Practical guide to buying a house in quebec

Buying a property is one of the most important projects a person can undertake. For many, it is also one of the most complex: building a down payment, getting a mortgage pre-approval, making an offer to purchase. The steps are numerous and each decision carries weight.

Whether you are buying a house for the first time or planning a move, understanding the process from start to finish helps you approach every stage with confidence and avoid costly mistakes.

This practical guide walks you through the 11 key steps of buying a house in Quebec, from your first reflections all the way to signing the deed of sale at the notary’s office.

In brief

• Before getting started, it is essential to clarify your home buying project: the type of property you want, the area you are targeting and a realistic timeline.
• Solid financial preparation includes assessing your situation, building a down payment and obtaining a mortgage pre-approval.
• A real estate agent and a mortgage broker are two key allies during the buying process, and their services are free of charge for the buyer.
• The pre-purchase inspection, although optional, is strongly recommended. Without it, the buyer loses any leverage if a problem is discovered after taking possession.
• On top of the purchase price, plan to set aside between 2% and 5% in additional fees: notary, inspection, welcome tax, moving costs and other related expenses, and make sure the agreed price reflects the home’s fair market value.

Step 1. Define your home buying project

Before consulting a professional or visiting properties, take the time to clarify your project. This early reflection helps direct your steps more efficiently and prevents you from wasting time.

Here are a few essential questions to ask yourself:

• What type of property are you looking for? Single-family home, semi-detached, condo, plex? Each option comes with its own advantages and constraints, both financially and practically.
• Are you looking to buy a new property or one already on the market? A new home offers the advantage of being built to your taste, but it is subject to GST and QST, which represent significant additional costs.
• What are your non-negotiable criteria and your nice-to-have features? Number of bedrooms, yard, garage, proximity to schools: some elements are essential, others are appreciated but not indispensable. Distinguishing between the two helps you make faster, better-informed decisions during visits.
• In which area do you want to settle? Proximity to schools, work, services and family varies from one person to another, but these criteria directly influence your daily quality of life.
• When do you want to buy? Setting a target window, whether three months or one year from now, helps you plan your steps at the right pace and avoid making decisions under pressure.
• Are you buying alone or with someone else? Your personal situation directly influences your borrowing capacity, available budget and needs in terms of space and location.

Answering these questions from the outset lays a solid foundation for your project and lets you approach each step with a clear vision of what you are looking for.

Step 2. Assess your financial situation

Before starting any mortgage process, it is essential to draw an honest picture of your finances. Here are four concrete actions to evaluate where you stand.

Set your monthly budget

Before knowing how much a lender is willing to grant you, it is important to determine how much you are comfortable paying each month. Drawing a complete picture of your monthly expenses (groceries, transport, leisure, savings, insurance) lets you target a realistic mortgage payment that you will feel comfortable with over the long term.

Check your credit report

This is one of the first elements a lender will review. Your credit report reflects your repayment history and your ability to manage debt. A good record opens the door to better mortgage conditions. If yours is less than ideal, it may be wise to clean it up before submitting an application.

What is the ideal credit score for buying a house?

The minimum credit score required to obtain a mortgage loan varies from one lender to another, but it generally falls between 620 and 680. Some will accept a score as low as 600, while others require a minimum of 650 or even 680. It is therefore important to verify your lender’s specific criteria before submitting an application.

Reduce your existing debts

Car loans, credit card, line of credit: every financial obligation reduces your borrowing capacity. Paying off certain debts, before getting started, can make a noticeable difference in the amount a lender will grant you.

Stabilize your employment situation

A regular and predictable income reassures lenders. If you are self-employed or in a probation period, you will generally need to provide additional documents to support your application.

Step 3. Build your down payment

The down payment is the amount you personally invest when buying a property. It is one of the most important elements of your financial preparation, since it directly influences the amount borrowed, your monthly payments and the costs associated with your financing.

What is the minimum down payment to buy a house in Quebec?

In Quebec, the minimum down payment is 5% of the purchase price. For a property worth $400,000, which represents $20,000 to have on hand even before starting the process. If your down payment is less than 20% of the purchase price, you will be required to take out mortgage loan insurance.

