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If you’re looking to buy a home or condo in la belle province, you’re in luck — your search for the best mortgage rates in Quebec is over. LowestRates.ca brings homebuyers the lowest current mortgage rates in Quebec from top providers across the country. Our no-obligation, free service compares the provincial housing market for you and automatically shows you the best mortgage rates in Quebec and Canada.
You may have a number of questions, such as: What are current mortgage rates in Quebec? What is the average mortgage rate in Quebec? What is the best mortgage rate in Quebec? Who has the best mortgage rates in Quebec? What is the average mortgage rate in Quebec?
Keep reading for more information about mortgages and the housing market in Quebec. When you’re ready, fill out the form above to compare mortgage rates in Quebec, to be matched with a provider in your area and secure the best mortgage rate they have to offer.
LowestRates.ca users can submit an application for a number of different mortgage products. There are two main types of mortgages based on the amount of your down payment.
The first is a conventional mortgage loan, which means that homebuyers have put down at least 20% of the home’s purchase price as a down payment.
The second type is a high-ratio mortgage, which means that homebuyers have put down less than 20% of the purchase price as a down payment. With a high-ratio mortgage, the homebuyer will also have to purchase mortgage insurance from the Canada Mortgage and Housing Corporation (CMHC), or a private insurer such as Sagen (formerly Genworth Canada), or Canada Guaranty.
|Date||Average Conventional Rate||Average High Ratio Rate|
Last Updated: May 1, 2023
When applying for a mortgage contract, you’ll need to decide whether you want a fixed or variable mortgage rate. This is another step where comparing the lowest mortgage rates in Quebec can be extremely helpful.
If you’re worried rates may rise, you’ll want to get a mortgage rate in Quebec that’s fixed. With a fixed rate, the mortgage rate stays the same for the entire mortgage term — 5-year fixed mortgage rates in Quebec (and Canada) are the most common.
If you’re not concerned about rates rising, you should consider getting a variable mortgage rate for your Quebec home. Variable mortgage rates in Quebec (and Canada) will often change if the Bank of Canada raises or lowers the overnight rate.
While variable rates have traditionally beat out fixed rates when it comes to consumer savings, fixed and variable rates have been closer than ever over the past year.
Below, you’ll find out what factors will determine whether or not you can get the best fixed or variable mortgage rates in Quebec.
Last Updated: May 1, 2023
Down payment: The size of your down payment is the primary contributor to the size of your mortgage loan. This will directly contribute to your mortgage rate because, usually, the larger the loan, the higher the rate. The size of your down payment is a signal to lenders about how capable you are of paying off your mortgage. When it comes to down payments, the more you can put down, the better. The federal government sets the rules around the down payment requirements:
Unfortunately, there’s no such thing as a 0% down mortgage in Quebec (or any part of Canada, for that matter). There’s a loophole that allows consumers to borrow their down payment using a loan, but it’s considered a bad idea because it’s riskier and more expensive — you’ll have a huge mortgage balance (and no equity), you’ll pay higher CMHC insurance premiums, and you’ll pay more in interest charges.
Debt service ratios: Quebec lenders look at a number of other factors when calculating your mortgage rates. These are known as debt ratios and can be grouped into two categories:
Credit score: If you want a low mortgage rate in Quebec, you’re going to need a high credit score. In Canada, credit scores range between 300 and 900. Having a low score means you’re considered to be a high-risk borrower and less likely to pay your bills on time. On the other hand, you’re more likely to be considered a low-risk borrower when you have a high score. To get a mortgage in Quebec (and Canada), most lenders will want a score of at least 600.
If you have bad credit, a mortgage in Quebec isn’t impossible to get. Instead, it will just be harder to qualify. To get cheap mortgage rates, Quebec residents should have an excellent score.
Employment and income: Your financial institution or a mortgage broker in Quebec will also look at your employment status and income. Some of the information they require includes your annual salary, the length of time you’ve been working for your current employer, and if you’re a contract, part-time, or full-time employee. Self-employed individuals will usually need to provide a mortgage agent in Quebec additional documents, such as tax returns, bank statements, and proof that any taxes owing have been paid.
The size of your mortgage will depend on where you live, your down payment and your mortgage interest rate. In Montreal, for example, the average selling price of a single-family home was $460,000 in February 2021.
On a $460,000 home, the typical mortgage amount will be $368,000 if you make a 20% down payment ($92,000). Keep in mind that the actual cost of the mortgage will be higher because you also have to pay interest on the money you borrow.
If you can’t make a down payment of 20%, you must get mortgage default insurance. The insurance premium is often added to the mortgage, which means you have to borrow a little more.
When you make a 5% down payment on a home that costs $460,000, you’ll get a mortgage of $437,000. However, the total mortgage will increase to $454,480 when you add the 4% insurance premium. That doesn’t include the Quebec sales tax (QST) you’re required to pay for the premium. The QST on the premium is one of your closing costs, but isn’t added to the mortgage.
To calculate the cost of a mortgage, a Quebec rate calculator will provide you with an estimate. Inputting a variety of down payment amounts and mortgage rates in Quebec into the calculator is a good way to test different scenarios. It will also show your regular mortgage payments in the calculator for a Quebec home.
Quebec is one of Canada’s most industrious provinces and one of its most up-and-coming real estate hubs. Home prices increased in every major municipal market throughout 2020 and into early 2021, including Montreal and Quebec City. Montreal, which is widely known as one of Canada’s most affordable metropolitan housing markets saw significant increases throughout 2020, which have continued into 2021.
According to the Quebec Professional Association of Real Estate Brokers (QPAREB), the average selling price of a single-family home was $460,000 in February 2021 — a 28% increase compared to February 2020. And the average selling price of a condo was $340,000 in February 2021 — a 24% jump compared to the same month last year.
