Mortgage Basics

Quebec Housing Market Outlook 2024

Quebec Housing Market Outlook 2024

Table of contents


    Quebec Market Report Summary

    • The benchmark single-family home in Quebec increased by 4.1% year-over-year to $517,900 in December 2023.
    • Quebec’s benchmark townhouse/multiplex price increased by 2.9% year-over-year to $523,400 in December 2023.
    • The benchmark condo price in Quebec increased by 4.7% year-over-year to $367,700 in December 2023.
    • Quebec’s benchmark composite home price increased by 3.7% year-over-year to $462,100 in December 2023.
    • The average rent for an apartment in Quebec increased by 11% year-over-year to $1,953 for December 2023

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    Quebec Housing Market Summary

    Data from the Quebec Professional Association of Real Estate Brokers (QPAREB) indicates that the average price of resale residential homes sold across Quebec in December 2023 was $462,100, an increase of 3.7% compared to a year ago. 

    With a sales-to-new-listings ratio (SNLR) of 82%, the provincial housing market in Quebec is in a seller’s market for December 2023

    Verbatim: What local experts from the Quebec Professional Association of Real Estate Brokers (QPAREB) say about Québec’s provincial housing market:

    In 2023, there were 75,853 residential sales in Quebec. This is a decline of 13%, or 10,995 transactions, compared to 2022. It should be noted that this level of transactional activity is slightly lower than the historical average.

    “An orderly normalization of the Quebec market took place in 2023, despite a context that has been marked by a brutal hike in interest rates since 2022. Since the start of the pandemic, younger households have had to bear the brunt of sharply rising prices. However, the story is different for repeat buyers, who, thanks to their strong financial capacity, were able to weather the increase in property values. However, a reduction in the pool of qualified first-time homebuyers can adversely affect the transactional chain. For a market to be fluid, there must be a sufficient number of first-time homebuyers,” notes Charles Brant, QPAREB Market Analysis Director.

    “The fourth quarter reflects a market with even fewer first-time homebuyers. Two factors are influencing the postponement of purchase plans: a climate of economic uncertainty and expectations of a drop in interest rates in 2024. The same behaviour is observed in sellers, who note that buyers are more cautious and hesitant. Sellers are therefore also likely to postpone their sales project until a future date. The year thus ended with a low transaction level and relatively few properties available for sale. The result is a stagnation of the market, which remains squarely in sellers’ territory. Consequently, prices are generally remaining under pressure, either increasing or remaining stable. Only rarely in certain markets with the highest property prices are they falling.”

    Annual Highlights for the Province

    Sales
    • Across the province, the decline in transactional activity was observed across all property categories, with variations between -10% and -21%. Plexes with two to five units stand out with a sharper drop in sales (-21% in one year). Condominiums and single-family homes recorded respective decreases of 15% and 10%.
    • As for metropolitan areas, the Gatineau, Montreal, and Sherbrooke CMAs posted the largest declines, -15%, -14% and -14%, respectively. Sales were also down in the CMAs of Drummondville (-10%), Quebec City (-7%), Trois-Rivières (-7%) and Saguenay (-7%).
    • Urban centres saw a more marked decrease in sales from 2022 to 2023. Sept-Îles registered the greatest drop, down by 26% in 2023. The markets in Shawinigan (-21%), Lachute (-20%), Salaberry-de-Valleyfield (-19%) and Saint-Hyacinthe (-18%) also recorded significant declines. A more modest slowdown was observed in Baie-Comeau (-5%), Val-d’Or (-4%), Cowansville (-3%) and Amos (-2%). Finally, sales were either stable or increased in the Sainte-Marie (0%) and Alma (+4%) markets.
    • The La Tuque and Charlevoix markets posted the sharpest declines, dropping by 36% and 25%, respectively. Declines were also reported in 2023 in the municipalities of Mont-Tremblant (-21%), Mont-Laurier (-12%), Saint-Sauveur (-10%) and Rawdon (-10%). However, the Sainte-Adèle (+1%) and Montmagny (+8%) markets were up.
    Active Listings
    • The accumulation of available properties accelerated in 2023. The number of active listings stood at 32,154 across Quebec, an increase of 24% compared to 2022 but still well below the historical average.
    Median Prices
    • Across Quebec, the median price for single-family homes stood at $416,500, representing zero change (0%) compared to 2022.
    • As for condominiums, the median price dropped to $360,000, a slight decrease of 1% compared to 2022.
    • Small-income properties, with a median price of $520,000, saw an increase compared to 2022, rising by 4%.
    Market Conditions
    • Despite the slowdown in transactional activity, the number of months required to sell the inventory of residential properties on the market remains at levels that favour sellers across the province. The drop in sales is reflected in particular, by a gradual increase in active listings. The number of months required to sell the inventory is thus up to 5.1 months (all categories combined).
    Selling Times
    • The average selling time for single-family homes in Quebec was 54 days in 2023, or 13 days more than in 2022. Condominiums and small-income properties followed at 58 days and 75 days, respectively. This is 14 days more for condominiums and plexes.

