Mortgage Rates in Quebec

Below you'll find some of the best mortgage rates in Quebec. Use the search fields below to find the mortgage that's right for you.
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Mortgage rates in Quebec

If you're in the market for buying a home, you've undoubtedly thought about how you'll finance your purchase. Buying a home is no small decision, and the financial logic behind it must be carefully considered.

Quebec's mortgage market is serviced by all the major Canadian banks as well as smaller regional banks, credit unions, and monoline mortgage lenders. Along with financial institutions, an extensive network of mortgage brokers helps efficiently connect lenders to borrowers.

What's the difference between fixed-rate and variable-rate mortgages in Quebec?

A fixed-rate mortgage provides a loan with an interest rate that doesn't change for the duration of your mortgage term. A variable-rate mortgage, on the other hand, has an interest rate that adjusts as your mortgage lender adjusts their prime lending rates throughout your mortgage term.

Most homeowners in Quebec get fixed-rate mortgages, especially in the urban centres of Montreal and Quebec City. In Montreal, 73.5% of mortgages are fixed-rate loans. In Quebec City, 69% of mortgages are fixed rate.

Outside the urban centres, the percentage of fixed-rate mortgages falls to 63%. This proportion of fixed-rate mortgages is low compared to the national average of 74.2% of mortgages being fixed rate.

What's the difference between an open mortgage and a closed mortgage in Quebec?

While open term mortgages have higher interest rates than closed term mortgages, open mortgages give you more flexibility to make additional payments towards your mortgage principal. In the mortgage industry, these additional payments on your mortgage are called prepayments, and open term mortgages allow for unlimited prepayments.

The other type of mortgage is called a closed term mortgage. Closed term mortgages usually have longer-term lengths and lower interest rates in comparison to open term mortgages. However, closed term mortgages have more restrictive prepayment features and come with penalties should you exceed the prepayment limits set by your lender.

Most closed term mortgages will only allow a borrower to make 10% to 25% a year in additional prepayments. Prepayments can be made by making lump sum payments towards your principal balance, or they can be made by increasing your monthly mortgage payment.

Quebec land transfer tax

Quebec levies a land transfer tax, also known as the "welcome tax," on all real estate transactions. It's the buyer of the property who is responsible for paying the tax.

Quebec's land transfer tax works on a sliding scale and is based on the purchase price of the property. The tax is calculated as follows:

  • 5% of the purchase price on the first $50,000
  • 1% of the purchase price above $50,000 and up to and including $250,000
  • 5% of the purchase price above $250,000

If the property being purchased is in Montreal, the land transfer tax follows the following rules:

  • 5% of the purchase price on the first $50,000
  • 1% of the purchase price above $50,000 and up to and including $250,000
  • 5% of the purchase price above $250,000 and up to and including $500,000
  • 2% of the purchase price above $500,000 and up to and including $1,000,000
  • 5% of the purchase price above $1,000,000

As an example, suppose you purchase a home in Montreal for $650,000. The land transfer tax on your purchase would be as follows:

  • $250 on the first $50,000
  • $2,000 on the portion from $50,000 to $250,000
  • $3,750 on the portion from $250,000 to $500,000
  • $3,000 on the portion from $500,000 to $650,000

The total land transfer tax payable would be $9,000 ($250 + $2,000 + $3,750 + $3,000).

Quebec provides no exemptions on the land transfer tax for first-time homebuyers. They do, however, provide an exemption on the tax if the property is being transferred between parents and their children or between a married couple.

Quebec housing market

With 8.4 million residents, Quebec is the 2nd largest province in Canada by population. Even with the large population, Quebec's housing market hasn't seen as much price activity as other big Canadian provinces, such as Ontario and BC.

One reason for this could be homeownership rates in the province. Quebec has the lowest homeownership rates out of all Canadian provinces. Homeownership rates are 50.5% and 57% in Quebec's largest cities of Montreal and Quebec, respectively. Outside of the urban centres, homeownership rates in Quebec are higher at 63.9%.

One reason cited for the low homeownership rates in Quebec is the number of single-person households. 33% of households in Quebec are single-person compared to the national average of 28%. Single-person households are more likely not to be able to qualify for a mortgage in comparison to multi-person homes.

Montreal housing market

Montreal, with a population of 1.6 million people, is the largest city in Quebec and the 2nd largest city in Canada. Montreal has a highly skilled labour force with major aerospace, technology, finance, and engineering companies headquartered in the city.

Montreal's real estate prices have steadily been increasing over the past decade. A robust local economy, coupled with low housing supply, has helped push Montreal real estate prices up by over 50% since 2010.

Montreal also has the lowest homeownership rate amongst all major Canadian cities. About half of households (50.5%) in Montreal own the principal place of residence where they live. The other half of Montreal households rent.

Quebec mortgage brokers

Working with a mortgage broker in Quebec has several benefits. Mortgage brokers are an independent one-stop-shop for all your mortgage needs. They make it easy and convenient to find and compare mortgages from many different lenders, all at once.

Though volume discounts and by negotiating directly with the lender, mortgage brokers have access to low mortgage rates. As a client, you never need to pay a mortgage broker; instead, the mortgage lender pays the broker a finder’s fee every time they sign up a new borrower.

There are, however, a few downsides to working with a mortgage broker. The main one being that brokers don't have access to all mortgage lenders. Some mortgage lenders don't work with mortgage brokers, which means you likely won't hear about their rates through a broker.

In Quebec, mortgage brokers must be licensed. To be a licensed mortgage broker, an individual must meet specific educational qualifications as well as meet certain work experience requirements.

About Quebec

Quebec is Canada's 2nd largest province, both by population and GDP. The province maintains much of its cultural ties to France, with French as its official language. The province also maintains a distinct sense of legal autonomy from the rest of Canada.


Ⓒ 2022

Disclaimer: strives to keep its mortgage rates and information up to date and accurate. The information and tools presented on are for informational and educational purposes only and does not constitute financial advice. At times the information you see when you visit a financial institution's or broker's website may be different. When looking for a mortgage, please contact the financial institution or broker directly for the latest terms and conditions.