Buying a first property in Montreal, Laval or anywhere in Quebec is becoming increasingly expensive, and many costs are added to the purchase price.
Transfer duties, notary fees, inspection… all weigh heavily on buyers’ available cash.
In 2026, two measures can help reduce this bill:
The City of Montreal’s Home Ownership Assistance Program and the new refundable tax credit for access to home ownership from the Government of Quebec on the welcome tax.
The question most first-time buyers are therefore asking is: can these two incentives be combined? The answer is yes.
With one important nuance detailed below.
Incentive 1: Montreal’s Home Ownership Assistance Program
This municipal program, often abbreviated PAAR in French, is designed to make it easier to purchase a principal residence within the territory of the City of Montreal.
Depending on the buyer’s situation, it takes one of two forms: a lump-sum amount when purchasing a new property, or a refund of transfer duties, commonly known as the welcome tax, when purchasing an existing property.
Who is eligible?
- For a new property, all types of households are eligible.
- For an existing property, the buyer must have at least one child under the age of 18 (*new owner) or under the age of 13 (if already an owner).
*For the purposes of this program, a “new owner” has not owned a residence in Quebec in the 5 years preceding the purchase, except for a cottage. The child may already be born, be expected, or be adopted no later than 9 months after the purchase and must live with the buyer at least 40% of the time.
Program amounts:
For a new property, the assistance ranges from $5,000 to $15,000
| Household type | Maximum purchase price | Assistance |
|---|---|---|
| Single buyer, without children | $305,000 | $5,000 |
| Several buyers, without children | $380,000 | $5,000 |
| Buyer(s) with at least one child IN downtown Montreal | $610,000 | $15,000 |
| Buyer(s) with at least one child OUTSIDE downtown Montreal | $540,000 | $10,000 |
An environmental certification increases the eligible price ceiling: + $2,500 for Novoclimat, + $5,000 for LEED. For an existing property, the assistance, reserved for families, takes the form of a refund of transfer duties, between $5,000 and $7,000, for a maximum purchase price of $725,000. The buyer must remain the owner for at least 3 years and make the property their principal residence.
Incentive 2: Quebec’s tax credit on the welcome tax
Announced on April 17, 2026 by Premier Christine Fréchette, this provincial measure applies throughout Quebec, meaning in all municipalities and not only in Montreal. It reimburses up to $5,875 of the transfer duties paid for a first home:
- 100% of the first $5,000 of transfer duties paid
- 25% of the portion of duties exceeding $5,000, up to an additional $875
The refund applies to homes acquired as of July 1, 2026 (retroactive measure). It gradually decreases above a value of $750,000 and becomes nil at $1 million. The measure will reach approximately 38,000 first-time buyers per year, for average assistance of approximately $3,700 per household.
Who is eligible?
The definition of an “eligible buyer” differs from that of the municipal program. For the provincial credit, the buyer must not have lived in a dwelling owned by them or their spouse during the year of the purchase or the 4 preceding years, and not 5 years as in Montreal.
For a couple, both spouses must meet this condition. Eligible homes include single-family homes, semi-detached or row houses, manufactured or mobile homes, duplexes, triplexes and condominiums.
A refund, not an exemption
Essential point: this is a refund after the fact, not an exemption at source. The buyer first pays the welcome tax in full, then recovers the amount.
The credit may be paid in advance. The process begins at the end of summer 2026, and as of October 2026 buyers will be able to receive an advance payment when the eligible amount exceeds $1,000.
Can the Quebec credit and the Montreal program be combined?
Yes, the two incentives can be combined. The City of Montreal states that its program can be combined with assistance or tax relief from the provincial and federal governments. The Quebec Ministry of Finance presents its new credit as “assistance that is added to what is already offered.”
At the Quebec and federal tax level, the Ministry of Finance calculates the maximum possible stacking at $8,444
| Tax assistance | Maximum amount |
|---|---|
| Refundable tax credit for access to home ownership (Quebec) | $5,875 |
| Non-refundable tax credit for the purchase of a first home (Quebec) | $1,400 |
| Non-refundable tax credit for the purchase of a home (federal) | $1,169 |
| Total | $8,444 |
In addition to this, for an eligible Montreal buyer, there is the Home Ownership Assistance Program, up to $15,000 for a new property or $5,000 to $7,000 for an existing property.
Before the purchase, two savings tools remain available throughout Quebec: the FHSA, up to $40,000 lifetime, and the HBP, up to $60,000 withdrawn from an RRSP.
The key point of caution not to miss
In principle, the ability to combine the incentives is confirmed, but there is one point not to miss. The provincial credit and the “existing property” component of the Montreal program both relate to the refund of transfer duties. However, assistance generally cannot reimburse the same expense twice.
In other words: if the city already reimburses part of your welcome tax, the calculation of the provincial credit could have to take into account the duties actually remaining at your charge. The precise terms of this interaction had not yet been fully published at the time of writing, as the provincial payment mechanism only starts in fall 2026. This is the type of detail that should be validated by your mortgage broker before treating any amount as guaranteed.
On the other hand, the lump-sum amount from the Montreal program for a new property does not relate to transfer duties: there is no overlap, and it can be combined without issue with the provincial credit.
Are you buying your first property in Quebec? Every file is unique, and it is the full financial structure that determines whether you buy at the right time and under the right conditions. At Hypotheques.ca, we structure your financing while taking into account all eligible assistance in Montreal, Laval, Quebec City and throughout the province.