The premium for this insurance, which can amount to several thousand dollars, is added to your loan and amortized over its full duration, increasing your monthly payments. The higher your down payment, the lower the premium will be. Starting at 20%, you no longer have to pay it at all.

Where can your down payment come from?

Building a down payment takes time and planning. Fortunately, several sources are accepted by lenders, giving you flexibility in reaching your goal.

Personal savings

These are amounts accumulated in a savings account, an ordinary bank account or personal investments. The earlier you start saving, the more flexibility you will have when it is time to buy.

The FHSA

The First Home Savings Account (FHSA) is a useful tool for first-time buyers. Contributions are tax-deductible and withdrawals made to purchase an eligible property are tax-free. You can contribute up to $8,000 per year, for a lifetime maximum of $40,000.

The HBP (Home Buyers’ Plan)

The HBP allows you to withdraw up to $60,000 from your RRSPs, tax-free, to use as a down payment. The funds must have been deposited in the RRSP at least 90 days before the withdrawal, and the amounts withdrawn must be repaid over a maximum period of 15 years.

A family gift

You can receive a gift from a family member to fund all or part of your down payment. The lender will generally require a gift letter confirming that the amount does not need to be repaid.

A gift of equity

A gift of equity occurs when a parent sells you their property below its fair market value. The difference between the two amounts then serves as your down payment. This option is governed by specific rules and must be properly documented with the lender.

Good to know

Beyond the down payment, plan to set aside between 2% and 5% of the purchase price to cover closing costs: notary, inspection, welcome tax and other expenses related to taking possession. These amounts must be included in your overall budget for your new home from the start.

Step 4. Find a mortgage broker

Before submitting a mortgage pre-approval application, it is strongly recommended that you work with a mortgage broker. Unlike a bank that only offers its own products, a mortgage broker has access to a wide network of lenders and can compare offers to find the rate and conditions best suited to your financial situation.

Here is what a mortgage broker does for you:

• Analyzes your financial file and identifies areas to improve before submitting an application;
• Compares offers from several lenders to find the best available rate;
• Guides you through the mortgage pre-approval process;
• Advises you on the best borrowing strategies based on your situation;
• Provides follow-up until your final financing is secured.

Good to know

The services of a mortgage broker are entirely free for you. The broker is paid by the chosen lender once the financing is finalized.

Step 5. Get a mortgage pre-approval

Mortgage pre-approval is a key step before starting property visits. It tells you the maximum amount a lender is willing to grant you, which helps you target realistic properties and position yourself quickly when an opportunity arises.

To obtain a pre-approval, the documents typically requested are:

• One or more pieces of identification;
• Proof of income (tax returns, employment letter, pay stubs);
• Proof of down payment (RRSP, FHSA, gift letter);
• Any other document showing your financial situation (assets, debts, line of credit).

What are the benefits of a mortgage pre-approval?

Getting a pre-approval offers several concrete advantages:

• It demonstrates your seriousness to sellers, a real asset in a competitive market.
• It locks in your mortgage rate for a period of 30 to 120 days, which protects you against a possible rate increase during your search.
• It speeds up the process once your offer to purchase is accepted, since much of the work is already done.

How to calculate your borrowing capacity?

Financial institutions use two ratios to assess your borrowing capacity: the gross debt service ratio (GDS) and the total debt service ratio (TDS).

• The GDS ratio measures the share of your gross monthly income spent on housing-related expenses: principal, interest, taxes and heating. It generally must not exceed 39% of your gross monthly income.
• The TDS ratio takes into account all your financial obligations, including housing expenses and any other debts. It generally must not exceed 44% of your gross monthly income.

Good to know

These ratios give you an idea of what a lender is willing to grant you, but they do not take into account your personal comfort. A mortgage payment you can technically afford is not necessarily one you will feel comfortable with on a daily basis. You are not required to borrow up to your maximum capacity.

Step 6. Find a real estate agent

In the home-buying process, your real estate agent is a key ally. Their services are free for you, since their compensation comes from the seller’s commission, shared between both agents when the transaction closes.

Here is what a real estate broker does for you:

• Identifies properties that match your criteria and budget;
• Organizes and accompanies you on visits;
• Assesses whether the asking price reflects the property’s fair market value;
• Drafts the offer to purchase and negotiates the conditions in your favour;
• Advises you at every step until the signing at the notary’s office.

