Buying a House in Quebec
In 2026, the welcome tax (droits de mutation) on a $500,000 Quebec home is about $5,611, and the municipality bills it after the deed is registered. Eligible first-time buyers who buy a home after December 31, 2025 can claim a refundable credit of up to $5,875 against that bill, but only after they pay it.
Homebuying in Quebec therefore takes more cash than the down payment alone: you need the full welcome tax when the bill arrives, even if you recover most of it later. The 8 steps below run from checking your readiness to signing at the notary’s office, with the figures that matter at each stage of buying a home in Quebec.
Key Takeaways
- The welcome tax on a $500,000 Quebec home is about $5,611, billed after the deed is registered.
- First-time buyers can claim a refundable credit of up to $5,875 on homes acquired after December 31, 2025.
- Insured mortgages need 5% down on the first $500,000 of the price and 10% on the portion up to $1.5 million.
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How Do You Buy a House in Quebec?
Buying a house in Quebec involves eight steps. Confirm you’re ready, work out what you can afford, and save for the down payment and closing costs. Then choose a mortgage, get pre-approved, find a home, make an offer, and close with a notary. The steps are the same for a single-family house, a duplex, a townhouse or a condo, although multiplex homes with 3 or 4 units require a larger down payment.
Step 1: Are You Ready to Buy a House in Quebec?
You’re ready to buy when your income, debts, credit, and savings meet a lender’s requirements, and you can cover the down payment and closing costs at the same time. Prices vary widely across Quebec, so check current figures for your region before setting a target. Nesto’s Quebec housing market outlook tracks the latest data from the Quebec Professional Association of Real Estate Brokers (QPAREB). For current sales and price data in a specific area, check Centris.
How Do Income and Employment Affect Your Mortgage Application?
Lenders assess both the amount you earn and how consistently you earn it. Stable income is easier to confirm through your income documents and usually supports a stronger application. Salaried employees document income with pay stubs and a job letter. Self-employed buyers use tax filings, and lenders often average 2 years of results. Lenders assess commission and contract income using the same documentation standards.
What Debt Ratios Do Lenders Use?
Lenders assess affordability using 2 debt service ratios. Gross debt service (GDS) is the share of gross income that covers housing costs. Total debt service (TDS) adds every other debt payment to that share. For a mortgage insured by the Canada Mortgage and Housing Corporation (CMHC), the limits are 39% for GDS and 44% for TDS. Lenders test both at the greater of your contract rate plus 2 percentage points or 5.25%, so a payment that looks comfortable at today’s rate can still fail the test. Our walkthrough of GDS and TDS calculations shows the formulas.
How Much Down Payment Do You Need in Quebec?
The minimum down payment is 5% of the first $500,000 of the price plus 10% of the portion between $500,000 and $1.5 million. On a $500,000 home, that is $25,000. On a $600,000 home, it is $35,000: $25,000 on the first $500,000 and $10,000 on the remaining $100,000. Homes priced at $1.5 million or more cannot be insured and require at least 20% down on the full amount. A 3- or 4-unit residential property requires at least 10% down when the buyer occupies one of the units. If no unit is owner-occupied, the property is generally treated as an investment property and requires at least 20% down. Those are the CMHC Purchase eligibility rules for insured mortgages. A larger down payment reduces the amount borrowed. That can lower both the mortgage default insurance premium and the total interest paid over the amortization. Use nesto’s down payment calculator to understand how much you may need to set aside for your home purchase in Quebec.
What Credit Score Do You Need to Buy a House?
CMHC requires a minimum credit score of 600 for at least one borrower on an insured mortgage. Each lender sets its own minimum, and a higher score generally gives you more lending options and better rates. If your score is below a lender’s cut-off, you may still qualify for a different product at a higher rate. Our explainer on mortgage credit scores explains how credit reporting agencies use your credit history to build your score.
Step 2: How Much House Can You Afford in Quebec?
Your affordable home price is the lowest of three limits. Income sets the first through the GDS and TDS ratios, savings set the second through the down payment and closing costs, and your comfort with the monthly payment sets the third. Lenders compare your income against property taxes, heating, mortgage payments, and other debts to set the maximum mortgage. Nesto’s mortgage affordability calculator can help you estimate your purchasing power.
Step 3: What Does It Cost to Buy a House in Quebec?
