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Realistic Total Budget Beyond the Purchase Price

All often-forgotten costs: notary, transfer duties, adjustments, moving

Decision buy3 min readFebruary 11, 2026
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The purchase price represents only part of the total acquisition cost in Quebec. Transfer duties (welcome tax) follow Quebec's progressive scale: 0.5% on the first $55,200, 1% on the next bracket up to $276,200, 1.5% up to $500,000, 2% above (some cities add a 2.5% tier). Notary fees for a typical purchase are $1,200-$2,500. Inspection costs $500-$800. Professional appraisal, if required, costs $300-$500. CMHC insurance (if down payment under 20%) adds 2.8-4% of the loan. Property and school tax adjustments are prorated. Budget 3-5% of the purchase price for closing costs. 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.

Hidden Costs of Buying a Property

The purchase price is just the tip of the iceberg. Here are all costs to plan for a realistic budget in Quebec.

Detailed closing costs

  • Transfer duties: 0.5-2.5% per Quebec's progressive scale
  • Notary: $1,200-$2,500 (title examination, mortgage, adjustments)
  • Inspection: $500-$800 (strongly recommended)
  • Appraisal: $300-$500 (sometimes required by lender)
  • CMHC insurance: 2.8-4% of loan if down payment under 20%
  • Tax adjustments: prorated property and school taxes
  • Title insurance: $250-$500 (optional but recommended)

Monthly costs to budget

  • Monthly mortgage payment
  • Property and school taxes (about 1-1.5% of value/year)
  • Home insurance: $70-$170/month
  • Heating and electricity: $150-$400/month
  • Regular maintenance: 1-2% of value/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

How much are transfer duties?
Example for $400,000: about $5,500. The progressive scale starts at 0.5% and goes up to 2-2.5%.
Are notary fees negotiable?
Fees vary between notaries. Compare 2-3 quotes. Typically $1,200-$2,500 for a standard purchase.
Is mortgage insurance always required?
Only if the down payment is under 20%. Insurance is provided by CMHC, Sagen or Canada Guaranty.
What monthly costs to plan after purchase?
Mortgage, property taxes, home insurance, heating, maintenance, condo fees if applicable.

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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