Find the best mortgage rates in Quebec

See the best Quebec mortgage rates here, all in one place.

Best current mortgage rates in Quebec

Mortgage rates in Quebec

Canada's second most populous province, Quebec boasts a distinct cultural identity deeply rooted in its French heritage. As of Q3 2024, the province is home to over 9 million residents, with nearly 80% being francophone – a stark contrast to the predominantly English-speaking rest of Canada. This language distinction contributes to Quebec's lower rate of interprovincial migration and a notable population concentration in the Greater Montreal area.

Investing in Quebec’s real estate offers an opportunity to become part of a rich cultural tapestry. The province's substantial population has attracted a diverse array of financial institutions catering to the Quebecois market. While all of Canada's Big Six banks offer services here, Quebec also boasts a robust presence of credit unions, private lenders and other financial entities.

According to the Canadian Real Estate Association (CREA), as of August 2024, the average MLS home price in Quebec remains below the national average, potentially offering more affordable housing opportunities compared to other urban cities in Canada.

Just like the rest of Canada, Quebec's mortgage rates are also subject to broader economic factors, including, inflation rates, Bank of Canada's policy interest rates and global economic trends.

While the fundamental drivers of mortgage rates are consistent across Canada, Quebec's unique legal and cultural landscape introduces some province-specific nuances to the mortgage process. Prospective borrowers should be aware of these distinctions from the outset:

1. Notary involvement: Real estate transactions in Quebec require a notary's participation, unlike other provinces where lawyers typically handle these matters.

2. Civil law system: Quebec has a civil law system, which affects how mortgage products are structured and enforced, in contrast to the common law system used in the rest of Canada.

3. Language: Mortgage documentation and services are often required to be available in both French and English.

4. Provincial programs: Quebec offers unique homebuyer assistance programs that can interfere with mortgage financing.

Understanding these province-specific factors is crucial for effectively navigating Quebec's mortgage market.

How to use our Quebec mortgage rates table

In six quick and easy steps, you can secure the best mortgage rates in Quebec using our table tool.

  • 1. Select your mortgage type

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    Purchase: Choose this option if you're buying a home. The loan is the amount after deducting the down payment. Factors like down payment, income, debt and credit score affect the mortgage rate.

    Renewal/switch: Select this if you're renewing your mortgage at the end of its term. You can stay with the same lender or switch to a new one for better rates, though switching may involve fees, such as appraisals or transfers.

    Refinance: Pick refinance if you are breaking your current mortgage to get a better rate, access home equity, or consolidate debts. Be mindful of prepayment penalties for breaking your mortgage.

  • 2. Input your Province

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    Choose Quebec as your province.

  • 3. Put in your home value

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    Input your home’s appraised value or the best estimate.

  • 4. Enter in desired mortgage amount and down payment details

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    Down payment is the amount you are paying before seeking a mortgage loan. Remaining balance is the amount you owe the lender after subtracting the down payment. Desired mortgage amount is your required loan amount. Input these numbers depending upon your current financial situation and loan requirements.

  • 5. Select your rate type

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    Choose the desired length of your mortgage term and choose between a variable rate or fixed mortgage rate. The best Quebec rates will show up on our table.

  • 6. Get the best rate

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    Sort by the lowest rate available and choose your preferred mortgage provider. Select “get this rate” to start your application process.

