Find the Best Mortgage
Rates in Montreal

As of Tuesday, July 28, 2026, current interest rates in Montreal are 4.09% for a 5-year fixed mortgage and 4.14% for a 3-year fixed mortgage. Shop around for mortgage rates to find the best offer.

Despite home prices in Montreal remaining lower than the national average, high interest rates continue to make it challenging for Quebecers to qualify for a mortgage. Even higher qualifying rates make it harder for Montreal residents to afford their mortgage. While it’s almost impossible to predict when rates will come down meaningfully, experts forecast that we should expect a gradual reduction over the next few years. 

Home prices remain high, with CREA reporting that the national average home price decreased 3.3% year-over-year to $665,600 in June 2026. Quebec’s average price increased 4.3% year-over-year to $550,400. As for Quebec’s largest city, the average selling price of a home in Montreal increased 3.6% year-over-year to $596,300.

Montreal Mortgage Rate Trends: July 2026

While it’s difficult to predict where mortgage rates will trend, the consensus among experts suggests that we could see rates remain higher for longer. Forecasts suggest we won’t see interest rates return to the neutral rate range of 2 to 3% until the end of 2025. 

Bank of Canada Rate Announcement

The Bank of Canada (BoC) held its policy rate at 2.25% at its July 15 announcement. In its accompanying outlook, the Bank pointed to a steadier economic backdrop. It reiterated its commitment to bringing inflation back to its 2% target, while flagging Middle East-driven oil prices as a risk still in play.

Bond markets price a high probability of another hold at the Bank’s September 2 announcement, with a 13% chance of a 25-basis-point hike. By October 28, markets imply a 50% chance of a hike.

A Bank of Canada decision affects fixed and variable mortgages differently. If you hold a variable-rate mortgage (VRM) or an adjustable-rate mortgage (ARM), a rate change flows through directly, adjusting your principal-and-interest split (VRM) or your payment itself (ARM), within days of your lender updating its prime rate. If you hold a fixed-rate mortgage, nothing changes until your term is up, since your rate and payment are locked for its full length. Either way, the next decision, on September 2, is the one to watch if you’re renewing or shopping for a new mortgage soon.

Real Estate Market Update

The Canadian Real Estate Association (CREA) reports that national home sales rose 0.5% month over month in June 2026, marking the third straight monthly gain and building on May’s 5.5% increase and April’s 0.9% uptick. New listings fell 1.3% month over month, the second consecutive monthly decline, pushing the national sales-to-new-listings ratio (SNLR) up to 50.2%, the first reading above 50% so far this year. The national average home price was $696,078 in June, up 0.5% from a year earlier, while the MLS Home Price Index held steady month over month for the first time since January 2025 and was down 3.6% year over year, the smallest annual decline since last October. With Bank of Canada rate hikes largely off the table for the rest of the year, activity is on pace to keep building into the fall, led by pent-up demand from first-time buyers who have been waiting on the sidelines.

CPI Inflation Update

Inflation eased to 2.8% year-over-year in June, down from 3.2% in May. Slower gasoline price growth drove the deceleration, as diplomatic talks and an interim ceasefire arrangement eased global oil prices, with gasoline up 20.5% year-over-year, versus 33.2% in May. Excluding gasoline, inflation held steady at 2.2%, unchanged from May, and the Bank’s core measures dipped below target for the first time this year, with the trimmed-mean rate at 1.8% and the median rate at 1.9%. Food price growth also slowed, easing to 3.5% year-over-year from 3.8% in May.

Mortgage Statistics for Quebec

Home prices in Quebec have doubled compared to what they were 10 years ago. Here are some mortgage statistics for the housing market in the province:

• Average home value (as of June 2026): $550,400 (QPAREB)
• Canadian homeownership rate (as of 2021): 66.5% (StatsCan)
• Number of home sales (as of June 2026): 8,492 (QPAREB)
• Number of new listings (as of June 2026): 14,002 (QPAREB)

Mortgage Options in Montreal

Montreal conventional mortgage: Conventional or uninsured mortgages require a downpayment of 20% or more. With uninsured mortgages, there is no limit on the purchase price, and you can amortize up to 30 years with prime lending. You will not be required to purchase mortgage default insurance as your downpayment is enough equity to protect the lender if you default. 

Montreal high-ratio mortgage: High-ratio or insured mortgages allow you to purchase a home with a downpayment of less than 20% and require mortgage default insurance to reduce the risk to the lender. With high-ratio mortgages, you will be limited to a purchase price of less than $1 million and an amortization of up to 25 years.

Montreal fixed-rate mortgage: Fixed-rate mortgages lock in your interest rate for the term. The principal and interest amounts are fixed, providing predictable and stable mortgage payments. Penalties are calculated based on the higher of the interest rate differential (IRD) or 3 months interest if you need to break the mortgage before the end of your term.

