Did you know about the 9% tax?
Planiprêt | 08 January 2024
Did you know that a 9% tax applies to most insurance premiums in Quebec?
In Quebec, it's essential to consider the 9% tax when purchasing a home and the mortgage insurance associated with organizations such as CMHC, Sagen, or Canada Guaranty. This tax is imposed by the government of Quebec on the amount of the insurance premium.
To better understand its impact, let us consider the following example:
Imagine you're buying a house worth $300,000 and making a down payment of 5%, which is $15,000. The insurance premium, calculated at a rate of 4.00% on the remaining mortgage of $285,000, would amount to $11,400. It is important to remember that this premium is subject to a 9% tax, which would add $1,026 to the total cost.
Feel free to share this article with a friend who is about to complete a real estate transaction. You'll be providing them with valuable information about this tax that can influence the overall cost of their purchase.
For more information, do not hesitate to contact us. It will be a pleasure for us to answer all your questions !
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