The New First-Time Home Buyers’ GST Rebate
What It Means If You’re Building or Buying New in Medicine Hat
If you’re a first-time home buyer in Alberta and you’re thinking about a new build, there’s a recent federal change you should know about — one that could genuinely save you tens of thousands of dollars.
The federal government has introduced a new First-Time Home Buyers’ GST/HST Rebate. For most first-time buyers purchasing a new home from a builder (or building one themselves) here in Alberta, it can mean getting the full 5% GST you paid back, up to a maximum of $50,000.
That’s not a small number. And because there’s no HST in Alberta — just the 5% GST on new homes — the math is pretty clean. On a $500,000 new build, the GST is $25,000. If you qualify for the rebate, you get all of it back.
Let me walk you through how it actually works.
Who counts as a first-time home buyer for this rebate?
The federal definition is a little more generous than people sometimes assume. To qualify, you need to:
• Be at least 18 years old
• Be a Canadian citizen or permanent resident
• Not have lived in a home you owned (on your own or jointly) as your primary residence in the current calendar year or in the four calendar years before that
That last point is important. If you owned a place years ago but have been renting since, you may still qualify. It’s the four-year look-back that matters.
There’s also a wrinkle if you’re married or in a common-law relationship. You can’t have lived in a home your spouse or partner owned during that same window. And the rebate is once per couple, ever. If your partner already claimed it on a previous purchase, you can’t claim it on yours.
One thing that surprises people: you can still qualify even if you own an investment property, as long as you’ve never lived in it (or didn’t live in it during the four-year look-back). The rule is about where you’ve lived, not what you’ve owned.
What kinds of homes does this apply to?
This is a rebate on the GST you pay on a new home, so it covers:
• A new home you buy from a builder, where the builder owns the land and sells you the whole package
• A new home you buy from a builder on leased land
• A share in a co-op for a new build
• A home you build yourself, or have built for you, on land you own
• A substantial renovation, where 90% or more of the existing home is removed or replaced
What it doesn’t cover is a resale home. If you’re buying a previously-owned house, there’s no GST being charged on the purchase, so there’s nothing to rebate. This program is specifically for new construction.
How much can you actually get back?
The rebate amount depends on the purchase price (or the fair market value, if you’re building it yourself):
• Up to $1,000,000: full rebate of the GST you paid, capped at $50,000
• $1,000,001 to $1,499,999: a partial rebate that phases out as the price goes up
• $1,500,000 or more: no rebate
For most first-time buyers in Medicine Hat, we’re well under that $1 million threshold, which means you’d typically get back every dollar of GST you paid on the home.
There’s also a separate, older program — the GST/HST New Housing Rebate — that’s still in place. For homes under $450,000, it gives you back up to $6,300 of the GST. The two rebates work together, not against each other, so you don’t lose one by claiming the other.
The dates that matter
A few important deadlines to keep in mind. The agreement of purchase and sale has to be entered into between March 20, 2025 and December 31, 2030. For an owner-built home, construction has to begin in that same window. And the home has to be substantially complete, with ownership transferred to you, before 2036.
If you signed your agreement with a builder before March 20, 2025, this rebate doesn’t apply to you, even if you take possession later. The date on the original agreement is what counts, not the closing date.
How do you actually get the money?
There are two ways. The builder can credit the rebate against your purchase price at closing, so you pay less upfront. Or you apply directly to the CRA after you take ownership, using Form GST190 for builder-built homes or Form GST191 for owner-built homes. Generally you have two years from the date ownership is transferred to claim it.
I’d suggest talking to your builder early in the process about how they’re handling this. Some builders are crediting the rebate at closing, which keeps your cash needs lower. Others are leaving it for buyers to claim afterward.
Why this changes the conversation at the start of your mortgage
When I’m working with a first-time buyer who’s considering a new build, this rebate changes the math in real ways. It changes how much you actually need to bring to closing, which can change the size of mortgage you need, which can change the kind of home you can comfortably afford.
It’s also worth thinking about whether new construction makes sense for you in the first place. There are trade-offs — timelines, draw schedules, the realities of building — that I walk every client through before they commit. A rebate, no matter how generous, isn’t a reason on its own to choose a new build over a resale. But if a new build is what you wanted anyway, this can make it meaningfully more affordable.
Where to go from here
If you’re thinking about a new build in Medicine Hat or anywhere in southeast Alberta, give me a call or book a chat before you sign anything. The eligibility rules have some sharp edges, and a short conversation can save you from a costly mistake later in the process.
Jayne Flaig is a licensed mortgage broker at Trilogy Mortgage in Medicine Hat, Alberta, with access to more than 40 lenders. She's known for making the mortgage process feel clear, manageable, and — believe it or not — sometimes even enjoyable.