The city of Montreal announced on June 29, 2026 a new financial‑aid scheme that will provide interest‑free rental loans to tenants who are having trouble paying their rent. Mayor Valérie Plante introduced the initiative, which is designed to help renters facing financial difficulty keep their homes and avoid eviction.
Under the program, approximately 150 households will be eligible to receive loans of up to $5,000 each. The funds are intended for short‑term use, covering rent arrears or other housing‑related expenses. Borrowers will be required to repay the amount over a period of five years, with no interest charged on the loan.
The city’s decision follows growing concerns about housing stability among low‑income renters in Montreal. By offering interest‑free credit, officials aim to give tenants a temporary financial bridge that can prevent the loss of housing while they address underlying economic challenges. The program is part of a broader effort by municipal authorities to curb evictions and maintain community stability.
Eligibility criteria have not been fully detailed, but the focus is on renters who demonstrate a need for assistance and who meet the city’s low‑income thresholds. Applications will be processed through a municipal office that will evaluate each case and determine loan amounts based on the applicant’s specific circumstances.
The interest‑free loan model mirrors similar initiatives in other jurisdictions that have sought to reduce housing insecurity through short‑term financial support. Montreal’s approach emphasizes a repayment schedule that spreads the burden over five years, making it more manageable for households with limited cash flow.
Mayor Plante emphasized that the program reflects the city’s commitment to protecting renters and ensuring that housing remains affordable for those most at risk of displacement. The first loans are expected to be disbursed later this year as the application process is finalized.