The Quebec Liberal Party (QLP) said on Sunday that the party wants to abolish transfer duties -- commonly called the welcome tax -- when purchasing a first property.
This would "help those who dream of becoming homeowners to do so," said Liberal leader Dominique Anglade in a news release.
Liberal housing critic, Marie-Claude Nichols, added that "it has become increasingly difficult for Quebecers to keep pace with inflation in the real estate market. This affordability problem is of concern, especially as it affects young people and families in Quebec."
The welcome tax is normally paid to the municipalities where newly purchased homes are located. To compensate for the loss of money caused by an abolition of the tax, the party intends to pay them financial compensation.
The Quebec federation of municipalities (FQM) has not dismissed Anglade's idea but wants more details.
"Any proposal that promotes homeownership will always be good news, but the details of how it will be implemented may be problematic," said FQM president and mayor of Sainte-Catherine-de-Hatley Jacques Demers, in a news release. "The aid should be paid directly to citizens to avoid any administrative complications."
In addition to this, the Liberals want to increase the Home Buyers' Plan (HBP) ceiling from $35,000 to $50,000. The HBP is a way to temporarily withdraw part of one's RRSPs to buy a house, without having to pay taxes on the money withdrawn.
The party, if elected in October, also intends to "set up a policy to supervise the operations of purchase-resale," the release reads.
-- This report by The Canadian Press was first published in French on April 3, 2022.
