Mayor of Montreal announced on June 29 that the city will extend interest‑free rental loans to a limited group of renters experiencing financial strain. The program targets 150 households across Montreal, offering each eligible tenant a loan of up to $5,000. Recipients will be required to repay the amount over a five‑year period without interest charges.
The municipal government described the measure as a direct response to rising housing costs that have left many renters struggling to meet monthly obligations. By providing short‑term financial assistance, the city aims to prevent evictions and maintain stable tenancy for those most affected.
Applicants must meet criteria set by the City of Montreal, confirming that they are currently facing difficulty paying rent. The loan will be disbursed directly to the tenant or, where appropriate, to the landlord to cover overdue rent. The repayment schedule spreads the principal evenly across sixty months, ensuring manageable monthly payments.
This initiative forms part of a broader strategy by Montreal to improve housing affordability. City officials have previously introduced measures such as rent‑control adjustments and increased support for affordable‑housing construction. The interest‑free loan program adds a financial safety net for renters while longer‑term policies continue to be developed.
The city plans to begin processing applications immediately, with the first disbursements expected within weeks of the program’s launch. Officials indicated that the limited number of 150 loans reflects the pilot nature of the effort, allowing the municipality to assess impact before potentially expanding the scheme.
Montreal's approach aligns with a growing trend among Canadian municipalities to intervene directly in rental markets during periods of economic pressure, seeking to balance immediate relief with longer‑term affordability goals.