The average closing cost in Quebec is roughly $10,200. A good rule of thumb is to calculate 2-4% of the final home sale price.
Closing costs in Quebec statistics
- Median single-family home price as of March 2021. $340,000 (ranges from around $305,000 for a condominium to $415,000 for multiplexes with 2-5 homes)1
- Average total closing cost. $10,200*
- Expected closing cost range. $6,800-$13,600*
- Percentage of closing cost to home sale price. 2-4%
*Excludes the goods and services tax (GST) and Quebec sales tax (QST).
Remember, these averages are based on sample data. Your closing costs may vary based on your lender, the size of your loan and whether you’re paying in cash.
What are the closing costs when buying a home in Quebec?
Below is a breakdown of closing costs you may encounter. Remember to factor in moving costs as well.
| Type of cost | Estimated amount | Mandatory expense? | Description |
|---|---|---|---|
| Adjustment costs | Varies, but set aside around $500 | Mandatory if applicable |
|
| Notary fees | $1,000-$1,500 (varies depending on the complexity of the purchase) | Mandatory |
|
| Disbursements | Starting at $100 | Mandatory |
|
| Home inspection | $350-$750 | Not mandatory (but strongly recommended) |
|
| Home insurance | $800-$1,200 (annual) | Likely mandatory |
|
| Mortgage default insurance | Varies | Mandatory if down payment is less than 20% |
|
| Certificate of location | Varies | Depends |
|
| Title insurance | Around $300 | Not mandatory |
|
| Property appraisal | Around $500 | Depends |
|
| Mortgage prepayment penalty | Varies based on the terms of your mortgage | Depends |
|
| Moving costs | Varies | Not mandatory |
|
| Switching/setting up utilities | Varies | Depends |
|
| Goods and services tax (GST) | 5% of the purchase price | Mandatory if you’re buying a newly built home |
|
| Quebec sales tax (QST) | 9.975% of the purchase price | Mandatory if you’re buying a newly built home |
|
| Land transfer tax (“welcome tax”) | Varies | Mandatory |
|
Closing costs and mortgage fees
Do you pay land transfer tax or property transfer tax in Quebec?
Homebuyers pay the land transfer tax, which is called a “welcome tax” in Quebec. The welcome tax is a sliding scale tax based on the property value and applies to most properties in Quebec, excluding Montreal and certain other areas, which have separate sliding scales.
The welcome tax increases in rate the higher the property value. Many regions have a sliding scale similar to the following:
- 0.5% for the first $52,800
- 1.0% between $52,800 and $264,000
- 1.5% between $264,000 and $500,000
- 2.25% for amounts over $500,000
For example, for property valued at $340,000, you would be charged 0.5% on the first $52,800 ($2,640), 1% on the next $211,200 ($2,112) and 1.5% on the remaining $76,000 ($1,140) for a combined total of $5,892. As we mentioned, this welcome tax rate is applicable to many, but not all, properties in Quebec. Some regions have separate sliding scales for land transfer taxation.
Do you have to pay GST or QST when buying a home in Quebec?
In Quebec, GST, a 5% federal tax, and QST, a 9.975% provincial tax, are only payable on the sale of new or substantially renovated properties, such as on a presale high-rise condominium or a newly built home. These taxes may already be included in the sale price of the home, so be sure to check with the builder.
- A home is considered substantially renovated if at least 90% of the interior was replaced or removed.
Is there a GST or QST rebate?
Yes, there are GST and QST rebates available to homebuyers in Quebec. If you purchase a home with a sale price of $350,000 or less, you are eligible for a 36% rebate on the 5% GST you pay, for a maximum rebate of $6,300. This rebate is reduced on properties ranging from $350,000-$450,000. Anything above $450,000 is not eligible for a GST rebate.
The QST rebate can reach up to 50% of the QST paid, for a maximum rebate of $9,975. The rebate is reduced on properties ranging from $200,000-$300,000. Anything above $300,000 is not eligible for the rebate.
Compare mortgage lenders and rates in Quebec
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What about realtor fees?
When you buy a home, it’s standard practice for the seller of the home to pay both buying and selling fees charged by the real estate agent. Real estate commissions in Quebec usually cost between 3% and 6%. On average, sellers can expect to pay 5% in realtor fees. For a $340,000 property, this amounts to $17,000.
Bottom line
Closing costs are inevitable when you’re buying a property in Quebec. The exact amount will depend on your personal situation, but generally speaking, expect to pay 2-4% of the home price. If you’re buying a newly built home, you should also keep in mind the 5% GST and 9.975% QST. Talk to your notary or real estate agent to learn more about your closing costs.
Want to learn more about mortgages? Head to our guide here.
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