Quebec offers financial incentives that can make your dream of homeownership more achievable than you might think. Whether you are eyeing a cozy condo in Montreal or a family home in Quebec City, understanding the available programs can save you thousands of dollars. This guide from BestMO breaks down everything you need to know about being a first-time home buyer Quebec.
How to qualify as a first-time home buyer in Quebec
To qualify as a first-time home buyer in Quebec, you cannot have owned or co-owned a home within a certain timeframe. Besides, you must also:
- Be a Quebec resident on December 31st of the purchase year
- Buy a property located within Quebec
- Plan to use the home as your primary residence
- Meet any specific income or family requirements for certain programs
In addition, remember that the minimum down payment for first-time home buyers in Quebec is:
- 5% for homes under $500,000
- 10% between $500,000 and $1.5 million
- 20% for homes over $1.5 million
Note that Quebec does not offer a rebate on land transfer taxes for first-time buyers. The tax rates are from 0.5% to 1.5% outside Montreal. Montreal adds higher rates for expensive properties, reaching up to 2.5% for homes over $1 million.
Quebec First-Time Home Buyer Programs
Quebec offers 3 financial incentives that can make your dream of homeownership more achievable than you might think.
Quebec First-Time Home Buyer Tax Credit
Quebec’s main provincial incentive comes in the form of the Quebec Home Buyers’ Tax Credit, worth up to $1,400. This non-refundable Quebec first-time home buyer tax credit reduces the amount you owe when filing your taxes in the year you purchase your home.
You qualify if neither you nor your spouse has lived in a home you owned or co-owned during the past four years. This means renting is fine, but any form of property ownership disqualifies you.
If you are buying with a partner who also qualifies, you can split the credit between you, though the maximum remains $1,400 per property, not per person.
Which properties are qualified for the Quebec Home Buyers’ Tax Credit?
Qualifying homes must be located in Quebec and serve as your principal residence. They must be habitable, and your ownership rights must be published in the land register.
6 eligible types of houses are:
- Detached, semi-detached, or row houses
- Manufactured homes
- Mobile homes
- Apartments in condominium buildings
- Apartments in multiple-unit residential complexes
- Cooperative housing corporation shares
How to apply for first-time home buyer incentives in Quebec
There are 4 steps to get the first-time home buyer Quebec incentive after purchasing your home.
Step 1: Obtain form TP-752.HA-V from Revenue Quebec
Step 2: Gather required documentation, which includes your purchase agreement, proof of residency, and tax returns for all buyers.
Step 3: Complete the form and submit it with your provincial tax return for the purchase year
Step 4: Claim the credit on line 396 of your Quebec tax return
Source: https://www.revenuquebec.ca/en/citizens/tax-credits/home-buyers-tax-credit/
Montreal Home Purchase Assistance Program
Montreal residents have access to this additional support. It offers cash payments ranging from $5,000 to $15,000 for the eligible Quebec first-time home buyer.
For new homes without children
- Single buyers: Maximum purchase price $305,000, rebate $5,000
- Multiple buyers: Maximum purchase price $380,000, rebate $5,000
For new homes with at least one child under 18
- Downtown properties: Maximum purchase price $610,000, rebate $15,000
- Outside downtown: Maximum purchase price $540,000, rebate $10,000
For existing homes (transfer tax reimbursement)
- First-time buyers with children under 18: Maximum purchase price $725,000, rebate $5,000-$7,000
Environmental certifications boost these amounts further. Novoclimat certification adds $2,500 while LEED certification brings an extra $5,000.
How to qualify for the Home Purchase Assistance Program
To obtain this program, you should prepare and apply these 4 documents:
- Proof of first-time buyer status (5-year ownership history)
- Family composition documentation for households with children
- Property location verification for downtown vs outside downtown rates
- Environmental certification documents (if applicable)
The Montreal Home Purchase Assistance Program extends this period to five years. And, the restriction applies only to primary residences.
Source: https://montreal.ca/en/programs/home-purchase-assistance-program
Quebec City Family Access Program
The Programme Accès Famille provides interest-free loans for down payments. It helps families purchase homes under $370,000. Eligible applicants can receive loans up to 5.5% of the property value, with maximum household income limits of $150,000.
