First home on the South Shore in fall 2026: the window, the FHSA and the HBP

For four years, first-time buyers kept getting run over by bidding wars. This fall the balance shifts a little, and two accounts that too many people leave sitting idle can genuinely grow your down payment. Here is how I would approach a first purchase on the South Shore right now.

The market finally gives you room

The August data the QPAREB released on September 4 shows it clearly. Across the Montreal region, inventory rose to 20,128 homes for sale, up 18% year over year. And on the South Shore, the number of listings jumped 28%, the strongest increase in the entire region. For a first-time buyer, that changes everything: more choice, fewer bidding wars, and the time to run an inspection without being rushed.

The segment moving the most is the condo, often the entry point for a first purchase. Condo listings climbed 19% in the region and the average selling time stretched to 62 days, twelve days more than a year ago. In other words, the condo buyer has regained negotiating power. The price has not crashed: the median actually rose 4% over one year. This is not a clearance sale, it is a market catching its breath.

Financing is steady too. The Bank of Canada held its policy rate at 2.25% on September 2, a seventh straight hold. Prime stays at 4.45%, a five-year fixed sits around 4.24% in Quebec, and a variable dips near 3.45%. You are not signing into a market that climbs every month. That is a good thing when you are getting a first purchase together.

Two accounts that grow your down payment

The part people underuse the most is the down payment. Two federal tools exist, and they stack.

The FHSA

The First Home Savings Account lets you contribute up to $8,000 a year, to a lifetime maximum of $40,000. What you put in is tax-deductible, like an RRSP, and what you take out to buy is tax-free, like a TFSA. There is nothing to repay. It is the best of both worlds, which is why I tell everyone to open the account even without depositing much in the first year: opening it starts the clock on your contribution room.

You count as a first-time buyer for the FHSA if you have not lived in a home that you or your spouse owned during the current year and the four preceding calendar years. Plenty of people who owned a home long ago qualify again without realizing it.

The HBP

The Home Buyers' Plan lets you withdraw up to $60,000 from your RRSP, tax-free, to buy a first home. The ceiling was raised from $35,000 to $60,000 for withdrawals made after April 16, 2024. As a couple, each of you can withdraw your own $60,000 for the same property, so up to $120,000. The difference from the FHSA is that the HBP is repaid: over 15 years, at 1/15 per year, starting the second year after the withdrawal. For a withdrawal made in 2026, the first repayment lands on your 2028 tax return.

What this actually looks like

Take a simple example, for illustration. A condo listed at $400,000 needs a minimum down payment of 5%, or $20,000. A couple who have filled their FHSA and RRSP could, in theory, draw up to $80,000 from the FHSA and $120,000 from the HBP, well beyond the minimum. Few first-time buyers have those sums saved, and that is fine. The point is not to hit the ceiling. The point is that between the two accounts, every dollar you save toward your purchase can do so sheltered from tax, and often earning you a refund along the way.

One important reminder: below 20% down, your loan must be insured, which adds a CMHC premium to the amount you borrow. This is not a roadblock, thousands of buyers do it every year, but it is a number to build into your budget from the start, not at signing.

What it means for you

• If you are buying solo: the condo and the smaller suburban single-family home are where you have the most room this fall. Open your FHSA now, even with a small amount, to start the clock on your room. Get pre-qualified before you visit, so you shop with a real budget and a letter in hand.
• If you are buying as a couple: this is where the tools hit hardest. Two FHSAs and two HBPs can add up to a solid down payment and a nice tax deduction across two incomes. Coordinate your contributions with your accountant or planner so you do not leave room on the table.
• If you are helping a relative or eyeing a first income property: a parent chipping in on the down payment changes the math, and if you live in one unit of a plex, some of the first-time buyer financing can apply. The rules tighten fast once rental income is involved, so confirm the structure before you make an offer.

These benchmarks apply to the region, not to your exact situation. The right setup depends on your income, what you already hold in an RRSP, and the property you are targeting. Before you make an offer, let's talk it through: I will connect you with a mortgage broker I trust and we will look at what you can really buy. Request a free evaluation or write to me. You can also revisit my piece on the income you need to buy on the South Shore.