Mortgages for First Time Home Buyers

Buying Your First Home in Montreal

Entering the housing market in Montreal can feel overwhelming — and for first-time buyers, it often comes with even more questions. From saving for a down payment to finding a trustworthy mortgage professional and understanding which rebates or tax credits you qualify for, it’s normal to feel unsure about where to start.

At Yelena Markus Mortgage Broker, my goal is to make the process clear and stress-free. Below, you’ll find key information every first-time buyer in Montreal should know. Since many first-time homebuyer rules and incentives are defined at the provincial and municipal levels, it’s important to focus on programs that apply directly to Quebec and Montreal.

Montreal First-Time Homebuyer Programs

Across Canada, most provincial first-time homebuyer programs offer a rebate on land transfer taxes. While Montreal does have its own land transfer tax, the city does not provide a rebate for first-time buyers. However, Quebec residents can benefit from the provincial Home Buyer’s Tax Credit, on top of the federal tax credit available nationwide.

Because real estate prices in Montreal are generally higher than in many other parts of Canada, not having a local land transfer tax rebate makes it even more essential to secure the best mortgage rate and terms possible. Working with a trusted mortgage broker ensures you explore every available program and lender option to maximize your savings.

Montreal Land Transfer Tax

Land transfer taxes in Montreal can be a bit complex, as the city applies slightly higher rates than the rest of Quebec. While comparable to other provinces, the rates here are still lower than in Ontario or British Columbia.

• Outside Montreal: land transfer taxes generally cap at 1.5% of the purchase price.

• Inside Montreal: the highest bracket reaches 2.5%.

Understanding how these taxes apply to your property purchase is key to budgeting accurately and planning your total closing costs.

Federal First-Time Homebuyer Programs in Canada

Although many first-time homebuyer incentives and rebates are offered at the provincial or municipal level, several important programs are managed by the Government of Canada. These federal programs are available to buyers across the country — including those purchasing their first home right here in Montreal.

Below are some of the key national programs and tax credits to explore when planning your home purchase. Each program has its own eligibility criteria and benefits, which may differ from those available through Quebec or City of Montreal initiatives. Taking the time to understand both federal and provincial options can help you maximize your savings and make your first home purchase more affordable.

Federal Programs for First-Time Home Buyers in Canada

First-Time Home Buyers’ Tax Credit (HBTC)

The First-Time Home Buyers’ Tax Credit is one of the simplest ways to save money when purchasing your first property. Eligible buyers can claim a non-refundable tax credit of up to $750 on their tax return for the year the home is purchased.

This credit is also open to home buyers with a disability, even if it’s not their first property. If you believe you may qualify under this category, it’s best to speak with Yelena Markus, Mortgage Broker in Montreal, or your tax advisor to ensure you receive all the benefits available to you.

RRSP Home Buyers’ Plan (HBP)

The Home Buyers’ Plan allows first-time buyers to withdraw up to $60,000 from their Registered Retirement Savings Plan (RRSP) to use toward their down payment — $120,000 for couples.
This higher limit took effect on April 16, 2024, giving new homeowners more flexibility when entering the real estate market.

The amount withdrawn from your RRSP must be repaid within 15 years. If any portion remains unpaid, it will be added to your taxable income for that year. Since RRSP contributions are tax-deferred, repaying the funds helps maintain your long-term retirement benefits.

This program can be especially helpful for first-time buyers in Montreal, where home prices are generally higher than the national average.

GST / HST New Housing Rebate

If you purchase a newly built, off-plan, or substantially renovated property, you may qualify for the GST / HST New Housing Rebate.
This rebate refunds up to 36% of the GST paid on your new home. You’ll receive the full rebate if your property’s market value is $350,000 or less, and a partial rebate if it’s priced between $350,000 and $450,000.

For Montreal buyers purchasing new construction or pre-construction condos, this rebate can significantly reduce overall closing costs and make ownership more affordable.

 How to Get the Best Mortgage Rates in Montreal

Buying your first home in Montreal can feel complex — but securing a great mortgage rate doesn’t have to be. Yelena Markus, a licensed mortgage broker in Montreal, helps first-time buyers access the most competitive rates available from major banks, alternative lenders, and credit unions.

Here’s how to improve your chances of qualifying for the lowest mortgage rates in Canada:

1. Compare rates from multiple lenders

Mortgage rates vary between lenders because each financial institution has different risk profiles and strategies. Some lenders specialize in low-rate products for highly qualified borrowers, while others focus on clients with unique financial situations.

Working with Yelena Markus Mortgage Broker gives you access to multiple lenders through one application, ensuring you receive the best available rate for your financial profile — without extra paperwork or inquiries on your credit file.

2. Use mortgage calculators to plan your purchase

Before buying, it’s important to understand how much you can afford and what your monthly payments will look like.
Use affordability and payment calculators to estimate:Your maximum purchase price

• Your monthly mortgage payment

• How different interest rates affect your budget

Having these numbers helps you shop confidently and avoid disappointment when submitting an offer on your first home.

3. Save for a larger down payment

A larger down payment directly reduces the size of your mortgage — lowering your interest costs and improving your approval chances. In Montreal’s competitive housing market, even an extra few thousand dollars can make a difference in the rate you qualify for.

4. Pay down existing debts

Lenders look at your debt-to-income ratio to determine your ability to manage mortgage payments. Paying off credit cards, car loans, or student loans before applying can help you qualify for a higher loan amount or a better interest rate.

5. Improve your credit score

A higher credit score (above 600) opens the door to more lenders and better rates.
If your score is below 600, you may still qualify through a B-lender or private lender, but rates will be higher.
Working with Yelena Markus – Mortgage Broker in Montreal, you’ll receive personalized strategies to boost your credit profile before applying, helping you save thousands over the life of your mortgage.

Ready to Start Your Montreal Homeownership Journey?

Buying your first home doesn’t have to be stressful. With expert guidance from Yelena Markus Mortgage Broker, you’ll understand your options, qualify for the right programs, and secure a mortgage that fits your financial goals.

Contact Yelena Markus today to compare the best mortgage rates in Montreal and start your journey toward homeownership with confidence.