Understanding your Quebec mortgage rate

Quebec has distinct legal and cultural landscapes that can impact the various mortgage products offered by lenders in this province. Understanding the specific provincial nuances aside from the regular factors impacting mortgage rates is important for borrowers. Here are some factors that will help you understand your Quebec mortgage rate better:

  • Provincial regulations: As a mortgage borrower it is important to be aware of the difference that could exist while buying a home in Quebec versus anywhere else in Canada. Quebec has distinct administerial requirements when choosing mortgage terms and buying real estate which could impact your rate. Take the help of experienced real estate and mortgage professionals in Quebec to understand your playing field.
  • Financial planning: Having a detailed understanding of the mortgage interest rate you'll pay, whether fixed or variable, open or closed, enables you to create an effective budget for the most important investment of your life, your home. This will empower you to take steady financial decisions throughout your mortgage term, ensuring less risk.
  • Cost of borrowing: Your borrowing power will be impacted by your mortgage rate, hence, choose wisely and don’t rush it. Always comparison-shop for rates and select a lender who evaluates your finances better. Even a hike or cut in interest rates can greatly impact how much interest you pay both monthly, as well as through the amortization period of your mortgage.
  • Rate comparisons: Comparison shopping for rates is the ideal way to go when looking for a mortgage lender. No two lenders will give you the same rate. The rates will vary depending on your financial situation, the lender’s prime rate and borrowing rate. Having a better understanding of the rates will allow you to make better decisions. You must also look out for flexible benefits like prepayment options, penalties and other offers that lenders have before zeroing down on one.
  • Risk management: Quebecois borrowers, like everywhere else in Canada, have seen economic instability with high inflation and interest rates rise in the last two years. It is important to understand the financial risk of taking on a mortgage in case rates increase, especially if you have a variable mortgage rate. A slight rate hike can have a big impact on the interest you pay on your mortgage.
  • Negotiation power: If you are aware of the factors that can impact your mortgage rate, you will be in a better position to negotiate the terms with your lender.

How can I get the lowest mortgage rate in Quebec?

Obtaining the most favourable mortgage rate in Quebec requires a strategic approach. Here are 10 effective ways to help you get the best possible rate:

1. Improve your credit score: A higher credit score can significantly improve your mortgage terms. To boost your score you can reduce your overall debt, pay your bills on time, verify your credit report for any inaccuracies and maintain a credit card balance that is 30% below your limit.

Read more: How to improve your credit score.

2. Increase your down payment: Save up for a down payment of 20% or more on your home. This can put you on the map for more competitive interest rates by lenders, and avoid paying mortgage default insurance premiums.

3. Conduct comprehensive market research: By comparing rates from various lenders, including banks, credit unions, online mortgage providers and smaller lenders who may offer competitive rates, you can open up the path for a lower rate being offered to you.

4. Negotiation is key: Bargain with lenders by using offers from their competitors. Even a slight rate reduction can go a long way in providing long-term savings.

5. Reach out to a mortgage expert: Mortgage brokers can access exclusive deals not available to the public and negotiate on your behalf with multiple lenders. Seek guidance from an expert broker to help you crack the best deal.

6. Time your application strategically: Keep an eye out in the market for any economic updates that could benefit your mortgage rate hunting. Stay informed about market trends and consider applying when interest rates are trending low.

7. Evaluate the entire mortgage package: You must ask lenders about what other services they can offer you beyond the rate. Consider prepayment privileges, portability options and other flexible features that could save you money over time.

8. Strengthen your financial profile: Lenders will look into your income, your debt-to-income ratio and your credit history before offering you a rate. Choosing a property that aligns with your financial capabilities will make you an attractive client in the lender's eyes.

9. Secure a rate hold: If you anticipate interest rates rising, ask your broker to lock in a favourable rate for 90-120 days while you finalize your home search. This will provide you protection against potential rate increases in the meantime.

10. Select an appropriate mortgage product: Consider carefully between fixed and variable rate options, as to which rate is better for you. The length of your term will affect your rate and payment structure and the frequency of renewals based on your chosen term.

By implementing these strategies, you can position yourself to secure the most competitive mortgage rate available in Quebec's market.

The key differences between fixed rate mortgages vs. variable-rate mortgages in Quebec

Still deciding whether to get a fixed rate or variable rate mortgage for your home in Quebec? Here's what you need to know.

Fixed mortgage rate

A fixed mortgage rate is a type of mortgage financing where the interest rate remains constant and does not fluctuate over the entire duration of the mortgage term.