Budget for the down payment, the welcome tax and other closing costs. For many buyers, the welcome tax is one of the largest closing costs. It is easy to overlook because the municipality sends the bill after the deed is registered. Welcome tax rules, credits and municipal rates can change, so your qualified tax professional can confirm how they apply to your home purchase.
How Much Is the Welcome Tax in Quebec?
The welcome tax is a transfer duty the buyer pays to the municipality. For 2026, the provincial brackets are 0.5% up to $62,900, 1% from $62,900 to $315,000, and 1.5% above $315,000. A municipality may charge higher rates on the portion of the base above $500,000. Quebec indexes the bracket limits every year, so they rise each January.
Montréal uses the provincial brackets up to a taxable base of $552,300, so the $500,000 example below produces the same welcome tax in Montréal as elsewhere in Quebec. Above $552,300, Montréal charges 2% to $1,104,700, then 2.5%, 3.5% and 4% on higher tiers. The City of Montréal’s transfer duty rates give the full scale.
The welcome tax is not always calculated on your purchase price. Quebec uses the taxable base: the highest of the purchase price, the amount stated in the deed of sale, and the property’s market value at the time of transfer. The market value is generally based on the municipal assessment roll multiplied by the applicable comparative factor. If that figure is higher than your purchase price, the municipality applies the brackets below to the higher amount.
| 2026 bracket | Rate | Duty on a $500,000 base |
|---|---|---|
| $0 to $62,900 | 0.5% | $314.50 |
| $62,900 to $315,000 | 1% | $2,521 |
| $315,000 to $500,000 | 1.5% | $2,775 |
| Total welcome tax | $5,610.50 |
Methodology: calculated by nesto on an illustrative $500,000 taxable base using the 2026 brackets above. The City of Montréal publishes the same brackets for its own base up to $552,300. Your base may differ because it is the highest of the price, deed amount and municipal valuation. The example does not apply any municipal rate above $500,000. Outside Montréal, a municipality may charge a higher rate on the portion of the taxable base above $500,000. In Montréal, the municipal scale differs above $552,300. Figures exclude notary fees, sales taxes and other closing costs, and are rounded to the nearest cent.
Estimate the welcome tax you may need to save for with nesto’s Quebec land transfer tax calculator.
What Other Closing Costs Should You Expect?
Beyond the welcome tax, budget for the notary’s fees for the deed of sale and the mortgage deed, a pre-purchase building inspection, and the title search your notary performs. The seller normally provides a certificate of location and a surveyor’s report on the property, although a notary may ask for a new one if the existing certificate is old. Buyers who put down less than 20% also pay Quebec’s provincial sales tax on the mortgage default insurance premium. Buyers pay that tax in cash at closing rather than adding it to the mortgage, and its tax rate rises from 9% to 9.975% for premiums paid after December 31, 2026. Our guide to provincial sales tax on default insurance explains how it works.
Can First-Time Buyers Recover the Welcome Tax in Quebec?
First-time buyers in Quebec can claim a refundable tax credit for access to homeownership that returns part or all of the welcome tax they paid. The credit covers 100% of the first $5,000 of welcome tax plus 25% of the next $3,500, up to $5,875. It applies to a qualifying home acquired after December 31, 2025. The credit is reduced by 2.35% of the portion of the taxable base above $750,000, and it reaches zero at a taxable base of $1 million.
You qualify when you plan to live in the home as your principal residence within a year of buying it. You also need a clean ownership history: neither you nor your spouse can have owned a home you lived in since the start of the fourth calendar year before your purchase. You claim the credit on your Quebec income tax return, but you must pay the welcome tax first to apply for the credit.
Revenu Québec also offers an optional advance payment if you expect a credit above $1,000, your taxable base is $1 million or less, and you have already paid the duties. You must apply by December 1, 2026. After that date, you can still claim the credit, but only on your income tax return. The full rules are on Revenu Québec’s credit page.
On the $500,000 example, the welcome tax is $5,610.50. The credit returns $5,000 plus 25% of the remaining $610.50, about $5,153, so a first-time buyer’s net welcome tax is roughly $458. The transfer duties credit reimburses you after the fact, so you still need the full $5,611 in cash when the bill arrives.
Step 4: How Do You Choose a Mortgage Rate Type and Term?
You’ll need to choose between a fixed rate that stays the same for the whole term and a variable rate that moves with your lender’s prime rate. For reference, nesto’s 5-year fixed insured rate is currently 4.44%, and our 5-year variable insured rate is 3.66%. Rates change often, so check the live figures before you decide.
