Programs Available to First-Time Buyers in Quebec
Programmes disponibles pour les acheteurs d'une première maison au Québec
There is no single large grant that covers first-time buyers in Quebec. Instead, several federal and provincial programs work together: two savings accounts that provide tax advantages before you buy, a federal tax credit that puts $1,500 back after you buy, limited municipal welcome tax rebates, and a QST rebate for buyers of new construction. Used together, these programs can meaningfully reduce your upfront cost.
| Program | Who offers it | Maximum benefit |
|---|---|---|
| First Home Savings Account (FHSA) | Federal | $40,000 tax-free savings + deductions |
| Home Buyers' Plan (HBP) | Federal | Up to $60,000 from RRSP tax-free |
| First-Time Home Buyers' Tax Credit | Federal | $1,500 tax credit |
| Montreal welcome tax rebate | City of Montreal | Partial rebate on welcome tax (verify current status) |
| Quebec new housing QST rebate | Revenu Québec | Up to $7,533 on new builds under $300,000 |
1. First Home Savings Account (FHSA)
Compte d'épargne libre d'impôt pour l'achat d'une première habitation (CELIAPP)
The FHSA is a registered account designed specifically for first-time buyers. It combines the best features of both an RRSP and a TFSA: contributions are tax-deductible (like an RRSP), and qualifying withdrawals to purchase your first home are completely tax-free (like a TFSA).
- Annual limit: $8,000 per year
- Lifetime limit: $40,000 total across all FHSA accounts
- Carry-forward: Up to $8,000 of unused annual room carries forward to the following year (but only one year of carry-forward at a time)
- Eligible investments: Same as RRSP — GICs, stocks, ETFs, mutual funds
- Qualifying withdrawal: Must be used to buy or build a qualifying first home; must not have owned a home you lived in during the current year or the preceding four calendar years
- If unused: Transfer to RRSP or RRIF tax-free if you do not buy a home within 15 years of opening
The FHSA is the most powerful tool available to first-time buyers who have time to save before buying. A couple who each open an FHSA and contribute the maximum $8,000 per year for five years accumulates $80,000 in tax-free savings while claiming $80,000 in tax deductions. At a combined marginal rate of 36%, that represents roughly $28,800 in immediate tax refunds received while saving.
2. Home Buyers' Plan (HBP)
Régime d'accès à la propriété (RAP)
The Home Buyers' Plan lets first-time buyers withdraw from their RRSP to fund a home purchase without paying any tax on the withdrawal at that time. The withdrawn amount must be repaid to the RRSP over 15 years starting the second year after withdrawal; if you do not repay in a given year, that year's required repayment is added to your income.
- Maximum withdrawal: $60,000 per person (increased from $35,000 in April 2024)
- Combined limit for couples: $120,000 (both partners can each withdraw $60,000)
- RRSP seasoning rule: Funds must have been in the RRSP for at least 90 days before withdrawal
- Repayment: Over 15 years, starting the second calendar year after the withdrawal year
- Eligibility: Must be a first-time buyer (no home owned in the current or preceding four calendar years)
The HBP works best when you have meaningful RRSP savings accumulated at a high marginal tax rate and expect to repay the withdrawals in retirement at a lower rate. If your RRSP is modest, the FHSA should take priority since FHSA withdrawals do not need to be repaid. Both can be used together on the same purchase.
3. Federal First-Time Home Buyers' Tax Credit
Crédit d'impôt pour l'achat d'une habitation (CIAPH)
Any first-time buyer who acquires a qualifying home can claim a $10,000 amount on their federal tax return in the year of purchase. At the 15% federal non-refundable credit rate, this generates a $1,500 federal tax credit. For Quebec residents, the effective federal saving is slightly less due to the abatement, but the credit still applies.
- Claim: $10,000 on line 31270 of your T1 federal return
- Credit value: $10,000 × 15% = $1,500
- Eligibility: Must be a first-time buyer (same four-year lookback rule as HBP)
- Split between spouses: The $10,000 amount can be split between partners as long as the combined claim does not exceed $10,000
- Income limit: None
4. Montreal Welcome Tax Rebate
Remboursement de la taxe de bienvenue pour acheteurs de première habitation — Montréal
The City of Montreal has at various times offered a rebate on the taxe de bienvenue for first-time buyers. Under programs that have been active in the past, eligible buyers could receive a rebate of up to $2,000 on their welcome tax if they purchased a principal residence within Montreal city limits and had not previously owned a home.
