Finance

Quebec First-Time Buyer Tax Benefits: Are You Leaving Money on the Table?

By Georges Matar · May 5, 2026 · 4 min read

One subject that comes up constantly with first-time buyers is the financial programs they qualify for and haven’t looked into. Approached systematically, they add up to a surprising amount of available benefit that buyers leave unclaimed.

Here’s the complete breakdown.

Federal Programs

Home Buyers’ Plan (HBP)

The Home Buyers’ Plan allows first-time buyers to withdraw up to $35,000 from their RRSP ($70,000 for couples) tax-free to use toward a qualifying home purchase. The withdrawn amount must be repaid to your RRSP over 15 years, with repayments starting two years after the year of withdrawal.

Key conditions: you must occupy the property as your principal residence, and you cannot have owned a qualifying home in the current or preceding four calendar years (with certain exceptions for persons with disabilities).

First Home Savings Account (FHSA)

Introduced recently, the FHSA is one of the most powerful savings vehicles ever created for Canadian first-time buyers. Key features:

Annual contribution limit: $8,000
Lifetime contribution limit: $40,000
Contributions are tax-deductible (like an RRSP)
Withdrawals for a qualifying home purchase are tax-free (like a TFSA)
Unlike RRSP withdrawals through the HBP, FHSA withdrawals don’t need to be repaid

If you’re planning to buy a home in the next few years and haven’t opened an FHSA yet, you may be losing contribution room that doesn’t accumulate retroactively. Open one now, even if you can only make a modest initial contribution.

First-Time Home Buyers’ Tax Credit

A federal non-refundable tax credit of $1,500 (15% of $10,000) for first-time buyers. Not enormous, but it’s yours - claim it on your federal tax return in the year of purchase.

Quebec Provincial Programs

First-time homebuyer assistance (Accès Propriété)

The SHQ (Société d’habitation du Québec) offers programs in partnership with municipalities to assist first-time buyers, including shared equity loans and interest-free loans in certain regions. Eligibility criteria and availability vary by municipality. Check with your notary or financial advisor for current program availability in your area.

Quebec tax credit for first-time home purchase

Quebec has historically offered provincial tax credits aligned with federal programs. The specifics change with each budget, so confirm the current state with a tax professional in the year of your purchase.

Municipal Programs: The Hidden Opportunity

Some municipalities in Greater Montreal offer additional assistance for first-time buyers, including rebates on welcome tax, subsidized down payment programs, or assistance for buyers in specific sectors. Laval, Montreal, and some off-island municipalities have offered programs at various points.

These programs are often under-publicized and change with municipal budgets. Ask your broker to research current availability in the specific municipality where you’re buying.

The CMHC Green Home Refund

If you purchase an energy-efficient home or make energy improvements after purchase, CMHC offers a partial refund (up to 25%) of your default insurance premium. The energy efficiency requirements are specific, but for buyers considering new construction or significant renovation, it’s worth investigating.

How These Stack Up Together

A first-time buyer couple in Quebec who:

Max their FHSA for 2-3 years before purchase: $16,000-$24,000 in tax-deductible contributions
Use the HBP to access RRSP savings: up to $70,000 combined
Claim the federal first-time buyer credit: $1,500
Investigate and access any applicable municipal programs

…can receive significant financial leverage and tax efficiency that makes the purchase considerably more accessible than if they’d simply saved in a regular bank account.

One Caveat

Tax rules change. Program availability changes. This article reflects the programs as they stand at the time of writing, but you should always verify the current terms with a qualified tax professional or your financial institution before making decisions based on them. The purpose here is to make sure you know these programs exist - your accountant’s role is to tell you exactly how they apply to your specific situation.

Have questions about the financial side of your first purchase? Get in touch to be connected with the right professionals and capture everything you’re entitled to.