    Annual Highlights for Metropolitan Areas

    Quebec City CMA
    • The Quebec City CMA posted 8,309 residential sales in 2023. This represents a decrease of 7% compared to 2022. Nevertheless, this level of sales is above the historical average.
    • Active listings for the Quebec City CMA grew by only 11% compared to last year. There were 2,901 active listings in 2023. This increase was driven by listings of single-family homes and condominiums, which grew by 20% and 3%, respectively. Plexes recorded a decline in their inventory of available properties, a variation of -6%. The number of months required to sell the inventory is up to 4.2 months (all categories combined).
    • Median prices rose in the Quebec City CMA. The median price for single-family homes reached $350,000, up 3% from a year ago. The median price for condominiums stood at $240,000, a gain of 4% compared to 2022. The median price of small-income properties was $389,500, an increase of 1%.

    Gatineau CMA

    • Residential sales in the Gatineau CMA territory amounted to 4,045 in 2023. This is a decrease of 726 transactions or 15%, from 2022. This level of sales is slightly lower than the historical average.
    • In the Gatineau CMA, active listings rose in 2023, up 14% compared to last year. There were 1,147 active listings in 2023. This increase is primarily due to single-family homes (+15%) and condominiums (+17%). The number of active listings of small-income properties posted a more modest increase (+3%). Finally, while the number of months needed to sell the inventory is increasing, it remains very low at 3.4 months (all categories combined).
    • The median price for single-family homes was $440,000 in 2023, down 2% from last year. With a median price of $490,000, the single-family category also posted a 5% decline. The median price of condominiums remained stable at $300,000.

    Sherbrooke CMA

    • Residential sales in the Sherbrooke CMA territory amounted to 1,733 in 2023. This is a decrease of 289 transactions, or 14% from last year. This level of sales is slightly below the historical average.
    • In 2023, active listings reached 617 properties, up 28% from a year ago. Condominiums, followed by single-family homes, are the categories having recorded the most significant accumulations of properties for sale on the market, with respective increases of 41% and 34%. The number of available small-income properties was stable (-1%). Finally, the number of months required to sell the inventory is up to 4.3 months (all categories combined).
    • Median prices rose in the Sherbrooke CMA. Single-family homes sold at a median price of $377,943, an increase of 8% from a year ago. The median price of condominiums stood at $275,000, a gain of 3% compared to 2022. The median price of small-income properties rose 8% to reach $400,000.

    Trois-Rivières CMA

    • The Trois-Rivières CMA recorded 1,353 residential sales in its territory during 2023, down by 7% compared to 2022. This level of sales is above the historical average.
    • Active listings in the Trois-Rivières CMA increased slightly in the last year, up by only 2% compared to 2022. There were 276 active listings in 2023. Single-family homes saw the number of properties for sale increase by 8%. For their part, plexes and condominiums recorded respective declines of 13% and 4%. The number of months required to sell the inventory is thus up to 2.4 months (all categories combined).
    • The Trois-Rivières CMA reported higher median prices. The median price for a single-family home was $300,000, up 5% from a year ago. The median price for condominiums stood at $240,000, a gain of 6% compared to 2022. The median price of small-income properties rose 8% to reach $282,000.

