In Quebec, the minimum down payment is typically:

• 5% of the purchase price for homes under $500,000.
• 10% for the portion of the price between $500,000 and $999,999.
• 20% for homes priced at $1 million or more, or for investment properties.

If your down payment is less than 20%, mortgage loan insurance (e.g., CMHC insurance) will be required.

Mortgage loan insurance protects lenders when buyers make a down payment of less than 20%. In Quebec, CMHC, Sagen, and Canada Guaranty are the most common providers.

• The premium cost depends on your down payment and loan amount, and it is added to your mortgage payments.

Property taxes in Quebec are based on the property’s assessed value, which is determined by the municipal assessment roll. Rates vary depending on the municipality.

• Use the municipal website or your broker’s expertise to estimate annual property taxes for your desired property.

• Fixed-rate mortgage: The interest rate remains the same for the entire term, offering stability and predictable payments.
• Variable-rate mortgage: The interest rate fluctuates based on the prime rate, which can result in lower or higher payments depending on market conditions.

The amortization period is the total time it will take to repay your mortgage in full. In Quebec, the most common amortization period is 25 years.

• A longer period means lower monthly payments but higher overall interest costs.
• A shorter period reduces total interest paid but increases monthly payments.

Yes, mortgage pre-approval is a common and highly recommended step. It provides:

• A clear understanding of how much you can borrow.
• An interest rate guarantee for a specific period (typically 90-120 days).
• Increased credibility when making an offer on a property.

• Home Buyers’ Plan (HBP): Allows you to withdraw up to $35,000 from your RRSP tax-free to buy your first home.
• First-Time Home Buyer Incentive: A shared-equity loan from the federal government to lower your monthly payments.
• Quebec Tax Credit for First-Time Home Buyers: A provincial credit of up to $750 for qualifying first-time buyers.

Yes, most lenders in Quebec allow for prepayments, but terms vary:

• Some offer annual prepayment privileges (e.g., 10%-20% of the original principal).
• Early repayment exceeding the limit may result in penalties. Check your mortgage agreement for details.