First Time Home Buyers Incentives in Quebec (2024)

First-time homebuyers in Quebec have plenty of incentives to get onto the property ladder. Support ranges from non-refundable tax credits to lump sums that help with down payments. If you’re a first-time buyer – meaning neither you or your spouse have owned or co-owned a home after January 1, 2015 – read on. With Quebec housing stock diminishing and prices rising, we’ll help you learn what’s available in terms of home buying incentives in Quebec.

Key Takeaways

• Quebec has a number of incentive programs in place for first time home buyers, for example, the Quebec Home Buyers’ Tax Credit
• Montreal offers its own incentives, including up to $6250 as a transfer tax fund.
• First time home buyers in Quebec can also benefit from federal incentives, including up to $70,000 as part of the RRSP Home Buyer’’ Plan.

Quebec First-time Home Buyer Incentives

First-time buyers in Quebec are eligible for two non-refundable tax credits; a $750 Quebec Home Buyers’ tax credit and $626 Canada Home Buyers’ tax credit. As long as you’re a resident in Quebec during the year you purchase your first home and the property’s located in Quebec, you’re eligible. Although, first-time buyers should note that if they do not pay income tax, then they will not benefit from these tax credits.

First-time buyers in Montreal are also eligible for up to $6,250 as a Quebec transfer tax fund. First-time buyers are eligible as long as they have not owned a home in Quebec for the last five years, and will occupy their new home as a primary residence for at least 3 years immediately after purchase.

First-time buyers should also be aware that the Quebec City Family Access Program (The Accès Famille program) offers interest-free, down payment loans for houses under $300,000.

Incentive: Government of Quebec’s Home Buyers’ Tax Credit

Quebec is offering a non-refundable $750 Quebec Home Buyers’ tax credit for all eligible first-time buyers. The maximum credit is $750 and may be split among everybody eligible for that credit, for the same qualifying home.

If you’re eligible – meaning you’re resident in Quebec on December 31st of the year you purchase your first home and that property is a qualifying property located in Quebec –you’ll want to know how to complete the Home Buyers’ Tax Credit Form. Use the information below to find out if you are eligible and are purchasing a qualifying home, then use our tax credit form guide to help you apply.

Qualifying Homes

Your potential home qualifies for the Quebec Home Buyers’ Tax Credit if is located in Quebec, will be your principal place of residence, and conforms to one of the following build styles:

• a detached, semi-detached or row house,
• a manufactured home,
• a mobile home,
• an apartment in a condominium building or a multiple-unit residential complex

Furthermore, a qualifying property might also be a share of the capital stock of a cooperative housing corporation granting you the right to own a housing unit, as long as your right to own that housing unit is published in the land register.

Completing the Home Buyers’ Tax Credit Form (TP-752.HA-V)

The Home Buyers’ Tax Credit Form (TP-752.HA-V) can be found here. The form should only be completed if you’re claiming the home buyers’ tax credit on line 396 of your income tax return.

To complete the form, you’ll need information about the property, yourself (including your latest income tax return) and any other owners (including their latest income tax return).

Incentive: City of Montreal’s Home Ownership Program

First-time buyers in Montreal are eligible for up to $6,250 as a Quebec transfer tax fund, as long as they haven’t owned a home in Quebec for the last five years, and will occupy their new home as a primary residence for at least 3 years immediately after purchase.

The following property types can qualify for financial assistance:

• A new residential unit, if the total purchase price, including taxes and extras, does not exceed the eligible purchase price (see the table below).
• An existing, exclusively residential building if the purchase price does not exceed the eligible purchase prices (see the table below) and if it includes up to three above-ground dwelling units.
  • If your building has two or three above-ground dwelling units, then at least one must be offered for rent on the date that any financial assistance is paid.

Eligible Purchase Prices

Montreal’s Home Ownership Program comes with additional benefits, too. Families with at least one child under the age of 18 are entitled to 6 months of free public transit on purchase of a one-year OPUS full-fare pass (one free pass per household) and 2 Accès Montréal cards.

Additional Criteria

First-time buyers should also be aware of the following criteria:

• ey expect a child to be born or adopted within 9 months of the purchase date.
• No more than 18 months may elapse between the date of financial assistance and the date of a Deed of Sale.
• Applicants have 6 months from the date of purchasing their property to provide all of the necessary documentation in support of their application for financial assistance.
• All beneficiaries of financial assistance must commit to owning that property for at least three years, and they must commit to occupy that property as a permanent residence.
• All beneficiaries of financial assistance must commit to have a notary prepare and register their obligations with a land registry.
• Where there are multiple applicants for the same property, these criteria apply to each applicant.

