Your Real Purchase Budget: Beyond the Calculator

The bank calculator gives a theoretical maximum. Your realistic budget must be more conservative to avoid financial stress.

Closing costs to plan

• Transfer duties (welcome tax): 0.5-2.5% per Quebec's progressive scale
• Notary: $1,000-$2,500 (title examination, mortgage, adjustments)
• Inspection: $500-$800 (essential, especially for older homes)
• CMHC insurance if down payment under 20%: 2.8-4% of loan
• Property and school tax prorated adjustments
• Moving and setup: $2,000-$5,000

Realistic monthly budget

• Mortgage payment: use the stress test rate to plan
• Property taxes: check the municipal assessment roll
• Home insurance: $800-$2,000/year depending on property type
• Heating and electricity: $150-$400/month depending on size
• Maintenance: 1-2% of property value per year
• Condo fees: $200-$600/month if applicable

The Quebec Real Estate Market for Buyers

Homeownership in Quebec fits within a specific regulatory and fiscal framework. OSFI's B-20 stress test reduces borrowing capacity by 15 to 20% compared to the theoretical amount at the contractual rate. Mortgage loan insurance (CMHC, Sagen, or Canada Guaranty) is mandatory for any down payment below 20%, adding 2.8 to 4% to the borrowed amount. Transfer duties (welcome tax) in Quebec follow a progressive scale from 0.5% to 2.5% depending on price brackets. The Home Buyers' Plan (HBP) allows withdrawing up to $60,000 per person from your RRSP tax-free, and the First Home Savings Account (FHSA) offers up to $40,000 in deductible contributions with tax-free withdrawals for purchase.

Your Purchase Action Plan

Purchasing a property in Quebec is a project that requires methodical preparation. Start by establishing a realistic budget that goes beyond the bank calculator. Include all costs: down payment, closing costs (3-5% of price), transfer duties, notary ($1,000-$2,500), inspection ($500-$800), and tax adjustments. Plan an emergency reserve of 3 to 6 months of payments. Consult an AMF-certified broker for mortgage pre-approval and a 120-day rate hold. Work with an OACIQ-certified real estate broker for the search and negotiation. Draft a purchase offer conditional on inspection and financing to protect your interests.

Protecting Your Real Estate Investment

Buying a property is the most important financial project of your life. In Quebec, you benefit from a solid regulatory framework with the AMF overseeing mortgage brokers, the OACIQ overseeing real estate brokers, and the notarial process securing the transaction. An AMF-certified mortgage broker accompanies you free of charge from start to finish, from pre-approval to disbursement. They compare offers from multiple lenders, negotiate the best conditions, and ensure you understand every aspect of your mortgage commitment. Never make the most important financial decision of your life without professional consultation.