This program targets families, including couples with or without children and single-parent households, who have not owned property for 5 years before purchase.
If you sell, rent, refinance your mortgage, or reach the end of your mortgage amortization, you must repay the original loan amount, plus 5.5% of the home’s appreciated value (or 9% if the house had Novoclimat certification).
What are federal programs for a first-time home buyer in Quebec?
Beyond provincial support, Quebec residents can tap into three major federal first-time home buyers programs designed to ease the path to homeownership.
RRSP Home Buyers Plan HBP: You can withdraw up to $60,000 from your RRSP tax-free to use as a down payment. Couples can each withdraw this amount, providing up to $120,000 in combined funds. However, you must repay the withdrawal over 15 years, starting two years after you make it. Miss a payment, and that amount becomes taxable income.
Home Buyers’ Amount: It provides another $1,500 in tax relief by allowing you to claim $10,000 on your federal tax return.
GST/HST New Housing Rebate: Properties valued up to $350,000 qualify for a rebate of 36% of the GST paid. Those between $350,000 and $450,000 receive partial rebates on a sliding scale.
Can I stack the first-time home buyer Quebec benefits?
Yes. It makes homeownership more achievable despite rising property prices and limited housing stock.
Here is the tip to maximize available benefits:
- Use the RRSP Home Buyers Plan for the down payment
- Apply for Montreal’s assistance if eligible (up to $15,000)
- Claim both Quebec and federal tax credits ($2,900 combined)
- Pursue GST/HST rebates for new construction
- Consider environmental certifications for additional rebates
The bottom line
Buying your first home in Quebec does not have to drain your savings. The key lies in understanding your eligibility and planning. By understanding and layering provincial, municipal, and federal incentives, first-time home buyers in Quebec can make homeownership more affordable and achievable.
Discover first-time home buyer programs for other provinces in Canada:
- First-Time Home Buyer BC
- First-Time Home Buyer Alberta
- First-Time Home Buyer Ontario
- First-Time Home Buyer PEI
- First-Time Home Buyer Nova Scotia
- First-Time Home Buyer Manitoba
- First-Time Home Buyer Newfoundland and Labrador
- First-Time Home Buyer SK
- First-Time Home Buyer New Brunswick
FAQs about the first-time home buyer Quebec
Is the Quebec first-time home buyer incentive worth it?
Yes. Combined federal and provincial programs can provide over $20,000 in benefits for eligible buyers. Even basic tax credits return $2,900 to your pocket. It can be used for moving costs or home improvements.
Can I still qualify if I owned a home that was not a primary residence?
Yes. If you owned and never lived there full-time, you may still be considered a first-time home buyer in Quebec.
Can newcomers or immigrants qualify as first-time buyers in Quebec?
Yes, new permanent residents or immigrants can qualify for the first-time home buyer Quebec benefits.
Can I qualify for a municipal grant if I live outside Montreal or Quebec City?
No. Municipal incentives vary by city. Always check your local city or borough website. You can also contact your notary, mortgage broker, or city housing office for current offers.
Can I qualify for the Quebec credit if I purchased the home through a cooperative?
Yes, if you acquired a share in a cooperative housing corporation and that share gives you the right to occupy a unit registered in the land registry, you are eligible. The home must also become your principal residence.
Is the Quebec Home Buyers’ Tax Credit only for single-family homes?
No, it also applies to other types of dwellings, such as condos, mobile homes, and units in multi-unit buildings. The property must still be in Quebec and used as your primary residence.
Will the Quebec tax credit impact my eligibility for federal incentives?
No, claiming the Quebec Home Buyers’ Tax Credit does not affect your eligibility for federal programs such as the RRSP Home Buyers’ Plan or the federal Home Buyers’ Amount.
Can I claim the credit if I bought a home with someone who is not a resident of Quebec?
Yes, but only the individuals who are Quebec residents on December 31 of the purchase year can claim the tax credit. The credit can only be split among eligible Quebec residents.
