Short answer: Eligible first-time home buyers in Alberta may recover up to 100% of the federal GST paid on a qualifying newly built or substantially renovated home, to a maximum rebate of $50,000. The full rebate applies to homes valued at $1 million or less, and it phases out to zero at $1.5 million.

By Jay Lewis, REALTOR® | RE/MAX Excellence · Updated October 21, 2026

This article is part of my Edmonton New Construction Buyer’s Guide.

Free download: my New-Construction Buyer Checklist. Two printable pages, from your first show home visit to your one-year warranty, including the GST questions to ask before you sign.

For qualifying homes valued at $1 million or less, the rebate can recover up to 100% of the GST paid, subject to the $50,000 maximum. The rebate is gradually reduced for homes valued between $1 million and $1.5 million, and no First-Time Home Buyers' GST/HST Rebate is available at $1.5 million or more.

Applications for the rebate are now open.

GST in Alberta in 2026: quick facts

• Alberta has no provincial sales tax, so a new home is charged only the 5% federal GST.

• On a $600,000 new home, that is about $30,000 in GST before any rebate.

• Eligible first-time buyers may get back up to $50,000: all of the GST on homes up to $1 million, phasing out to zero at $1.5 million.

• If you don’t qualify, you may still get the older GST/HST New Housing Rebate, up to $6,300, on lower-priced homes.

• Figures are general estimates; confirm your own eligibility with the CRA and your lawyer.

How Much Is the New GST Rebate in Alberta?

Alberta does not have a provincial sales tax. A taxable sale of a newly built home is generally subject to the 5% federal GST, although the builder's advertised price may already include GST.

The new First-Time Home Buyers’ GST/HST Rebate works as a top-up to the existing GST/HST New Housing Rebate. When both rebates apply, an eligible first-time buyer may recover up to 100% of the federal GST.

Examples are illustrative. Actual rebate eligibility and calculations depend on the transaction and CRA requirements.

For example, the CRA explains that an eligible buyer purchasing a qualifying $1.25-million home, halfway between $1 million and $1.5 million, may qualify for 50% of the maximum $50,000 rebate.

The actual calculation can depend on the transaction, including how the builder’s price is stated and whether GST is already included. Buyers should confirm the calculation with the builder, CRA, an accountant and their real-estate lawyer.

What About the Existing New Housing Rebate?

The existing GST/HST New Housing Rebate remains available to eligible buyers, including some buyers who are not purchasing their first home.

For the federal portion of the existing rebate, eligible buyers can generally recover 36% of the GST paid, up to a maximum of $6,300. The rebate is gradually reduced for qualifying homes between $350,000 and $450,000 and is generally unavailable at $450,000 or more.

For qualifying first-time buyers, the new FTHB rebate acts as a top-up to the existing rebate, potentially bringing the total federal GST relief to 100%, up to the new $50,000 maximum.

CRA confirms the existing federal rebate's $6,300 maximum and the $350,000 to $450,000 phase-out.

Who Is Considered a First-Time Buyer?

Generally, a buyer must meet all the following requirements:

• Be at least 18 years old

• Be a Canadian citizen or permanent resident

• Be purchasing or building the home as their primary residence

• Not have lived in a home owned by the buyer or their spouse or common-law partner during the current calendar year or the previous four calendar years

• Not have previously received the First-Time Home Buyers’ GST/HST Rebate

• Have a spouse or common-law partner who has not previously received the rebate

The home can be a newly constructed or substantially renovated house purchased from a builder. Certain owner-built homes, co-operative housing shares, modular homes, mobile homes and floating homes may also qualify when the applicable CRA requirements are met.

Important Dates and Conditions

For a typical new home and land purchased together from a builder:

• The purchase agreement must be entered into on or after March 20, 2025, and before 2031.

• Construction or substantial renovation must begin before 2031.

• The home must be substantially completed before 2036.

• Ownership must transfer to the buyer before 2036.

• The home must be purchased for use as the buyer’s primary residence.

• The buyer must generally be the first person to occupy the home after construction or substantial renovation is completed.

The timing rules differ slightly for owner-built homes, homes on leased land and co-operative housing. Buyers in those situations should review the applicable CRA requirements carefully.

Bill C-4 received Royal Assent on March 12, 2026, formally creating the new rebate.

Can the Builder Credit the Rebate at Closing?

Yes. A builder may agree to credit the rebate against the amount you owe at closing.

