Canada/Real estate: Quebec City boosts assistance for first-time buyers
Faced with a real estate market in turmoil, the City of Quebec is planning to strike a blow. Its Accès Famille program will soon be enhanced to enable the purchase of more expensive homes, whether new or existing.
If we really want to promote access to home ownership for families, we have to give them a potential pool of houses to buy from," argues Marie-Pierre Boucher, the councillor responsible for housing on the Quebec City executive committee.
Starting next month, the maximum value of properties eligible for a city-subsidized loan will rise from $370,000 to $440,000.
For the first time since Accès Famille was launched in 2015, buyers will not be limited to the new-build market, but will also be able to opt for an existing home.
This is unique in the province. Quebec City is the only city to make a loan to families to enable them to buy a home.
A quote from Marie-Pierre Boucher, responsible for housing on the Quebec City executive committee
The city is giving itself one year to evaluate the impact of the new measures.
We prioritize our families
Marie-Pierre Boucher believes that the measures announced are necessary to preserve the affordability of Quebec City's real estate market.
Since the beginning of the year, property values have been rising faster in the capital than anywhere else in the country.
We put our families first. We think it's important for our families to have a roof over their heads, but also a place to live," she explains.
To help a greater proportion of the population, the maximum salary for households eligible for a subsidy will be raised from $150,000 to $165,000.
The interest-free loan offered by the city can be as much as 5.5% of the value of properties registered in the program.
For example, a couple paying $440,000 for their home - the maximum amount available under Accès Famille - will be eligible for a loan of $24,200. This amount will be reimbursed to the city when the property is resold.
Mixed reception from developers
While the real estate community applauds the increase in the value of properties eligible for Accès Famille, there is no consensus on opening up the program to existing homes.
The biggest problem is that it will increase scarcity," says Gabriel Pomerleau, broker with Via Capitale.
In his opinion, directing new buyers to the existing market could fuel the overbidding phenomenon that is back with a vengeance in Quebec City, due to the low number of listings on the territory.
What we should be doing is filling the property gap," says Gabriel Pomerleau. Accès Famille is a great program for doing just that.
An initiative in decline
One thing is certain: since the pandemic, fewer and fewer households are taking advantage of Accès Famille to buy a property in Quebec City.
Between 2020 and 2023, new home purchases under the program plunged by 64%.
According to the city, the low number of transactions completed through Accès Famille since the beginning of the year justifies the changes made to the program.
Marie-Pierre Boucher points out that a young household that becomes a homeowner often vacates an apartment in a context of housing shortage in Quebec City.
Source: ici.radio-canada.ca/
