GST Rebate on Rental Units & Principal Residences

If you bought an investment property in Alberta, you may be eligible for a GST rebate up to $6,300.

When you buy a property from a builder in Alberta, you are required to pay 5% GST (Goods and Services Tax) by the Federal Government and you may be eligible for a GST New Residential Rental Property Rebate to get some of that back.

You have a maximum of 2 years from your closing date to apply for the GST Rebate

If you are in a Rental Guarantee with a developer, you may not qualify for the GST Rebate unless you can get them to provide you with a lease.

How is the GST Rebate Calculated:

The GST Rebate is based on the purchase price of the property. The maximum benefit is $6,300 reached at a purchase price of $350k before GST. For purchase prices higher than this, the GST rebate declines until it reaches $0 at a purchase price of $450k before GST where the rebate goes away.

Purchase Price <= $350k = GST Paid x 36%
Purchase Price: $350k to $450k = ( $450,000 - Purchase Price ) / 100,000 * $6,300
Purchase Price: >$450k = $0 (no Rebate is available)

How Do I Quality for the GST Rebate?

The investment property must meet all of the following criteria:

The unit is a self-contained residential unit
You have possession of the unit with a Purchase and Sale agreement.
You have closed on the unit and have legal title
You rent the unit for at least 1 year or personally live in the unit

What is the GST Rebate Process?

If you buy the property as your principal residence, the New Home Rebate may be assigned to the Developer who automatically credits the buyer with the rebate amount so that you don’t pay anything out of pocket. However if you are an investor, you always have to pay the rebate amount upfront - but don't worry, if you rent out the property for at least 1 year, you can file an application to get the rebate amount back.

How do you Apply for the GST Rebate?

The following documentation is required by the Canada Revenue Agency (CRA)

Copy of Purchase & Sale Agreement
Copy of Statement of Adjustments
Copy of 1 Year Residential Lease
Signed GST Rebate Application Form

Click here for the CRA Guide: GST/HST New Residential Rental Property Rebate.

Need Help?

Don’t have the patience or time to deal with it? I work with partners that specialize in completing rebates for investors so contact me and I will put you in touch with them.