Buying a house in Montreal today represents a major investment. With steadily rising prices, market competition, and financing requirements, access to homeownership is a significant challenge.
To help ease these obstacles and support access to homeownership, various levels of government have introduced several financial assistance measures. These programs, tax credits, and savings’ tools can, when properly understood and combined, significantly reduce the real cost of purchasing real estate.
In this article, we review the main aid and financial assistance programs available in Montreal to help you better understand your options and determine which ones may apply to your situation.
In brief
- The median price of a single-family home in Montreal reached $797,000 in December 2025, making homeownership more difficult for many households.
- The City of Montreal offers financial assistance to eligible buyers through the Home Purchase Assistance program.
- The governments of Quebec and Canada offer tax credits for the purchase of a first home.
- The Home Buyers’ Plan (HBP) allows you to use a portion of your RRSP savings to finance the purchase.
- The FHSA is a tax-advantaged savings tool to accumulate a down payment tax-free.
What is the median price of a property in Montreal in 2026?
According to the latest monthly statistics from the APCIQ, the median price of a single-family home in Montreal reached $770,000 (January 2026). In a context where the gap between household income and property costs continues to widen, home affordability is becoming increasingly difficult, particularly for first-time buyers and young families.
This situation makes the use of various financial assistance programs, grants, and government initiatives even more important, as they can make a real difference in turning a purchase project into reality. It is precisely in this context that the support measures put in place by the City of Montreal, the Government of Quebec, and the federal government take on their full significance.
1. Montreal Home Purchase Assistance Program
The Home purchase assistance program is financial assistance offered by the City of Montreal to facilitate access to homeownership within its territory. It is available to both first-time buyers and certain households who have previously owned property, depending on their family situation and the type of property purchased.
This program can take two forms:
- A lump-sum financial grant when purchasing a new property;
- A partial refund of the transfer duties (welcome tax) when purchasing an existing property.
Are you a first-time buyer?
You are generally considered a first-time buyer if you have never owned property in Quebec or if you have not owned property in the five years preceding your application, with the exception of a cottage. In this case, the financial assistance offered by the City of Montreal varies depending on the type of property purchased, household composition, and purchase price, which must meet certain eligibility thresholds.
1. If you are buying a new home
When purchasing a new property, the assistance takes the form of a lump-sum amount, provided that the purchase price meets the thresholds established by the City of Montreal. The amount varies depending on the family situation and the property’s location.
| Family situation | Maximum eligible price | Financial assistance |
| Single buyer, no children | $305,000 | $5,000 |
| Multiple buyers, no children | $380,000 | $5,000 |
| Household with at least one child under 18 (property located downtown) | $610,000 | $15,000 |
| Household with at least one child under 18 (property located outside downtown) | $540,000 | $10,000 |
2. If you are buying an existing property
For an existing property, meaning already built and occupied, the financial assistance offered by the City of Montreal takes the form of a partial refund of the transfer duties (welcome tax). To be eligible:
- The household must include at least one child under 18;
- The purchase price must not exceed $725,000;
- The refund amount generally ranges between $5,000 and $7,000, depending on the property value.
Have you previously owned property?
Households who have previously owned property may also be eligible for the Home Purchase Assistance program, provided they meet specific criteria. This assistance is available only if the household includes at least one child under 13 or if a child is expected to be born or adopted within nine months following the property purchase.
Good to know
To benefit from this assistance, several conditions must be met:
- The grant application must be submitted no later than six months after the deed of sale is registered in the land registry;
- The buyer must commit to occupying the property as a principal residence for a minimum period of three years;
- The City of Montreal reserves the right to verify household eligibility for up to five years after the assistance is paid; in the event of non-compliance, repayment may be required;
- Program amounts and criteria may be modified; it is therefore recommended to consult the official City of Montreal website before submitting an application;
- This assistance may be combined with other grants or tax credits, which can significantly reduce the net cost of purchase.
To learn about all the terms, detailed criteria, and required documents, it is recommended to consult the official City of Montreal website directly.
2. The First-Time Home Buyer Tax
In addition to municipal assistance, the Government of Quebec and the Government of Canada offer tax credits for first-time homebuyers. These measures aim to reduce part of the costs associated with acquiring a property used as a principal residence. These tax credits are mainly intended for:
- Individuals purchasing a property for the first time;
- Buyers acquiring a home to house a person with a disability.
