Montreal says no to “Welcome Tax”
Welcome Tax – Montreal Mayor Valérie Plante is trying to encourage young families buying homes in the Montreal area by offering $5,000 – $7,000 credit. This was one of Project Montréal’s campaign promises to try to allure young families and young professionals with children staying in Montreal.
After June 1 a family purchasing their first home can apply up to $7,000 for a tax break. This incentive is to replace or refund the buyer up to $7,000 on the welcome tax.
Montreal Mayor Plante said, “Montreal is in a real economic boom, which is great news. But the value of residences is also seeing an increase. The city is aware of this situation that is causing problems for home buyers. To avoid an exodus of families we have placed programs like this to support families who wish to stay in Montreal.”
A total of just over $21 million will be allocated to this project called Programme d’aide a l’acquisition residentielle annually, which will commence June 1, 2018. This program will provide financial aid for families with children under 12 years old.
More information on theProgramme d’aide a l’acquisition residentielle:
• the price of the home can not exceed $630,000
• Families who buy new construction can receive up $15,000
The city of Montreal believes this will help over 3,500 families stay in the Montreal area.