In a bid to keep potential home buyers in the city, Montreal has approved a program that refunds buyers up to $15,000.
To be eligible, there are strict criteria that include where to buy and how much to spend, explained Mayor Valerie Plante on Wednesday.
“It covers many realities. It will about direct financial support for people who want to stay on the island, and this is what we want more than ever,” she said.
Some details of the residential acquisition support program:
A single buyer purchasing a new development for a maximum price of $225,000 will receive $5,000 from the city.
A family buying a new development for a maximum price of $400,000 will receive $10,000.
A family purchasing a new property in what’s considered the downtown core would receive $15,000 from the city if the property costs a maximum of $450,000
“We are simplifying the process. The financial support will come way faster than before,” said Plante.
Those who purchase an existing home will see money back – but it’s a little less lucrative.
Families who spend a maximum of $630,000 will receive between $5,000 and $7,000 back from the city.
“It’s more generous. It used to be $7.4 million and we’re investing $21.2 million annually,” she said.
How feasible are those home prices, considering the market?
You won’t get a lot of property for that price, said real estate agent Amy Assaad.
“I would say in the downtown core you’re looking at 750 square feet, so for a young family with a child under 12, it’s feasible. For two children, maybe a little more difficult,” she said.
There are areas, she said, where you can get more for less.
“If you’re looking at the eastern side of Ville-Marie, which is considered downtown, there’s a lot more space and you can comfortably fit a young family,” she said.
Plante asserts that the program is meant to stimulate the market and encourage people to buy and sell.
Considering the volume of condos being built., experts say the landscape of Montreal will inevitably change.
“The density of these condos has increased tremendously. A lot of these condo projects are 50 floors high, so I think it’s just going to change the skyline of Montreal, so instead of using the space they’re just basically going to go up,” said Assaad.
The program applies to all buyers, not just those buying for the first time.
It begins June 1st, but home buyers in May are still eligible.