GST on a New Home in Canmore: When It Applies and the Rebates

GST on a new home in Canmore is 5% of the purchase price, and at Canmore prices it is the largest closing cost most buyers will ever see, $45,000 on a $900,000 pre-construction condo, $60,000 on a $1.2 million townhome. Resale homes are exempt. The federal rebate everyone has heard of phases out at $450,000 and is effectively useless here, but a new first-time buyer rebate in force since March 2026 can wipe out the whole bill on a home up to $1 million. Here is when GST applies, what the rebates actually do and how to budget for it.

Does GST apply to new homes in Canmore?

Yes, whenever you buy a newly built or substantially renovated home from a builder: pre-construction condos at Three Sisters or Spring Creek, new townhomes, a custom home built by a contractor on your lot, or a home renovated to the point where at least 90% of the interior was replaced. Alberta charges no provincial sales tax, so the 5% federal GST is the full amount. Resale homes sold by private owners are exempt, which is why a $900,000 resale and a $900,000 new build are not the same price.

Builder pricing comes in two forms. "Plus GST" is straightforward. "GST included" usually means the builder has priced in a rebate it expects you to qualify for and assign to it at closing. If you do not qualify, because the home will not be your primary residence, for example, you pay the difference. Read the agreement of purchase and sale and the statement of adjustments, and see the new-construction condos post for deposit and assignment rules.

How much is GST on a new Canmore home?

$700,000 new condo

$35,000 GST

first-time buyer rebate could cover all of it

$900,000 new townhome

$45,000 GST

same: under the $1M threshold

$1,200,000 new home

$60,000 GST

first-time buyer rebate ≈ $30,000 in the phase-out band

$1,500,000 and up

$75,000+ GST

no federal rebate of any kind

Lenders generally treat GST as part of the purchase price for mortgage purposes when it is included in the contract, and as a closing cost you must fund from savings when it is not. Confirm which with your broker early, see mortgages in Canmore.

What GST rebates exist, and do they help in Canmore?

To claim the first-time buyer rebate you must be at least 18, a Canadian citizen or permanent resident, must not have lived in a home you or your spouse or common-law partner owned in the current or previous four calendar years, must use the home as your primary residence and be its first occupant. It is not stacked on top of the regular rebate; it replaces it with a larger amount. The builder can credit it at closing, or you apply to the CRA afterwards. The CRA also requires that neither you nor your spouse or common-law partner has already claimed this rebate, and that ownership transfers to you before 2036.

How does GST change a pre-construction budget?

1. 1Confirm whether the price includes GSTGet it in writing in the agreement of purchase and sale. If the contract says the price is inclusive of GST net of rebate, ask which rebate and what happens if you do not qualify.
2. 2Decide whether you qualify for the first-time buyer rebateOwnership history of you and your spouse for the current and previous four years, citizenship or PR status, and a genuine intention to live in the home.
3. 3Budget the cashIf GST is not financed, it is due at closing with your down payment. Use the buyer cost calculator to see it beside legal fees, title registration and insurance.
4. 4Plan for the supplementary tax noticeProperty tax on a new home starts on the lot value. Once the building is complete, the Town issues a pro-rated supplementary assessment and tax notice for the months remaining in the year.
5. 5Keep the paperworkStatement of adjustments, builder’s rebate assignment and occupancy date. The CRA can ask for them later.

The buyer cost calculator adds GST automatically when you tell it the home is new construction, alongside the other closing costs in Canmore.

GST on tourist homes, rentals and assignments

Three edge cases come up in Canmore more than elsewhere:

• Tourist homes. Since March 11, 2025 no new tourist homes can be created, so nearly all are resale. But a tourist home that has been run as a GST-registered nightly rental is a commercial property in the CRA’s eyes, and GST can apply on its resale even though it is not new. Ask an accountant before you sign, and read the tourist-home zoning guide for the bylaw side.
• Long-term rental condos. Investors buying a new unit to rent for a year or more do not get the new housing rebate but may claim the rental property rebate afterwards.
• Assignments. Buying a pre-construction contract from the original purchaser can attract GST on the assignment amount as well as on the original price. Get the tax treatment confirmed before you pay a premium.

What this means if you’re buying

If you are a first-time buyer looking at a new Canmore condo or townhome under $1 million, the 2026 rebate is worth up to $50,000 and should be confirmed in the contract before you sign. If you are not a first-time buyer, because you own or have recently owned a home, or because this is a second home, assume the full 5% is a cash cost at closing and price it against the resale alternative, which carries no GST at all. Either way, get the "GST included" wording clarified in writing, and check the new developments page for what is actually being built and by whom.