You can borrow from a lender directly or work with a mortgage professional who compares several lenders for you. Before you compare offers, settle 4 questions:
- How long do you want the term and amortization?
- Do you want a fixed or a variable rate?
- If you choose a variable rate, ensure you want a true variable rate vs an adjustable rate.
- Do you need an insured or an uninsured mortgage?
- How often do you want to make payments?
With a high-ratio insured mortgage, CMHC Home Start may offer a 30-year amortization if at least one borrower is a first-time homebuyer or the home is newly built and has never been occupied for residential purposes. Not every lender offers it, so confirm availability before you rely on it. A longer amortization lowers your monthly payment but increases the total interest you pay. A notary can review your mortgage terms for any unusual clauses before you sign.
Step 5: How Do You Get Pre-Approved for a Mortgage?
You get pre-approved by submitting required mortgage documents showing your income, debts and assets to a lender or mortgage professional, who then confirms how much you can borrow and at what rate. A pre-approval lets you bid on homes with a firm price ceiling. Expect to provide bank and investment statements, proof of income, debt details and government identification. A pre-approval tells you:
- The mortgage rate available to you
- Your maximum monthly payment
- The price range you can afford
A pre-approval isn’t final, since the lender still reviews the property and confirms your finances before closing. Read nesto’s guide to the differences between a pre-approval and a pre-qualification to make sure you choose the right option for your needs and the housing market.
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Step 6: Where Should You Look for a House in Quebec?
Start with areas that fit your pre-approval price ceiling and commute times to the office, then broaden your search if home prices run above budget. Have your down payment ready before you start so you can negotiate when you find the right home for your needs. A real estate professional licensed by the Organisme d’autoréglementation du courtage immobilier du Québec (OACIQ) can guide you through listings. Five popular areas to compare:
- Montréal: Quebec’s largest city, with the widest range of housing, from condos to plexes.
- Saint-Lambert: a residential city on the South Shore, across the St-Lawrence River from Montréal.
- Mont-Royal: a town on the island of Montréal, on the northwestern side of Mount Royal, known for its green spaces and architecture.
- Gatineau: a major city in the Outaouais region, across the Ottawa River from Ottawa, with parks, river access, and a mix of detached homes and condos.
- Quebec City: Quebec’s beautiful provincial capital, containing a UNESCO World Heritage site in its walkable old city.
Municipal programs can change quickly. Montréal’s Home Purchase Assistance Program (HPAP) stopped accepting new applications on July 7, 2026, after a provincial refundable tax credit replaced it. Check the City of Montréal’s website to see what still applies to earlier applications.
Step 7: How Do You Make an Offer on a House in Quebec?
In Quebec, you make an offer by signing a promise to purchase. It becomes binding once the seller accepts and your conditions are met. Most buyers make the promise conditional on mortgage approval and a satisfactory inspection, and a fast market is a poor reason to waive the inspection. Once the seller accepts, finalise your mortgage with your lender.
Step 8: How Do You Close on a House in Quebec?
In Quebec, you close by signing the deed of sale and the mortgage deed in front of a notary, who checks the title, reviews the certificate of location and registers the sale. A notary, rather than a lawyer, typically handles a Quebec closing. Your notary also calculates adjustments for property taxes and other costs between you and the seller.
After the deed is registered, the municipality sends the welcome tax bill, so keep that cash available. If the inspection turns up a problem, you can renegotiate the price before the conditions lapse. The closing date is the one written into your promise to purchase.
What First-Time Home Buyer Help Is Available in Quebec?
First-time buyers in Quebec can combine a provincial welcome tax credit, other tax credits, and 2 tax-advantaged savings tools. Our guide to first-time buyer incentives in Quebec covers each program in detail.
- Quebec refundable tax credit for access to homeownership: returns up to $5,875 of welcome tax (see Step 3 above for more details).
- Quebec home buyers’ tax credit: worth up to $1,400, claimed on your provincial return.
- Federal home buyers’ amount: a non-refundable tax credit worth up to $1,400 for 2026, claimed on your federal return. It is 14% of a $10,000 claim amount.
- First Home Savings Account (FHSA): a registered account for tax-free saving toward a first home. Read nesto’s FHSA guide for the contribution limits.
