Updated for 2025 policy changes, this guide compiles every major federal, provincial, and Montréal‑municipal program for First Time Home Buyers that actually use—plus the newest mortgage rules and what ended in 2024. Use it as your checklist before you write an offer.

Quick takeaway: Most Montréal first‑timers stack a Tax‑Free First Home Savings Account (FHSA) with the Home Buyers’ Plan (HBP), claim both federal and Québec first‑time buyer tax credits, and—if eligible—apply to Montréal’s Home Purchase Assistance Program for up to $15,000 (new builds) or a welcome‑tax refund (resale). (Government of Canada)

What “First Time Home Buyers” means (by program)

  • Montréal – Home Purchase Assistance Program (HPAP):
    First Time Home Buyer = you have not owned a home in Québec in the last 5 years (cottage excluded). Families with children also affect eligibility by property type. (Montréal)
  • Tax credits (federal & Québec):
    First Time Home Buyer = you (and spouse/partner) did not live in a home you owned in the year of purchase or the prior 4 years; there’s a disability exception. (Government of Canada)

Tip: Because definitions differ, confirm your status with your broker/notary for each program before applying.

Montréal programs (the big local money)

Home Purchase Assistance Program (HPAP) — Ville de Montréal

What you can get in 2025

  • New homes: lump‑sum $5,000 to $15,000.
    Family + downtown purchase can unlock the $15,000 tier; outside downtown it’s $10,000 for families. Novoclimat +$2,500 or LEED +$5,000 top‑ups. Price caps apply (e.g., up to $610,000 downtown for families).
  • Existing (resale) homes: welcome‑tax (property transfer tax) refund of about $5,000–$7,000 for eligible families; price cap currently $725,000.

Who qualifies

  • First‑time buyers:
    – New home: all household types eligible.
    – Resale: must have ≥1 child under 18.
  • Experienced buyers: with ≥1 child under 13 may also qualify (new or resale).

Fine print that trips people up

  • Undivided co‑ownerships are not eligible.
  • You must occupy as your principal residence and own for at least 3 years (with specific conditions if you sell sooner).
  • Deadlines: apply no later than 6 months after registration if already purchased; if only an accepted offer, apply no earlier than 18 months before the deed and no later than the day before signing. For welcome‑tax refunds, you must pay the tax within 12 months of the bill.

Related reading: Your own explainer on Montréal’s Welcome Tax (transfer duties) with 2025 brackets: A Guide to Montréal’s Property Welcome Tax.

First Time Home Buyers

Québec provincial tax credit (non‑refundable)

  • Home Buyers’ Tax Credit (TP‑752.HA‑V): up to $1,400 per qualifying home (can be split between eligible claimants). You must be a Québec resident on December 31 of the tax year and meet the first‑time (or disability) rules. (Revenu Québec)

Federal programs you should plan around

  1. A) First Home Savings Account (FHSA)
  • Limits: $8,000/year, $40,000 lifetime; contributions are tax‑deductible federally and recognized for Québec income tax (Line 215). Unused room can carry forward. (Government of Canada)
  1. B) Home Buyers’ Plan (HBP)
  • You can withdraw up to $60,000 from your RRSP tax‑free to buy/build a qualifying home. Couples can effectively mobilize $120,000. You can combine HBP + FHSA for the same purchase. (Government of Canada)
  • Repayment: normally over 15 years; temporary relief means if your first HBP withdrawal was between Jan 1, 2022 and Dec 31, 2025, your repayment start is deferred to the 5th year after the year of withdrawal (vs. year 2 previously). (Government of Canada)
  1. C) Federal first‑time buyers’ tax credit (HBTC)

New mortgage rules that matter in 2025

  • 30‑year insured amortizations (in effect): as of Dec 15, 2024, 30‑year amortizations are available to all first‑time home buyers and all buyers of new builds with insured mortgages. At the same time, the insured‑mortgage price cap increased from $1.0M to $1.5M. These measures carry into 2025. (Government of Canada)

Why it helps: longer amortization lowers the monthly payment (but increases total interest), and the higher cap lets more Montréal purchases qualify for default insurance under 20% down.

