The City of Montreal has launched a new subsidy program that pays 20% of a home's market price for eligible buyers. \nThe program is part of the Règlement pour une métropole mixte (RMM) bylaw coming into effect on April 1, and aims to make owning property easier for Montrealers while ensuring "affordability over a period of at least 30 years."\nEditor's Choice: Montreal-Area Home Prices Have Exploded, A Report Shows\n\n \nThe program is currently only available in two sectors of two boroughs — Verdun and Saint-Laurent — but the City says new areas will be added progressively.\nHomebuyers who want to take advantage of the program must have a household income that's equal to or less than the purchase price divided by 3.5. \nHouseholds without children who want to receive the discount cannot have been homeowners in the last five years, but this rule is not applied to families with a child who is 13 years old or younger.\nThe City expects to help 150 to 315 households with an average subsidy of $44,500 per home between 2021 and 2023.\n\nSubsidy breakdown\nThe new subsidy will provide 10% of the market value of a property, which comes into effect upon the acquisition of the home.\nIt will also provide a 10% builder’s discount, required by the RMM bylaw, bringing the actual price paid to 80% of the market value of the property.\nThe City says the program preserves the affordability of a home over 30 or more years. When the home is resold, the maximum price must correspond with an annual increase of 3%, calculated on its reduced purchase price.\nAt the end of the 30-year period, the City has a right of first refusal, which allows it to acquire the property under the same terms and conditions of the program and put it up for sale.\nAs an example of how the program works, a home with a $500,000 market value will have a 10% builder’s reduction and a 10% subsidy from the City, for a reduced price of $400,000.\nTo purchase a home at that price, the buyers' household income must not be more than $400,000 divided by 3.5 — which comes out to a maximum household income of $114,300.\nYou can find more information on the program here.