To be eligible, the buyer must not have occupied, during the previous five years, a property owned by themselves or their spouse. The purchased property must also be occupied as a principal residence no later than one year after the purchase.
Furthermore, the home must be located in Quebec and fall into one of the following categories:
- Detached, semi-detached, or row house;
- Manufactured home;
- Mobile home;
- Unit in a condominium building;
- Unit in a multi-unit residential building.
These are non-refundable tax credits. This means they reduce the amount of tax payable but do not generate a refund if no tax is owed. When several buyers are involved in the purchase of the same home, the credit may be shared among them.
Quebec Government Tax Credit
The Government of Quebec allows a maximum tax credit of $1,400 per eligible home. When several individuals are eligible for the same property, the amount may be divided among the buyers at their discretion.
Government of Canada Tax Credit
At the federal level, eligible buyers may obtain up to $1,500 ($1,252.50 for Quebec residents) for the purchase of a qualifying first home. When more than one person is eligible for the same acquisition, each may claim a portion of the credit, up to the authorized maximum amount.
3. The Home Buyers’ Plan (HBP)
The Home Buyers’ Plan (HBP) is a federal program that allows buyers to use part of their retirement savings to finance the purchase or construction of a first home, without the withdrawn amounts being immediately taxed.
Specifically, the HBP allows a withdrawal of up to $60,000 per person from a Registered Retirement Savings Plan (RRSP). For an eligible couple, this represents a total amount of up to $120,000, generally used to make a down payment or cover certain costs related to the acquisition.
Amounts withdrawn under the HBP are not taxable at the time of withdrawal, provided they are repaid into the RRSP. Repayment is made over a maximum period of 15 years, after a grace period following the purchase or construction of the property. Each year, a minimum amount must be repaid to the RRSP; otherwise, the unpaid portion is added to the buyer’s taxable income.
What are the eligibility conditions?
To benefit from the HBP, certain conditions must be met:
- The buyer must be considered a first-time buyer, meaning they must not have occupied, during the previous four years, a home owned by themselves or their spouse;
- A written agreement must be entered into for the purchase or construction of a qualifying home;
- The buyer must intend to occupy the property as a principal residence no later than one year after purchase or completion of construction;
- The buyer must be a Canadian resident at the time of the withdrawal.
4. The Tax-Free First Home Savings Account (FHSA)
The Tax-Free First Home Savings Account (FHSA) is a tool introduced by the federal government to help first-time buyers accumulate a down payment in order to obtain a mortgage loan.
The FHSA combines features of the RRSP and the TFSA. Contributions to an FHSA are deductible from taxable income, which reduces the amount of tax payable, and amounts withdrawn for the purchase of a qualifying first home are fully tax-free, including the investment returns generated in the account.
How much can you contribute?
A buyer may contribute up to $8,000 per year, up to a lifetime limit of $40,000. For an eligible couple, this represents a total of up to $80,000 to finance the purchase of a property. Contribution room begins accumulating only once the account is opened. It may therefore be advantageous to open an FHSA early, even if the purchase project is not immediate.
A time-limited savings account
FHSA funds may be withdrawn tax-free for the purchase or construction of a qualifying first home used as a principal residence. Unlike the Home Buyers’ Plan (HBP), withdrawn amounts do not need to be repaid.
However, the FHSA is not a permanent account. It must be closed no later than:
- 15 years after opening the FHSA;
- or December 31 of the year following the withdrawal;
- or December 31 of the year in which the holder turns 71.
If the FHSA is closed without being used to purchase a property, the funds may be transferred to an RRSP or RRIF without tax consequences, allowing the savings benefit to be preserved.
What are the eligibility criteria?
To open and use an FHSA:
- The buyer must be considered a first-time buyer, meaning they must not have owned a qualifying home during the year the account is opened or in the previous four calendar years;
- They must be a Canadian resident;
- The purchased home must be located in Canada and occupied as a principal residence.
Are you looking for a mortgage broker in Quebec?
XpertSource.com can help you in your efforts to find a mortgage broker. By telling us about your project, we will refer you to top-rated experts, free of charge! Simply fill out the form (it only takes 2 minutes) and you will be put in contact with the right experts.