches $0 at a purchase price of $450k before GST, after which the rebate goes away entirely:

Purchase Price <= $350k before GST = GST Paid x 36%
Purchase Price: $350k to $450k before GST = ( $450,000 - Purchase Price ) / 100,000 * $6,300
Purchase Price: >$450k before GST = $0 (no Rebate is available)

Use the GST/HST Calculator below to calculate how much your GST rebate could be based on your purchase price - give it a go!

What is the GST Rebate Process?

If you buy the property as your principal residence, the New Home Rebate may be assigned to the Developer who automatically credits the buyer with the rebate amount so that you don’t pay anything out of pocket. However if you are an investor, you always have to pay the rebate amount upfront - but don't worry, if you rent out the property for at least 1 year, you can file an application to get the rebate amount back.

How do you Apply for the GST Rebate?

The following documentation is required by the Canada Revenue Agency (CRA)

Copy of Purchase & Sale Agreement
Copy of Statement of Adjustments
Copy of 1 Year Residential Lease (if applicable)
Copy of Property Management Agreement (if applicable)
Copy of Articles of Incorporation (if bought under a company)
Signed Rebate Application Form

Click for the CRA Guides

Need Help?

I have had rebates rejected before so I never take a chance anymore - I always hire professionals who are experts at filing the rebates for me. They know exactly how to complete the forms and what the CRA needs to see to approve the rebate. The current wait time to get a GST rebate back is around 6 months.

I work with partners that specialize in completing rebates for buyers, so contact me if you need a referral. Expect to pay around $750+HST.

💬 The Final Word

The GST rebate process isn’t complicated—but it is easy to overlook and do something that will prevent you from qualifying and a small misstep can cost thousands.

If you want to make sure your GST strategy lines up with your investment plan... No fluff. Just the facts—and the steps you need to keep more money in your pocket.

📞 Book a 1-on-1 consultation with me and I’ll walk you through it.

—
Kyle Dovigi
The Condo Millionaire
Helping Canadians invest smart, close right, and cash flow strong.