GST Rebate on New Homes in Edmonton: What Buyers Need to Know in 2026

If you're buying a brand-new home in Edmonton — whether it’s a quick possession in Keswick, a duplex in Kinglet Gardens, a detached home in Orchards, or a pre-construction build in Sherwood Park — there’s one financial detail you absolutely need to understand:

GST.

In Alberta, new construction homes are subject to 5% federal GST. And on a $500,000 home, that’s $25,000.

The good news? Many buyers may qualify for the GST New Housing Rebate, and first-time buyers may qualify for even more relief under the proposed federal First-Time Home Buyers GST Rebate.

Let’s break down what this means for Edmonton new construction buyers — and how it impacts your purchase strategy.

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How GST Works on New Construction in Edmonton

In Alberta, we do not have provincial HST — only the 5% federal GST applies.

When you purchase:

• A brand-new home from a builder

• A substantially renovated home

• A new duplex, townhome, or condo

• Or you build your own home

GST applies to the purchase.

Most builders in Edmonton advertise homes as “GST included.” What that usually means is they are assuming you qualify for the GST New Housing Rebate and have already factored that rebate into the advertised price.

But here’s the critical part:

If you don’t qualify for the rebate, that amount can be added back to your purchase price.

That’s why understanding eligibility is so important before you sign a builder contract.

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What Is the GST New Housing Rebate?

The GST New Housing Rebate allows eligible individuals to recover a portion of the GST paid on a new or substantially renovated home that will be used as a primary residence.

In Edmonton’s new construction market, this applies to:

• Single-family detached homes

• Duplexes and half-duplexes

• Townhomes

• Condominiums

• Homes on leased land (with qualifying lease terms)

• Mobile and modular homes

• Floating homes

• Owner-built homes (with conditions)

To qualify, you must:

• Be purchasing as an individual (not a corporation)

• Intend to use the home as your primary residence (or for a close family member)

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Buying From a Builder in Edmonton

If you purchase a new home from a builder in Edmonton — whether that’s in southwest communities like Glenridding Ravine or Riverstead, west Edmonton communities like Kinglet Gardens, or southeast areas like The Orchards — you may qualify for the rebate.

Most builder contracts include a clause stating:

The purchase price includes the GST rebate, and the buyer agrees to assign the rebate to the builder.

This means the builder applies for the rebate on your behalf and credits it toward the purchase price.

However, if you do not qualify, you must repay that rebate amount.

This can significantly affect:

• Your final purchase price

• Your mortgage approval amount

• Your closing costs

That’s why I always review this clause carefully with my buyers before they remove conditions.

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Building Your Own Home in Edmonton or Surrounding Areas

If you’re building a custom home — whether in Edmonton proper, Parkland County, Sturgeon County, or Strathcona County — you may still qualify for the GST rebate.

However, there is a key condition:

The fair market value of the home at substantial completion must be under $450,000.

With today’s build costs in the Edmonton area, many detached homes exceed this threshold, which may limit or eliminate eligibility for owner-built rebates.

If you’re planning a custom build, we need to run those numbers carefully before moving forward.

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Modular, Mobile & Specialty Homes

If you’re purchasing a new modular or mobile home in Edmonton or surrounding communities, you may still qualify.

In some cases, you can choose whether to treat it as:

• A builder purchase

• Or an owner-built home

That distinction affects how the rebate is calculated.

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The Proposed First-Time Home Buyers GST Rebate

There is also a proposed federal program that would significantly increase relief for first-time home buyers.

Under the proposed First-Time Home Buyers GST Rebate:

• Would apply to new construction homes purchased after May 27, 2025

• Buyers could receive up to 100% of the GST back on homes valued up to $1 million

• A phased-out rebate would apply between $1 million and $1.5 million

• No rebate would apply over $1.5 million

For Edmonton buyers — where many new construction homes fall between $400,000 and $800,000 — this could be a major affordability advantage.

If implemented, this program could mean:

• Up to $50,000 in GST savings

• Lower mortgage amounts

• Improved qualification ratios

• Reduced cash required at closing

For first-time buyers entering the Edmonton market, this would be a powerful opportunity.

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Why This Matters in Edmonton’s 2026 Market

New construction pricing in Edmonton currently ranges approximately:

• Townhomes: Mid $300,000s to $500,000s

• Duplexes: $400,000s to $600,000s

• Detached homes: $500,000s to $900,000+

On a $600,000 detached home:
5% GST = $30,000

That is not a small number.

Understanding:

• Whether GST is included

• Whether the rebate is assigned

• What happens if you don’t qualify

• How it impacts your mortgage approval

— is part of smart new construction strategy.

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Questions Edmonton Buyers Should Ask Before Signing

Before you finalize a builder contract, ask:

1. Is the advertised price GST included?

2. Is the rebate already assigned to the builder?

3. What happens if I don’t qualify?

4. Does my mortgage approval assume rebate eligibility?

5. Are there any timing conditions affecting rebate eligibility?

These are conversations I walk through with my buyers every week.

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Common Misunderstandings About GST in Edmonton

“GST doesn’t apply because it’s my first home.”

Not automatically. You still need to meet eligibility criteria.

“GST doesn’t matter because it’s included.”

It matters if eligibility changes.

“Resale homes have GST.”

No — resale homes are not subject to GST.

“All new homes qualify.”

Not necessarily. There are fair market value thresholds and occupancy requirements.

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Strategic Advice for Edmonton New Construction Buyers

If you’re considering:

• A quick possession home

• A pre-construction build

• A custom home

• A builder spec home

GST strategy should be part of your purchase planning.

This is especially true if:

• You’re a first-time buyer

• You’re building on owned land

• You’re buying under a corporation

• You’re planning to rent the home

Each scenario changes eligibility.

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Why Working With a Realtor Who Understands Builder Contracts Matters

Builder contracts are written to protect the builder.

They include:

• Rebate assignment clauses

• Occupancy conditions

• Timing clauses

• Fair market value references

If you’re buying new construction in Edmonton, you want someone reviewing those details before you sign.

That’s part of the guidance I provide to my buyers every day.

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Final Thoughts: Don’t Leave Thousands on the Table

The GST New Housing Rebate can mean thousands — sometimes tens of thousands — in savings.

In a competitive Edmonton market where buyers are navigating:

• Rising build costs

• Interest rate changes

• Builder incentives

• Energy efficiency upgrades

• CMHC premium refunds (for Built Green homes)

Understanding tax rebates is a critical part of your affordability strategy.

If you’re buying new construction in Edmonton or surrounding areas and want clarity on:

• GST

• Builder pricing

• Incentives

• Mortgage strategy

• Closing costs

Let’s talk.

📞 (780) 717-5267
🌐 chrisreidedmonton.com

Because when you’re buying new, the fine print matters.