GST on a new home purchase is one of the most consistently misunderstood costs in Canadian real estate — and one of the most significant. On a $338,000 home, it adds up to $16,900. Here’s exactly how it works, what rebates are available, and what Larchwoods is doing about it right now.
When you buy a resale home in Alberta, you generally don’t pay GST. The Canada Revenue Agency treats resale transactions as exempt. But when you buy a newly built home — from a developer, a builder, or a new home community — GST applies on the full purchase price. At 5%, that’s a material cost that buyers sometimes don’t see coming until they’re deep into the transaction.
The basic math
The calculation is straightforward: 5% of the home’s purchase price, paid at closing. All nine Phase 1 homes at Larchwoods are priced between $309,000 and $364,250, putting the GST obligation in the range of $15,450 to $18,213 depending on which lot you choose. These amounts are in addition to the purchase price.
Note that GST applies to the home purchase price only — not to the monthly homesite lease. Your $650/month lease payment is a separate arrangement.
The federal GST/HST New Housing Rebate — what it is and who qualifies
The federal government offers a partial rebate on GST paid for new homes, under section 254 of the Excise Tax Act (CRA form RC4028). The rebate is structured to help buyers of lower-priced new homes recover part of their GST cost:
Federal New Housing Rebate Structure
| Purchase Price | Rebate Available |
|---|---|
| Under $350,000 | Up to 36% of GST paid (maximum $6,300) |
| $350,000 – $450,000 | Partial rebate — phases out linearly to zero at $450,000 |
| Over $450,000 | No rebate available |
To qualify, the buyer must intend to use the home as their primary place of residence. The rebate is typically assigned to the builder at closing and reflected in the net purchase price. All Phase 1 Larchwoods homes fall below $450,000, so all qualify for at least a partial rebate.
The rebate helps — but it doesn’t eliminate the GST obligation on its own. On a $338,000 home where a partial rebate applies, a buyer might recover several thousand dollars of the $16,900 owing. That still leaves a meaningful amount out of pocket without the Larchwoods promotion.
The Larchwoods GST Top-Up Promotion
LIMITED TIME · PURCHASE AGREEMENTS SIGNED BY JULY 31, 2026
On all 8 new homes currently available in Phase 1, Larchwoods will top up the federal RC4028 rebate so that qualifying buyers pay zero net GST. Where the federal rebate partially covers the GST, Totangi covers the remainder. The buyer’s net GST cost is $0 on any Phase 1 home.
GST savings by lot — Phase 1 price list (before GST)
| Lot · Plan | Price (before GST) | 5% GST | Buyer’s net GST cost |
|---|---|---|---|
| Lot 6 · Tamarack A | $359,750 | $17,988 | $0 |
| Lot 4 · Summit | $333,250 | $16,663 | $0 |
| Lot 1 · Tinda Ridge | $338,000 | $16,900 | $0 |
| Lot 16 · Tinda Ridge | $342,000 | $17,100 | $0 |
| Lot 3 · Rundle | $355,000 | $17,750 | $0 |
| Lot 5 · Tamarack B | $358,750 | $17,938 | $0 |
| Lot 2 · Tamarack A | $363,750 | $18,188 | $0 |
| Lot 15 · Emerald | $364,250 | $18,213 | $0 |
Applies to spec homes on Phase 1 lots listed above. Purchase agreement must be signed on or before July 31, 2026. Buyer must qualify for the federal RC4028 New Housing Rebate (primary residence intent; Canadian citizen or permanent resident). The Larchwoods top-up does not apply to First Time Home Buyer GST Exemption purchasers — see below. Subject to home availability at time of signing.
What this means in practical terms
The GST promotion isn’t a discount off the purchase price — it eliminates a real cost that would otherwise come due at closing. For the Emerald on Lot 15, that’s $18,213 that stays in the buyer’s pocket. For the Robson on Lot 6, it’s $15,450. Either way, what you see on the price list is what you pay — nothing added at closing for GST.
A note for first-time home buyers
Qualifying first-time home buyers may be eligible for the federal First Time Home Buyer GST Exemption, which can eliminate GST on a new home purchase entirely — independent of the Larchwoods promotion. If you qualify under that program, no GST would be collected on your purchase. In that scenario, the Larchwoods top-up promotion does not apply on top of the exemption — there is no additional discount beyond the federal benefit you’re already receiving.
The practical outcome is the same: zero net GST at closing. The route to get there is simply different. If you think you may qualify as a first-time buyer, confirm your eligibility with your lawyer or tax advisor early in the process — it’s a meaningful benefit that’s worth understanding before you sign.
What to ask your lawyer and mortgage broker
The GST promotion closes July 31, 2026, don’t wait!
