First-Time Home Buyer (Quebec): What Every Future Homeowner Should Know

So basically, what happened last week was pretty eye-opening. I was sitting down with clients who were looking to buy their first home, and they asked me, “JM, with all these program changes in 2024, what support is actually still available for first-time buyers?” It’s a great question, and one I’m getting more and more frequently these days.

The Situation: Understanding Today’s First-Time Buyer Programs

While the landscape of first-time buyer programs has shifted recently (including the end of the CMHC First-Time Home Buyer Incentive in March 2024), there are still numerous valuable options available for Quebec residents looking to make that exciting leap into homeownership.

First things first – you’re considered a first-time buyer if neither you nor your spouse has owned a home in the previous 4-5 years. This definition is important because it determines your eligibility for various support programs at the federal, provincial, and even municipal levels.

Key Programs to Consider

Federal Support Programs

The federal government offers several key programs that can make a significant difference in your home-buying journey:

• Home Buyers’ Plan (HBP): This program lets you withdraw up to $35,000 from your RRSP ($70,000 for couples) to put toward your first home. You’ll have 15 years to repay it interest-free, with a 2-year grace period before repayments need to start.
• First-Time Home Buyers’ Tax Credit: You can claim up to $10,000 on your taxes, which typically results in about $1,500 back in your pocket. Remember, you’ll need to claim this in the same tax year as your purchase.

Quebec-Specific Programs

Living in Quebec, we’re fortunate to have additional provincial support:

• Quebec Home Buyers’ Tax Credit: This provides up to $1,500 (shared among eligible buyers) – a nice boost to help with those initial homeownership costs.
• First Home Savings Account (FHSA): You can contribute up to $8,000 annually (maximum $40,000 total) to this account. The best part? Contributions are tax-deductible, withdrawals for your first home are tax-free, and any investment growth is tax-free too.

Municipal Programs

Here’s something many buyers don’t realize – several Quebec cities offer their own assistance programs:

• Montreal’s Home Purchase Assistance: Offers up to $15,000 in support
• Quebec City Family Access Program: Provides an interest-free loan up to 5.5% of the property value (maximum eligible home price: $370,000)

Professional Insight: Making the Most of Available Programs

Here’s what I always tell my clients – these programs can often be combined to maximize your benefits. For example, you could use both the HBP and FHSA together to build your down payment. Just make sure you’re aware of the eligibility requirements:

• Must be a Quebec resident by December 31st of the purchase year
• Property must be in Quebec
• Home must be your principal residence
• Various property types qualify (detached homes, semi-detached, condos)

Understanding Land Transfer Tax

In Quebec, our land transfer tax system works differently from other provinces. Here’s what you need to know:

Outside Montreal:

• 0.50% on first $50,000
• 1.00% on $50,001-$250,000
• 1.50% on amounts over $250,000

Within Montreal (additional brackets):

• Same rates up to $500,000
• 2.00% on $500,001-$999,999
• 2.50% on amounts over $1,000,000

Moving Forward: Your Next Steps

If you’re thinking about buying your first home, here’s what I recommend:

1. Start by checking your eligibility for these programs
2. Consider opening an FHSA if you’re still in the saving phase
3. Look into your local municipal programs – they can vary significantly by city
4. Calculate your potential land transfer tax based on your target price range and location

Remember, while the process might seem overwhelming at first, understanding these programs can save you thousands of dollars on your first home purchase. If you have questions about first-time home buyer programs or want to know which ones would work best for your situation, don’t be shy to reach out. As a local Quebec real estate expert, I’m here to help you navigate this exciting journey to homeownership.

Disclaimer: This article was last updated February 2025. Programs and eligibility requirements may change – always verify current details with official sources.

Ready to Start Your Home Buying Journey?

At Peter Thompson Real Estate, we’re more than just your average real estate team – we’re your dedicated partners in finding the perfect home in Quebec. With our deep understanding of first-time buyer programs and the local market, we ensure you don’t miss out on any opportunities to save on your purchase.

Jean Michel Gagnon

Jean Michel is a dedicated and passionate real estate agent serving the West Island and surrounding areas.

Growing up in the West Island, he developed a strong connection to his community. Now, having chosen to grow his family in Saint-Lazare, he has an even deeper understanding of what makes the area so special. With over 10 years of experience in sales, JM possesses the skills and expertise to navigate even the most complex transactions. His extensive sales background has taught him the importance of exceptional customer service, effective communication, and strategic negotiation.

As your trusted real estate agent, JM is committed to helping you achieve your real estate goals. Whether you’re buying, selling, or investing, he’ll provide you with expert guidance, unparalleled customer service, and a personalized approach tailored to your unique needs.

This is #AskPete. If you have any real estate questions, feel free to send them and I will get you the answers. Or stay up to date on the latest tips for real estate buyers and sellers by clicking the YouTube button below:

Peter Thompson