CELIAPP is the French version of the acronym used to describe the First Home Savings Account (FHSA).
It stands for Compte d’épargne libre d’impôt pour l’achat d’une première propriété. In English, this translates to “Tax-Free Savings Account for the Purchase of a First Home”. Setting up a CELIAPP account can help first time buyers save for their down payment faster.
In this article we take a look at:
- What are the requirements of CELIAPP?
- What are the financial benefits of CELIAPP?
- Eligible withdrawals from CELIAPP
- What is a qualifying home?
- Other government programs for first time buyers
What are the requirements of CELIAPP?
To open a CELIAPP, you must meet a few eligibility criteria:
- Be a permanent resident of Canada (either a Citizen or PR Card holder)
- Be at least 18 years old (or the age of majority in your province); and
- Be a first-time home buyer, meaning you haven’t owned a home in which you lived at any time during the current calendar year or the previous four years.
Once you meet these conditions, you can open a CELIAPP through most financial institutions and start contributing up to $8,000 per year, with a lifetime maximum of $40,000.
What are the financial benefits of CELIAPP?
The main financial benefit of a CELIAPP is that your contributions are tax-deductible, which lowers the amount of income you pay tax on each year. For example, if you earn $80,000 per year in Quebec, you would pay roughly $24,000 in income tax at a combined rate of about 30%.
However, if you contribute $8,000 into a CELIAPP, your taxable income drops to $72,000. This will save you approximately $2,400 in taxes for that year. If you make the maximum contribution of $8,000 per year for five years, you will save around $12,000 in total taxes. This is before even accounting for any investment growth inside the account.
To be clear, this means that (in our example), just by opening a CELIAPP account and paying $8,000 in per year for 5 years, you will have an extra $12,000 to put towards your down payment.
In addition to these savings, any interest, dividends or capital gains earned inside your CELIAPP are completely tax-free. This is provided the funds are used to buy your first home. This allows your money to grow faster than it would in a regular taxable account. Making investments through your CELIAPP is also really easy. If you do not have any idea how to do this, just call your bank and they will give you a financial advisor who will help you.
Because Quebec has higher provincial tax rates than most provinces, the total benefit of using a CELIAPP can be even greater for residents who maximize their contributions early. For a complete list of the pros and cons of CELIAPP, read our full guide on the First-time homebuyers: the pros and cons of the FHSA.
Eligible withdrawals from CELIAPP
You can make a tax-free withdrawal from your CELIAPP when the funds are used to buy or build your first qualifying home in Canada. To qualify:
- You must be a first-time home buyer at the time of withdrawal. This means you haven’t owned a home that you lived in during the current calendar year or the previous four years.
- You must have a written agreement to buy or build a qualifying home in Canada before October 1 of the year following your withdrawal.
- You must intend to occupy the home as your principal residence within one year after buying or building it.
In Quebec, the written agreement referenced by the federal government is your Promise to Purchase. Once your offer has been accepted and signed by both parties, it satisfies this requirement, allowing you to withdraw your CELIAPP funds tax-free to complete your home purchase.
If your withdrawal doesn’t meet these conditions for example, if you withdraw funds without a valid purchase agreement, the money will be treated as taxable income for that year, just like a regular RRSP withdrawal.
What Is a Qualifying Home?
Under the CELIAPP rules, a qualifying home is any type of housing unit located in Canada that you intend to occupy as your principal residence within one year of purchase or construction.
Eligible properties include:
- A single-family detached home
- A semi-detached or duplex
- A townhouse or row house
- A mobile or modular home
- A condominium unit
- An apartment in a divided co-ownership building (copropriété divise, in Quebec)
You can also use CELIAPP funds to build your own home, provided you have a written agreement to do so. This includes a construction contract or a self-build plan for a lot you own.
However, certain types of ownership do not qualify. For example, a share in a co-operative housing project or undivided co-ownership that only gives you the right to occupy or rent a housing unit is not considered a qualifying home under CELIAPP rules. The property must confer true ownership rights in the residential unit itself, not just occupancy rights.
Other government programs for first time buyers
Saving up for a down payment on your first home can be really difficult. There are several other federal and provincial programs that you can take advantage of.
Other federal programs include:
- RRSP Home Buyers’ Plan (HBP): Allows you to withdraw up to $60,000 from your RRSP ($120,000 for a couple) to buy your first home, as long as you repay the amount within 15 years.
- First-Time Home Buyers’ Tax Credit (HBTC): Offers a non-refundable tax credit of up to $1,500 to help cover closing costs such as legal fees, inspections, and land transfer taxes.
Other provincial programs (in Quebec) include:
- Programme d’accession à la propriété de la Ville de Montréal: A municipal grant program that provides cash subsidies or welcome tax refunds to eligible first-time buyers purchasing a home in Montreal.
- Tax Credit for the Purchase of a First Home (Crédit d’impôt pour l’achat d’une première habitation): A provincial tax credit that mirrors the federal HBTC, offering a one-time reduction in income tax for qualifying first-time buyers.
- Energy Efficiency Rebates: Programs offered by Hydro-Québec and Transition énergétique Québec (TEQ) may provide financial incentives for improving the energy efficiency of your new home, reducing costs over time.
Final Thoughts
Many Quebecers miss out on valuable homeownership programs simply because they don’t know they exist.
In 2025, Immovision personally visited the offices of the Home Buyers’ Assistance Program at 155, Notre-Dame East Montreal, Quebec, H2Y 1B5. We did this during one of its public access periods. Despite millions of dollars in available funding, the office was completely empty except for the commissioner of the program.
Buying your first property is expensive, but there are real resources already set aside to help. These programs aren’t just for a select few. They are designed for people like you. The funds are there, waiting to be used. If you’re planning to buy your first home, take the time to learn about what’s available and take full advantage of the support that’s already on the table.
Need expert help?
Buying your first home comes with unique challenges — from financing and paperwork to understanding programs like the CELIAPP. That’s why it’s essential to work with a realtor who specializes in first-time buyers in Quebec.