    Saguenay CMA

    • The Saguenay CMA recorded 1,227 residential sales in 2023. This represents a drop of 7% compared to 2022. Sales are slightly lower than the historical average.
    • Active listings in the Saguenay CMA jumped by 12% compared to 2022. The rise in listings was driven by a resurgence in single-family homes, which saw a 37% growth in properties available for sale. Listings of condominiums and plexes had respective declines of 20% and 27%. The number of months needed to sell the inventory of properties on the market is increasing and stands at 4.6, remaining firmly entrenched in sellers’ territory (all categories combined).
    • Median prices were up in the Saguenay CMA. The median price of single-family homes stood at $260,000 in 2023, rising by 7% compared to 2022. The median price was $220,000 for condominiums, growing by 13%. The median price of plexes posted a gain of 11% to reach $249,000.

    Drummondville CMA

    • The Drummondville CMA recorded 734 residential sales in its territory in 2023, a decrease of 79 transactions (-10%) compared to 2022. This level of sales is above the historical average.
    • Active listings in the Drummondville CMA rose in the last year, up 16% compared to 2022. There were 304 active listings in 2023. This increase is primarily due to plexes (+21%) and single-family homes (+17%). Finally, the number of months required to sell the inventory is up to 5.0 months (all categories combined).
    • The median price of single-family homes in the Drummondville CMA stood at $335,000 in 2023, an increase of 5% compared to 2022. The median price was $237,450 for condominiums, growing by 9%. With a median price of $385,000, the plex category recorded a notable increase of 15%.

    Abitibi-Témiscamingue

    • The slowdown in sales continued for a third year in 2023 in Abitibi-Témiscamingue. Yearly transactions totalled 1,134, a 9% drop compared to 2022.
    • The number of active listings stood at 534 region-wide in 2023, jumping by 21% compared to 2022.
    • The median price for a single-family home in Amos was $255,000, up 2% from 2022. In Val-d’Or, the median price of single-family homes rose by 2% to reach $320,000. However, the median price for a single-family home in Rouyn-Noranda dropped to $295,000, a variation of -2%.
    Bas-Saint-Laurent
    • The slowdown in sales continued for a second year in 2023 in the Bas-Saint-Laurent. Yearly transactions totalled 1,617, a decrease of 7% compared to 2022.
    • The number of active listings stood at 694 region-wide in 2023, an increase of only 6% compared to 2022.
    • The median price of single-family homes was $189,000 in Matane, a marked increase of 15% compared to 2022. In Sept-Îles, the median price of single-family homes reached $245,000, an increase of 7%. In Rivière-du-Loup, the median price of single-family homes was up 3% to reach $269,900.
    Côte-Nord
    • The slowdown in sales continued for a second year in 2023 in the Côte-Nord region. With 535 transactions for the year, this is a decrease of 16% compared to 2022.
    • Active listings stood at 167 across the region in 2023, a decline of 11% compared to 2022.
    • The median price of single-family homes was $172,500 in Baie-Comeau, up 8% compared to 2022. In Sept-Îles, the median price of single-family homes reached $245,000, an increase of 7%.
    Lanaudiere
    • The slowdown in sales continued for a third year in 2023 in the Lanaudière. Yearly transactions totalled 6,204, a decrease of 13% compared to 2022.
    • The number of active listings was 2,149 region-wide in 2023, an increase of 33% from 2022.
    • The median price of single-family homes was $388,250 in Joliette, up 2% from 2022. In Rawdon, the median price of single-family homes declined by 5%, falling to $315,000.
    Laurentides
    • The slowdown in sales continued for a third year in 2023 in the Laurentides. Yearly transactions totalled 8,120, a decrease of 14% compared to 2022.
    • The number of active listings stood at 3,884 region-wide in 2023, an increase of 44% from 2022.
    • The median price of single-family homes was $437,000 in Sainte-Adèle, down 3% from 2022. In Sainte-Agathe, the median price of single-family homes stood at $375,000, a drop of 3%. While in Saint-Sauveur, the median price of single-family homes reached $545,000, an increase of 3%. In Mont-Tremblant, the median price of single-family homes stood at $535,000, up 9%. In Mont-Laurier, the median price of single-family homes rose by 10% to reach $285,000. Lachute saw a 12% jump in the median price to reach $357,000.

