Listen to this article
Estimated 2 minutes
The audio version of this article is generated by AI-based technology. Mispronunciations can occur. We are working with our partners to continually review and improve the results.
First-time homebuyers in Quebec will receive a tax credit of up to $5,875 to reimburse the “welcome tax,” Premier Christine Fréchette announced Friday afternoon.
The measure applies retroactively to Jan. 1, 2026. The credit is gradually reduced for homes valued above $750,000 and phased out entirely at $1 million.
“We are going to ensure the government aid helps those who truly need it,” Fréchette said in Laval, Que., during her first announcement as premier since assuming the role Wednesday.
Eligible Quebecers will receive a full rebate on the first $5,000 of the real estate transfer tax. The government will then cover 25 per cent of any remaining duties, up to a maximum of $875.
The measure adds to existing programs such as the federal Home Buyers’ Plan and First Home Savings Account. The rebate will be delivered through a new refundable tax credit. Payments are expected to begin this fall, according to a news release.
Fréchette made the measure a flagship policy during her campaign for leadership of the Coalition Avenir Québec after François Legault stepped down. She said it “will allow us to help the younger generation in a context where property prices have doubled in barely 10 years.”
She added that first-time buyers will receive an average financial boost of about $3,700.
Her office estimates the measure will benefit roughly 38,000 households across the province, at an annual cost of more than $140 million.
To qualify, a buyer cannot have owned a home within the past four years. As a result, a couple becomes ineligible if even one partner previously owned property.
In the news release, Fréchette described the measure as her government’s first concrete step to address affordability.
When asked about potential inflationary effects, Fréchette said she was confident “this will not be the case,” noting the measure applies to only 15 per cent of the real estate market.