Buying your first home in Montreal is harder in 2025. Why? Two reasons: higher interest rates and rising home prices. These changes mean you might need to adjust your budget or your expectations when it comes to Buying a Home. But don’t worry—there are smart ways to make it work.
This guide explains the challenges and offers tips for staying on track.
💰 What’s Making Homes Less Affordable?
Interest Rates Are Still High
In 2025, the Bank of Canada’s rate is around 4.75% to 5.0%. That’s better than last year, but much higher than what buyers paid during the pandemic.
🏦 Example: A $450,000 mortgage with 10% down now costs about $2,600/month—more than many people expected.
Prices Keep Climbing
Montreal home prices keep rising, though not as fast as before.
- Condos: $450,000–$550,000
- Single-family homes: $800,000+
- Plexes (2–3 unit buildings): About $830,000
📈 Takeaway: Buyers pay more for homes and for borrowing money.
🧠 5 Smart Ways to Stay on Budget
- Choose a Condo or Smaller Home
Condos are often the cheapest way to buy. They’re popular in downtown, Ville-Marie, and Laval.
💡 Tip: Look for older, low-rise buildings. They often have lower condo fees and more space.
- Look in Up-and-Coming Areas
Try neighborhoods that are cheaper now but growing fast. Great choices include:
- Mercier–Hochelaga–Maisonneuve
- Villeray–Saint-Michel–Parc-Extension
- Parts of Laval
🏘️ These places offer good value, easy transit, and more options.
- Use Buyer Programs and Tax Credits
Even though the federal First-Time Home Buyer Incentive ended in 2024, Montreal still offers help.
- Montreal Home Purchase Assistance Program: Up to $15,000 for eligible buyers
- Tax credits: Provincial and federal programs may help reduce your costs
🧾 Combine these with a longer mortgage term (25–30 years) to lower your monthly payments.
- Buy With Family or a Partner
Co-buying with a sibling, parent, or friend helps share the cost. You also qualify for a bigger mortgage.
👥 Make a written agreement to explain who owns what and who pays for what.
- Try Pre-Construction Condos
Buying before a condo is built gives you time to save. You also lock in a price now.
🛠️ Just make sure you choose a trusted developer. Learn about your rights, like the 10-day “cooling-off” period.
✅ Buyers Are Still Buying
Even with high rates, many first-time buyers are entering the market.
- Condos and duplexes are still selling fast.
- Buyers are adjusting—choosing smaller homes or more affordable areas.
- More listings mean better choices and less competition.
🔍 In early 2024, many people bought homes—even with high interest rates. That trend is still going strong.
🏘️ Considerations When Buying a Home
Buying your first home in Montreal is harder—but not impossible. Choose the right area, explore your options, and plan smart. With the right help, you can make it happen—even in 2025.
💬 Need Expert Help?
At Montreal Realty AOK, we help first-time buyers every day. We’ll guide you from pre-approval to moving day.
📞 Reach out now for a free consultation.
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