A buyer purchases a new home in Alberta for $450,000 that will be their primary residence. How does the GST New Housing Rebate apply?
Correct Answer
C) No rebate is available for homes priced at $450,000
The federal GST New Housing Rebate is fully available for homes priced up to $350,000 and is gradually phased out between $350,000 and $450,000. At exactly $450,000, the rebate is completely phased out and no rebate is available. This means the buyer pays the full 5% GST ($22,500) with no rebate.
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