Yes — GST applies to new homes in Edmonton, and it can change how much cash you need at closing. In Alberta, GST is 5% on a newly built home, and Alberta has no provincial sales tax on top of it, so the 5% is the full tax line. Resale homes are generally exempt, which is why buyers moving from resale shopping to a builder showroom are often caught off guard. See new-build approvals: rate holds, deposits and long possessions.

The mortgage risk is a mismatch: if your approval was built around a price that did not include the full GST, the shortfall can be due in cash at closing. Confirm how your contract and approval were structured well before possession day. Also see when the rate hold expires before a long build finishes.

Is GST charged on new homes in Alberta?

Yes. A newly constructed home — and most substantially renovated homes — is a taxable supply, so 5% GST is charged on the price. A lived-in resale home is generally exempt. From the buyer’s side, see GST on new homes in Alberta: when it applies, from the buyer’s side.

That 5% is not a rounding error. Illustration only: on a $500,000 new home, 5% GST equals $25,000. That is arithmetic, not a quote — but it shows why this line item can matter more to your closing funds than most builder upgrades. See closing costs beyond the down payment, GST included.

Is the builder’s price “plus GST” or “GST in”?

Ask this question before you sign, in those exact words. Builder prices are sometimes quoted net of GST and net of expected rebates, which makes the show-home number look lower than the amount the contract actually settles at.

Get the answer in writing: base price, GST amount, any rebate the price assumes, and the total you will owe. If the price was quoted net of a rebate you do not qualify for, that difference also lands on you at closing.

“She got everything done fast and found me a great rate too. Honestly, I felt really taken care of the whole time.” — Vince, Google review

Can GST be added to your mortgage?

Not always in the simple way buyers assume. Whether GST forms part of the amount your mortgage is approved on depends on how the contract and the approval were structured — and that varies by file.

The practical point: do not assume. Confirm with your broker and lawyer, line by line, whether your approval and funds-to-close include the full GST. If they do not, the gap is cash at closing. A review through my Pre-Approval & Refinance Check catches this mismatch early.

What rebates can reduce the GST?

Two programs matter, and they are different:

• The longstanding GST New Housing Rebate: you can recover 36% of the GST, to a maximum of $6,300. The full rebate applies at $350,000 or less, phases out to $450,000, and is zero above that. Sometimes the builder credits it at closing and sometimes you claim it yourself — confirm which applies.
• Newer federal GST relief for first-time buyers: announced relief of up to 100% of the GST on new homes up to $1 million for eligible first-time buyers, phasing out toward $1.5 million. Eligibility is date-specific and depends on when your agreement was signed — do not count on it until your lawyer or the CRA confirms your contract qualifies.

What should you confirm before you sign with a builder?

Four things: whether the price is plus GST or GST included; whether any rebate is netted into the price; whether your approval reflects the full GST-inclusive figure; and your total funds-to-close, in writing. If other financing is renewing around the purchase, a Mortgage Renewal Check keeps the picture in one place.

Building or buying new in Edmonton? Call me before you sign and we will run the GST line, the rebates, and your closing funds on your actual contract — not the show-home price. Call (780) 722-5621.

By Travis Bannert, Realtor and Mortgage Broker

Travis Bannert, Mortgage Broker | Next Door Mortgages, Dominion Lending Centres | (780) 722-5621 | nextdoormortgages.com