First-Time Home Buyer Guide for Laval & Montreal: Programs, Steps & Tips

Step 1: Know Your Down Payment Requirements

The single biggest obstacle for first-time buyers is the down payment. In Canada, the minimum down payment depends on the purchase price:

Under $500,000: minimum 5% of the purchase price
$500,000 to $999,999: 5% on the first $500,000 + 10% on the remainder
$1,000,000+: minimum 20% down payment required

Step 2: Leverage First-Time Buyer Programs

Quebec and Canada offer several programs specifically designed to help first-time buyers enter the market. Missing these is leaving money on the table.

Home Buyers' Plan (HBP): Withdraw up to $60,000 from your RRSP for a down payment, tax-free, with 15 years to repay it.
First Home Savings Account (FHSA): Contribute up to $40,000 tax-free, with a maximum of $8,000 per year. Withdrawals for a first home purchase are completely tax-free — no repayment required.
GST/HST New Housing Rebate: If you're buying a new construction home, you may be eligible for a partial rebate of the GST or HST paid.
Quebec Welcome Tax Refund: Some municipalities, including Laval, offer a partial refund of the welcome tax (taxe de bienvenue) for first-time buyers. Check with your municipality before closing.
Land Transfer Tax Rebate (Montreal): The City of Montreal offers a rebate on its municipal land transfer tax for first-time buyers, up to a maximum of $5,000.

Step 3: Get Pre-Approved Before House Hunting

This is the step most first-time buyers skip — and it's the most costly mistake. Pre-approval is not the same as pre-qualification.

Pre-qualification is a quick estimate based on what you tell the lender. Pre-approval involves a hard credit check, income verification, and a lender commitment letter stating exactly how much you can borrow, at what rate, and for how long.

A pre-approval letter, valid for 90-120 days, gives you three critical advantages:

You know your exact budget — no falling in love with properties you can't afford.
Sellers and their agents take you seriously in competitive markets like Laval's Duvernay or Montreal's Rosemont.
You lock in a rate. If rates rise while you're house hunting, you're protected.

Step 4: Budget for Closing Costs

First-time buyers often underestimate what they need beyond the down payment. Here's what to budget for in Quebec:

Welcome tax (taxe de bienvenue): approximately 1.5% to 3% of the property value, depending on the municipality. In Laval, expect roughly 1.8% for properties over $250,000.
Notary fees: $1,200 to $2,500 for residential purchases in Quebec. This is mandatory — all property transactions in Quebec must pass through a notary.
Inspection: $500 to $800 for a professional home inspection. Never skip this.
Appraisal: typically a closing cost you should budget for. We can also help identify lender incentives and promotions that help offset appraisal, notary fees, and other closing costs.
Title insurance: $250 to $500. Optional but recommended, especially for properties with complex histories.
Moving and setup costs: $1,000 to $3,000 depending on distance and complexity.
Utility hookups and condo fees: Budget the first month in advance.

Step 5: Understand CMHC Insurance

If your down payment is less than 20%, you'll need mortgage default insurance through CMHC, Sagen, or Canada Guaranty. This protects the lender, not you, and the premium is added to your mortgage balance.

CMHC premiums range from 2.8% to 4% of the mortgage amount, depending on your down payment size. On a $400,000 mortgage with 5% down, that's approximately $11,200 to $16,000 added to your principal.

Important: in Quebec, CMHC premiums are subject to 9.975% QST, which must be paid upfront at closing — it cannot be added to the mortgage. Budget for this separately.

Laval vs Montreal: Market Considerations

Both Laval and Montreal offer excellent opportunities, but with different dynamics:

Laval: Slightly more affordable per square foot, newer construction inventory, excellent transit links to Montreal via the Metro extension. Popular neighborhoods include Chomedey, Duvernay, and Vimont. The market tends to be less frenzied than central Montreal.
Montreal: Higher price per square foot but stronger appreciation historically. Neighborhoods like Rosemont, Villeray, and Pointe-Saint-Charles offer strong value for first-time buyers. The market is more competitive, often requiring faster decisions.

Final Tip: Work With a Broker From Day One

A mortgage broker doesn't just find you a rate — they structure your entire buying strategy. From maximizing your down payment with RRSP and FHSA strategies, to timing your pre-approval for optimal rate locks, to connecting you with lenders who specialize in first-time buyers.

At Mortgage Solution, we walk first-time buyers through every program, every cost, and every decision. No question is too small. Book a free consultation and let's build your path to homeownership with complete clarity.