    Month-over-Month Expectations for Quebec’s Housing Market

    The sales to new listings ratio (SNLR) is the number of home sales compared to new listings. An SNLR under 40% suggests a buyer’s market where buyers have the upper hand and more negotiating power. An SNLR between 40% and 60% is a balanced market, while an SNLR of over 60% is considered a seller’s market. 

    Changes To Quebec’s Regional Prices by Property Type

    Historical Changes To Benchmark Quebec’s Prices By Property Type

    Last 10 Years of Monthly Changes to Quebec’s Composite Home Price

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    Who’s Buying Quebec Real Estate?

    Until recently, the primary demographics driving demand in Quebec’s, and more importantly, its biggest city, Montreal’s residential property market were those looking to upsize their homes, foreign investors looking to purchase an investment property in one of Canada’s university towns, professionals who recently immigrated to Canada in the past 5 years, and out-of-province migrants advancing their careers in and around Montreal. 

    With the passing of the omnibus Bill C-32 legislation, including the foreign buyers’ ban and anti-flipping tax, the Quebec homebuyers’ demographic may be shifting away from foreign investment. However, it remains to be seen whether efforts to limit foreign buyers in Quebec will impact it; according to Statistics Canada, foreign investors make up less than 5% of homeowners in Quebec’s total homeownership. However, that number significantly jumps to 50% when considering properties valued over $1 million for non-Quebec residents.

    Multi-property Investors

    According to an article by Newswire, investors and multi-property owners accounted for over 16% of Quebec’s homebuyers in 2021, particularly in downtown Montreal, where the numbers were even higher. 

    First-time homebuyers have traditionally accounted for more than half of all purchases. However, that share has slowly declined, reaching a low of 46.8% in June 2021, with real estate investors and multiple property owners picking up the difference. 
    According to Statistics Canada, multiple property owners represent 15% of owners in BC and Ontario and 20% in New Brunswick and Nova Scotia but hold 30% and 40% of existing housing stock, respectively.

    Upsizing Buyers

    Upsizing by buyers has driven Quebec’s demand for single-family homes, which showed the highest year-on-year price increase of all property types from $371,700 in February 2020, which is still more than 39% lower than today’s price at $517,800. You’ll notice that most of Quebec’s 7-digit home valuations are centred in and around the Outremont and Westmount boroughs of Montreal.

    Immigration & Out-of-province Migration

    While the pandemic saw thousands of homebuyers leaving urban areas searching for more space and affordable housing, new immigrants are making Quebec’s affordable homes a continued surge.  Although many provinces except for Alberta saw a stark net migration out, Quebec continues to see net migration into the province due mainly to more affordable housing and distinct culture.  Quebec currently boasts the second-best labour market and participation rate. According to this report by Re/Max, the federal government expects to bring an additional 2 million new immigrants to Canada – many of whom will still choose to settle in Toronto, Vancouver and Montreal.

    First-Time Homebuyers

    Getting a mortgage in Quebec as a first-time buyer can be challenging for many. On average, Quebec municipalities have some of the highest property tax rates among the larger provinces of comparable size. Ontario averages around 1%, whereas BC and Alberta average well below that. 

    While programs like the First Time Home Buyer Incentive are in place to help people afford homes in Quebec, this has yet to do much to offset affordability as the stress test makes it harder to qualify. At the same time, the Bank of Canada keeps rates elevated – adding a barrier to qualifying for a home without a combined household income over $120,000. 

    Given the slowdown over the last 12 months in home prices, Quebec remains an affordable market to purchase a first home – for those looking to get good value for their money!

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    Rents Across Canada Continued to Surge in December 2023

    The Canadian rental market witnessed a transformational surge in 2023, with the average asking rent for all residential properties reaching a historic high of $2,178 in December, a significant 8.6% rise from the previous year. This article analyses Canada’s rental market trends, regional breakdowns, and future outlook.

    Rents Rise Across Canada

    Over the past 2 years, there has been a significant surge in rent prices in Canada, with an impressive growth annualized rate of 22%. On average, tenants have experienced an increase of $390 per month. This surge was fueled by an 8.6% rise in 2023, following a 12.1% increase in 2022 and a more modest 4.6% uptick in 2021. Comparatively, the typical annual rent growth rate in Canada averaged over the past 5 years has been 4.9%, including a decrease of 5.4% in 2020 due to the impact of the COVID-19 pandemic.