This stability is particularly beneficial for borrowers because it provides predictability in their monthly payments, allowing them to budget more effectively without the concern of their payment amounts increasing if interest rates rise.

The determination of a fixed mortgage rate is primarily influenced by Canadian bond yields, which reflect the return investors expect for lending their money to the government for a predetermined period. These bond yields serve as an important benchmark in the broader financial market, and as they rise or fall, they can directly impact the interest rates offered on fixed-rate mortgages. Therefore, by securing a fixed mortgage rate, borrowers can enjoy the peace of mind that comes with having stable and predictable mortgage payments throughout the fixed period of the loan, shielding them from the uncertainties associated with variable rate mortgages where payment amounts can change.

Variable mortgage rate

A variable mortgage rate is a type of interest rate that fluctuates in accordance with the changes in the lender's prime rate. This prime rate, in turn, is significantly impacted by the monetary policy set forth by the Bank of Canada.

As the Bank of Canada adjusts its policy rate in response to economic conditions and inflationary pressures, lenders will typically adjust their prime rates accordingly. Consequently, borrowers with variable mortgage rates may experience changes in their overall loan costs. Monitoring the interplay between the Bank of Canada's policy rate and your lender's prime rate can be crucial for managing your mortgage effectively.

Two other mortgage types in Quebec are gaining in popularity.

  1. 1.

    Adjustable-rate mortgages (ARMs): A type of variable rate mortgage, the adjustable rate mortgage (or ARM) borrower will see their monthly payments fluctuate in tandem with the policy interest rate. Even as you will enjoy lower payments during times of low interest rates, it's crucial to consider the risk of a substantial increase if Quebec mortgage rates go up. You must have enough financial stability in case things go awry. An example of such a mortgage offering is Scotiabank’s Flex Mortgage.

  2. 2.

    Hybrid mortgages: A hybrid mortgage, also known as a combination or split mortgage, brings together two different mortgage rate types into one loan. It allows a borrower to split their mortgage between a fixed-rate portion and a variable-rate portion.This strategy helps spread the risk amidst fluctuations in interest rates. A hybrid mortgage combines the stability of fixed rates with the potential cost savings of variable interest rates. A good example of such a mortgage product is Meridian Credit Union’s Hybrid Mortgage.

How are Quebec mortgage rates determined

Mortgage rates in Quebec, like in other parts of Canada, are influenced by a variety of economic factors. These include inflation, unemployment, GDP, the central bank's policy interest rate, and global economic conditions. However, some factors may have unique implications for Quebec due to its distinct economic and demographic landscape.

Here all all the factors that affect Quebec mortgage rates:

1. Bank of Canada's policy interest rate: The central bank’s policy interest rate changes have a direct impact on variable rate mortgages. It also indirectly affects bond yields, which react to anticipated policy interest rate changes that further impact fixed rate mortgages.

2. Bond market: The Canadian government bond yields, especially 5-year bonds, significantly influence fixed mortgage rates. Fixed mortgage rates can also be impacted by Quebec's economic performance that guides provincial bond yields.

3. Quebec's economic conditions: Quebec’s unique economic setup, including its strong manufacturing and service sectors, can influence local employment opportunities, housing market and mortgage rates.

4. Inflation: The Bank of Canada's inflation target setting affects interest rates throughout the country, including in Quebec. The province’s inflation rate may sometimes differ from the national average, potentially influencing local lending rules.

5. Lender's funding costs: Lending costs may vary based on mortgage demand and funding sources, which may have Quebec-specific elements due to the presence of local financial institutions.

6. Regulatory changes: Both federal and Quebec-specific regulations can impact mortgage rates and availability of best mortgage rates in the province.

7. Lender competition: All Big Six Canadian banks, credit unions, private lenders and other financial entities exist in Quebec. This may lead to unique competitive dynamics as lenders vying for your business cut rates to attract your business.

