The GST New Housing Rebate: What First-Time Buyers Should Know

If you are buying a brand-new home in Edmonton, a federal rebate could put up to $50,000 back in your pocket. The First-Time Home Buyers' GST/HST rebate took effect in Canada in 2025, and it changes the math on new construction in a way most buyers do not realize until closing. Here is exactly how it works, who qualifies, and where Edmonton prices land against the thresholds.

What the new First-Time Home Buyers' GST rebate actually does

New homes in Canada carry 5% GST on the purchase price. Resale homes usually do not, because GST is generally not charged when a regular owner sells a used home. That GST on new builds has long been a hidden cost that catches first-time buyers off guard.

The new First-Time Home Buyers' GST/HST rebate removes that cost for eligible buyers. It gives a 100% rebate of the GST on newly built or substantially renovated homes valued up to $1 million. On a $1 million home, that is the full 5% GST back, a maximum saving of $50,000.

The Department of Finance tabled the legislative proposals on May 27, 2025. The rebate was enacted through Bill C-4, which received Royal Assent on March 12, 2026. So this is law now, not a promise.

Who counts as a first-time buyer

The rebate uses a specific definition, and it is stricter than you might expect. To qualify, you must not have lived in a home that you owned, or that your spouse or common-law partner owned, in the current calendar year or in the four preceding calendar years.

That five-year look-back means "first-time" really means "first-time in a while." If you sold a home you lived in three years ago, you do not qualify yet. You also must be at least 18 years old and a Canadian citizen or permanent resident.

This is a federal rule, so it applies the same way across Canada, whether you buy in Edmonton, Calgary, or Halifax. If you are early in the process, our guide to buying your first home in Edmonton walks through the local steps that pair with this rebate.

New builds only: the rule that trips people up

The rebate applies to new construction. That includes three paths: buying a new home from a builder, building your own home on land you own or lease, and buying shares of a co-operative housing corporation. Each one must involve new construction or a substantial renovation.

Resale homes do not qualify, and here is why that is not a loss. When a regular individual sells a used home, GST is not charged on the sale. So resale buyers never paid GST to begin with, and there is nothing to rebate.

Where Edmonton prices land against the thresholds

This is where Edmonton buyers get good news. The full rebate covers new homes up to $1 million. The Edmonton residential median sold price across MLS records is $472,584, and active homes carry a median list price of $544,229. Both sit comfortably under the $1 million ceiling.

That means a first-time buyer purchasing a new detached home at the Edmonton median would get the full 5% GST back. On a $475,000 new build, that is roughly $23,750 returned. On a $600,000 new build, it is $30,000.

Condos make the case even stronger. The Edmonton condo median sold price is $250,647, and active condos list at a median of $246,939. A new condo at that level qualifies for the full rebate with enormous room to spare. For a first-time buyer choosing new construction, the GST rebate can rival the down payment savings of the program itself.

Want to see what new inventory looks like right now? These are live Edmonton homes on the market.

The phase-out only bites above $1 million. Between $1 million and $1.5 million, the rebate shrinks. At $1.5 million or more, it is gone. With Edmonton's residential median at $472,584 and even active listings at $544,229, the vast majority of Edmonton new-build buyers are nowhere near that cliff.

How the rebate stacks with your down payment

The GST rebate is not the only number that decides whether a new build is affordable. Your down payment sets the floor on what you can buy, and the two work together. In Canada, the minimum down payment is 5% on the first $500,000 of price and 10% on the portion above that, up to $1 million.

For a $475,000 new home, that is a minimum down payment of $23,750. Notice that this is almost the same figure as the GST you get rebated on that price. Our guide to the minimum down payment in Canada breaks down the tiers, the stress test, and how mortgage insurance changes your monthly cost.

The older rebate still exists, and it is smaller

Do not confuse the new program with the older GST/HST New Housing Rebate. That older rebate is still in place, and it applies to all new-home buyers, not just first-timers.

The catch is the cap. The older rebate equals 36% of the GST paid, to a maximum of $6,300. It applies fully on homes under $350,000, phases out between $350,000 and $450,000, and pays nothing at $450,000 or more.

At Edmonton's residential median sold price of $472,584, that older rebate would already be zero. So for a first-time buyer of a new detached home, the new $50,000-cap rebate is dramatically more valuable. The new program is the one to focus on.

How to claim it

The mechanics depend on how you buy. When you buy a new home from a builder, the builder often credits the rebate directly on closing, so you pay less up front rather than waiting for a cheque. Confirm this in your purchase agreement, because the wording matters.

If you build your own home, you typically file the rebate application with the Canada Revenue Agency after the build is substantially complete. Keep every receipt. The timing rules require that construction begins before 2031 and that the home is substantially completed before 2036.

Because the rebate is retroactive to agreements signed on or after March 20, 2025, some buyers who already signed may still be able to claim. If that is you, talk to your builder and a tax professional before assuming you missed the window.

Frequently Asked Questions

How much can a first-time buyer save with the GST rebate in Canada?

You can save up to $50,000, which is the full 5% GST on a $1 million new home. The rebate covers 100% of the GST on new homes valued up to $1 million, then phases out between $1 million and $1.5 million. The Parliamentary Budget Officer estimated the average eligible buyer would save about $27,000.

Does the GST rebate apply to resale homes in Edmonton?

No. The rebate applies only to newly built or substantially renovated homes. Resale homes are generally not charged GST when a regular owner sells, so there is no GST to rebate. The program covers three paths: buying new from a builder, building your own home, and buying co-operative housing shares.

Who qualifies as a first-time buyer for this rebate?

You must not have lived in a home you owned, or that your spouse or common-law partner owned, in the current calendar year or the four preceding calendar years. You also must be at least 18 and a Canadian citizen or permanent resident. This is a federal rule that applies the same across Canada.

How does the rebate work for a typical Edmonton new home?

Edmonton's residential median sold price is $472,584, well under the $1 million full-rebate ceiling. A first-time buyer of a new home at that price would get the full 5% GST back, roughly $23,750. New condos near the $250,647 median qualify with even more room. Use our closing costs calculator to model your specific numbers.

Is this the same as the older GST New Housing Rebate?

No. The older GST/HST New Housing Rebate pays 36% of the GST to a maximum of $6,300 and disappears at $450,000. The new First-Time Home Buyers' rebate is far larger, up to $50,000, and reaches homes up to $1 million. At Edmonton's median price, only the new program delivers meaningful savings.