Fréchette argued the rebate would not fuel further price inflation
In her first major move as premier, Christine Fréchette sets out to cut one of Quebec homebuyers’ most resented closing costs by promising a new rebate on the province’s “welcome tax” for first‑time purchasers.
Under the plan announced in Laval, first‑time buyers will receive a refundable tax credit of up to $5,875, retroactive to January 1, 2026. It will cover the first $5,000 in real estate transfer duties in full, plus 25% of any remaining amount, to a maximum of $875.
The credit will be reduced for properties priced above $750,000 and phased out entirely at $1 million, with eligibility restricted to buyers who have not owned a home in the year of purchase or in the previous four years.
Municipalities will continue to collect the tax, while Quebec handle rebates through the income tax system.
“We are going to ensure the government aid helps those who truly need it,” Fréchette said at the news conference, calling the measure her government’s “first concrete step” on housing affordability.
She added that first‑time buyers will receive an average financial boost “of about $3,700,” and that the measure “will allow us to help the younger generation in a context where property prices have doubled in barely 10 years.”
Fréchette’s office estimated the policy will benefit roughly 38,000 households each year, at an annual cost of more than $140 million.
The announcement came as Quebec home prices and activity remain among the strongest in the country, with provincial and broker data showing double‑digit price gains in several regions through 2025 and early 2026, even as other provinces cooled.
The sharpest move is slated for Quebec City, where Royal LePage forecast a 12.0% year‑over‑year jump in Q4 2026, to an aggregate price of $508,032 from $453,600.
Earlier government analysis also found that residential prices per square foot in Quebec more than doubled between 2015 and 2025, underlining the mounting pressure on first‑time buyers.
Fréchette argued the rebate will not fuel further price inflation, stressing that it applies to “only 15 per cent of the real estate market.”
She also framed the measure as a partial answer to Quebec’s large renter population, saying: “When we help young renters become owners, that liberates rental housing.”
How Quebec’s move fits into wider first-time buyer relief
The welcome tax rebate sits alongside the federal Home Buyers’ Plan, which allows first‑timers to draw from RRSP savings, and the First Home Savings Account, a newer vehicle combining RRSP‑style deductions with tax‑free withdrawals for a first purchase.
Ottawa also offers a non‑refundable First‑Time Home Buyers’ Tax Credit of up to $1,400 to offset legal fees and land transfer duties.
Other provinces have long targeted land transfer charges as a policy lever: Ontario and British Columbia both maintain rebates or exemptions for first‑time buyers, and Toronto layers a municipal rebate on top of the provincial relief.
Until now, Quebec stood out for charging a welcome tax without a province‑wide first‑time buyer break, even as local programs in Montreal and other municipalities experimented with partial refunds.
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