    Despite having the lowest average rent in Canada at $2,076, there has been a significant surge in traditional purpose-built rental apartments, experiencing a remarkable annual growth rate of 12.8%. This is in stark contrast to condominium and home rentals, which have experienced comparatively slower annual growth rates of 6.9% and 5.9%, respectively.

    Rents Rise Across Property Types

    In 2023, the cost of renting purpose-built apartments and condominiums experienced a surge of 10.7%, mirroring the growth observed in 2022. As a result, the average rental price reached $2,116 by the end of the year. Among different types of apartments, 1-bedroom units witnessed the most significant increase, with a growth rate of 12.7% and an average rental price of $1,932. Studio apartments followed closely behind, with a growth rate of 11.9% and an average rental price of $1,552. Meanwhile, the average rate of rent for 2-bedroom apartments stood at $2,301, reflecting a 9.8% increase on an annual basis. Lastly, 3-bedroom apartments for rent experienced a 9.9% annual increase, reaching an average rental price of $2,579.

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    Quebec Rents Surged Even More

    In 2023, Quebec stood out as the sole province where the growth in apartment rents surpassed that of the previous year, with a rate of 10% compared to 6.9%. As a result, the average rent for apartments in December reached $1,953. Montreal, on the other hand, climbed to third place in 2023, with an impressive annual rent growth of 11.3%, leading to an average rent of $2,019. When examining the fastest-growing markets for apartment rents in December, both Pointe-Claire and Quebec City, located in Quebec, took the lead with rent growth rates of 25.6% and 18.9, respectively. Other cities within Quebec that made it onto the list of rapidly growing rental markets for 1-bedroom apartments included Laval (+15.4%), Saint-Laurent (+15.3%), Côte-Saint-Luc (+13.4%), and Longueuil (+6.8%).

    Tight Rental Market in BC, Ontario and Alberta

    Despite a 1.4% decrease compared to the previous year, British Columbia retained its status as the most expensive province for apartment rentals in December, with an average asking price of $2,500. Ontario followed closely behind, with apartment rents averaging just below BC at $2,446, representing an annual increase of 3.7% in December. Notably, Ontario’s growth rate was significantly slower than that province’s impressive 15.5% increase recorded in 2022.

    The 4 most expensive small- and mid-sized rental markets in Canada were all situated in British Columbia, with North Vancouver taking the lead at $3,361 in monthly rent. Following closely behind were Burnaby at $2,928, Richmond at $2,898, and Coquitlam at $2,886. The top 5 was completed by Richmond Hill in Ontario, where the average rent reached $2,782. The majority of the remaining top 25 rental markets with high rents were located in the Greater Toronto Area (GTA).

    In 2023, Alberta emerged as the province witnessing the most rapid surge in rents for purpose-built and condominium apartments, experiencing an annual increase of 15.6% in December. This resulted in an average rent of $1,691. Among Canada’s major cities, Calgary recorded the highest growth in apartment rents, with a 14% rise compared to the previous year, reaching an average of $2,071. Meanwhile, Edmonton, where average apartment rents were significantly lower than in Calgary at $1,467, saw a rate of rent growth of 13.5% over the course of 2023.

    Main Factors Driving the Rental Market in 2024

    Several factors are expected to have an impact on the market in the coming year:

    • The demand for rentals is predicted to remain strong, although slightly less intense compared to the previous year. This is due to a slowdown in the economy, a decrease in the number of non-permanent residents, and an increase in homebuying activity as interest rates decrease.
    • In the short term, there will be a continued increase in the number of completed apartments and a rise in tenant turnover, which will contribute to an increase in the supply of rental properties and help moderate the growth of rents.
    • Affordable markets, like those in Alberta, are anticipated to continue experiencing rent increases that are higher than the average.

    Expect higher-priced markets, such as those in British Columbia and Ontario, to experience rent hikes that are lower than the national average. As we look ahead into 2024, the Canadian rental market is projected to continue facing a shortage, but there is a possibility of achieving a better balance this year. The expected increase in rent is likely to align with its historical 5-year average of approximately 5%. Canada’s regional property and rental markets offer promising prospects for home buyers, renters, and investors alike.

