Buying your first home is one of the biggest financial decisions you will ever make. Between the down payment, closing costs, and mortgage payments, the upfront costs add up fast.

The federal government recently introduced a new GST rebate specifically for first-time home buyers. If you are purchasing a newly built home, you could save up to $50,000 in tax. That is not a small number. On a $450,000 home, the 5% GST alone works out to $22,500 and under this program, eligible buyers get that back.

In Alberta, where there is no provincial sales tax, the full 5% GST applies to new home purchases. This rebate wipes it out entirely for homes priced at $1 million and under.

Here is what you need to know.

What Is the First-Time Home Buyers’ GST Rebate?

The First-Time Home Buyers’ (FTHB) GST/HST Rebate is a federal program that eliminates or reduces the GST you pay on a newly built home. Eligible buyers can save up to $50,000. The program is expected to deliver $3.9 billion in tax savings to Canadians over five years.

In Alberta, where there is no provincial sales tax, this rebate applies directly to the 5% GST on your new home.

How Much Can You Save on Alberta New Homes?

The rebate amount depends on the purchase price of your home:

• Homes priced at $1 million or under: Full rebate. You pay no GST.
• Homes priced between $1 million and $1.5 million: Partial GST rebate, phased out on a sliding scale.
• Homes priced at $1.5 million or more: No rebate.

For most buyers building with Alquinn Homes, this means the full rebate applies. Our new home prices start in the $420s, well within the threshold for 100% GST relief.

Who Qualifies?

To be eligible, you must meet all of the following:

• You are a Canadian citizen or permanent resident, at least 18 years old
• You have not owned and lived in a home as your primary residence in the current calendar year or the previous four calendar years
• Your spouse or common-law partner also has not owned a primary residence in that same window
• The home will be your primary place of residence
• You are the first person to occupy the home after construction is complete
• Neither you nor your spouse or common-law partner has previously received an FTHB GST rebate

The “previous four years” rule is worth noting. If you owned a home but sold it more than four years ago and have been renting since, you may still qualify. Each situation is different, so confirm your eligibility with a tax professional or the CRA.

When Does It Apply?

The rebate applies to new homes where the purchase agreement was signed on or after March 20, 2025. Construction must begin before 2031 and be substantially complete before 2036.

If you are buying a new build from a builder like Alquinn Homes, the purchase agreement date is what matters.

How Do You Claim It?

There are two ways:

Option 1 – Through your builder at closing: Builders can credit the rebate amount directly at the time of purchase. You and your builder complete Form GST190 together. This is the most common approach and means you see the savings upfront.

Option 2 – Apply directly to the CRA: If the rebate was not credited at closing, you can apply yourself through your CRA account or by mailing in Form GST190. You have two years from the date you take possession to apply.

Why This Matters for Alquinn Buyers

At Alquinn Homes, we build new homes across Spruce Grove, Stony Plain, Fort Saskatchewan, and Devon. With starting prices well under $1 million, most of our buyers qualify for the full rebate.

That means the GST you would have paid on a $450,000 home, roughly $22,500, stays with you.

Combined with other programs like the First Home Savings Account (FHSA) and the Home Buyers’ Plan (RRSP), the FTHB GST Rebate is one more reason now is a strong time to build new.

Ready to explore your options? Browse our available homes or talk to an Alquinn home consultant to get started.

This post is for informational purposes. For advice specific to your situation, consult a tax professional or visit canada.ca.