Is a Builder Price Before or After GST in Alberta?
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·Reviewed by a mortgage professional
Short answer
It depends on the builder and contract. Some Alberta builder prices are shown net of an assigned GST rebate, while others show GST separately. Confirm the exact price structure before relying on a payment estimate.
The plain-English version
New construction in Alberta is subject to federal GST. The way the price is advertised can change what cash is needed and how the mortgage amount is calculated.
If a rebate is assigned to the builder, the advertised price may assume you qualify. If you do not qualify, the cost can change.
Alberta-specific considerations
- Alberta has no provincial sales tax, so the tax issue is federal GST.
- First-time buyer GST rebate rules may affect eligible new builds.
- Deposits, upgrades, and possession timing can change the final cash plan.
Example scenario
A builder may advertise a home at $699,000 net of rebate. If the buyer does not meet rebate conditions, the gross price and financing need may be higher than expected.
Common mistakes to avoid
- Assuming the advertised price includes every tax and upgrade.
- Not asking whether the rebate is assigned to the builder.
- Using a resale payment estimate for a new-build contract.
- Forgetting GST treatment on upgrades or extras.