First Time Home Buyer Programs Quebec 2025

Buying your first home in Quebec involves a unique legal process and the provincial "welcome tax." Here's everything you need to know for 2025.

Quebec's Welcome Tax (Taxe de Bienvenue)

Quebec levies a land transfer tax known informally as the "welcome tax" (taxe de bienvenue). Unlike Ontario and BC, Quebec does not offer a first-time buyer exemption or rebate on this tax — all buyers pay it regardless of purchase history. The welcome tax is calculated on the greater of the sale price or the municipal evaluation:

Portion of Purchase Price	Tax Rate
Up to $58,900	0.5%
$58,901 to $294,600	1.0%
$294,601 to $552,300	1.5%
$552,301 to $1,104,700	2.0%
Over $1,104,700	2.5% (in some municipalities)

For a $600,000 home in Montreal, the welcome tax is approximately $8,500–$9,500 depending on the borough. Budget for this as part of your closing costs — it is due within 30 days of the transfer registration.

The Notary Process in Quebec

Quebec's civil law system differs significantly from common law provinces. Real estate transactions in Quebec must be completed by a notary — there is no equivalent of the Ontario or BC real estate lawyer process. The notary drafts the deed of sale, registers the transaction, and disburses funds. Notary fees for a standard purchase typically range from $1,500 to $2,500 depending on complexity. Both the buyer and seller typically have the same notary, which is different from common law provinces where each party usually has separate legal representation.

Promise to Purchase vs. Offer to Purchase

In Quebec, the document used to make an offer is called a "Promise to Purchase" (Promesse d'achat). Once both parties sign, it is a legally binding contract — far more binding than a typical offer in other provinces. Conditions (financing, inspection) must be carefully drafted and respected. Working with a licensed real estate broker in Quebec is strongly recommended for first-time buyers navigating this process.

Quebec Market Overview

• Montreal average detached home: approximately $700,000–$900,000 (Island of Montreal)
• Montreal average condo: approximately $450,000–$600,000
• Quebec City average detached home: approximately $380,000–$500,000
• Laval, Longueuil: more affordable than Montreal Island, typically $500,000–$700,000
• Montreal property tax rate: approximately 0.75%–1.0% depending on borough

Federal Programs Available to Quebec Buyers

• First Home Savings Account (FHSA): $8,000/year, $40,000 lifetime — fully available to Quebec residents. Provincial income tax deduction also applies.
• Home Buyer's Plan (HBP): withdraw up to $60,000 per person from RRSP. Quebec residents file both federal and Quebec provincial returns — the HBP is recognized on both.
• First-Time Home Buyer Tax Credit: $1,500 federal credit. Quebec has its own provincial equivalent — the First-Time Home Buyer's Tax Credit on your provincial return provides additional savings.

Quebec First-Time Home Buyer Tax Credit (Provincial)

Quebec offers its own provincial first-time home buyer tax credit in addition to the federal credit. The Quebec credit provides up to $750 in provincial tax savings, calculated as 20% of $3,750. Claim it on your Quebec provincial return (TP-1) in the year of purchase. Combined with the federal $1,500 credit, first-time buyers in Quebec can claim up to $2,250 in combined tax credits.

CMHC Insurance in Quebec

CMHC mortgage insurance premiums in Quebec are subject to Quebec Sales Tax (QST) at 9.975%, paid at closing (not added to the mortgage). For a mortgage of $475,000 with a 4% CMHC premium ($19,000), the QST is approximately $1,895 — payable in cash at closing. Ontario charges 8% PST on CMHC premiums similarly. Factor this into your closing cost budget.

Tips for Quebec First-Time Buyers

• Budget for the welcome tax — no exemption exists in Quebec, and it's due quickly after closing
• Work with a licensed Quebec real estate broker familiar with the Promise to Purchase process
• Choose your notary early — they coordinate the entire closing
• Open an FHSA immediately for tax deductions on both federal and provincial returns
• Verify the municipal evaluation of the property — the welcome tax is based on the higher of sale price or evaluation