GST Rebate Calculator

GST Rebate Calculator

Buying or building your dream home in Edmonton can be an exciting journey – but it comes with a few associated expenses. There are a few programs to help you, however, such as the government’s GST/HST New Housing Rebate.

With this helpful online tool, you can quickly and easily estimate your GST/HST New Housing Rebate. Our GST rebate calculator accounts for the total purchase price or construction cost of your home, and will let you know just how much of a GST rebate you should be eligible for.

Simply enter the applicable information in the fields below, click “Calculate”, and the tool will calculate GST rebate based on the value of your home. Please note that our GST rebate calculator only provides an estimate – actual eligibility for a GST rebate may vary depending on a multitude of factors. 

What Is The GST/HST New Housing Rebate?

The GST Rebate is a program established by the Government of Canada to help individuals and businesses reduce their costs when purchasing or building a new home. The housing rebate can cover part of the GST (Goods And Services Tax) or HST (Harmonized Sales Tax) charged on your purchase price, depending on where you live in Canada. 

So if you’re buying a new home in Alberta, you would be eligible for a partial  GST rebate (there is no PST in Alberta so this will show as zero), as long as the home is new, costs under $450,000 and is your primary residence. 

For example, if the cost of your new home is $375,000, then the amount of GST you’d pay on the home is 5% in Alberta, so $18,750. You’d receive a GST rebate of around $4,725, bringing the total cost of your home including GST to $389,025.

Do I Qualify For The GST Rebate?

To qualify for the GST Rebate, you’ll need to meet certain criteria when purchasing your new home:

• You must be purchasing a new (or substantially renovated) home from a builder for use as either your or a relation’s primary place of residence. 
• Alternatively, you must be buying shares in a housing co-op for the purpose of using a unit in a new (or substantially renovated) home as your or a relation’s primary place of residence.
• Or, you must be building a brand-new (or substantially renovating) a brand-new home as either your or a relative’s primary place of residence, as long as the fair market value of the finished home is less than $450,000.

Additionally, you may be able to claim a portion of the GST/HST New Housing Rebate for a mobile home or a floating home for use as your or a relation’s primary place of residence, as long as the property is new or substantially renovated. The amount of GST rebate you could receive will depend on the circumstances, however.

For more information, you can check the government’s guide to the GST/HST New Housing Rebate. 

How Does The GST Rebate Calculator Work?

To use the GST rebate calculator, simply enter either the base price of your home (IE, without goods and services tax) or the final purchase price (including GST and rebate) and the calculator will give you an estimated rebate amount as well as a GST rebate breakdown (including net GST) so you can see exactly where the money is going.

By entering all of this information into the GST rebate calculator, you can get a better idea of how much money you’ll need to come up with when it comes time to purchase your home. Knowing this information will help you plan ahead and ensure that you’re able to get the most out of your new home purchase. 

Are There Other Government Programs Available To Help With A New Home Purchase?

Yes! Depending on your circumstances, you may also be eligible for other government programs such as the Home Buyers’ Plan (HBP) or the First-Time Home Buyer Incentive. The HBP lets you borrow up to $35,000 from your RRSP to put towards your home purchase without incurring any tax penalties. The First-Time Home Buyer Incentive provides shared equity mortgages to qualifying first-time home buyers – you can borrow either 5 or 10% towards the cost of your first home, and you’ll pay it back as a percentage of the home’s value either in 25 years or when the property is sold, whichever comes first.

If you own a rental property, you may also qualify for the GST/HST new residential rental property rebate. To get this GST rebate, you must qualify for one of the following:

• You’re a landlord who purchased a brand-new or substantially renovated residential rental property.
• You’re a landlord who built their own residential property.
• You’re a landlord who made additions to a multiple-unit residential rental complex.
• As a builder, you sold a residential unit to an individual and also leased the related land to them under a single written agreement. To account for GST/HST under the self-supply rules, you must ensure that the individual is eligible to claim the new housing rebate.
• As a person, if you made an exempt lease of land used for residential purposes like renting a residential lot or a site in a residential trailer park, you had to account for the GST/HST under the self-supply or change-in-use rules.

In addition, to qualify for this GST rebate, the fair market value of the residential unit you purchased or self-supplied must have been less than $450,000 at the time when the tax became payable. If you have purchased land or a site in a residential trailer park, the fair market value must have been less than $112,500.

These programs are designed to help make the process of buying a new home more affordable, so be sure to research each one thoroughly and find out if you qualify for any of them. 

We hope this GST rebate calculator helps you get a better understanding of what you’ll be eligible to receive from the government when you purchase or build your new home in Edmonton.  Feel free to contact us if you have any questions or need more information about these programs and how they can help you!