Quebec Programs

Quebec has a unique housing landscape compared to the rest of Canada. The province does not offer a first-time buyer rebate on its land transfer tax (known locally as the “welcome tax”), but it does offer targeted municipal programs — particularly in Montreal — and a significant QST rebate for new construction. Understanding Quebec’s programs requires navigating both provincial and municipal levels of government.

---

Quebec Land Transfer Tax (Welcome Tax)

Quebec charges a land transfer tax on all property purchases, commonly called the “welcome tax” or droits de mutation. Despite its friendly-sounding nickname, the welcome tax is a mandatory closing cost that catches many first-time buyers off guard.

Welcome Tax Rates

Home Value Portion	Tax Rate
First $58,900	0.5%
$58,901 to $294,600	1.0%
$294,601 to $500,000	1.5%
Over $500,000	3.0%

Note: The City of Montreal applies a higher rate of 3.5% on the portion of the value exceeding $1,000,000, and 4.0% on the portion exceeding $2,000,000.

Worked Examples

Example 1: $350,000 condo in Laval

• First $58,900: $294.50
• $58,901 to $294,600: $2,357
• $294,601 to $350,000: $831
• Total welcome tax: $3,482.50

Example 2: $500,000 townhouse in Montreal

• First $58,900: $294.50
• $58,901 to $294,600: $2,357
• $294,601 to $500,000: $3,081
• Total welcome tax: $5,732.50

Example 3: $400,000 home in Quebec City

• First $58,900: $294.50
• $58,901 to $294,600: $2,357
• $294,601 to $400,000: $1,581
• Total welcome tax: $4,232.50

Caution

Unlike Ontario, BC, and Manitoba, Quebec does not offer a provincial welcome tax rebate for first-time home buyers. You must pay the full amount at closing regardless of whether this is your first home or your fifth. Make sure you budget for this expense — on a $400,000 home, you need approximately $4,200 in welcome tax on top of your down payment and other closing costs.

---

Montreal Home Ownership Program

The City of Montreal offers one of the most generous municipal first-time buyer programs in Canada: grants of up to $15,000 for qualifying first-time buyers purchasing in Montreal.

Program Details

• Grant amounts: Vary by property type and location within the city. The maximum of $15,000 is available for certain property types in target areas.
• Property types: The program typically supports the purchase of new or existing residential properties, including condos, townhouses, and single-family homes.
• Eligibility: You must be a first-time buyer (generally defined as not having owned a home in the previous 5 years), purchasing within the City of Montreal.
• Location bonuses: Some Montreal boroughs or designated revitalization areas may offer higher grant amounts to encourage development and population growth in those neighbourhoods.

How to Apply

The Montreal Home Ownership program is administered by the City of Montreal. You typically apply through the city’s housing department, and the application may need to be submitted before or shortly after your purchase. Check the City of Montreal’s website (ville.montreal.qc.ca) for current program details, as the grant amounts, eligible areas, and application deadlines change periodically.

Tip

Montreal’s $15,000 home ownership grant is one of the largest municipal incentives in Canada. If you are considering buying in Montreal, check the program details early in your home search to ensure you meet all the eligibility requirements. The application process may require documentation that takes time to gather, so starting early prevents last-minute surprises. Also, confirm which boroughs or areas qualify for the maximum grant amount, as this could influence your neighbourhood search.

---

Other Municipal Programs in Quebec

Montreal is not the only Quebec municipality offering first-time buyer incentives. Several other cities and towns have their own programs:

Quebec City

Quebec City has periodically offered programs to support first-time buyers, including tax credits and grants for certain types of housing. Check with the Ville de Quebec’s housing department for current offerings.

Gatineau

As a major city across the river from Ottawa, Gatineau sometimes offers incentives to attract buyers. Given that home prices in Gatineau are typically 20-40% lower than equivalent homes in Ottawa, the city is already attractive for buyers working in the National Capital Region.

Smaller Municipalities

Many smaller Quebec municipalities offer their own incentives to attract new residents and first-time buyers. These may include:

• Property tax holidays — Reduced or waived property taxes for the first 1-3 years
• Down payment grants — Small grants (typically $1,000 to $5,000) to help with the purchase
• New construction incentives — Rebates or credits for building new homes in the municipality

These programs change frequently and are often not widely advertised. Contact the municipal office directly when you are house-hunting in a specific area.

---

QST Rebate on New Construction

For buyers purchasing newly constructed homes in Quebec, there is a Quebec Sales Tax (QST) rebate of up to $9,975.

How It Works

Quebec charges a 9.975% QST on new home construction. The new housing rebate provides a percentage of the QST back to the buyer:

• The rebate is 36% of the QST paid, up to a maximum of $9,975
• The maximum rebate applies to homes priced up to approximately $277,500 (before tax)
• For homes priced between $277,500 and $332,500, the rebate is gradually clawed back
• For homes priced above $332,500, no QST rebate is available

Note that these thresholds are based on the pre-tax value of the home, not the final purchase price including taxes.

Combined Federal + Provincial Rebates on New Construction in Quebec

If you are buying a new build in Quebec, you may be eligible for both the federal GST rebate and the provincial QST rebate:

Rebate	Maximum Amount
Federal GST Rebate	$6,300
Quebec QST Rebate	$9,975
Combined Maximum	$16,275

This combined rebate of up to $16,275 makes new construction more affordable, but keep in mind that the thresholds for full rebates are relatively low ($277,500 for QST and $350,000 for GST). In major Quebec markets, many new builds are priced above these thresholds.

Caution

The QST rebate thresholds are significantly lower than other provincial HST rebate thresholds (Ontario’s provincial rebate, for example, applies to homes up to $400,000 with a maximum of $24,000). If you are buying a new build in Quebec priced above approximately $332,500, you will not receive any QST rebate. This is an important consideration when comparing the total cost of new versus resale properties.

---

Quebec Tax Credits for Homeowners

Once you own your home in Quebec, there are additional provincial tax benefits to be aware of:

Home Accessibility Tax Credit

Quebec offers a tax credit for home accessibility renovations for seniors and persons with disabilities. While not specific to first-time buyers, it is worth knowing about if you purchase a home that needs accessibility modifications.

Eco-Renovation Programs

Quebec frequently offers rebate programs for energy-efficient home improvements through Hydro-Quebec and Energir. New homeowners may be eligible for rebates on insulation upgrades, heat pump installations, and window replacements. These programs can save you thousands on post-purchase improvements.

RenovAction Program

Municipalities like Montreal offer renovation assistance programs that provide financial help for qualifying homeowners undertaking necessary repairs. This can be valuable for first-time buyers who purchase older homes that need updating.

---

Planning Your Quebec Home Purchase

For a first-time buyer in Montreal, here is a summary of the potential savings you could access:

Program	Potential Savings
Montreal Home Ownership Grant	Up to $15,000
Federal Home Buyers’ Tax Credit	$1,500
FHSA tax deductions (5 years at $8,000, 30% rate)	$12,000
QST Rebate (new construction only)	Up to $9,975
Federal GST Rebate (new construction only)	Up to $6,300
Maximum potential savings (new build)	Up to $44,775
Maximum potential savings (resale)	Up to $28,500

Remember that you must still pay the welcome tax (no rebate), which on a $400,000 home would be approximately $4,200. To see how Quebec’s programs compare to other provinces, check the all programs comparison table.

---

Next: Atlantic Canada Programs