8. Global economic events: International economic events can impact Canadian mortgage rates, including those in Quebec.

9. Consumer confidence and Gross Domestic Product (GDP):  Quebec's consumer price index and GDP performance, which may differ from national trends, can influence local mortgage rates that lenders offer. Consumer attitudes in Quebec, which may be influenced by provincial economic and political factors, can impact mortgage rates.

10. Quebec housing policies: Province-specific housing regulations can impact mortgage availability and rates.

11. Personal finance situation: In addition to these broader economic factors, the specific mortgage rate offered to an individual borrower in Quebec will also depend on personal financial factors such as income, credit score, down payment amount, amortization, mortgage type, and location of the property.

Quebec’s current housing market

The housing market in Quebec, like the rest of Canada, has experienced significant ups and downs since the Bank of Canada initiated its policy interest rate hike in March 2022. After nearly two years of 10 consecutive rate hikes, Quebec homebuyers and borrowers finally saw some relief in June 2024 when the central bank implemented its first rate cut of 25 basis points. As of September 2024, the Bank has reduced rates by a total of 75 basis points, with further cuts anticipated by the end of this year.

The Quebec Professional Association of Real Estate Brokers (QPAREB) views these rate reductions as a potential catalyst for renewed housing market activity. Both variable and fixed mortgage rates have begun to decline, potentially stimulating buyer interest.

According to the latest data from QPAREB the total residential sales volume in Quebec increased 14% to $32.3 billion in August 2024 compared to $28.2 billion in the same period last year. The total residential sales in the province of Quebec in August 2024 was up 10% to 6,517 compared to 5,927 in August 2023. Active listings also increased in August 2024 to 36,660, which was 18% up from 30,981 from August 2023.

The average price for a single-family residential unit in Quebec in August 2024 was $443,000, a 7% increase from $415,000 in August 2023.

The most populous city of Montreal Census Metropolitan Area (CMA) recorded $590,000 average price for a single-family home in August 2024, a 5% increase froma $561,000  in August last year. 

Quebec City CMA showed a good 9% increase in average price of a single-family unit at $390,000 in August 2024 compared to $357,750 in August 2023.

The Quebec housing market is showing signs of adjusting to the new interest rate environment. While sales volumes and prices have generally increased, the rate of decline has slowed, and some areas are seeing modest growth. The increase in new listings suggests that the sellers who were waiting on the sidelines for interest rates to drop, are becoming more active, potentially leading to improved market balance.

As interest rates stabilize and potentially decrease further, industry experts anticipate a gradual recovery in market activity. 

Main types of mortgage lenders in Quebec

Here are the main types of mortgage lenders in QC.

1. Banks

By virtue of its population size and land, Quebec attracts financial institutions as they compete for your business. Quebec is home to all Big Six Canadian banking giants, with both the Bank of Montreal (BMO) and the Royal Bank of Canada (RBC) maintaining head offices in the province. In addition, the National Bank of Canada (NBC) and the Laurentian Bank of Canada (LBC) call Quebec their home. Banks are the most traditional and common source of mortgage financing in the province.

Here are the most popular banks who provide mortgages in Quebec.