    Market Rents Summary

    Each $100,000 in mortgage balance costs an average of $575 per month on nesto’s lowest fixed 5-year rate at and $638 per month on nesto’s lowest adjustable 5-year rate at .  Rates used for calculation are those offered on insured purchases with less than a 20% downpayment on a 25-year amortization.  Each 0.25% change in mortgage rates impacts the monthly payment by $14 on a 25-year amortization.

    Rental Prices Compared to Other Canadian Cities

    Rental Prices Compared to Other Provinces and Nationally

    Average Rents by Housing Type

    Rental Growth by Housing Type

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     Frequently Asked Questions

    Is the Quebec housing market going to crash in 2024?

    Quebec home prices are currently sagging due to surging mortgage rates. Quebec prices remain below average compared to the rest of the country, and with the current Bank of Canada rate hikes, mortgages have been harder to qualify for due to the stress test. Quebec prices will recover quicker than in other areas once mortgage rates decline back to manageable levels for homebuyers to purchase or homeowners to refinance their homes. 

    Will Quebec’s housing prices increase in 2024?

    Although currently declining, many experts believe that a turnaround is imminent.  Buyers are waiting on the sidelines for the opportune time to make a move. The market has already started to get closer to becoming a seller’s market.

    How do I get approved for a mortgage in Quebec?

    To get approved for a mortgage in Quebec, look at Quebec mortgage rates and see how much you can afford. This will give you an idea of what it will cost to buy a home in Montreal at today’s prices and rates. You can check out what you need to get pre-approved for a mortgage or start by getting a quote.

    How nesto works

    At nesto, all of our commission-free mortgage experts hold concurrent professional designations from one or more provinces. Our clients will receive the best advice and care when they speak with specialists that exceed the industry status quo. 

    Unlike the industry norm, our agents are not commissioned but salaried employees. This means you’ll get free, unbiased advice on the most suitable mortgage solution for your unique needs. Our advisors are measured on the satisfaction and quality of advice they provide to their clients. 

    nesto is working hard to change how the mortgage industry functions. We start with honest and transparent advice, followed by our best rates upfront. We can offer you these low rates using the fintech industry’s best-in-class and safest technology to provide a 100% digital online experience and process to reduce overhead costs.

    By working remotely across Canada, all our mortgage experts and staff spend less time commuting to work and more time with their friends and family. This makes for more dedicated employees and contributes to our success with happy and satisfied clients.

    nesto is on a mission to offer a positive, empowering and transparent property financing experience, simplified from start to finish.

    Reach out to our licensed and knowledgeable mortgage experts to find your best mortgage rate in Canada.

    EXPLANATIONS

    Rates

    Values

    Rents

    Criteria

    Experts

    Titles

    Interest Rates

    Qualified using nesto’s fixed 5-year insured and uninsured rates as advertised on our website. For today, Friday, March 1, 2024, our example calculations are qualified on our lowest rates, which may or may not apply to your unique financing situation or long-term goals. Insured fixed-rate mortgages will be qualified at , which is exactly 2% in addition to our fixed insured rate currently at . Uninsured fixed-rate mortgages will be qualified at , which is exactly 2% in addition to our fixed uninsured rate currently at . Insured variable rate mortgages will be qualified at , which is exactly 2% in addition to our variable insured rate currently at . Uninsured variable rate mortgages will be qualified at , which is exactly 2% in addition to our variable uninsured rate currently at .

    We appreciate your patience and understanding and encourage you to email us at website@nesto.ca with information that needs correction alongside your sources.

    Property Values

    Home values collected from CREA or QPAREB are those presented as the composite benchmark or average prices for each city/province/region unless specified. They may be interchangeably called average home prices, though an average price may not be available for many regions outside Quebec.

    Rents

    Our monthly or year-over-year rental averages are sourced from Urbanation’s monthly Rentals.ca National Rental Report.

