Quebec First-Time Buyer Tax Benefits 2026

Almost every first-time buyer I meet misses at least one program. And in 2026 the list changed: Quebec now refunds part of the welcome tax, Ottawa refunds the GST on a first new home, and the HBP grace period has been extended. Here is each measure, with figures checked with the CRA, Revenu Québec and Quebec’s Ministère des Finances.

I am a real estate broker, not a tax advisor: this is general information. Have your plan reviewed by an accountant or a financial planner.

“First-time buyer” does not mean the same thing everywhere

The basic rule: you did not live, in the current year or the previous four calendar years, in a home that you or your spouse owned. The details vary, and one point surprises newcomers: for the FHSA, the HBP, the federal credit and the GST rebate, a home you owned and lived in abroad counts too.

The FHSA: the account to open first

The First Home Savings Account (CELIAPP in French) combines the best of the RRSP and the TFSA. To open one, you must be a resident of Canada, be 18 to 71, and be a first-time buyer.

• Limits: $8,000 a year, $40,000 lifetime. Unused room carries forward, up to $8,000, but it only starts building once the account is open: open it early, even with a small amount.
• Deduction: federal and Quebec, and you can carry it forward to a year when your income is higher.
• Withdrawal: tax-free and never repaid. You need a written agreement to buy with the purchase completed before October 1 of the following year, you must still be a first-time buyer and a resident of Canada, and you must plan to live in the home. Withdraw no later than 30 days after you buy.
• If you don’t buy: the account lasts 15 years at most. The money can then go directly into an RRSP, tax-free and without using your RRSP room, or come out as a taxable withdrawal.

The HBP: a loan to yourself

The Home Buyers’ Plan (RAP in French) lets you withdraw up to $60,000 from your RRSPs tax-free, per person: $120,000 for an eligible couple.

You repay over 15 years, normally starting the second year after the withdrawal. For a first withdrawal made between 2022 and 2028, repayment starts in the fifth year: the extension to 2026 through 2028 became law in June 2026, and Quebec is matching it. A missed repayment is added to your taxable income.

Keep in mind: leave a contribution in the RRSP at least 90 days before withdrawing it, or it may not be deductible. Stay a resident of Canada until you buy, and buy before October 1 of the year after the withdrawal.

FHSA and HBP together

You can use both for the same home. An eligible couple can put together up to $200,000: $40,000 from the FHSA and $60,000 from the HBP each, plus the FHSA’s growth. My order: the FHSA first, because it is never repaid, then the HBP. See also the 20% down payment myth.

Two tax credits in the year you buy

Federal (line 31270): $10,000 at the 14% rate in 2026, so $1,400. For a Quebec resident, the Quebec abatement brings its real value down to about $1,169, according to Quebec’s Ministère des Finances. The home must be in Canada and become your principal residence within a year of buying.

Quebec (line 396): $10,000 at 14%, so $1,400, if you live in Quebec on December 31 of the year you buy.

Both can be shared, without exceeding the maximum, and both are non-refundable: they reduce the tax you owe, nothing more. The $1,500 figure still going around dates from before the lowest tax rate was cut.

New in 2026: Quebec refunds part of the welcome tax

There is still no exemption: you pay the municipality’s bill. But the refundable tax credit for access to homeownership, announced on April 17, 2026, gives part of it back: 100% of the first $5,000 and 25% of the next $3,500, up to $5,875.

It covers homes acquired since January 1, 2026, duplexes and triplexes included, that will become your principal residence. It shrinks once the tax base passes $750,000 and reaches zero at $1,000,000. You must have paid the transfer duties and live in Quebec at the end of the year.

The Ministère des Finances example: a $616,000 house in Laval, $9,091 in transfer duties, a $5,875 credit. Estimate your bill with the welcome tax calculator. An advance payment is planned from October 2026 when the credit exceeds $1,000, on request to Revenu Québec by December 1 of the year.

In Montreal, the Programme d’appui à l’acquisition résidentielle has not accepted new applications since July 7, 2026: the city says this credit replaces it. The City of Laval does not advertise any municipal program.

New homes: GST and QST

First-time home buyers’ GST rebate: in force, and administered by Revenu Québec in Quebec. Up to 100% of the GST, maximum $50,000, on a new home of $1,000,000 or less, then phased out up to $1.5 million. On a $600,000 new condo, that is $30,000 back.

Conditions: 18 or older, Canadian citizen or permanent resident, first-time buyer, rebate never received by you or your spouse, first occupant, and principal residence. From a builder, the agreement must be signed on or after March 20, 2025 and before 2031, and construction must start before 2031 and be completed before 2036. It does not cover the QST.

Standard rebates, for a new home you will live in: GST, 36% of the tax, maximum $6,300, in full up to $350,000 and nil at $450,000, and the CRA says it can be combined with the rebate above. QST, 50% of the tax, maximum $9,975 up to $200,000, nil at $300,000: a threshold rarely reached in Greater Montreal.

At a glance

For newcomers

The FHSA and the HBP require you to be a resident of Canada for tax purposes, not a citizen. The first-time buyers’ GST rebate requires citizenship or permanent residence. Your RRSP room is based on the previous year’s earned income: in the year you arrive, you often have little. The FHSA gives you $8,000 of room as soon as you open it, whatever your past income.

Planning a first purchase and want to see what these programs change in your budget? Reach out and we will go through your situation together.

Georges Matar

Residential Real Estate Broker · RE/MAX DU CARTIER INC.

Contact Georges