Notary Fees for Mortgage Refinancing in Quebec

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Notary Fees When Refinancing in Quebec

In Quebec, the notary plays a central and mandatory role in any mortgage transaction. Unlike common law provinces where a lawyer performs the legal work, the Civil Code of Quebec (CCQ) requires that immovable mortgage deeds be received in notarial form (article 2693 CCQ). The notary is a public officer whose acts have superior probative and executory force, providing significant legal security to all parties.

Notary Interventions During Refinancing

During a refinancing, the notary performs several essential interventions. This is not simply about signing a document, but a complete legal process that protects both the borrower and the lender.

Title verification: The notary examines the certificate of location (if less than 10 years old or if no changes have been made to the property), the Quebec Land Registry to verify existing charges, servitudes, and third-party rights. They confirm that the owner is indeed the holder of the ownership right.
Mortgage deed preparation: The notary drafts the new mortgage deed according to the lender's instructions. The deed specifies the guaranteed amount, loan conditions, borrower obligations, and lender remedies in case of default. For a conventional mortgage, the guaranteed amount matches the loan. For a collateral charge, it may be higher.
Obtaining the release (discharge): The notary communicates with the current lender to obtain the exact payout amount on the closing date, including the break penalty. They then prepare the release deed and obtain the outgoing lender's signature to free the property from the former mortgage.
Publication at the Land Registry: The notary publishes the new mortgage deed and the release of the old one at the Quebec Land Registry. This publication makes the rights enforceable against third parties and officially confirms the lender change.
Fund disbursement: Once all verifications are completed, the notary proceeds with disbursement. They repay the former lender (including the penalty), remit the cash-out amount to the borrower if applicable, and pay related fees from the new loan funds.

Typical Fee Breakdown

Notary's professional fees: $700 to $1,200 (higher for complex files or income properties)
Quebec Land Registry publication fees: $200 to $300 (for the new mortgage deed and release)
Title search and verification fees: $100 to $200
Miscellaneous disbursements (copies, certifications, communications): $50 to $150
Certificate of location (if required): additional $1,500 to $2,500 (by a land surveyor, not a notary fee per se)

Collateral Charge vs. Conventional Mortgage

The type of mortgage you currently hold has a direct impact on notary fees at refinancing. If your current mortgage is conventional, the release is relatively simple and inexpensive. If it is a collateral type (collateral charge), the release procedure is more complex and costly, as the collateral charge often secures an amount exceeding the actual loan and may be linked to other financial products from the lender. Some major banks, notably TD and BMO, systematically use collateral charges, which increases transfer fees to another lender.

Frequently Asked Questions

How much do notary fees cost for refinancing in Quebec?

Total fees range from $1,000 to $2,000 depending on the file's complexity. This includes the notary's fees ($700 to $1,200), Quebec Land Registry publication fees (approximately $200 to $300), title search fees ($100 to $200), and miscellaneous disbursements. A refinancing involving a collateral charge release or multiple creditors will cost more.

Why is a notary required in Quebec but a lawyer in other provinces?

Quebec is governed by the Civil Code of Quebec (CCQ), a civil law system distinct from the common law of other provinces. The CCQ requires mortgage deeds to be received in notarial form, meaning signed before a notary who confers authenticity to the deed. This requirement stems from articles 2693 and following of the CCQ regarding immovable hypothecs.

What is the difference between a release and a discharge?

In practice, both terms are often used interchangeably in Quebec. The release (or discharge) is the act by which the lender confirms that the previous mortgage is repaid and consents to its cancellation at the Quebec Land Registry. This cancellation officially frees the property from the former mortgage charge.

Does the lender pay part of the notary fees?

Some lenders offer a contribution to legal fees, generally between $300 and $500, as an incentive for refinancing. This contribution is often conditional on certain products or minimum amounts. Your AMF-certified broker can identify lenders offering this benefit.

Can I choose my own notary for refinancing?

Yes, you generally have the right to choose your notary in Quebec. However, the lender may have specific requirements regarding the notary's qualifications or experience in mortgage law. Ensure the chosen notary is familiar with the procedures of the relevant lender to avoid delays.

Are notary fees tax-deductible?

For a principal residence, notary fees related to refinancing are generally not deductible. For a rental property, notary and release fees may be deductible as financing costs, amortized over 5 years under CRA and Revenu Quebec rules. Consult a tax professional for your specific situation.