The purchase price of a property represents only part of the true cost of a real estate transaction. In Quebec, several expenses are added before, during, and after signing at the notary’s office.
Down payment, mortgage insurance, professional fees, taxes, adjustments, and related costs: these cost when buying a house must be included in your financial planning from the outset. An incomplete estimate can quickly throw off your budget.
To avoid surprises, it is essential to know all the costs to expect. Here are the main expenses associated with buying a property in Quebec.
In brief
- In addition to the down payment, you should plan for between 2% and 5% of the purchase price to cover related costs.
- If your down payment is less than 20%, mortgage insurance is mandatory and represents several thousand dollars, and the taxes on it are payable at the notary’s office.
- Notary, inspection, and appraisal fees can total several thousand dollars depending on the property.
- The welcome tax is payable a few months after the purchase and can reach approximately $4,000 for a $400,000 home.
- Additional expenses when buying a house must be planned for after the purchase: home insurance, condo fees, renovations and moving costs.
1. The down payment
The down payment represents the first major expense for a property buyer. In Quebec, it is impossible to obtain a mortgage loan without providing a minimum contribution.
In most cases, the minimum down payment corresponds to 5% of the property’s purchase price. However, if your down payment is less than 20%, you must take out mortgage loan insurance. To avoid this insurance, a contribution of at least 20% of the purchase price is required.
Many buyers do not have immediate access to this amount. Different strategies can therefore be considered to build a down payment, including:
- Using the Home Buyers’ Plan (HBP) through RRSPs;
- The FHSA (Tax-Free First Home Savings Account);
- Certain municipal home purchase assistance programs.
2. Insurance for your mortgage loan
If your down payment is less than 20% of the purchase price, mortgage insurance is mandatory. In Quebec, it is generally offered by the Canada Mortgage and Housing Corporation (CMHC) and serves to protect the lender in the event of default.
The insurance premium is calculated as a percentage of the total loan amount, based on the loan-to-value ratio: the lower your down payment, the higher the applicable percentage. This premium generally represents several thousand dollars. It is added to your mortgage loan and amortized over the entire financing period, which increases your monthly payments.
However, the applicable taxes on this premium must be paid in cash at the notary’s office at the time of the transaction. This amount represents several hundred dollars, an expense that some buyers forget to include in their initial budget.
The table below shows the applicable premiums according to the loan-to-value ratio:
| Loan-to-value ratio | Premium applied to the total loan amount |
| 65% or less | 0.60% |
| 65.01% to 75% | 1.70% |
| 75.01% to 80% | 2.40% |
| 80.01% to 85% | 2.80% |
| 85.01% to 90% | 3.10% |
| 90.01% to 95% | 4.00% |
| 90.01% to 95% with non-traditional down payment | 4.50% |
3. Notary fees to buy a house
In Quebec, the notary plays a central role in any real estate transaction. As a public officer, they act impartially and ensure the compliance of documents, the required legal verifications and the security of the transaction.
Fees vary depending on the complexity of the file and the value of the property, but you should generally expect to pay between $1,200 and $1,800 for a standard residential transaction.
4. Pre-purchase inspection fees
Before finalizing the purchase, it is strongly recommended to have the property inspected to verify its actual condition. The pre-purchase inspection generally takes place after the offer is accepted, when it is conditional upon inspection.
The building inspector conducts a visual examination of the accessible components of the house, including the structure, roof, plumbing, electrical system, and heating system.
For a single-family home, inspection fees generally range between $650 and $800, an amount that covers several hours of work including the on-site visit, analysis of the building components, and preparation of a detailed report. Although this is an additional expense, it helps detect potential issues and avoid unexpected costs after the purchase.
5. Fees related to the appraisal
In some cases, your financial institution may require a professional appraisal before approving your mortgage loan, particularly if there are uncertainties regarding the property’s value. However, an appraisal is not always mandatory.
