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Closing costs in Quebec

See how much you might have to pay in closing costs when you buy a home in La Belle Province.

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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 costEstimated amountMandatory expense?Description
Adjustment costsVaries, but set aside around $500Mandatory if applicable
  • The buyer must reimburse the seller for any property taxes or utilities the seller paid after the buyer takes possession.
  • For example, if the seller pays property taxes for the next 12 months, and the buyer takes possession 3 months later, the buyer would then reimburse the seller for 9 months’ worth of property taxes.
Notary fees$1,000-$1,500 (varies depending on the complexity of the purchase)Mandatory
  • These are fees paid to your notary for providing legal advice and taking care of the transaction between you and the seller, such as drafting and registering the deed.
DisbursementsStarting at $100Mandatory
  • These are reimbursements paid to your notary for miscellaneous fees like mailing costs, bank charges, photocopies and land transfer fees to register the property in your name.
Home inspection$350-$750Not mandatory (but strongly recommended)
  • Have the property professionally inspected before you buy to ensure you’re aware of its true condition and can afford any necessary maintenance or repairs.
Home insurance$800-$1,200 (annual)Likely mandatory
  • This insurance covers loss or damage to your home.
  • Mortgage lenders will require you to have it.
  • Your premium depends on several factors, such as the type of home, the materials it was made out of and the neighbourhood crime rate.
Mortgage default insuranceVariesMandatory if down payment is less than 20%
  • This covers the cost of the home should you default on payments.
  • Your premium is based on various factors such as the size of the down payment and the mortgage’s amortization period.
  • The premium can be paid upfront or throughout the amortization period.
Certificate of locationVariesDepends
  • This certificate is the official document that illustrates the property’s boundaries, buildings and structures.
  • The cost varies depending on how complex it is to measure and inspect the property.
  • Sometimes, the seller of the home can provide this to you at no cost as part of the selling process.
  • Your mortgage lender may require this.
Title insuranceAround $300Not mandatory
  • This covers the lender against defects in the title, which could include overlooked back taxes, conflicting wills and existing liens from other mortgages or home equity lines of credit.
  • Title insurance is generally not mandatory, but your lender may require this.
  • This insurance is legally complex, so be sure to research and seek advice on exactly what it can cover.
Property appraisalAround $500Depends
  • This is a professional opinion of the market value of your home.
  • Your mortgage lender may require an appraisal to ensure the mortgage is reasonable given the property’s value.
Mortgage prepayment penaltyVaries based on the terms of your mortgageDepends
  • If you have to break an existing mortgage, you may have to pay a penalty fee that could be thousands of dollars.
Moving costsVariesNot mandatory
  • This includes the cost of any professional moving services you hire, truck rental fees, moving equipment and any related incidental costs.
Switching/setting up utilitiesVariesDepends
  • You may have to pay fees for switching and setting up your utilities. This could include separate charges for gas, electricity, water, Internet, cable, phone and security systems.
Goods and services tax (GST)5% of the purchase priceMandatory if you’re buying a newly built home
Quebec sales tax (QST)9.975% of the purchase priceMandatory if you’re buying a newly built home
Land transfer tax (“welcome tax”)VariesMandatory
  • In Quebec, the land transfer tax is known as the “welcome tax”. It is a sliding scale tax based on the property value. See below for more information.
  • Montreal has its own sliding sale tax different from the rest of Quebec.

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

1 - 2 of 2
Name Product Interest Rate (APR) Loan Term Min. credit score Provincial availability
nesto Mortgages
5 Year Fixed Rate
All of Canada
Get 1% cashback on your mortgage value (up to a total cashback of $9,250).
BMO Mortgages
5 Year Fixed Rate
All of Canada
Switch your mortgage to BMO and get up to $4,200 CashBack. Valid until June 30, 2023.

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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