Home ownership programs

The Home Buyers’ Plan (HBP)

If this is a buyer’s first property purchase, or if he or his spouse or de facto spouse has not owned a principal residence in the last four years, the Home Buyers’ Plan (HBP) can be an attractive tool.

This program allows the buyer to withdraw up to $35,000 per person ($70,000 per couple) from a registered retirement savings plan (RRSP) to be used for the down payment or any other payment to acquire a property. The amount is not taxable. It is important to know that the amount withdrawn must be repaid within a maximum period of 15 years, otherwise the amount not repaid each year becomes taxable. Repayment begins in the second year following the date of withdrawal.

The First Home Savings Account (FHSA)

Introduced on April 1, 2023, this type of account allows a person to save up to $40,000, which can be used to purchase a first property, in other words once in the person’s lifetime. Contributors can deposit up to $8,000 per year. The amount disbursed is not taxable and does not have to be repaid as is the case with the HBP.

Tax credits

Since 2009, first-time home buyers in Québec have been eligible for a $5,000 federal non-refundable tax credit.

There is also a provincial tax credit of $1,500.

Visit the Government of Canada and Revenu Québec websites to find out about any changes that may affect the amounts of these tax credits.

Other initiatives

It is possible to obtain a partial refund of the QST/GST on the purchase of a new construction, or a reduction in mortgage insurance (CMHC) on the purchase of an energy-efficient home. This information can be found on the Revenu Québec website.

Many municipalities have also implemented home ownership programs.