Speak with a mortgage broker today.
Outside Montreal: Quebec City’s Accès Famille program
For clients buying in Quebec City, the municipal assistance works very differently. The Accès Famille program is not a subsidy, but an interest-free loan with no payments, also called an “access credit,” intended to help build the down payment. It is aimed at eligible families, including couples with or without children and single-parent families, depending on the component, and in 2026 includes two distinct components.
New housing component
The access credit is equal to 5.5% of the purchase price of an eligible new home, including taxes and rebates.
If the home is Novoclimat energy-efficient certified, a 3.5% rebate is applied as a deduction from the mortgage loan. The home must be located within the territory of Quebec City, be sold turnkey by a licensed contractor, serve as a principal residence, have a maximum sale price of $370,000, including taxes and rebates, and have at least two bedrooms.
Existing housing component — 2026 pilot project
New in 2026: a component for existing housing was added as a pilot project limited to 40 families, with a credit also equal to 5.5% of the purchase price.
Important to know: all spots were allocated by random draw and the city was no longer accepting new applications at the time of writing. Condominiums are not eligible for this component.
Eligibility conditions — families:
- One of the spouses must not have been an owner in the last five years
- The sum of the spouses’ ages must not exceed 70 years
- The household’s gross income must not exceed $165,000
- The home must be the principal residence.
Note that the access credit is repayable according to the terms set out in the Accès Famille agreement: it is a loan, not a gift. This is a fundamental difference from the Montreal program and the provincial credit, and it changes the calculation of the client’s net benefit.
What about other cities in Quebec?
Beyond Montreal and Quebec City, several municipalities periodically offer incentives for home ownership: often targeted at specific areas, new construction, or neighbourhood revitalization.
These programs vary greatly from one city to another, are often subject to limited funding envelopes, on a first-come, first-served basis, and change or end from one year to the next. Some municipal programs announced in the past, such as Gatineau’s program on Île de Hull, have also stopped accepting new applications.
The golden rule for your projects: always check with the city hall of the municipality you are targeting to find out which programs are in effect at the time of purchase. Above all, remember that the provincial tax credit on the welcome tax, up to $5,875, applies throughout Quebec: regardless of the city, an eligible first-time buyer may be entitled to it, in addition to any possible municipal program.
Comparison: the three main municipal measures
Here is a summary to understand everything at a glance:
| Montreal (PAAR) | Quebec City (Accès Famille) | Provincial credit (all Quebec) | |
|---|---|---|---|
| Nature of assistance | Subsidy (gift) | Interest-free loan (repayable) | Refundable tax credit |
| Amount | Up to $15,000 (new); $5,000-$7,000 (existing) | 5.5% of the purchase price | Up to $5,875 |
| Target | Families and first-time buyers | Eligible families | First-time buyers |
| Non-ownership | 5 years | 5 years (one spouse) | 4 years (both spouses) |
| Targeted maximum price | Up to $725,000 | $370,000 (new) | Value < $1M |
In all cases, the overall structure — municipal assistance, provincial credit, non-refundable tax credits, FHSA and HBP — determines the real benefit for the client. That is why it is important to be well supported: a mortgage broker can identify the programs applicable to your city and your situation, and structure the financing accordingly.
Key takeaways
- Two distinct, stackable incentives: the Montreal municipal program and the provincial tax credit are based on different foundations and can be combined.
- Different eligibility criteria: 5 years of non-ownership for the Montreal program, 4 years for the provincial credit; for couples, both spouses are covered.
- The provincial credit is a refund, not an exemption: you pay the welcome tax in full, then recover the amount.
- Watch for overlap on the welcome tax between the provincial credit and Montreal’s “existing property” component: the same dollar of duties cannot be reimbursed twice.
- Think about the overall structure: these incentives are added to the FHSA, the HBP and non-refundable tax credits.
Frequently asked questions
Can the Quebec tax credit and the Montreal program be combined?
Yes, the City of Montreal confirms that its program can be combined with provincial and federal assistance, and the Quebec Ministry of Finance presents its credit as assistance that is added to others. Be careful about overlap on the welcome tax: the same dollar of duties cannot be reimbursed twice.
How much can you recover on the welcome tax in Quebec in 2026?
Up to $5,875: 100% of the first $5,000 of transfer duties, plus 25% of the following portion, up to $875. The credit decreases above a value of $750,000 and becomes nil at $1M.
Who is eligible for the welcome tax credit?
First-time buyers of a provincial residence who have not lived in a dwelling they owned, or that their spouse owned, during the year of purchase or the four preceding years. For a couple, both spouses must meet this condition. The measure is retroactive to January 1, 2026.
What is the difference between the Montreal program and the Quebec credit?
The Montreal program is a municipal subsidy: a lump-sum payment for a new property, or a welcome tax refund for an existing property.
The Quebec credit is a provincial refundable tax credit on the welcome tax, valid throughout the province. Eligibility conditions differ: 5 years in Montreal, 5 years provincially.
The amounts, ceilings and criteria presented are up to date as of June 2026 and may be modified by the administrations concerned. This article is for informational purposes only and does not constitute tax or legal advice. For an analysis tailored to your file, consult your mortgage broker as well as the official sources of the City of Montreal and Revenu Québec.
