Find the best Montreal mortgage rates
See the best Montreal mortgage rates, all in one place.
Current mortgage rates in Montreal
Comparing mortgage rates in Montreal
Canada’s second-largest city and the largest city in the province of Quebec, Montreal is a vibrant, multicultural blend of European and North American cultures. It’s the second largest French-speaking city in the world, after Paris, and is also a major cultural hub. Montreal is home to universities such as McGill and University of Montreal and boasts a strong economy thanks to the presence of AI, tech, pharma, aerospace and financial service companies.
Montreal has a population of 4.4 million, only second in the country to Toronto, which had over 6.6 million inhabitants in 2022. Over 1.76 million people call the City of Montreal home. Montreal’s real estate market offers a range of property types, from condos and townhouses to single family homes to address the needs of this growing population. The benchmark home price in Montreal was $544,300 in October 2024, 6% higher compared to $513,300 in October 2023, but slightly lower than the national average of $696,166, according to CREA.
Fixed-rate mortgages have been a common choice for borrowers in the last two years as a result of steep rate hikes by the Bank of Canada. Fixed rates offer stability that give some buyers comfort in volatile housing markets, while variable rate mortgages appeal to buyers looking to gain advantage of potential interest rate declines.
The best mortgage rate for you in Montreal will be unique to your financial situation, such as your income, debt situation and personal financial requirements. Reach out to the different lenders available in the market and ask for the rate best suitable to your unique needs.
How to get the best mortgage rate in Montreal
Getting the best mortgage rate in Montreal requires research, planning and understanding of your financial health, the local real estate landscape and mortgage lenders’ terms. Here are some tips that can help you secure a favourable rate:
- 1.
Improve your credit score: Lenders appreciate borrowers who have a higher credit score (700+) because it protects them from future loan default. A higher credit score can qualify you for a better, often lower, rate. Pay down your debt, keep credit utilization low and ensure you make all credit cards and debt payments on time.
- 2.
Save for a larger down payment: By making a downpayment of 20% or higher, you can avoid paying the premium for mortgage insurance. This will lower your overall borrowing costs. There are down payment assistance programs (DPAPs) available to homebuyers in Montreal.
- 3.
Compare multiple mortgage lenders and rates: Shop around and compare different mortgage lenders, their rates and mortgage terms on offer. This includes banks, credit unions and online mortgage providers. You’ll be surprised by comparison shopping if you don’t give in to the first rate that’s offered to you.
- 4.
Get pre-approved: Lock in a rate, especially if it’s the lowest mortgage rate you’re getting at that time. Lenders can lock in a rate for 90 to 120 days that can help you get clarity and leverage a lower rate during the home buying process, especially in a rate hike scenario.
- 5.
Consider different mortgage types: Research on all the rates available to you, from fixed rate to variable and hybrid rates. Evaluate which rate and terms suit your financial situation best.
- 6.
Negotiate your mortgage terms: Many lenders are open to negotiating better rates or terms, especially for qualified borrowers. Never accept the first offer you get. Always reach out to more than one lender and push for a better rate or terms.
- 7.
Check for special programs and rebates: The federal and provincial governments in Canada often have special programs and rebates for homebuyers, especially first-time homebuyers. Taking advantage of these offers can help you save on tax and other costs over a period of time.
- 8.
Consult a mortgage broker: A seasoned mortgage broker will have access to a range of lenders and can often find competitive rates or terms tailored to your needs.
City of Montreal’s closing costs
Homebuyers must factor in the costs they will have to incur at the time of closing, in addition to their down payment. The most common closing costs include land transfer tax, lawyer fee, home inspection, appraisal and insurance. Let’s understand them better:
- Welcome Tax or Land Transfer Tax: When purchasing property in Montreal, a land transfer duty or welcome tax will be applied at the time of closing. Montreal has higher land transfer tax rates compared to the rest of the province, ranging from 0.5% to 4%, depending on the property’s price. Find more details about Montreal's Land Transfer Tax here.
- Mortgage default insurance (and PST): If you obtain an insured mortgage, you’ll be required to pay mortgage default insurance or mortgage insurance. The main mortgage insurance providers in Canada are CMHC, Sagen and Canada Guaranty. Although the insurance premium can be added to your mortgage, the provincial sales tax (PST) on the premium must be paid upfront, and in Quebec, this tax rate is 9%.
- Legal fees: A Quebec-licensed real estate lawyer or notary must complete the property purchase transaction. Legal fees generally range from $800 to $2,000, depending on the size of the property and the complexity of the transaction.
- Adjustment fees: A buyer is reimbursed by the seller for any prepaid expenses, such as utilities, maintenance or property taxes. The adjustment cost depends on the timing of the purchase.
Rebates for Montreal’s first-time home buyers
Montreal first-time home buyers can take advantage of various rebates and money from the city and federal governments. Here are some of the programs they can access.
City rebates
Montreal’s Home Purchase Assistance Program allows eligible applicants to receive a lump sum when they purchase a new property. Additionally, a refund of real estate transfer tax (welcome tax) is given when a buyer purchases an existing property. First-time home buyers who purchase a new home (all types of households) are eligible for this assistance. First-time home buyers who buy an existing home can access this benefit but they must have at least one child under 18. Experienced buyers who want to take advantage of this financial assistance on a new or existing home, must have at least one child under 13.
Federal rebates
- The Home Buyer’s Plan lets you withdraw up to $60,000 from your RRSP tax-free to buy your first home.
- The First Home Savings Account for first-time home buyers allows you to save up and invest on a maximum of $40,000 tax free, which can be used towards downpayment or closing costs. There’s an annual contribution limit of $8,000 in this account.
- GST/HST rebate for first-time home buyers on eligible properties.
Frequently asked questions about Montreal mortgage rates
Got more questions on Montreal’s housing and mortgage market? We’ve answered them.
Shivani Kaul is a seasoned freelance writer and editor specializing in insurance, mortgage, and finance.
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