Montreal Gazette

New program offers more cash for homebuyers

City setting aside $21.2M annually for incentive plan to stem flow to suburbs

- MARIAN SCOTT mscott@postmedia.com

Mayor Valérie Plante announced a new program Wednesday to help more Montrealer­s become homeowners.

Plante said that while the city’s booming economy is good news, soaring housing prices are beyond the means of many families with young children.

“That’s why we have gone ahead with the creation of a program to support residentia­l acquisitio­n, for which we are setting aside an annual budget of $21.2 million,” she said.

“We are confident that the increase in financial aid under the program to support residentia­l acquisitio­n as well as the creation of new residentia­l projects will have a significan­t impact on buying intentions of families in Montreal,” Plante said.

The program, which offers eligible buyers between $5,000 and $15,000, depending on the price and location of the property, is much more generous and flexible than previous home ownership incentives, which provided between $2,250 and $5,000, she said.

While the previous program was only open to first-time buyers, this one is also available to families with children 12 and under who already own a home.

The highest subsidies — up to $15,000 in subsidies and tax rebates — are available to families with children who purchase a newly built dwelling in the downtown core valued at up to $450,000.

That reflects higher prices downtown, said Plante, who wants to make the city centre more inclusive and attractive to families instead of being limited to singles and couples in small condos.

Assistance is also available for first-time buyers without children, who can obtain up to $5,000 toward a newly built property anywhere in Montreal with a maximum value of $225,000 for a single person and $280,000 for a home to accommodat­e two or more people.

Families with children who buy a property outside the downtown core are eligible for between $5,000 and $7,000 for an existing dwelling and $10,000 for a newly built one.

The city expects 700 households to acquire homes under the program this year, while that number will increase to 3,500 annually in the coming years.

Plante promised help for home ownership during the election campaign and has often repeated that her priorities are mobility and housing, including family-friendly dwellings to halt the ongoing exodus of families to the suburbs.

“We want to reverse the trend,” she said.

Karine Boivin-Roy, housing critic for the opposition Ensemble Montréal party, praised the program, saying it marks the first major initiative to boost home ownership in 30 years.

“I think this is very good news today,” she said.

Boivin-Roy said the program was already in the planning stage under former mayor Denis Coderre.

“The important thing is that the needs of Montreal families will be met by having programs like this,” she said.

The first purchases eligible under the program will begin as of May 1, but it will only be possible to apply starting on June 1.

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