Canada Life enters strategic mortgage partnership with nesto

Mortgage Calculator Quebec

Accueil / Mortgage Calculators / Mortgage Payment Calculator / Mortgage Payment Calculator Quebec

Calculate your mortgage payment in Quebec

When applying for a mortgage in Canada it’s important to keep in mind property location. While most regulations are the same across the country, each province also has its own rules, taxes and fees that affect how much you can borrow. 

This calculator includes the costs of getting a mortgage in Quebec, and you can learn more about the province’s unique requirements below.

Quebec mortgage payment calculator

How to Calculate Mortgage Payments in Quebec

The four main factors that determine mortgage payments are purchase price, the amount of down payment, amortization, and interest rate.

Purchase prices in Quebec are higher because of the pandemic, but still relatively affordable compared to neighbouring Ontario. The average home value is currently $459,000, up 15% from $398,000 one year ago.

Down payment may vary from 5% to 20% or more. If the down payment is less than 20%, payments will be higher because a mortgage default insurance premium gets added to the mortgage amount. However, the additional cost may be offset by a lower interest rate because the mortgage is insured.

Insured mortgages must be paid back within 25 years, whereas mortgages with 20% down payment can be paid back over a longer amortization.

Here’s what your mortgage payments could look like to buy a $459,000 home in Quebec, with Nesto’s best 5-Year Fixed Rate:

Down Payment5% or $22,95020% or $91,800
Default Insurance$17,442N/A
Mortgage Amount$453,492$367,200
Amortization25 Years30 Years
Interest Rate1.99%2.14%
Mortgage Payments$1,918/month$1,381/month

Mortgage payments could be higher if the lender pays property taxes on your behalf, or if you choose to take life, disability, or critical illness insurance coverage.

Are Rates Different in Quebec City, Montreal and Other Cities?

Borrowers in Quebec have access to major banks, credit unions, and monoline lenders, as with any other province in Canada. However, there may be less choice among lenders because the predominantly French-speaking province has a unique civil law code. About half of all mortgages in Quebec are with credit unions for this reason.

When buying in Quebec City or Montreal you may get a better interest rate compared to other cities in Quebec. These areas are more marketable with higher property values, and therefore more competitive from a lending perspective. Areas outside major city limits may have limited lender options and higher mortgage rates, especially if the property is not a typical family home.

Interest rates may also be higher or lower for reasons other than location. For example, rental properties typically have higher interest rates because lenders consider them to be a higher risk, although this practice of adding a “risk premium” is less common in Quebec. Mortgage amounts over $500,000 are desirable to lenders and may be eligible for lower rates.

Quebec & Canada Regulations, Taxes, and Fees

Many regulations, taxes, and fees for buying real estate are similar across Canada. However, Quebec has unique consumer protections in place to ensure that buyers are qualified to purchase. Buyers need either a mortgage preapproval or sufficient cash in the bank to make an offer, and lenders must advise clients in writing if they are fully approved within 21 days at reasonable terms.

Realty taxes in Quebec are not much higher than in other provinces. Property taxes are under 1% or less than $300/month on average. Buyers should also be prepared to pay land transfer tax which is due on closing; anywhere from 0.5%-1.5% of the purchase price, or $5,385 for the average $459,000 home. For Montreal only land transfer tax may be up to 2.5% of the purchase price. If the property is default insured, 9% PST is charged on the premium amount, eg. $1,570 for the average buyer with 5% down payment. Other taxes such as GST and QST may apply to condos or new builds in some cases.

Real estate closing costs also commonly include an appraisal, notary and solicitor fees. An appraisal is usually not more than $500 although in Quebec this is typically ordered and paid for by the lender. However, borrowers should budget up to $2,000 for notary and solicitor fees including closing, registration, and title insurance.

Canadian Ministry of Finance Mortgage Guidelines

The minimum down payment in Canada

For properties under $500,000 the minimum down payment is 5%. For properties over $500,000, the minimum downpayment is 5% of the first $500,000 and 10% of the amount exceeding $500,000. Anything over $1 million requires at least 20% down payment. Rental properties that will not be owner occupied also require at least 20% down payment.

The maximum amortization period

25 years for purchases with less than 20% down payment. With more than 20% down payment up to 40 years may be possible, however anything over the standard 30 years comes with substantially higher rates and fees.

Mortgage default insurance

Required for purchases with less than 20% down payment, to insure the lender in case of default. The borrower pays the premium of up to 4% which gets added to the mortgage amount.

How nesto works

We offer all the help of a mortgage broker, without the commission. Simply put, our salaried mortgage advisors are rewarded based on your satisfaction. We’re here to help you reach your goal and guide you through the complicated world of home financing. #yesyoucan #empowermentisthenewsexy

Every mortgage professional knows the market’s best rates every time they check their email. Only a few of them will give you that rate without making you work for it. nesto’s here to change the industry for this very reason. You always get the best rate upfront with nesto.

Text for an express quote