Buying your first home in Montreal is one of the largest financial decisions you will make — and the rules, programs, and costs are not obvious. This is the complete, current walkthrough for first-time buyers in 2026: what help is available, what it actually costs, and exactly how the process unfolds from first thought to handing over the keys.
The Programs That Help First-Time Buyers
The First Home Savings Account (FHSA)
The FHSA is the most powerful tool introduced for Canadian first-time buyers in recent years. Contributions are tax-deductible (like an RRSP) and withdrawals for a qualifying home purchase are tax-free (like a TFSA). For most first-time buyers, maxing the FHSA should be the first savings priority. Confirm current contribution limits and eligibility with the Government of Canada.
The RRSP Home Buyers' Plan (HBP)
The HBP lets you withdraw from your RRSP toward a first home, repayable over a set period. It can be combined with the FHSA, meaningfully boosting your down payment. The mechanics and current withdrawal limits are detailed on official Government of Canada resources.
Other Credits
Federal and Quebec first-time buyer tax credits may apply at filing time. These do not help with the down payment but reduce your tax bill — factor them into your overall budget, and confirm current amounts with a tax professional.
The Down Payment Rules
In Canada, the minimum down payment scales with price: 5% on the first portion of the purchase price and more above defined thresholds. Below 20% down, you pay mortgage default insurance (via CMHC or a private insurer), which protects the lender and is added to your mortgage. Putting 20% or more down avoids that premium but is not required — many sound first purchases are made with less.
The Costs Beyond the Down Payment
This is where first-time buyers are most often caught off guard. Budget for:
The Welcome Tax (Droit de mutation)
Quebec's land transfer tax — informally the "welcome tax" — is a one-time charge based on the property's value, payable a few months after closing. On a typical Montreal home it runs into the thousands; calculate it in advance so it is not a surprise. Our tools page includes a transfer-tax calculator.
Notary Fees
In Quebec, a notary (not a lawyer) handles the transaction's legal closing. Budget for notary fees, title verification, and registration.
Inspection and Adjustments
A pre-purchase inspection is money well spent. At closing, expect adjustments for prepaid property taxes and condo fees.
Moving and Immediate Repairs
The costs that hit right after you get the keys — set aside a cushion.
The Step-by-Step Process
1. Get Pre-Approved
Before you shop, get an accurate mortgage pre-approval that accounts for the stress test, taxes, and condo fees. Our mortgage environment guide explains why this number is your real budget.
2. Define Your Search
Neighbourhood, property type, must-haves. Montreal's sub-markets vary widely — explore our neighbourhood guides and, if a condo, weigh building fees carefully.
3. View and Choose
Work with a broker (the buyer's representation is typically paid through the transaction, not by you directly). See properties, compare honestly, and act decisively on the right one — the 2026 market rewards prepared buyers.
4. Make an Offer
Your offer (promise to purchase) includes price, conditions (financing, inspection), and timelines. Conditions protect you — use them.
5. Conditions and Inspection
Finalize financing and complete your inspection. If the inspection surfaces problems, this is where you renegotiate or walk.
6. The Notary and Closing
The notary verifies title, registers the deed, and disburses funds. You sign, and the home is yours.
7. After Closing
The welcome tax bill arrives within months — budget for it. Update your address, set up utilities, and breathe.
Common First-Time Buyer Mistakes
- Shopping before pre-approval — you waste time and lose to prepared buyers.
- Forgetting the welcome tax and closing costs — they can total several thousand dollars.
- Maxing your budget — leave room for rate changes and repairs.
- Skipping the inspection — the cheapest insurance you will buy.
- Waiting for a crash — the supply picture does not support it; buy the right home you can hold.
The Bottom Line
A first purchase in Montreal is very achievable in 2026 with the right preparation: stack the FHSA and HBP, budget honestly for the full cost (not just the down payment), get accurately pre-approved, and move decisively on the right home. The programs are genuinely generous — use them.
If you are starting your first-home journey and want a clear, no-pressure plan, reach out. Getting the process right the first time saves money and stress.
Jeremy Soares is an OACIQ-licensed residential and commercial real estate broker (H2731) in Montreal. Program details change — verify current rules with official sources and a tax professional.