If the builder provides the credit, the builder must submit the rebate application to the CRA. The buyer cannot submit another application for the same rebate unless the builder provided only the existing New Housing Rebate and not the new First-Time Home Buyers’ rebate.

The builder may ask you to sign documents assigning the rebate to them. Read those documents carefully and confirm what happens if the CRA later determines that you do not qualify.

What If the Builder Doesn’t Credit the Rebate?

If the builder does not pay or credit the rebate, an eligible buyer can apply directly through their CRA account or submit the required application by mail.

For a home and land purchased from a builder, the main application is Form GST190: GST/HST New Housing Rebate Application for Houses Purchased from a Builder.

The application deadline is generally two years from the date ownership transfers to the buyer. Different filing requirements may apply when the buyer leases the land or builds the home.

Questions to Ask Before Signing a Builder Contract

Before relying on the rebate as part of your purchase budget, ask the builder:

• Does the advertised price include GST?

• Has any GST rebate already been deducted from the advertised price?

• Will the builder credit both applicable rebates at closing?

• Who will prepare and submit Form GST190?

• Does the agreement require me to assign the rebate to the builder?

• Who becomes responsible if the CRA later decides that I am ineligible?

• Is the rebate shown clearly on the purchase contract and statement of adjustments?

These questions should be answered before the builder agreement becomes firm, not shortly before possession.

Get my free New-Construction Buyer Checklist

Want the GST questions above, plus everything else to check before you sign with a builder, in one place? My free, printable 2-page checklist takes you from your first show home visit to your one-year warranty.

Get the free checklist →

Frequently Asked Questions

Is the new-home GST rebate automatic?

No. The buyer must meet all eligibility requirements, and the required application must be submitted either by the builder or directly by the buyer.

Does the rebate apply to resale homes?

Generally, no. This rebate applies to qualifying newly built or substantially renovated homes and certain other eligible new-housing arrangements.

Can I qualify if my spouse previously owned a home?

Possibly, but the occupancy history matters. You generally cannot have lived in a home owned by you or your spouse or common-law partner during the current calendar year or the previous four calendar years. Confirm your circumstances with the CRA.

What happens if the home costs more than $1 million?

The rebate is gradually reduced between $1 million and $1.5 million. No First-Time Home Buyers’ rebate is available when the home is valued at $1.5 million or more.

Can I apply after taking possession?

Yes, when the builder has not credited the rebate and you otherwise qualify. The deadline for a typical home-and-land purchase from a builder is generally two years from the date ownership transferred to you.

Buying a New-Construction Home in the Edmonton Area?

The rebate can materially affect your purchasing budget, but it is only one part of a builder transaction.Financing can also affect affordability. If you're comparing 25- and 30-year amortizations, see my [2026 guide to 30-year mortgages in Alberta].

Before signing, buyers should also understand the specifications, upgrade pricing, deposit schedule, construction timeline, inspection rights, closing adjustments and what happens if the completed home differs from the plans.

With more than 25 years in new construction, on the trades and sales sides, I help buyers evaluate these details when purchasing new homes in Edmonton, Sherwood Park, Fort Saskatchewan, Devon, Spruce Grove and Stony Plain.

If you're comparing your options or planning a move in Edmonton, Sherwood Park, Fort Saskatchewan, Devon, Spruce Grove or Stony Plain, I can help you understand how the details fit into the bigger picture. With more than 25 years in new construction, on the trades and sales sides, I bring a builder’s-eye perspective to the buying process.

Call or text Jay Lewis at 780-220-8449

Jay Lewis | REALTOR® | RE/MAX Excellence

Want to see more Edmonton real-estate updates from JaySells.ca in Google? Add JaySells.ca as a Preferred Source.

This article provides general information only and is not tax, accounting or legal advice. Rebate rules are technical and can change. Confirm your eligibility and rebate amount with the Canada Revenue Agency, a qualified accountant and a real-estate lawyer.

Official Sources

• CRA: First-Time Home Buyers’ GST/HST Rebate

• CRA: Who Can Apply

• CRA: Applying for a Home Purchased From a Builder

• Parliament of Canada: Bill C-4

Information reviewed and updated September 23, 2026.

Short answer: Before you sign a builder's purchase agreement in Alberta, check eight things: possession date and delay terms, deposits and how they're protected, what's included in the price, upgrade and selection terms, warranty coverage, price-adjustment clauses, assignment and resale limits, and the builder's right to make changes. Have an Alberta real estate lawyer review it before it becomes firm.