Montreal variable-rate mortgage: Variable-rate mortgages have interest rates that change based on the Bank of Canada policy rate, directly impacting your lenders’ prime rate. Adjustable-rate mortgages (ARM) are variable mortgages that immediately adjust your mortgage payment to reflect the changes made to your lenders’ prime rate. The principal portion remains fixed, while the interest can increase or decrease when the prime rate increases or decreases. Variable-rate mortgages (VRM) are variable mortgages that have fixed mortgage payments despite changes to your lenders’ prime rate. The principal and interest on your fixed payment adjust with more going to interest and less to principal if the prime rate increases or more going to principal and less to interest if the prime rate decreases. 

What Affects My Mortgage Rate in Montreal

The mortgage rate you are offered is influenced by your credit score, income, capital, downpayment, and loan-to-value (LTV) ratio. Mortgage rates are also priced based on the risks associated with the mortgage, the purpose of the loan, and the property used as collateral.  Some of the most important determining factors affecting your mortgage rate include:

• Downpayment –  Your downpayment will determine your LTV ratio and whether you will be required to purchase mortgage default insurance. Insured and insurable mortgages have better interest rates as there is less risk of loss to the lender. Insured and insurable rates apply to properties valued at less than $1 million and amortizations up to 25 years. 
• Amortization – The amortization period on uninsured mortgages (downpayments of 20% or more) can go up to 30 years on prime lending. Uninsured mortgages typically have higher interest rates than insured and insurable mortgages to account for the added risk to the lender. The amortization on insured and insurable mortgages cannot exceed 25 years. 
• Property Usage – Your primary residence, known as owner-occupied, will generally have lower interest rates. Investment properties you intend to rent out will typically have higher interest rates. A primary residence with a second separate legally registered suite is considered an owner-occupied rental and will have access to the same rates as a primary residence. 
• Mortgage Type – Open mortgages have higher rates than closed rates due to the added flexibility. Refinances have higher rates than renewals and new mortgages. 
• Credit Score – Your credit score will impact the type of lender that approves you for a mortgage. If you have good to excellent credit, you can typically use prime lending and benefit from the best rates. If you have poor credit, you may need to consider alternative lending solutions with higher rates to offset the lender’s risks. 

First-Time Home Buyer Programs in Quebec

Quebec has programs and incentives available to assist first-time buyers with some of the costs of purchasing a home. Some programs are available through the province or municipality, while others are available across Canada. 

Home Buyers’ Tax Credit – First-time buyers are eligible for up to $1,400 when purchasing a qualifying home in Quebec. To qualify, you must be a resident of Quebec and intend to live in the home as your primary residence.

First-Time Home Buyers’ Tax Credit (HBTC) – This federal government program allows first-time buyers to claim up to $10,000 for a maximum $1,500 tax credit to help offset closing costs. 

Quebec City Family Access Program (Programme Accès Famille) – This program offers financial assistance through an interest-free loan of up to 5.5% of the property value. If the home is Novo-climate approved, an additional direct rebate of 3.5% (of the purchase price) will apply. The qualifying criteria will vary based on your family situation; however, your maximum gross income must be $150,000 or less, and the maximum purchase price cannot exceed $370,000. 

Home Purchase Assistance Program – First-time buyers purchasing in Montreal are eligible for up to $15,000 under this program. To qualify, you must not have owned a home in Quebec for the last 5 years and occupy the home as your primary residence. 

Land Transfer Tax in Quebec

Quebec’s land transfer tax is called Property Transfer Duties or Welcome Tax. The duties are collected by each municipality rather than the province. Each municipality (except Montreal, which can set a higher amount) can set its own rates, up to a maximum of 3%, on any amount over $500,000. Tiers are adjusted annually based on Quebec’s all-items Consumer Price Index (CPI). 

How to Find the Best Mortgage Rate in Montreal

• Step 1: Understand your credit score:  Before you start looking for a mortgage lender or applying for a mortgage, check your credit score regularly. This will help you immediately report and remedy errors that could negatively affect your score. If necessary, improve your credit score to help with your mortgage approval.
• Step 2: Determine your borrowing capacity: To find the right mortgage solution, you’ll need to know how much you can afford based on your income and downpayment. 
• Step 3: Know your mortgage needs: Analyze different mortgage solutions’ features, risks, and costs. Careful research and comparisons of the available options can help you choose a mortgage that best meets your immediate and long-term financial needs.
• Step 4: Find a suitable mortgage strategy: Your mortgage strategy shouldn’t be based solely on the lowest rate. Get expert guidance to choose the best strategy for your homeownership goals, even if that means not getting the lowest rate. 
• Step 5: Compare rates and terms: Not all mortgages are equal. Choosing a lender like nesto for your mortgage can help you compare rates and terms for multiple lending solutions, ensuring you find the best fit. 
• Step 6: Get prequalified for a mortgage: Begin your journey towards homeownership by taking advantage of nesto’s prequalification process. By analyzing your downpayment and financial stability, nesto will provide you with a comprehensive prequalification outlining the maximum mortgage amount you qualify for. This information is crucial as it helps you set realistic expectations and narrow your search for a suitable home within your budget.

Quebec Mortgage Rates