New‑home GST/QST rebates (+ a 2025 proposal)

  • Existing GST/HST new‑housing rebate (federal) and QST rebate (provincial) can return part of the tax paid on a newly built or substantially renovated principal residence (thresholds and formulas apply). (Government of Canada)
  • 2025 proposal: CRA added a page noting a proposed First‑Time Home Buyers’ GST/HST rebate to further assist first‑timers (watch status updates before filing). (Government of Canada)

What ended: First‑Time Home Buyer Incentive (FTHBI)

  • CMHC’s shared‑equity FTHBI stopped accepting applications on March 21, 2024; no new approvals after March 31, 2024. If you’re seeing old blog posts recommending it, they’re out of date. (Canada Mortgage and Housing Corporation)

Legal & regulatory notes for 2025 (Montréal/Québec)

  • City pre‑emptive right: Montréal can have a right of first purchase in designated zones. Your notary will check titles; buyers should be aware during due diligence.
  • Foreign buyer restrictions: Canada’s ban on residential purchases by non‑Canadians has been extended to Jan 1, 2027 (with exceptions). This doesn’t affect citizens/PRs but matters for family co‑purchases. (Government of Canada)
  • Anti‑flipping rule (federal): Profit on a residential property sold within 365 days is generally business income (no principal‑residence exemption), unless a life‑event exception applies. (BDO Canada)

How to stack benefits (a simple plan)

Scenario: First‑time family buying a new condo outside downtown Montréal in 2025 for $540,000.

  1. Save with FHSA for 1–2 years (couple could shelter $16,000 in year 2 with carry‑forward). Claim federal + Québec deductions. (Government of Canada)
  2. Mobilize down payment with HBP up to $60,000 (each partner can withdraw; combine with FHSA withdrawal). Repayment starts later if withdrawal fits the temporary relief window. (Government of Canada)
  3. Apply to HPAP: family + new home outside downtown ⇒ $10,000 lump sum (if under price cap and other criteria). (Montréal)
  4. File tax credits: $1,500 federal + up to $1,400 Québec = up to $2,900 in combined non‑refundable credits. (Government of Canada)
  5. If newly built: check GST/QST rebates (builder may net the rebate on the statement of adjustments), and consider Novoclimat/LEED for extra HPAP top‑up. (Government of Canada)

Documents & deadlines checklist

Montréal HPAP

  • Accepted offer: apply no earlier than 18 months before deed and no later than the day before signing.
  • Already purchased: apply within 6 months after registration in the Land Register.
  • Welcome‑tax refund: ensure the tax is paid within 12 months of the bill to remain eligible.
  • Keep proof of eligibility; the city can audit up to 5 years after payment.

Tax filing

  • Federal HBTC: claim $10,000 on line 31270 (split if needed).
  • Québec TP‑752.HA‑V: attach the form to claim up to $1,400.
  • FHSA: report contributions/deductions (and note Québec recognizes the deduction at Line 215).
  • HBP: file T1036 for withdrawals and track your 15‑year repayment schedule (with relief if applicable).

FAQ (Montréal/Québec 2025)

Q1. Can I combine FHSA and HBP?
Yes. CRA confirms you may withdraw under HBP and make a qualifying FHSA withdrawal for the same home if you meet both sets of conditions.

Q2. I owned a property outside Québec five years ago—am I a first‑timer in Montréal?
For Montréal HPAP, the test is no Québec home ownership in the past 5 years; for tax credits, the test is no owner‑occupied home in the year or prior 4 years (regardless of province). You might qualify for one program but not another.

Q3. Is the CMHC First‑Time Home Buyer Incentive still available?
No. Applications closed March 21, 2024; no approvals after March 31, 2024.

Q4. What about 30‑year mortgages for first‑timers?
They’re in effect for insured loans (and buyers of new builds) from Dec 15, 2024, alongside the insured‑mortgage cap increase to $1.5M.

Q5. Are there other Montréal options besides HPAP?
Selective projects accredited by SHDM’s Accès Condos offer a 10% purchase credit (down‑payment support) but only for specific developments; check availability.