Incentive: Montreal Home Purchase Assistance Program (2022)

As of February 2022, Montreal offers a Home Purchase Assistance Program with newly updated thresholds for support, to reflect the changing real estate market. The maximum purchase price for eligible properties has increased between 15% and 35%.

The Montreal Home Purchase Assistance Program can be combined with other financial assistance and tax credits. Eligible buyers, with an eligible property, may receive a lump sum or a refund on their real estate transfer tax.

Assistance for New Construction

The financial assistance available for first time home buyers buying a new home varies between $5000 and $15,000. This financial assistance takes the form of a lump sum payment.

Assistance for Existing and Resale Properties

The financial assistance available for first time home buyers buying existing or resale homes varies between $5000 and $7000. If you are a first time home buyer buying an existing property or a resale property, you must have a family (a child under the age of 18) to receive financial assistance under this program.

Financial assistance for existing and resale homes take the form of a refund on your real estate transfer tax. Because financial assistance is a refund on your real estate transfer tax, you must have paid your real estate transfer tax within 12 months of the date your bill was issued.

Quebec City Family Access Program

The Quebec City Family Access Program (The Accès Famille program) offers interest-free, down payment loans for houses under $300,000. The loan is worth 5.5% of the value of your property (up to $16,500 for a $300,000 property). There are two key benefits to the Quebec City Family Access program:

• You pay no interest on the down-payment loan
• With the help of a down payment loan, you can take out a smaller mortgage

You only need to repay your Quebec City Family Access Program down payment loan when the amortization period ends, when you sell your property, or when you refinance your property. When you repay, you do not repay your original loan amount. Instead, you repay 5.5% of the current value of your property. Although this means you will pay back more than you borrowed if your home has increased in value, you can rest assured that, unlike high-interest loans, you only pay more if your property is worth more. If you sell your property during a down-turn and receive less than the original purchase price, you also pay back less than you borrowed.

To be eligible as a first time home buyer, you must be a couple without children, with a combined age under 70, or a single-parent with custody of a child. Furthermore, you must not earn more than $120,000 and you must not have owned a home in the last five years.

Incentives: Federal First-Time Home Buyer Programs

Although most first-time buyer schemes are provincial, federal schemes exist too. Federal schemes are available to first-time home buyers from any province or city. So, if you are looking to buy in Quebec generally or Montreal specifically, then you can look for federal schemes too.

RRSP Home Buyer’s Plan

The ‘Registered Retirement Saving Plan’ (RRSP) Home Buyer’s Plan permits you to use up to $35,000 from your RRSP for your down payment. Your partner may also use up to $35,000 of their RRSP, too. That means couples have a combined maximum RRSP Home Buyer’s Plan of up to $70,000 for a down payment.

You must repay that RRSP Home Buyer’s Plan over the next 15 years and any amount you fail to repay will be subject to income tax because your original RRSP was tax-deferred.

First Time Home Buyer Tax Credit

The First Time Home Buyer Tax Credit is similar to the Quebec Home Buyers’ Tax Credit. With the First Time Home Buyer Tax Credit, you may be eligible for a tax credit of up to $750 on the tax return corresponding to the year you purchased your property. Importantly, Canadians living with a disability are eligible for this tax credit, even if they are not purchasing their first home.

GST/HST New Housing Rebate

GST and HST are often paid on new properties, significantly renovated properties, and ‘off the plan’ properties. GST/HST Housing Rebates reduce that financial burden by up to 36% if you are a first-time home buyer. Importantly, homes with a market value equal to or lower than $350,000 will receive a full rebate, whereas homes with a market value between $350,000 and $450,000 will only receive a partial rebate.

Frequently Asked Questions

Popular Cities & Neighborhoods for First-Time Home Buyers in Quebec

Final Thoughts

First-time home buyers have a lot on their plate. It’s never easy to find somewhere to call home, let alone after a pandemic and during times of such economic uncertainty. However, there’s a lot of assistance for Canadians who need it, and Quebec has a ton of great programs to help first time buyers get on the property ladder. Make the most of the programs available, plan carefully, and be patient; you will eventually find your first property. If you’re currently looking for a place to call home, why not explore some of the best mortgage rates on the market, or give one of our professional mortgage Advisors a call today.