The certified appraiser visits the property to determine its dimensions, analyze materials, examine the general condition of the building, and compare it with similar properties recently sold in the area. They also consider the location and the local real estate market context.
For a single-family home, property appraisal fees generally amount to around $650, depending on the region and the complexity of the file.
6. Sales tax (GST and QST) for new homes in Quebec
If you purchase a new home or a property that has undergone major renovations, you must pay the applicable consumption taxes, namely GST (5%) and QST (9,975%), for a total of 14,975% of the purchase price.
These taxes represent a significant amount. For example, for a $300,000 property, they can amount to nearly $45,000. In most cases, when you purchase from a developer, they are already included in the listed price. If not, they must be paid in full at the time of signing at the notary’s office.
However, it is possible to obtain a partial rebate of the GST and QST under certain conditions, particularly if the property is your principal residence. The maximum rebate corresponds to:
- GST: 36% of the tax paid, up to a maximum of $6,300;
- QST: up to 50% of the tax paid, to a maximum of $9,975.
For more information on this subject, visit the Revenu Quebec website.
7. The welcome tax
The welcome tax, also called the property transfer duties, is a municipal tax calculated as a percentage of your property’s purchase price. It is payable to the municipality where the property is located.
After signing at the notary’s office, the bill is generally sent within 3 to 6 months. You then have approximately 30 days to make the payment. According to data published by the Government of Quebec for the year 2026, the calculation is based on progressive brackets:
- 0.5% on the first $62,900;
- 1% on the portion between $62,900 and $315,000;
- 1.5% on the portion exceeding $315,000.
The amount therefore varies depending on the property’s value and can represent several thousand dollars. For example, for a $400,000 home, the welcome tax can amount to approximately $4,100.
Some municipalities, including Montreal and the city of Quebec, apply different rates for higher-value properties. It is therefore recommended to check the specific scale with the municipality concerned.
8. Adjustment of municipal and school taxes
Municipal and school taxes are payable annually by the property owner. During a transaction, it is common for the seller to have already paid part or all of these taxes for the current year.
An adjustment is therefore made by the notary to allocate the amounts between the buyer and the seller according to the date of possession. If the seller has paid taxes for a period that applies to you after the purchase, you will have to reimburse them for your share.
The amount of this adjustment depends on the property’s value, the applicable municipal and school rates, and the time of year of the purchase. In many cases, this amount can represent several hundred dollars and must be included in your budget at the time of signing.
9. Moving costs
Moving represents an expense often underestimated in the purchase budget. Costs vary depending on the time of year, the distance to be covered, and the volume to be transported.
For example, truck rental can cost between $20 and $40 per hour. If you hire a moving company, rates generally range between $85 and $110 per hour for a truck with two movers, with packages adjusted according to the size of the home and the complexity of the move.
10. Home insurance, condo fees, and other expenses to plan for
Beyond the costs related to the transaction, certain expenses must be included in your budget as soon as you take possession. Among the main ones:
- Home insurance: mandatory to obtain a mortgage loan. The cost varies depending on the property’s value, size, location, and chosen coverage.
- Condo fees: applicable for condos. They cover maintenance of common areas, building insurance, and contributions to the contingency fund. Special assessments may also be required.
- Work or renovations: certain repairs may be necessary upon moving in or within the first year.
- Account opening or transfer fees: Hydro-Québec, internet, alarm systems, etc.
What related costs should be planned for when buying a house?
As a general rule, it is recommended to plan for between 1.5% and 4% of the purchase price, in addition to the down payment, to cover the closing costs when buying a house.
To purchase a $400,000 property, this represents approximately $6,000 to $16,000. This safety margin helps avoid unexpected expenses and start your real estate project in a more stable financial situation.
Are you looking to buy a house in Quebec?
XpertSource.com can help you find a real estate broker. When you tell us about your project, we put you in touch with qualified resources for free. Simply fill out our form (it only takes a few minutes) and we will connect you with professionals.