    Mortgage Qualifying Criteria

    Insured qualifying criteria are limited to a 39% gross debt service (GDS) ratio and up to 25 years of amortization. For insured mortgage transaction calculations, we have used a 20% downpayment, unless otherwise indicated, in our examples and excluded any mortgage default insurance (CMHC) premium. Uninsured qualifying criteria are limited to a 35% gross debt service (GDS) ratio and up to 30 years of amortization. We have used a 20% downpayment for uninsured mortgage transaction calculations in our examples. Unless otherwise indicated, a $100 monthly heating cost is attributed to the total monthly stress-tested payment. Municipal tax rates are the most recently shown on the applicable municipality’s website (1% used as default when unavailable or for a region with an unspecified mill rate). Mortgage default insurance is not permitted on purchases that have valuations of $1 million or more, amortizations exceeding 25 years, or on refinance transactions.

    nesto Mortgage Experts

    Titles such as mortgage broker, mortgage agent, submortgage broker, mortgage salesperson, or principal broker are provincially regulated licensing terms with educational requirements specific to each province. Albeit, commonly, they may all be referred to as mortgage brokers. In Ontario, where mortgage agent is used as a designation, mortgage brokers or principal brokers have additional responsibility for compliance and training mortgage agents.

    Licensed mortgage professionals often use the industry norm of “mortgage broker,” “broker,” or “advisor” to refer to themselves. However, disclosure requirements for licensed mortgage professionals’ titles vary across each province in Canada. These disclosures require mortgage brokers to adhere to specific rules when using titles to represent their qualifications and expertise. The provinces have regulations and guidelines that govern the use of titles by mortgage brokers. These regulations aim to ensure transparency and protect consumers in the mortgage industry.

    Regulatory Titles

    In Ontario (FSRA), Mortgage Brokers and Agents both serve as the middle person between borrowers and lenders, helping clients find the most suitable mortgage options for their financing situation. A Mortgage Agent works under the supervision of a Mortgage Broker and assists in the mortgage application process. A Mortgage Broker may also be responsible for compliance requirements for their brokerage or a team.

    The provinces of Quebec (AMF) and Newfoundland (Digital & Government Service NL) both exclusively utilize the designation of Mortgage Broker as a licensing designation.

    British Columbia (BCFSA) has two distinct roles within the mortgage industry: the Submortgage Broker and the Mortgage Broker. These positions have specific responsibilities and functions that contribute to the overall process of securing mortgages for clients. The Submortgage Broker works under the supervision of a licensed Mortgage Broker and assists in various tasks, such as gathering client information, completing paperwork, and liaising with lenders. The Mortgage Broker oversees the entire mortgage application process, including assessing client needs, finding suitable mortgage options, negotiating terms, and ensuring compliance with regulations.

    In Alberta (RECA) and New Brunswick (FCNB), the distinction between a Mortgage Associate and a Mortgage Broker lies in their roles and responsibilities within the mortgage industry. A Mortgage Associate typically works under the supervision of a Mortgage Broker and assists in the mortgage application process gathering necessary documentation, and providing support to clients. A Mortgage Broker is licensed to independently negotiate and arrange mortgage loans on behalf of clients, offering a more comprehensive range of mortgage options and expertise in the field.

    In Saskatchewan (FCAA) and Nova Scotia (Government of Nova Scotia, Business Licensing), there are distinct roles for both Associate Mortgage Brokers and Mortgage Brokers. The critical difference lies in their level of experience and licensing requirements. Associate Mortgage Brokers work under the supervision of a licensed Mortgage Broker and are in the early stages of their career. They may assist with gathering client information and preparing mortgage applications. Mortgage Brokers have obtained the necessary qualifications and licences to operate independently and provide mortgage services directly to clients. They have the authority to negotiate mortgage terms, advise clients, and facilitate the mortgage process from start to finish.

    In Manitoba (MSC), a Salesperson is primarily responsible for promoting and selling products or services, while an Authorised Official holds the authority to make legally binding decisions on behalf of the organization. These roles have different levels of authority and expertise, with the Salesperson focusing on sales and the Authorised Official having broader decision-making powers and acting as the liaison between the brokerage and the regulator. 

    For a complete list of licensing terms in Canada, please see the Mortgage Broker Regulators’ Council of Canada (MBRCC) published list.


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