Eligible first-time buyers may receive up to $50,000 in federal GST relief on qualifying newly built homes. It is separate from FHSA/HBP planning and Quebec’s welcome-tax rebate, and ordinary resale homes generally do not qualify.
A practical guide for Montreal and West Island buyers on the new refundable tax credit, who may qualify, how the math works, and what to confirm before relying on it.
Quebec announced a refundable tax credit intended to reimburse part or all of the “welcome tax” for eligible first-time homebuyers. The measure is especially relevant in Montreal, where transfer duties can be a real cash-to-close shock for buyers.
This page is a planning guide, not tax advice. The program details should be confirmed against Revenu Québec/official provincial instructions once the final administrative process is published. For now, the measure has been reported by CBC, CTV, Canadian Mortgage Trends, West Island Today and other outlets.
Based on current reporting, eligible first-time buyers may receive a refundable tax credit of up to $5,875 to offset the property transfer duty, commonly called the welcome tax. Reported math: the first $5,000 of transfer duty is reimbursed, plus 25% of the remaining duty up to another $875.
That means the maximum benefit is reached when the welcome tax is high enough to trigger both parts of the calculation. If your welcome tax is lower, the rebate should generally be lower too.
Current reporting says the measure targets first-time homebuyers in Quebec. Reported eligibility includes no ownership of a principal residence in the previous four years, a property price under $1 million, and a phase-out between $750,000 and $1 million. If you are buying with a spouse or partner, confirm how ownership history is applied to both buyers before assuming you qualify.
Montreal transfer duties use marginal brackets and rates that can change by year. Use our Quebec welcome tax calculator for a planning estimate, then verify with the notary and final provincial guidance.
Reports indicate the measure is retroactive to purchases made as of January 1, 2026, with payments or claims beginning in fall 2026. The practical claim process still needs to be confirmed in the final government instructions.
Keep your deed of sale, notary statement, welcome tax invoice, proof of payment, purchase price, closing date, and any documents proving first-time buyer status. If you bought after January 1, 2026, you may want to ask your notary or accountant what records to keep while waiting for the official claim process.
This rebate can help, but it does not replace a full cash-to-close plan. You still need to budget for the down payment, inspection, notary, adjustments, insurance, moving, repairs, condo fees if applicable, and mortgage insurance tax if your down payment is under 20%.
In most cases, buyers should still expect the municipality to bill the transfer duty. The new measure is reported as a refundable tax credit, meaning eligible buyers may get money back through the provincial process rather than simply avoiding the bill upfront.
The final administrative process needs to be confirmed. Do not assume it is automatic until Revenu Québec or the province publishes the claim instructions.
No. Montreal also has its own home ownership assistance program with separate conditions. Buyers should check both programs separately; eligibility for one does not automatically mean eligibility for the other.
Be careful. Treat it as potential reimbursement, not cash available at closing, until the timing and claim process are confirmed.
We’ll help you build the full cash-to-close picture before you make an offer.