By Jay Lewis, REALTOR® | RE/MAX Excellence · Updated September 26, 2026

This article is part of my Edmonton New Construction Buyer’s Guide.

Free download: my New-Construction Buyer Checklist. Two printable pages, from your first show home visit to your one-year warranty, including the contract questions to ask before you sign.

A builder contract is not the same as a typical resale purchase agreement. It's prepared for the builder and can contain detailed terms covering deposits, possession delays, upgrades, price adjustments, substitutions, warranty coverage and your ability to assign or resell the contract. Before making the agreement firm, you should understand exactly what's included in the price, what can still change, what deadlines you're agreeing to, and what happens if the build or possession doesn't go as expected.

With more than 25 years in new construction, on the trades and sales sides, I pay particular attention to the specifications and construction details that are easy to overlook when the focus is on floor plans and finishes. I can help you work through the process and identify questions to raise, but a qualified Alberta real estate lawyer should give you legal advice on the contract itself.

Quick checklist: builder contract in Alberta

• Possession date: fixed or estimated? What notice, reasons and maximum extension apply?

• Deposits: how much, when, refundable when, and how protected?

• Price: exactly what's included, and does it include GST and any rebate?

• Upgrades and selections: deadlines, allowances, deposits and substitutions

• Warranty: who the provider is, and what the coverage and exclusions are

• Price adjustments: can the price change before possession?

• Assignment and resale: permitted, fees, builder approval?

• Builder changes: materials, plans, grading and exterior features

• Conditions: financing, sale of your home, lawyer review

1. How firm is the possession date?

The possession date in a builder contract isn't always guaranteed the way buyers expect with a resale purchase. A new-construction agreement may give the builder the right to extend or adjust possession for reasons such as construction delays, trade availability, material shortages, permitting, inspections, weather or other circumstances described in the contract.

Before signing, understand:

• Whether the possession date is fixed, estimated or subject to extension

• How much notice the builder must provide if possession changes

• What reasons allow the builder to delay possession

• Whether there's a maximum extension period

• What happens to your deposit if the delay becomes significant

• Whether you have any right to terminate the agreement after a certain point

• How a delay could affect your mortgage approval, rate hold, current lease or the sale of your existing home

Don't assume the date on the front page of the agreement is guaranteed. If you have a hard deadline, such as a lease ending or a sale closing on your current home, have your lawyer explain the possession and extension clauses before the agreement becomes firm.

2. How are deposits paid and protected?

Builder contracts usually require one or more deposits. Before signing, understand:

• How much is required, and when

• When the deposit is refundable, and when it could be at risk

• Who holds the deposit, and whether it's held in trust

• Whether the deposit is covered by deposit protection, and up to what amount

Protection differs by home type. For new condominium units, Alberta's Condominium Property Act requires deposits to be held in trust. For other new homes, such as single-family homes, protection depends on the builder and the coverage offered through its warranty provider, so ask how your deposit is protected, and to what limit, before you pay it. Your real estate lawyer can explain what the deposit terms mean for you.

3. What's actually included in the price?

A builder's advertised price doesn't always tell you the total cost of getting the home to the condition you expect at possession. Confirm exactly what's included and what costs extra. Depending on the builder and property, this can include:

• Lot premiums

• GST, and whether any GST rebate has already been assumed

• Appliances

• Flooring and cabinetry allowances

• Lighting and plumbing fixtures

• Air conditioning

• Garage heater or electrical upgrades

• Decks, fencing and landscaping

• Driveway, sidewalks and exterior concrete

• Window coverings

• Basement development

• Architectural or community requirements

If an item, finish or upgrade matters to you, make sure the agreement or its schedules clearly identify it. Don't rely on a conversation or on what you saw in the show home. Eligible first-time buyers may qualify for significant GST relief on a new home; see my 2026 Alberta new-home GST rebate guide for the current rules and how it's handled at closing.

The number I want buyers comparing isn't the builder's base price. It's the all-in cost of getting the home to the condition you actually want.