Good to know

When choosing a real estate agent, it is recommended to meet at least three before making a decision. Beyond the proposed commission, pay attention to their experience, their knowledge of the local market and the personal connection you have with them. You will be working together for several months, so it is best to choose someone you genuinely feel at ease with.

Step 7. Visit properties

Once your budget is set and your real estate agent is chosen, it is time to visit properties. This is an exciting step, but one that calls for some discipline so you do not get carried away by an emotional reaction and overlook important details.

Before each visit, it is recommended that you prepare questions on the following aspects:

• The features of the property: What is the living area and the lot size? What is the year of construction? How many bedrooms and bathrooms are there?
• The general condition of the property: Has there ever been water damage or infiltration? Are there signs of humidity or mould? How old is the roof?
• The expenses: What are the municipal and school tax amounts? What is the annual energy consumption?
• Renovations: What work has been carried out since the previous purchase? Were the necessary permits obtained? Is any work expected in the short term?
• The neighbourhood: Are there construction or development projects nearby? How is traffic in the area at peak hours? Are essential services easily accessible?
• Zoning and municipal regulations: What is the zoning of the property? Are there restrictions on extensions, renovations or land use?
• For co-ownership properties (condos): What is the amount of the monthly fees and what do they cover? What is the state of the contingency fund? Is any major work planned for the building?

Good to know

Visiting properties accompanied by your real estate agent is strongly recommended. A professional eye helps spot details that may go unnoticed and makes it easier to assess whether the asking price is fair compared to the fair market value of similar homes in the area.

Step 8. Make an offer to purchase

Found the perfect property? Now it is time to act. The offer to purchase, also commonly called the promise to purchase, is a legal document that formally binds both parties. By signing it, you express your intention to buy the property under the conditions stated, and the seller agrees to reserve it for you if they accept.

Your real estate agent is the one who drafts this document. It generally includes the following elements:

• Identification of both parties: your contact information and that of the seller.
• Description of the property: the address, number of rooms, square footage and any relevant feature that precisely identifies the property.
• The proposed purchase price: the amount you are offering the seller, which may differ from the asking price.
• Inclusions and exclusions: anything that stays in the property or is removed from it must be clearly listed. Appliances, light fixtures, blinds, heat pump: if it is not mentioned, the seller has the right to take it.
• Sale conditions: the clauses that protect you, such as the inspection condition, the financing condition or the condition of selling your current property.
• Obligations of the seller and the buyer: what each party formally commits to as part of the transaction.
• The date of taking possession: usually 30 to 60 days after acceptance, this date must match your timeline.
• The acceptance deadline: the time given to the seller to respond to your offer, generally between 24 and 72 hours.

The conditions, your safety net

The conditions written into the offer to purchase are there to protect you. Here are the three most common ones.

1. The inspection condition

This condition allows you to have the property inspected by a building inspector before finalizing the transaction. If significant problems are detected, you can renegotiate the price, demand corrections or withdraw without penalty. The usual deadline for this condition is around 10 business days.

2. The financing condition

This clause protects you if your financial institution refuses to approve your mortgage loan. If financing is not granted within the agreed deadline, you can cancel the transaction without consequences. The usual deadline is also about 10 days.

3. The condition of selling your current property

If you are already a homeowner, you can include a condition stating that the purchase is conditional on the sale of your current property. This is an important protection, but it can make your offer less attractive to the seller. The associated deadline is generally longer, usually between 30 and 60 days.

How can the seller respond to your offer?

After receiving your offer, the seller has three options:

• Accept the offer: They accept the price and conditions as is. The transaction is officially set in motion and both parties are bound by the terms of the offer.
• Refuse the offer: They turn down your offer without negotiation. You are then free to make a new offer or move on to another property.
• Submit a counteroffer: They modify certain elements of your offer, such as the price, the date of taking possession or the conditions, and return it for you to accept or refuse in turn.

Caution

Once the offer is accepted by the seller, it is very difficult to back out without consequences. Take the time to carefully analyze each condition before signing. If you are not accompanied by a real estate agent, it is strongly recommended to call on a notary to draft the document.

