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How Much Can I Really Afford?

Beyond the bank's calculator: realistic budget including all costs

Decision buy3 min readFebruary 11, 2026
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The maximum price you can afford in Quebec differs significantly from the bank's pre-approved amount. OSFI's stress test (B-20) determines maximum borrowing capacity, but a realistic budget must include closing costs (3-5% of price), real monthly costs (property taxes, insurance, heating, maintenance, condo fees if applicable) and a 3 to 6 month emergency reserve. For a Montreal condo, condo fees add $200-$600/month. Transfer duties in Quebec follow a progressive scale. An AMF-certified broker calculates your realistic budget considering all these factors. An AMF-certified mortgage broker in Quebec analyzes your situation free of charge and compares offers from multiple lenders to get you the best available conditions. The LDPSF requires them to act in your best interest, ensuring professional and objective advice to optimize your mortgage.

Your Real Purchase Budget: Beyond the Calculator

The bank calculator gives a theoretical maximum. Your realistic budget must be more conservative to avoid financial stress.

Closing costs to plan

  • Transfer duties (welcome tax): 0.5-2.5% per Quebec's progressive scale
  • Notary: $1,000-$2,500 (title examination, mortgage, adjustments)
  • Inspection: $500-$800 (essential, especially for older homes)
  • CMHC insurance if down payment under 20%: 2.8-4% of loan
  • Property and school tax prorated adjustments
  • Moving and setup: $2,000-$5,000

Realistic monthly budget

  • Mortgage payment: use the stress test rate to plan
  • Property taxes: check the municipal assessment roll
  • Home insurance: $800-$2,000/year depending on property type
  • Heating and electricity: $150-$400/month depending on size
  • Maintenance: 1-2% of property value per year
  • Condo fees: $200-$600/month if applicable

The Quebec Real Estate Market for Buyers

Homeownership in Quebec fits within a specific regulatory and fiscal framework. OSFI's B-20 stress test reduces borrowing capacity by 15 to 20% compared to the theoretical amount at the contractual rate. Mortgage loan insurance (CMHC, Sagen, or Canada Guaranty) is mandatory for any down payment below 20%, adding 2.8 to 4% to the borrowed amount. Transfer duties (welcome tax) in Quebec follow a progressive scale from 0.5% to 2.5% depending on price brackets. The Home Buyers' Plan (HBP) allows withdrawing up to $60,000 per person from your RRSP tax-free, and the First Home Savings Account (FHSA) offers up to $40,000 in deductible contributions with tax-free withdrawals for purchase.

Your Purchase Action Plan

Purchasing a property in Quebec is a project that requires methodical preparation. Start by establishing a realistic budget that goes beyond the bank calculator. Include all costs: down payment, closing costs (3-5% of price), transfer duties, notary ($1,000-$2,500), inspection ($500-$800), and tax adjustments. Plan an emergency reserve of 3 to 6 months of payments. Consult an AMF-certified broker for mortgage pre-approval and a 120-day rate hold. Work with an OACIQ-certified real estate broker for the search and negotiation. Draft a purchase offer conditional on inspection and financing to protect your interests.

Protecting Your Real Estate Investment

Buying a property is the most important financial project of your life. In Quebec, you benefit from a solid regulatory framework with the AMF overseeing mortgage brokers, the OACIQ overseeing real estate brokers, and the notarial process securing the transaction. An AMF-certified mortgage broker accompanies you free of charge from start to finish, from pre-approval to disbursement. They compare offers from multiple lenders, negotiate the best conditions, and ensure you understand every aspect of your mortgage commitment. Never make the most important financial decision of your life without professional consultation.

Frequently Asked Questions

Is the pre-approved amount my real budget?
No. The pre-approved amount is your theoretical maximum. Your comfortable budget is often 15-20% lower.
What monthly costs are often forgotten?
Property taxes, heating, maintenance (1-2% of value/year), home insurance and condo fees.
Are transfer duties high in Quebec?
For a $400,000 purchase: about $5,500. Progressive scale: 0.5%, 1%, 1.5%, 2%, 2.5%.
What emergency reserve to plan?
3 to 6 months of total monthly payments (mortgage, taxes, insurance, condo fees).

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Educational information only. This does not constitute financial advice under the Act Respecting the Distribution of Financial Products and Services (LDPSF). Consult an AMF-certified mortgage broker before making any financial decision.

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Educational info · Not financial advice