- Home Buyers’ Plan (HBP): lets you withdraw up to $60,000 from your registered retirement savings plans (RRSPs) and repay it over 15 years. If you make your first withdrawal in 2026, 2027 or 2028, repayment generally begins in the fifth calendar year after that first withdrawal. Nesto’s HBP explainer covers how to use it.
Buyers of new homes should also ask their notary about the federal and Quebec new housing rebates. The federal First-Time Home Buyer Incentive no longer takes applications, as the FAQ below explains.
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Frequently Asked Questions (FAQ) About Buying a House in Quebec
Is there a welcome tax rebate for first-time buyers in Quebec?
Quebec does not offer a welcome tax rebate at closing for first-time buyers. Instead, eligible first-time buyers in Quebec can claim a refundable tax credit for access to homeownership that returns up to $5,875 of the welcome tax (droits de mutation) paid to the municipality. The credit applies to a qualifying home acquired after December 31, 2025, and buyers claim it on their Quebec income tax return. Neither the buyer nor the buyer’s spouse can have owned a home they lived in since the start of the fourth calendar year before the purchase. A notary or qualified tax professional can confirm whether a specific purchase meets the rules.
Does the First-Time Home Buyer Incentive still exist in Quebec?
The federal First-Time Home Buyer Incentive (FTHBI) no longer accepts new applicants anywhere in Canada, including Quebec. The Canada Mortgage and Housing Corporation (CMHC) stopped accepting new applications on March 21, 2024, and buyers who already held an approved incentive kept it. First-time buyers in Quebec can now use the First Home Savings Account (FHSA) and the RRSP Home Buyers’ Plan (HBP) instead.
What credit score do you need to buy a house in Quebec?
Buying a house in Quebec with an insured mortgage requires a credit score of at least 600 for one borrower, according to the Canada Mortgage and Housing Corporation (CMHC). Each lender sets its own minimum on top of that. A higher credit score generally widens a buyer’s lender options and can lower their mortgage rate. Borrowers who miss a lender’s cut-off may still qualify for a different product at a higher rate, and a nesto mortgage expert can walk through your options.
How much is the minimum down payment for a house in Quebec?
The minimum down payment for a house in Quebec is 5% of the first $500,000 of the price plus 10% of any amount between $500,000 and $1.5 million, so a $600,000 home needs $35,000 down. A house priced at $1.5 million or more needs at least a 20% down payment on the full purchase price. A 3-unit or 4-unit multiplex property needs at least 10% down as long as one unit is owner-occupied. Any down payment under 20% requires mortgage default insurance.
Who pays the welcome tax in Quebec, and when?
The buyer pays the welcome tax in Quebec, and the municipality sends the bill after the deed of sale is registered. The municipality calculates the tax on the highest of the price paid, the amount stated in the deed and the municipal valuation. Buyers should keep the full amount available in cash, because the first-time buyer credit reimburses them only after they file their tax return or receive an advance payment.
Does Montréal charge the same welcome tax as the rest of Quebec?
Montréal’s welcome tax matches the provincial brackets up to a taxable base of $552,300, and Montréal applies its own higher rates on any base over that amount. In 2026, the City of Montréal charges 0.5% up to $62,900, 1% from $62,900 to $315,000, and 1.5% from $315,000 to $552,300. It then charges 2% to $1,104,700, 2.5% to $2,136,500, 3.5% to $3,113,000, and 4% on the portion over $3,113,000.
Final Thoughts
Three numbers frame a home purchase in Quebec: the down payment, the welcome tax, and the monthly payment you can carry at the qualifying rate lenders use to assess affordability. The municipality bills the welcome tax after closing, and for homes acquired from 2026 the provincial credit can return up to $5,875 of it to first-time buyers. Your credit score, income, home type and purchase timing all affect what you may qualify for.
The calculators and examples on this page show how the pieces fit together, but they don’t replace a lender’s assessment of your file. If a purchase in Quebec is part of your homeownership plans, how you structure your down payment, term and rate type affects your cash flow and flexibility for years. Speak with nesto mortgage experts to compare options, review your home-buying strategy, and find the approach that best fits your needs.
The information in our blog is for general discussion only and is not legal, tax or real estate advice. Nesto provides mortgage guidance. A Quebec notary can confirm how the deed of sale and welcome tax apply to your purchase, a qualified tax professional can confirm how tax credits apply to your situation, and a licensed real estate professional can advise on listings and pricing.
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