Step 9. Have the property inspected

The pre-purchase inspection is one of the most important conditions to include in your offer to purchase. It involves hiring a building inspector to examine the visible and accessible components of the property: structure, heating, roof, insulation and electrical systems. The goal is to detect existing problems and potential hidden defects before finalizing the transaction.

Depending on the conclusions of the inspection report, several scenarios are possible:

• Renegotiate the sale price or the conditions of the offer to purchase based on the problems detected.
• Require the seller to carry out certain corrections before taking possession.
• In more serious cases, completely cancel the transaction without penalty if an inspection condition was included in the offer to purchase.

Inspection, legal warranty and hidden defects

In Quebec, every buyer benefits by default from the legal warranty, unless otherwise stated in the deed of sale. This protection covers hidden defects discovered after the transaction, that is, serious and non-apparent flaws that reduce the value or use of the property.

The pre-purchase inspection is your first tool of protection against hidden defects. It significantly reduces the risk of bad surprises, but it does not constitute an absolute guarantee. An inspector only examines the visible and accessible components of the property. Anything that is concealed, inaccessible or non-apparent at the time of the visit simply cannot be detected.

Here are a few examples of hidden defects that are commonly encountered:

• Water infiltration behind walls or under the floor;
• Pyrite in the foundations;
• Mould concealed under a finish;
• A defective electrical system that has been hidden;
• Non-visible structural problems.

Good to know

If such a defect is discovered after taking possession, you have three years from its discovery to take legal action against the seller, even if the seller was unaware of it.

Why inspection is your best protection

Without an inspection, you are left with no safety net. If problems are discovered after taking possession, it will be very difficult, if not impossible, to obtain compensation from the seller or to cancel the transaction. The pre-purchase inspection is part of the due diligence of any serious buyer. Skipping it means accepting the risks that come with it.

Step 10. Obtain a mortgage loan

Once your offer to purchase is accepted, it is time to finalize your mortgage financing. Even if you obtained a pre-approval beforehand, you now need to submit a full mortgage application. Your financial institution will then conduct a complete analysis of your file. Among other things, it will review your credit report, your income, your debts and the value of the property you wish to acquire.

It is also at this stage that it becomes useful to clearly understand the different types of mortgage loans available, in order to choose the one that best matches your situation.

Open or closed mortgage

These two options differ mainly in terms of repayment flexibility.

• The open mortgage gives you the option of repaying the loan at any time, in full or in part, without penalty. In return, the interest rate is higher.
• The closed mortgage is the most common in Quebec. Its interest rate is lower, but penalties apply if you wish to repay the balance early or modify your payments beyond the permitted limits.

Fixed or variable rate

These two options differ in how they react to fluctuations in the financial market.

• The fixed rate guarantees stable payments throughout the term, regardless of how interest rates evolve. It is the most reassuring option for those who prefer predictable budget planning.
• The variable rate fluctuates according to the financial market. It can be advantageous during periods of falling rates, but your payments can also increase if market conditions change.

Payment frequency

The frequency of your mortgage payments has a direct impact on the total amount of interest paid. Several options are available:

• Monthly;
• Biweekly;
• Accelerated biweekly;
• Weekly;
• Accelerated weekly.

The accelerated options allow you to make the equivalent of one extra payment per year, which reduces the amortization period and the interest paid in the long run.

Amortization period

The amortization period is the total time planned to fully repay your loan. The longer it is, the more interest you will pay. The majority of Quebec buyers opt for a 25-year period, although it is now possible to go up to 30 years for first-time buyers.

Loan term

The term represents the period during which the conditions of your loan are fixed, generally between 6 months and 5 years. At maturity, the remaining balance must be renegotiated with a lender.

Did you know?

In some cases, your lender may require a property appraisal before officially approving your loan, in order to make sure the property’s fair market value aligns with the financing amount requested. In that case, the lender hires the chartered appraiser, but the fees are paid by you.

Step 11. Signing the deed of sale at the notary

The signing of the deed of sale at the notary’s office is the final step of your buying process. This is when the property officially changes hands. The notary acts as a public officer recognized by the State, ensuring the legality and authenticity of the transaction.