Over in Quebec City, the average selling price of a single-family home was $295,000 in February 2021 — a 13% increase compared to the same month last year. And the average selling price of a condo was $198,000 — a rise of 4% over 12 months.
To find out whether or not you can afford a home in Quebec, a mortgage affordability calculator will help you determine what options are available for you. It can also show you the latest mortgage rates in Quebec for 2021.
New homebuyers are sometimes surprised to find out there are other costs when buying a property. These are called closing costs and they’re typically an additional 3% or 4% of the purchase price.
Some of the most common closing costs include:
Land transfer taxes are another closing cost that usually have to be paid. In Quebec, they’re known as property transfer duties or a welcome tax. The tax rate is applied on a sliding scale:
Municipalities may charge a rate of more than 1.5% for a portion exceeding $500,000. For homes in Montreal, the tax rate is as follows:
As of 2021, the amount charged on a $460,000 single-family home in Montreal would be $5,316. The thresholds (or brackets) for the property transfer duties typically increase annually because they’re linked to the Consumer Price Index.
Mortgage term: While a mortgage term and an amortization period are often confused, they actually refer to two different things. Your mortgage term describes the amount of time you commit to your mortgage lender and the contract’s terms and conditions. At the end of the term, you’ll be able to renew your mortgage contract for the remaining principal at a new rate. A mortgage term can range anywhere from six months to 10 years, but the most popular term among Canadians is five years.
Amortization period: The amortization period is the amount of time it will take you to pay off your entire mortgage. In Canada, the maximum amortization period is 35 years. But, if your down payment was less than 20% and you were required to purchase mortgage insurance from the Canadian Mortgage Housing Corporation, then your maximum amortization period is 25 years.
When reviewing mortgage interest rates, Quebec buyers may notice there’s a difference between open mortgage rates in Quebec and closed mortgage rates.
Closed mortgage: A closed mortgage means the buyer agrees to adhere to fixed payments on a set schedule. If you look at closed mortgage rates in Quebec, you’ll probably see that rates are typically lower than open rates. That’s because this type of mortgage has restrictions. For instance, you might be allowed to only prepay a certain amount annually and make one prepayment a year. There are also penalties that must be paid if you decide to break your mortgage.
Open mortgage: An open mortgage gives the homebuyer some wiggle room to make increased or additional payments to pay off the mortgage early. If you look at open mortgage rates in Quebec, you’ll notice the rates are higher than closed ones. However, there aren’t as many restrictions. Typically, you can make prepayments of any size, you can make more than one prepayment a year, and you can pay off the mortgage without having to pay a penalty.
The cost of living in Quebec will depend upon where in the province you live. In Montreal, for instance, the average cost of a single-family home is less than $500,000. In Toronto, the average price recently surpassed $1 million. And in Quebec City, the average price of a home is less than one-third as much as it is in Toronto. Compared to Toronto, Montreal and the rest of Quebec are much affordable places to live. The cost of living will be even cheaper if you find the best mortgage interest rates today in Quebec.
Both Montreal and Quebec City are also inexpensive for renters when compared to other major cities in Canada. The CMHC says the average monthly rent was $891 in Montreal and $854 in Quebec City in 2020. That’s much lower than what renters pay monthly in Toronto ($1,523), Vancouver ($1,508), Ottawa ($1,358), Calgary ($1,195), and Edmonton ($1,153).
Commuting in Quebec City and Montreal is a breeze compared to other cities. Statistics Canada notes that 2.3% of those living in Quebec’s capital spend an hour or more driving to work. In Montreal, it’s 7.2%. While that’s slightly better than Vancouver (7.7%), it’s much better than Toronto (11.1%).
Insurance rates in Quebec are the lowest in the country. Drivers pay an average of $717 a year compared to $1,316 in Alberta, $1,528 in Ontario, and $1,832 in British Columbia.
In addition to securing a cheap mortgage rate, there are other factors it might be worth it to discuss to maximize your savings in the long run.
Prepayment privileges: Before signing on the dotted line, prepayment privileges are something you should discuss with your lender. Not all banks and brokers offer the same prepayment terms, however, so it’s important to raise the issue.
Penalties: If you need to break your mortgage, you may be required to pay thousands of dollars in penalties. While you may wind up with a better rate if you go with a different lender, it’s important to look at the fine print to ensure that it won’t cost you in the long run.
Portability: One way to avoid these penalties is to negotiate a portable mortgage. This means that if you move, you can transfer your mortgage to a new home and combine it with an additional mortgage loan.
LowestRates.ca works with 50+ banks and brokers to bring you competitive mortgage rates from lenders in Canada, and we’re always adding new ones. We work with our partners to obtain their best deals and offers, and then we let them compete for your business. All you have to do is answer a few questions, and in minutes you’ll be provided with today’s mortgage rates. There’s no obligation, but you can choose to speak with our broker partner to secure your best rate and see if you're eligible for more savings.
Yes, it’s safe — you no longer need to visit a bank branch or mortgage broker’s office in person to apply for a mortgage. It’s becoming increasingly common for Canadians to apply for mortgages online. LowestRates.ca only works with reputable, trustworthy financial institutions. Your credit score won’t be affected and your information is secure. We don’t share your information with anyone unless you want to connect with a mortgage broker. We take care of the heavy lifting by comparing the market for you and can connect you with the best mortgage lenders in the country.
We have a strong selection of lenders on LowestRates.ca including the big banks and many independent providers and we’re adding more lenders all the time. This ensures we’re always delivering you a competitive rate. Even if you’re not ready to commit to anything, you can use our site as a starting point for research (it’s totally free, and you’re under no obligation).
The better informed you are, the more likely you'll negotiate a better deal for yourself. And, really, that’s what we care about the most.
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