The City of Montreal announced Tuesday that it will provide interest‑free rental loans to tenants who are struggling to meet rent payments. The scheme, unveiled by the mayor, is intended to help renters facing financial hardship and to reduce the risk of evictions.
The program will target roughly 150 households, offering each eligible applicant a loan of up to $5,000. Borrowers will be required to repay the amount over a period of five years, with no interest charged.
Eligibility criteria focus on renters who can demonstrate a loss of income or other financial strain that makes rent payment difficult. Applications will be processed through the city’s housing department, which will verify income levels and tenancy status before approving a loan.
City officials say the interest‑free model is designed to keep the assistance affordable while providing a clear repayment schedule. By offering up to $5,000 per household, the city aims to cover a substantial portion of overdue rent, giving tenants a chance to remain in their homes.
The mayor indicated that the initiative will be funded from the municipal budget allocated for social housing and tenant support. If the program reaches its intended capacity, it could assist about 150 families throughout the city during its first year of operation.
The city’s new financial assistance scheme joins other measures introduced this year to address rising housing costs in Montreal. By providing a direct loan rather than a grant, the program seeks to balance immediate relief with long‑term fiscal responsibility, allowing the municipality to extend help to a larger number of renters over time.