The Quebec government has just announced a new measure that could meaningfully ease access to homeownership for first-time buyers. A refundable tax credit will now help cover land transfer taxes, commonly known as the “welcome tax,” up to a maximum of $5,875.
This initiative, applied retroactively to January 1, 2026, targets properties valued under $1 million. The structure is relatively simple: the first $5,000 of the tax will be fully reimbursed, and an additional 25% of any remaining amount will be covered, up to a maximum of $875. On average, eligible buyers could receive approximately $3,700 in financial support.
This measure is primarily aimed at households purchasing a home for the first time. To qualify, buyers must not have owned a property in the past four years. It’s important to note that this condition applies to all buyers—if one member of a couple has owned a property during that period, the credit will not be granted.
The program also includes individuals with disabilities, as well as those purchasing a property to serve as the primary residence of a person with a disability.
According to government estimates, approximately 38,000 Quebec households could benefit from this assistance each year, at an annual cost exceeding $140 million. The objective is clear: to support a generation of first-time buyers facing a significant rise in property prices, which have increased substantially over the past decade.
Within the industry, some organizations have welcomed the measure, noting that land transfer taxes are often a major obstacle, especially when combined with the down payment, notary fees, and other costs associated with purchasing a home.
However, some experts have also raised concerns about the overall impact of this initiative. While the assistance is appreciated, they argue it does not address deeper issues related to housing affordability, including rising prices, limited inventory, and the challenges faced by lower-income households.
In a context where a significant portion of the population remains renters and the housing crisis continues to put pressure on many families, several specialists emphasize that broader solutions—such as the development of affordable housing—will be necessary to achieve long-term improvements.
In summary, this new tax credit represents meaningful support for first-time buyers and could make entering the real estate market more accessible. However, it is part of a broader set of measures that will need to evolve to effectively address Quebec’s housing challenges.
