Costs to Consider When Buying a Property in Quebec
Planiprêt
Feb 02, 2026
Buying a home is an exciting milestone—especially for first time buyers—but it also comes with several costs that are often underestimated. Many buyers mistakenly believe that the down payment is the only amount required to become a homeowner. In reality, numerous additional expenses arise before, during, and immediately after the transaction.
Inadequate financial planning can not only increase stress, but also delay or even jeopardize mortgage approval. That’s why understanding all the costs involved is essential.
A Little Known Requirement: 1.5% in Available Funds
In addition to the minimum down payment, most financial institutions require buyers to demonstrate that they have approximately 1.5% of the purchase price available in liquid funds to cover closing costs.
What You Need to Know- This 1.5% is not included in the down payment
- Funds must be readily available and traceable
- Proof is required at the time of mortgage application
- Funds must come from acceptable sources (bank accounts, TFSAs, eligible RRSPs, etc.)
Example
For a $500,000 property: $7,500 must be available in addition to the down payment
Main Costs Associated with Buying a Property
1. Notary Fees
The notary plays a central role in a real estate transaction. Fees generally cover:
- The deed of sale
- The mortgage deed
- Title searches
- Registration with the Land Registry
Average cost: between $1,200 and $2,000, depending on file complexity
2. Welcome Tax (Land Transfer Tax)
Despite its name, the Welcome Tax is mandatory and payable to the municipality after purchase.
It is calculated based on:
- The purchase price
- The municipal assessment
- Progressive tax brackets (often higher in urban areas)
Amount: variable, often several thousand dollars
Payment timeline: typically within 30 days of purchase
3. Municipal and School Tax Adjustments
At the notary signing, buyers must reimburse the seller for:
- Municipal taxes already paid for the upcoming period
- School taxes
- Certain prepaid expenses, if applicable
Amount: variable, depending on the possession date
4. Home Inspection
Although not legally required, a home inspection is strongly recommended. It helps to:
- Identify major issues
- Renegotiate the price or conditions
- Avoid unforeseen expenses after purchase
Average cost: between $500 and $1,000
5. Appraisal (If Required)
In some cases, the lender may request an independent appraisal to confirm the property’s market value.
Average cost: between $400 and $700
6. Insurance Costs
Home Insurance
Mandatory as of the possession date.
Mortgage Loan Insurance (Down Payment Under 20%)
This insurance is usually added to the mortgage amount; however, it’s important to note that the 9% tax on the premium is payable at the notary signing.
Other Possible Costs
Depending on your situation, additional expenses may apply:
- Moving costs
- Purchasing appliances or furniture
- Contingency fund (for condominiums)
Need help properly planning your purchase?
Contact your Planiprêt mortgage broker today to ensure you’re fully prepared and to secure the mortgage solution best suited to your situation.
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