First-Time Buyers in Montreal — Complete Guide 2026
Everything a first-time buyer needs to know before purchasing a property in Quebec: CMHC insurance, down payment, government programs, and financing strategies.
Buying Your First Property in Montreal
Purchasing your first property in Montreal is a defining moment. It can also feel overwhelmingly complex: mortgage insurance, assistance programs, debt ratios, lender conditions. Anthony King, AMF-certified mortgage broker in Montreal, has guided hundreds of first-time buyers through this process. This guide covers the essential elements to prepare your file effectively.
The Montreal market is unique. Property prices vary significantly from one borough to another, and government assistance programs offer substantial advantages that many first-time buyers overlook. Understanding these tools before starting your search can make a difference of tens of thousands of dollars over the life of your mortgage.
CMHC Insurance: Costs and How It Works
Any purchase with less than 20% down payment requires mortgage loan insurance. In Canada, three insurers provide this coverage: CMHC (Canada Mortgage and Housing Corporation), Sagen, and Canada Guaranty. The premium is calculated as a percentage of the borrowed amount and added to your mortgage balance.
The provincial sales tax (QST) on the insurance premium is payable in cash at the notary's closing. This is a commonly overlooked cost that you must plan for in your closing budget.
| Down Payment | Premium | Example on $400,000 |
|---|---|---|
| 5.00% to 9.99% | 4.00% | $15,200 added to loan |
| 10.00% to 14.99% | 3.10% | $11,160 added to loan |
| 15.00% to 19.99% | 2.80% | $9,520 added to loan |
| 20.00% and above | None | Conventional mortgage |
30-Year Amortization: The December 2024 Rule
Since December 15, 2024, first-time buyers and new construction purchasers can access a 30-year amortization on insured mortgages. Previously, the maximum amortization period was 25 years for insured loans.
The impact is tangible: on a $400,000 loan at 4.00%, 30-year amortization reduces the monthly payment by approximately $200 compared to 25 years. This improves your debt service ratios and can significantly increase your borrowing capacity.
Important: this option is not automatic. You must be a first-time buyer OR the property must be a new construction. Subsequent buyers of existing properties remain capped at 25 years on insured loans.
FHSA: The First Home Savings Account
The FHSA (First Home Savings Account) allows you to save up to $40,000 for your down payment with a double tax advantage: your contributions are tax-deductible (like an RRSP), and withdrawals for qualifying home purchases are tax-free (like a TFSA).
Annual limit: $8,000 per year, lifetime cap of $40,000. Unused contribution room carries forward. For a first-time buyer planning to purchase in 3 to 5 years, this is one of the most advantageous savings tools available in Canada.
HBP: The Home Buyers’ Plan
The HBP (Home Buyers’ Plan) allows you to withdraw up to $60,000 from your RRSPs to finance the purchase of your first home, tax-free at the time of withdrawal. As a couple, that’s up to $120,000 combined.
Repayment occurs over a 15-year period, beginning in the second year following the withdrawal. If you do not repay the minimum annual amount, the unpaid portion is added to your taxable income.
Minimum Down Payment in Canada
Down payment requirements depend on the purchase price. Here are the thresholds currently in effect:
| Purchase Price | Minimum Down Payment | Loan Type |
|---|---|---|
| Up to $500,000 | 5% | Insured (CMHC) |
| $500,001 to $999,999 | 5% on first $500K + 10% on remainder | Insured (CMHC) |
| $1,000,000 to $1,499,999 | 5% on first $500K + 10% on remainder | Insured (since Dec. 2024) |
| $1,500,000 and above | 20% | Conventional |
Quebec Specifics: Welcome Tax and Notary
In Quebec, the transfer duties (welcome tax or droits de mutation) are calculated in tiers based on the purchase price or municipal assessment, whichever is higher. In Montreal, the rates apply as follows:
- 0.5% on the first $58,900
- 1.0% from $58,901 to $294,600
- 1.5% from $294,601 to $500,000
- 2.0% from $500,001 to $1,000,000
- 2.5% above $1,000,000 (Montreal only)
Unlike the rest of Canada where a lawyer suffices, Quebec requires a notary to oversee real estate transactions. Notary fees generally range from $1,200 to $2,500 depending on the complexity. Plan for these amounts in your closing budget.
How Anthony King Helps First-Time Buyers
As a mortgage broker in Montreal with access to 14 lenders, Anthony King provides comprehensive support to first-time buyers: borrowing capacity analysis, multi-lender comparison, optimization of assistance programs (HBP, FHSA), and strategic pre-approval.
His proprietary AI system Xerxes simultaneously compares each lender’s conditions to identify not only the best rate, but the most advantageous terms for your specific profile: penalties, repayment flexibility, amortization options.
The consultation is free and without obligation. Contact Anthony King at 514-647-8663 or aking@kingstate.ca.
Frequently Asked Questions
What is the minimum down payment for a first-time buyer in Montreal?
For a property of $500,000 or less, the minimum down payment is 5%. Between $500,000 and $1,499,999, it’s 5% on the first $500,000 and 10% on the remainder. With the FHSA ($40,000) and HBP ($60,000 per person), you can build a significant down payment with tax advantages.
Can I get a 30-year amortization on my first home purchase?
Yes, since December 2024, first-time buyers (and new construction purchasers) can access 30-year amortization on insured loans. This reduces monthly payments by approximately 12% compared to 25 years and increases your borrowing capacity.
Can I use both the FHSA and HBP together?
Yes, both programs can be used simultaneously. An individual first-time buyer can combine up to $40,000 from the FHSA and $60,000 from the HBP, for a total of $100,000 in down payment from tax-advantaged accounts.
How much does a mortgage broker cost for a first-time purchase?
In the vast majority of cases, Anthony King’s service is entirely free to the buyer. The broker is compensated by the lender who approves your file, through a commission regulated by the AMF. You get access to 14 lenders at no cost.
Ready to Start Your Project?
Book a free consultation with Anthony King to analyze your borrowing capacity and explore your financing options.