4. What are the upgrade and design selection terms?

If you're buying before construction is complete, design selections can change the final price significantly. Before signing, clarify:

• When design and upgrade appointments must be completed

• Which selections are included in the base price, and whether allowances are fixed dollar amounts

• How much upgrades require as a deposit, and whether upgrade deposits are refundable

• Whether upgrade pricing is guaranteed once selected

• What happens if a selected product becomes unavailable, and whether the builder can substitute without your approval

• How late changes or missed deadlines are handled

• Whether structural changes must be selected before a specific construction stage

Show homes often contain optional finishes and upgrades. Ask the builder to identify what's standard, what's upgraded and what each significant upgrade will cost in your home. Keep copies of every signed selection sheet, change order and revised price summary; they should match the final contract and closing figures. For help deciding, see which new home upgrades are worth it.

5. What does the new home warranty cover?

New homes in Alberta must have warranty coverage that meets the minimums under the New Home Buyer Protection Act. Coverage is provided through approved warranty providers and includes at least:

• 1 year: labour and materials

• 2 years: delivery and distribution systems, such as electrical, plumbing, heating, ventilation and air conditioning

• 5 years: building envelope

• 10 years: major structural components

Coverage details, exclusions and claim procedures vary by warranty provider, so review the warranty documents for your specific home. You can also confirm the builder is licensed through Alberta's public builder registry.

6. Can the price change before possession?

Some contracts include clauses that allow the purchase price to be adjusted under certain conditions, for example increases in material costs or changes in applicable taxes. Review this section carefully with your lawyer so you understand whether, and when, the price you agreed to could change before possession.

7. Can I assign or resell the contract?

Some builder contracts restrict assigning the agreement to another buyer before possession, or reselling the home for a period after possession. Even if you expect to keep the home, circumstances can change during construction. Before signing, understand:

• Whether assignments are permitted at all, and whether the builder's written approval is required

• Whether there's an assignment fee, and whether the builder can refuse

• Whether there are restrictions on marketing the property before possession

• Whether resale is restricted for a period after possession

• What happens if your circumstances change and you can't complete the purchase

Assigning a new-construction contract can also have tax and financing implications, so review those separately with the appropriate professionals.

8. Can the builder make changes to my home?

Builder contracts often allow some changes during construction, especially when a specified product, material or finish becomes unavailable. Before signing, understand:

• Whether the builder can substitute materials, fixtures or finishes, and whether substitutes must be of similar quality or value

• Whether you must be notified before a substitution, and whether you have approval rights for significant ones

• Whether the builder can change plans, dimensions or specifications

• Whether site conditions can change grading, retaining walls, steps or exterior features

Some changes in new construction are reasonable or unavoidable. The key is understanding how much discretion the contract gives the builder, and what protection you have if the finished home differs materially from what you expected.

Should a lawyer review my builder contract?

Yes. A builder contract can create obligations very different from a resale purchase agreement. Before it becomes firm, have a qualified Alberta real estate lawyer review it and explain anything you don't fully understand, including the deposit, title, warranty, possession terms, price adjustments, assignment restrictions and closing obligations. I can help you understand the process, compare builder terms and identify questions worth raising, but legal advice should come from your lawyer.

Get my free New-Construction Buyer Checklist

Thinking about a new build? My free, printable 2-page checklist covers what to check at every stage, from your first show home visit to your one-year warranty.

Get the free checklist →

Frequently asked questions

Is a builder's possession date guaranteed?

Not always. Many builder contracts allow the date to be extended for reasons listed in the agreement. Check the notice period, the reasons allowed and any maximum extension before you sign.

Can I negotiate a builder contract?

Sometimes. Builders use their own standard forms, but price, inclusions, upgrades, possession timing and conditions can sometimes be discussed, especially on quick-possession homes. What's possible varies by builder and market conditions.

Do I need my own REALTOR® to review a builder contract?

It isn't required, but having your own representation means someone is looking out for your interests when you compare terms. See Do I need a REALTOR® to buy a new build in Edmonton?

Working through a builder contract with me

If you're considering a builder purchase in Edmonton, Sherwood Park, Fort Saskatchewan, Devon, Spruce Grove or Stony Plain, I can help you compare the contract, specifications, upgrades and overall value before you make the agreement firm. Call or text me at 780-220-8449, or book a 20-minute call.

Jay Lewis | REALTOR® | RE/MAX Excellence

Sources:Government of Alberta: new home warranty · Alberta public builder registry · Canada Revenue Agency: First-Time Home Buyers' GST/HST rebate

This article is general information, not legal advice. Have a licensed Alberta real estate lawyer review any purchase agreement before you sign.

Want to see more Edmonton real-estate updates from JaySells.ca in Google? Add JaySells.ca as a Preferred Source.