  • Royal Bank of Canada: Founded in 1864, RBC Banque Royale is Canada’s biggest bank and one of the largest in the world based on market capitalization. RBC offers a wide range of mortgage products, including fixed and variable-rate mortgages, mortgage renewal, specialized products for first-time homebuyers and mortgage prepayment options.
  • Toronto-Dominion Bank: As a top 10 North American bank, TD offers a variety of mortgage solutions, including fixed and variable-rate mortgages, TD Home Equity FlexLine HELOC, and others.
  • Bank of Montreal (BMO): With a head office in Montreal, BMO calls Quebec home and offers highly competitive mortgage rates and options. These include competitive fixed and variable-rate mortgage rates, tailored mortgages along with special programs for first-time buyers, flexible payment options and prepayment privileges.
  • CIBC: CIBC offers many mortgage products in Quebec such as a Home Power Plan (HPP) that allows you to borrow from the equity in your home, Collateral Mortgage, besides the regular fixed and variable mortgage rates..
  • Scotiabank: Touted as the oldest bank in Canada, Scotiabank offers a slew of mortgage products in the province. A broad range of mortgage options, include fixed, variable-rate and adjustable-rate mortgages. They also provide the Scotia Total Equity Plan, allowing homeowners to utilize their home equity to reduce borrowing costs.
  • National Bank of Canada: This 165-year old financial institution calls Montreal home. National Bank is native to Quebec and has been offering mortgage products in the province for many years, including fixed and variable-rate mortgage products, HELOC and mortgage products for self-employed professionals.
  • Online Banks: Online-only banks without a physical presence, like Tangerine, KOHO, Simplii Financia, Alterna Bank and EQ Bank also offer competitive mortgage rates.

2. Credit unions

Quebec has a strong presence of credit unions, with Desjardins being the largest financial cooperative group in North America. In the 1900s, Alphonse Desjardins opened the first Canadian credit union in Levis, Que. As of 2024, there are over 200 credit unions operating in Quebec and Ontario alone. Here's a list of major credit unions in Quebec:

1. Desjardins Group: Desjardins is the largest federation of credit unions in Quebec. In the early 1940s, credit unions, also known as caisses d'économie or group caisses, started forming up across the province with a goal to promote financial autonomy among the community. In 1979, this credit union network and its 200,000 members located throughout Quebec joined Desjardins Group. Currently, the federation has numerous local Caisses Desjardins across the province.

2. Caisse Alterna: Part of the Alterna Savings, operating in both Quebec and Ontario, this full-service member-owned financial co-operative offers alternative lending sources to Quebecois borrowers.

3. UNI Financial Cooperation: UNI is a financial cooperative that has been operating for 87 years. It primarily serves Acadian and Francophone communities in Atlantic Canada.

4. Caisse Alliance: This credit union serves Northern Ontario population but also operates in some parts of Quebec.

3. Trust companies

Trust companies offer services similar to banks but with a focus on managing assets for individuals, estates, and businesses. They often specialize in mortgages, alongside other financial products. Here are some of the regulated trust companies in Quebec:

  • B2B Trust (subsidiary of Laurentian Bank)
  • Computershare Trust Company of Canada
  • Concentra Trust (part of Equitable Bank)
  • Home Trust Company

4. Mortgage Investment Corporations (MICs)

A Mortgage Investment Corporation (MIC) is a way for investors to participate in the real estate market without directly investing in a property or individual mortgages. Foreign or domestic investors can buy shares in the MIC, which then uses this money to invest in a portfolio of mortgages. MICs are created under Section 130.1 of the Canadian Income Tax Act, which gives them special tax treatment. Some of the popular MICs in Quebec are:

  • Fisgard Capital Corporation
  • CMI MIC Funds
  • Atrium Mortgage Investment Corporation
  • Firm Capital Mortgage Investment Corporation
  • MCAN Mortgage Corporation

5. Private mortgage lenders

Private lenders in Quebec often provide alternative financing options for those who may not qualify for traditional bank mortgages. If you are looking for unconventional ways for borrowing a mortgage loan, look no further than private lenders. While private lenders may offer mortgages with more lenient qualification criteria, they usually charge higher interest rates and fees to compensate for the risk they might take on. Here are some private lenders operating in Quebec:

  • Filogix
  • CWB Optimum Mortgage
  • Bridgewater Bank
  • CMLS Financial
  • First National Financial LP

Impact of rate hikes on monthly mortgage payments in Quebec

The Bank of Canada has recently slashed its overnight rate target by 75 basis points by September 2024, with an additional 50 basis points of easing anticipated throughout the remainder of 2024. These rate cuts or any future rate hikes have a direct impact on variable rate mortgages, and bond yields that impact fixed rate mortgages.

