What is the First-Time Home Buyers Tax Credit in Quebec?
On top of this new tax credit, there is also the First-Time Home Buyers Tax Credit (home and condominium purchase credit). With this credit, you can get up to $750. To qualify, you or your spouse must be purchasing a qualifying home and intend to live in it as your principal residence within a period of one year. You must also fill out the TP-752.HA-V form.
In terms of the qualifying home definition, this includes:
- Detached homes
- Unattached homes
- Multi-unit residential complexes
- Mobile homes
- Condo units
- Co-ops
Down Payment for First-Time Buyers in Quebec
In Quebec, the down payment rules for housing unit acquisitions are the same as in the rest of Canada. As a first-time home buyer, you can put down a down payment of as little as 5% of the purchase price based on the property value threshold. Here are the minimum required amounts based on the purchase price:
- 5% of the total purchase price on $500,000 or less
- 5% of the first $500,000 and 10% of the remaining balance for amounts from $500,000 to $1.5 Million
- 20% of the flat purchase price for amounts of $1.5 Million and over
However, if your down payment is less than 20%, you’re also going to have to factor in the cost of mortgage default insurance. This mortgage is done through the Canada Mortgage and Housing Corporation. With this insurance, you’re looking at a premium of roughly 2.8% to 4% on top of your total mortgage loan.
Quebec Welcome Tax Refund
The Refundable Tax Credit for Access to Homeownership is also known as the Welcome Tax Credit (also known as transfer duties in Quebec). This is because this credit will refund up to $5,875 of your Welcome Tax and applies to eligible homes purchased after January 1, 2026. You must pay the Welcome Tax in full and apply for the rebate afterward.
For the rebate amount, you can claim up to 100% of the first $5,000 and 25% of any amount over that, up to $3,500. This will give you up to an extra $875, bringing the total cap to $5,875. However, the estimated average savings per household are $3,700. This is just a rough estimate, as there is currently no Welcome Tax rebate calculator.
Refundable Tax Credit Form
Currently, the application process isn’t open to applicants seeking this credit. In fact, this credit won’t be available for most people to claim until the 2026 tax year. That said, an earlier application will be made available for those seeking an advance payment. As soon as it’s available, the application process will be released.
What Documents Do You Need For Your Application?
While the application process hasn’t been fully released yet, there are some recommended documents that you should keep. These include:
- The deed of sale
- The notary statement of adjustments
- Proof of payment ( the welcome tax invoice)
You may also need to show proof of being a first-time homeowner or why you’re purchasing the home for accessibility reasons.
Does the Credit Only Cover Welcome Tax?
Yes, this credit is specifically designed to reimburse costs paid to the municipal transfer tax known as the Welcome Tax. However, to help with other costs, there is also the First-Time Home Owners’ Tax Credit, which will reimburse you up to $750.
First-Time Buyer Eligibility Rules
To be considered a first-time home owner in Quebec for the property transfer duty levy (Welcome Tax), you or your spouse must not have owned and lived in that home in the year it was purchased, or the four calendar years prior. You must also intend to live in your home as your principal residence. You must also be a resident of Quebec at the end of the taxation year.
For this particular credit, the first-time homebuyer requirement is waived with an accessible home purchase for someone who is severely disabled. In this case, you or someone living with you can be severely disabled to qualify.
Wat are the Home Value Limits for Eligibility?
To qualify for this credit, you must purchase a home priced at less than $1,000,000. However, after the first $750,000, the credit will begin to phase out. There is a gradual credit reduction for home prices up to the $1 million value cap.
How to Combine this Credit With Federal Programs
Along with the provincial benefits you can get through Revenue Quebec, you’re also eligible for the federal first-home tax credits and benefits. Here’s a look at what they are and how they work.
First Home Savings Account
In Canada, the First Home Savings Account is a tool that first-time home buyers can use to save money for a down payment tax-free. With this account, you can save up to $8,000 per year with a lifetime limit of $40,000.
To open this account, you must be:
- A Canadian resident
- At least 18 years of age
You also can’t have lived in a home you own in the current calendar year or any of the four years before.
Once you open the account, it can remain open for up to 15 years, until age 7, or the year following the purchase of a qualifying home. Once the funds are withdrawn, they don’t have to be repaid, unlike with the Home Buyers Plan.
Home Buyers Plan
The Home Buyers Plan is a federal program that allows eligible first-time home buyers to withdraw up to $60,000 tax-free from their Registered Retirement Savings Plan. These funds can then be used to build or purchase a qualifying home. Couples can also combine their HBPs to access up to $120,000.
To use this program, you must not have owned a home that you lived in in the current calendar year or in the four years before. The funds must also have been in your account for at least 90 days before they are withdrawn. You don’t have to start repaying these funds until the second year after you withdraw them, and you have 15 years to pay them back.
Home Buyers Amount
Another program that you can take advantage of is the Home Buyers Amount. This program allows eligible first-time home buyers to claim up to $10,000 as a retroactive tax credit on their income tax return. With this credit, you can then receive up to $1,500 as a non-refundable amount.
The conditions to qualify for the credit include:
- Being a first-time home buyer
- Living in the home within the first year of purchase
If you’re eligible for the Disability Tax Credit in Quebec or are purchasing the home for a person with a disability, then the first-time home buyer requirement is waived. You can combine provincial and federal credits to maximize your refund.
Qualifying with a Severe Disability
As we previously mentioned, you don’t need to be a first-time homeowner to qualify. Suppose you’re purchasing a home for someone who lives with you for more accessibility due to a severe disability, then you can also qualify. However, if the person isn’t you, it has to be a related disabled person who must be related to you by blood, marriage, or adoption.
Can You Split the Credit Amount With a Spouse?
When you’re purchasing a home with a spouse and looking to claim this credit, you can split it as long as the total doesn’t exceed the $5,875 maximum. Both individuals claiming the credit must be eligible and meet all requirements.
Are There Home Ownership Incentives in Quebec?
On top of the Welcome Tax Credit (Taxe De Bienvenue), there are other incentives available to you that can help you recoup some of your costs. Two of these programs are:
- Ville De Montreal Home Purchase Assistance Program (also referred to as the Montreal Purchase Assistance Program)
- Accès Famille Quebec First-Time Buyer Program
Both of these programs provide provincial aid and help with interest-free down payment loans. They can also help with other costs related to purchasing your home, such as notary fees, closing costs,s and real estate transfer taxes.
Final Thoughts
Although this tax credit has not yet been released, those who have purchased a home after January 1, 2026, and meet the eligible purchaser criteria can apply for this credit for the 2026 taxation year. Since you can’t apply yet, you must hold on to the documents you need until you can apply.
Once the credit is available for residents to apply, the application process will be released. Before the actual credit becomes available, there is also an advance payment application. While the application process for making a Revenu Québec claim hasn’t been released yet, it will be released before the official tax credit is implemented.
