First-Time Homebuyer Guide for Montreal: Programs, Rebates, and Costs
Quebec's new refundable tax credit for first-time buyers can fully cover the welcome tax on many Montreal condo purchases. Announced in 2026 and applied retroactively to purchases from January 1, 2026, the program refunds the first $5,000 of welcome tax in full, plus 25% of any remaining amount up to an additional $875, for a maximum combined benefit of $5,875.
Quebec's Welcome Tax and How It's Calculated
The welcome tax — officially the land transfer duty (droits de mutation immobilière) — is a one-time municipal tax paid by the buyer on every property purchase in Quebec, calculated on a progressive bracket system based on the higher of the sale price or municipal assessment. Across Quebec, the base brackets are 0.5% on the first $58,900, 1.0% on the portion up to $294,600, and 1.5% on the portion up to $552,300.
Montreal is the exception: the city applies two additional brackets beyond the provincial standard, at 2.0% on the portion between $552,300 and $1,104,700, and 2.5% above that. This means a Montreal buyer pays meaningfully more welcome tax than a buyer in most other Quebec municipalities on the same purchase price, once the property crosses $552,300.
Quebec's New First-Time Buyer Welcome Tax Rebate
As of 2026, Quebec offers first-time buyers a refundable tax credit covering the first $5,000 of welcome tax in full, plus 25% of any amount above that up to an additional $875 — a maximum combined rebate of $5,875. The credit begins phasing out for homes valued above $750,000 and is eliminated entirely for properties priced at $1,000,000 or more, applying retroactively to purchases made on or after January 1, 2026, with payments expected to begin in fall 2026.
As an example: on a $430,000 condo, roughly the median condo price reported by the Quebec Professional Association of Real Estate Brokers (APCIQ) for May 2026, the welcome tax works out to approximately $4,683 using the standard brackets. Since that amount is under the $5,000 threshold, an eligible first-time buyer would have their entire welcome tax refunded through this new credit.
Because this program is very new, some administrative details — particularly how it interacts with municipal rebate programs like Montreal's — were still being finalized as of this writing. Confirm the current mechanics with your notary or Revenu Québec before treating any specific amount as guaranteed.
Montreal's Municipal Home Ownership Assistance Program
Separately from the new provincial credit, the City of Montreal offers its own Home Ownership Assistance Program (Programme d'accession à la propriété, or PAAR), which can provide either a lump-sum grant for new construction or a partial refund of the welcome tax for an existing property purchase. Reported amounts for this program vary by source and property type, so it's worth confirming the current figures directly with the City of Montreal before counting on a specific number.
The City has stated that its municipal program can be combined with provincial and federal assistance, though the exact interaction with Quebec's new welcome tax credit was still being clarified as the provincial program rolled out in 2026.
FHSA and RRSP Home Buyers' Plan
Both major federal savings programs remain available to Quebec first-time buyers regardless of the new provincial credit. The First Home Savings Account (FHSA) allows contributions of up to $8,000 a year, to a $40,000 lifetime maximum, with tax-deductible contributions and tax-free withdrawals for a qualifying first home purchase. The RRSP Home Buyers' Plan (HBP) separately allows withdrawals of up to $60,000 tax-free from an RRSP — $120,000 for a couple — repayable over 15 years.
Since 2023, the FHSA and HBP can be used together on the same purchase, giving a single buyer access to up to $100,000 in tax-advantaged funds, or $200,000 for a couple, on top of any welcome tax rebates.
Welcome Tax by Price Point
The table below shows how the welcome tax and new provincial rebate interact at different price points, based on median prices reported by APCIQ for the Montreal CMA in 2026.
| Property Type | Approx. Median Price | Welcome Tax (before rebate) | First-Time Buyer Rebate |
|---|---|---|---|
| Condo | $430,000 | ~$4,683 | Fully refunded (under $5,000 threshold) |
| Single-family home | $639,000 | ~$7,914 | $5,000 + 25% of remainder, up to $875 (partial rebate, since price exceeds $5,000 in tax owed) |
This is general information, not personalized financial or tax advice. Welcome tax calculations, rebate eligibility, and program interactions can change, especially given how recently Quebec's new credit was introduced — confirm current figures with your notary or a qualified tax professional before finalizing a purchase.
Steps to Buy Your First Home in Montreal
- Open an FHSA as early as possible. Contribution room accumulates from the day the account opens, regardless of when you plan to buy.
- Ask your notary for a welcome tax estimate as soon as you have an accepted offer. Most notaries provide this automatically, and it helps you plan your available closing funds.
- Confirm your eligibility for both the provincial rebate and Montreal's municipal program. Since both are relatively new or recently updated, eligibility rules are worth double-checking directly rather than assuming.
- Budget for notary fees and inspection costs separately from your down payment. These typically range from $1,500 to $3,000 for notary fees alone, on top of your welcome tax and down payment.
- Watch for your welcome tax invoice after closing. Quebec municipalities typically send this 30 to 90 days after your deed of sale is registered, so budget for it even after moving in.
Frequently Asked Questions
What is the welcome tax and how much is it in Montreal?
The welcome tax is a one-time municipal land transfer tax paid by the buyer in Quebec, calculated on progressive brackets based on the property's price or municipal assessment. Montreal adds two extra brackets beyond the provincial standard for properties valued above $552,300, meaning Montreal buyers pay more than buyers in most other Quebec municipalities at the same price point.
Is there a rebate for first-time buyers on the welcome tax in Quebec?
Yes. As of 2026, Quebec offers a refundable tax credit covering the first $5,000 of welcome tax in full, plus 25% of any remaining amount up to an additional $875, for a maximum combined rebate of $5,875. It applies retroactively to purchases made on or after January 1, 2026.
Does the rebate apply to all home prices?
No. The rebate begins phasing out for homes valued above $750,000 and is eliminated entirely for properties priced at $1,000,000 or more, meaning it's targeted primarily at entry-level buyers rather than higher-priced purchases.
Can I combine the provincial rebate with Montreal's municipal program?
The City of Montreal has stated its municipal Home Ownership Assistance Program can generally be combined with provincial and federal assistance, but the precise interaction with the new provincial welcome tax credit was still being clarified as the program rolled out. Confirm current details with the City and your notary before counting on a specific combined amount.
What other savings programs are available for first-time buyers in Quebec?
The federal First Home Savings Account (FHSA) and RRSP Home Buyers' Plan (HBP) are both available to Quebec residents on the same terms as the rest of Canada, and can be combined with any provincial or municipal welcome tax rebates you qualify for.
Plan Your Full Budget
Welcome tax is only one part of your closing costs. Our Montreal rental guide can help you compare renting against buying while you save, and our CMHC insurance guide explains what to expect if your down payment is below 20%.