Today, the lowest mortgage rates in Quebec are around 5%, and only a few years back they stood around 2.5%. 

Let’s see how the rate hike would have impacted a $400,000 home using our Quebec mortgage calculator. 

If you had put 20% down ($80,000) on a 5-year fixed rate mortgage for a $400,000 home 5 years ago, at 2.5%, your bi-weekly mortgage payment would have been $716.75.

Five years later, you’d end up paying $56,837.67 towards your principal, lowering your total amount owing to $261,662.33 with 20 years left on the term.

At a 5% rate of interest, your bi-weekly mortgage payment jumps to $859.73, or an extra $285.92 per month upon renewal. This is why it is important to have a long term plan when it comes to securing a mortgage type and term.

Using our Quebec mortgage calculator, you can see how different rates affect your mortgage monthly payments.

Understanding your Quebec mortgage closing costs

Here are all the closing costs you need to consider when budgeting for your new mortgage.

Quebec closing costs item
Description 
Fees, taxes and surcharges
Land transfer tax registration fee 
In Quebec, you are required to pay a land transfer tax (QLTT) ranging from 0.5% to 4% of the home purchase price, depending on where the land is situated in the province
For property value of up to $58,900, the fee is calculated at 0.5%.Between $58,900 and $294,600, a 1% fee has to be paid. For property value of over $294,600, you have to pay a fee of 1.5% (Source: D-15.1 - Act respecting duties on transfers of immovables)
Notary fees 
A legal professional like a Notary or lawyer is required to oversee the transaction and paperwork involved, ensuring everything is properly executed.
Notary fees typically range from $1,000 to $2,500 but this can vary based on the complexity of the transaction and the lawyer.
Home inspection fee
Home inspection, while not mandatory, is important for buyers because it helps during price negotiation on any immediate home renovations that may be required. 
Home inspections can cost anywhere between $400 and $1,200, depending on the size and condition of the home.
Surveying fee
Mortgage lenders usually require a professional survey of the property.
Surveyors in Quebec typically charge 1% to 3%
Mortgage default insurance
Mortgage default insurance is what lenders pay to protect themselves in case a borrower, who paid less than 20% down payment, defaults on mortgages. 
Mortgage loan insurance premium is calculated as a percentage of the loan and based on the size of the down payment. It can range from 0.6% to 6.3% of the LTV. Premium in Quebec is subject to provincial sales tax and it cannot be added to the loan amount.
Title insurance
Title insurance safeguards you from any ownership dispute and title defects, ensuring your legal ownership rights.
This one-time fee, typically ranging from $250 to $400, is paid to your lawyer.
Goods and Services Tax/Harmonized Sales Tax (GST/HST) and Provincial Sales Tax (PST)
In Quebec, you have to pay GST and PST
5% GST and 9.975% PST of purchase price which is usually already included in the price of the property.
Quebec Home insurance
Home insurance is a mandatory insurance product you have to purchase when buying a home.
Your Quebec home insurance premiums can be around $500-$2000 annually, depending on where the home is, the neighbourhood, crime rate, your personal insured belongings, etc.

Final thoughts on finding the best mortgage rates in Quebec

Whether you are buying your first home, or adding another property to your real estate portfolio, it is important to be aware of the challenges that may come your way. 

When planning a property purchase in Quebec, be sure to read the nuances of real estate and mortgage paperwork and understand your rate with your lender. As the economic landscape evolves, staying informed about market trends and maintaining financial flexibility will be crucial for navigating Quebec's mortgage market in the coming years. Comparison shopping mortgage rates could be a first step in this direction to avoid any future financial burdens.

Last updated October 22, 2024

Shivani Kaul is a seasoned freelance writer and editor specializing in insurance, mortgage, and finance.

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