The notary’s role is to protect your interests by making sure everything is in order before proceeding to the signing. More concretely, the notary makes sure to:

• Verify the conformity of all documents presented by you and the seller;
• Protect the amounts you invest during the transaction;
• Ensure that no debt or mortgage will be transferred to you without your knowledge;
• Authenticate the signed documents, giving them legal value recognized in court.

Did you know?

As the buyer, you are the one who chooses the notary and assumes their fees. It is therefore advisable to shop around and compare rates before making your choice. Fees generally range between $1,800 and $3,500, taxes and disbursements included.

Costs associated with buying a property in Quebec

The purchase price represents only part of the real cost of a real estate transaction. Several fees are added before, during and after the signing at the notary’s office. As a general rule, it is advisable to plan between 2% and 5% of the purchase price in additional fees.

1. The down payment

The minimum down payment is 5% of the purchase price. To avoid mandatory mortgage insurance, a contribution of at least 20% is required. Depending on the property’s value, this means tens of thousands of dollars to have on hand.

2. Mortgage loan insurance

If your down payment is less than 20% of the purchase price, mortgage loan insurance is mandatory. The premium ranges from 2.8% to 4% of the amount borrowed and is added to your mortgage loan. Note that the taxes on this premium are payable directly at the notary’s office.

3. Notary fees

Notary fees generally range between $1,800 and $3,500 for a standard residential transaction, depending on the complexity of the file. These fees cover document verification, legal searches and the drafting of the deed of sale.

4. Pre-purchase inspection fees

Inspection fees range between $515 and $1,545 depending on the type of property and its complexity. Although optional, the pre-purchase inspection is strongly recommended to avoid bad surprises after taking possession.

5. Appraisal fees, if applicable

When your financial institution requires a property appraisal, fees generally range between $650 and $900 for a single-family home. You assume these fees, even though it is the lender who hires the chartered appraiser.

6. GST/QST (new homes)

For the purchase of a new home or one that has undergone major renovations, GST and QST apply for a total of approximately 15% of the purchase price. Partial tax credit or rebates are possible under certain conditions.

7. Land transfer tax (welcome tax)

Commonly called the welcome tax, this tax is calculated as a percentage of the purchase price and collected by the municipality where your property is located. As an example, for a property worth $400,000, it amounts to approximately $4,100.

Since January 1, 2026, first-time buyers in Quebec can benefit from a refund of up to $5,875 for properties valued at less than one million dollars.

8. Municipal and school tax adjustment

Municipal and school taxes are paid annually by the property owner. If the seller has already paid them for the current year, an adjustment is calculated by the notary and split between you and the seller based on the date of taking possession. The adjustment usually amounts to a few hundred dollars.

9. Other expenses to plan for

Beyond the fees directly tied to the transaction, several expenses come up at the time of taking possession: moving costs, home insurance, energy consumption, condo fees and possible maintenance work. These costs vary from one property to another and must be included in your budget from the start.

FAQ. Buying a house in Quebec

What is the difference between a mortgage pre-approval and a mortgage approval?

A pre-approval is done before your visits and lets you know the maximum amount a lender is willing to grant you. The official approval comes after your offer to purchase is accepted, once the lender has analyzed your complete file in connection with the specific property you want to acquire.

Can you buy a house without a real estate agent in Quebec?

Yes, but you will have to handle the searches, visits, negotiations and drafting of the offer to purchase on your own. Considering that a real estate agent’s services are free for you, giving them up rarely represents an advantage.

How long does the home-buying process take in Quebec?

Generally, count between 60 and 120 days between the start of the process and taking possession, depending on the area and market conditions. Once the offer is accepted, the period between signing and taking possession is usually 30 to 60 days.

Can you use the HBP and the FHSA at the same time?

Yes. The HBP allows you to withdraw up to $60,000 from your RRSPs tax-free, while the FHSA allows you to accumulate up to $40,000 in tax-free contributions. The two programs can be combined to maximize your down payment.

When do you have to pay the welcome tax?

The municipality sends you the bill within 3 to 6 months following the signing at the notary’s office. You then have around 30 days to make the payment. It is therefore important to plan for this amount in your budget, even though it is not due at the time of signing.

Are you ready to start your home-buying journey?

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