5. Quebec New Housing QST Rebate
Remboursement de la TVQ pour les nouvelles habitations au Québec
When you purchase a newly constructed home or substantially renovate an existing one, you pay QST (9.975%) on the value of the property. Revenu Québec offers a partial rebate on this QST for homes that will be used as a primary residence.
- Rebate rate: 36% of the QST paid
- Maximum rebate: $7,533 (for homes valued at $300,000 or less)
- Phase-out: The rebate decreases linearly and reaches zero at approximately $450,000
- Condition: Must be your primary residence; applies to the purchaser of a new home from a builder, or to an owner-builder on a self-constructed home
- Not available for resale homes
This rebate is often applied directly by the builder at the time of sale, reducing the purchase price by the rebate amount. If the builder does not apply it, the buyer can claim it directly from Revenu Québec. A separate federal GST/HST new housing rebate may also apply — your notary or builder can advise on this.
Stacking Multiple Programs: A Real Example
Cumuler plusieurs programmes : un exemple concret
Consider a couple buying their first home in Quebec for $450,000. They have each saved in an FHSA and have some RRSP savings. Here is how they might combine the available programs:
- FHSA withdrawals: Each partner withdraws $32,000 from their FHSA (if they contributed $8,000/year for four years) = $64,000 combined, tax-free, no repayment required.
- Home Buyers' Plan: Each partner additionally withdraws $16,000 from their RRSP via the HBP = $32,000 combined, to be repaid over 15 years.
- First-Time Home Buyers' Tax Credit: Each partner claims $5,000 (split of the $10,000 amount) on their federal return in the year of purchase = $1,500 combined federal credit.
- Welcome tax (resale home): No Quebec provincial exemption; welcome tax is approximately $7,112 at $450,000 for a standard municipality (check Montreal-specific figures with the calculator).
Total accessible registered savings for the down payment in this scenario: $96,000 (FHSA + HBP combined), providing a 21.3% down payment on a $450,000 home — enough to avoid CMHC insurance entirely.
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→ Open CalculatorWhat is the FHSA? / Qu'est-ce que le CELIAPP?
The First Home Savings Account (FHSA / Compte d'épargne libre d'impôt pour l'achat d'une première habitation, CELIAPP) is a registered account introduced by the federal government in 2023. It allows first-time home buyers to contribute up to $8,000 per year, to a lifetime maximum of $40,000. Contributions are tax-deductible (like an RRSP), and qualifying withdrawals used to purchase a first home are completely tax-free (like a TFSA). If you do not buy a home within 15 years of opening the account, the funds must be transferred to an RRSP or RRIF. The FHSA is available at most major banks, credit unions (including Desjardins), and brokerages.
Can I use my RRSP to buy my first home in Quebec? / Puis-je utiliser mon REER pour acheter ma première maison au Québec?
Yes. Through the Home Buyers' Plan (Régime d'accès à la propriété, RAP), you can withdraw up to $60,000 from your RRSP tax-free to purchase your first home. The funds must have been in the RRSP for at least 90 days. You have 15 years to repay the amount back into your RRSP, starting two years after the year of withdrawal. If you do not repay in a given year, the required annual repayment is added to your taxable income for that year. Both partners in a couple can each use the HBP for a combined maximum of $120,000.
Is there a first-time buyer grant in Quebec? / Existe-t-il une subvention pour les acheteurs d'une première maison au Québec?
There is no direct cash grant from the Quebec provincial government for first-time home buyers. The available assistance comes in the form of tax savings and rebates rather than upfront grants: the FHSA provides tax deductions and tax-free withdrawals, the HBP allows RRSP withdrawals without immediate tax, the federal Home Buyers' Tax Credit provides a $1,500 federal credit, and buyers of new construction may qualify for a QST rebate of up to $7,533. Montreal has had a welcome tax rebate program at various times, but its current status should be confirmed directly with the city.
Can I use both the FHSA and the Home Buyers' Plan? / Puis-je utiliser à la fois le CELIAPP et le RAP?
Yes. The FHSA and the Home Buyers' Plan can both be used for the same home purchase. They are independent programs with no conflict between them. Using both maximizes the amount of registered savings you can deploy tax-free: FHSA withdrawals have no repayment requirement, while HBP withdrawals must be repaid to the RRSP over 15 years. For buyers who have savings in both types of accounts, using both is generally the optimal strategy.