Find the best mortgage rate in Quebec
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Current Quebec mortgage rates
The rate table shows 5-year fixed mortgage rates in Quebec. To compare other rate types and terms, click on the filters icon beside the down payment percentage.
As of:
Quebec mortgage rates: FAQ
What is the best mortgage rate in Quebec right now?
What type of mortgage should I choose in 2024?
When will mortgage rates go down?
Should I use a mortgage broker in Quebec?
WATCH: October 23, 2024 Bank of Canada announcement
Compare current mortgage rates across the Big 5 Banks and top Canadian lenders. Take 2 minutes to answer a few questions and discover the lowest rates available to you.
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Getting the best mortgage rates in Quebec
Jamie David, Sr. Director of Marketing and Mortgages
Getting a mortgage is a big financial commitment, but there are some sure-fire ways to get a better mortgage rate. Use our rate tables to compare the best mortgage rates in Quebec from the Big 5 Banks, credit unions and smaller lenders, all in one place at no cost or obligation to you.
Highlights from the October 23, 2024 Bank of Canada announcement
The Bank of Canada cut the Overnight Lending Rate by 50 basis points on October 23, 2024, bringing the rate down to 3.75%. This is the fourth consecutive rate cut since June, reducing borrowing costs by a total of 125 basis points.
The decision was driven by falling inflation, with CPI dropping to 1.6%, well below the 2% target. Economic concerns, including weak GDP growth and declining GDP per capita, also contributed.
Variable-rate mortgage holders and those with HELOCs will see their rates and payments decline further as the prime rate drops to 5.95%.
Fixed mortgage rates, though linked to the bond market and not directly affected by BoC rate changes, may also decrease. In anticipation of this rate cut, some lenders have already lowered their fixed rates, and more are expected to follow now that the cut is official.
The housing market has been sluggish throughout 2024, but this fourth rate cut could help bring more buyers off the sidelines, particularly with new mortgage policy reforms taking effect on December 15.
Looking ahead, another 50-basis-point cut is expected in December as the bank moves closer to its neutral range of 2.25% to 3.25%. But moving too quickly increases the risk of weakening the Canadian dollar, which may fuel inflation and create additional economic challenges.
Best mortgage rates in Quebec +
Rates updated:
Rate | Term | Type | Provider |
---|---|---|---|
3.99% | 3 years | Fixed | Big 6 Bank |
4.04% | 5 years | Fixed | Trust Company |
4.34% | 4 years | Fixed | Desjardins |
4.49% | 7 years | Fixed | Desjardins |
5.14% | 6 years | Fixed | Bank of Montreal |
Quebec at a glance
- Population: 8.6 million - 2nd most populous province in Canada
- Average Household Income: $59,822
- Percentage of Homeowners: 62%
Quebec housing market: October 2024 update
On October 15, 2024, the Canadian Real Estate Association (CREA) released its September data, highlighting increased activity in Quebec’s housing market. According to the data, sales activity saw notable growth, with 6,960 homes sold, up 19.5% compared to the same period last year. The average home price also rose modestly, up 6.7% to $538,190.
New listings saw a significant increase, with 12,369 homes entering the market, up 9.3% year-over-year. Despite this influx of new listings, the months of inventory — which reflects the balance between supply and demand — dropped slightly by -0.2 months, to 5.5 months. This suggests that while more homes are available, demand continues to outpace supply.
Quebec is approaching a balanced market, but still leans toward sellers due to persistent demand. The sales-to-new-listings ratio increased by 4.8%, reaching 56.3%, near the upper end of CREA’s definition of a balanced market (40% - 60%). While the market has not yet tipped fully into seller’s territory, it remains competitive for buyers.
Read more: National home sales rise in September following summer rate cuts
What's the best mortgage rate in Quebec?
With nearly a quarter of Canada's population, Quebec is home to an extremely vibrant and competitive mortgage market. All of the Big 5 Banks are here, with the Bank of Montréal (BMO) and the Royal Bank of Canada (RBC) both maintaining head offices in the province. Quebec is also the home of Canada's sixth largest bank, National Bank of Canada, and the Laurentian Bank of Canada. Credit unions are extremely popular in Quebec, which is home to the Desjardins Group, the largest federation of credit unions in North America. Numerous mortgage brokerages also vie for your business.
With this plethora of options, it's crucial to bear in mind that the ideal mortgage for you is not always the mortgage with the lowest rate. While a low rate is important and can save you thousands of dollars, you also need to make sure that the terms, conditions and features of your mortgage suit your needs.
What factors affect the mortgage rate I get?
Comparing mortgage products is an important part of getting the best possible mortgage rate, but you’ll still need to personally qualify for your final offer. There are several factors that will affect the rate you’re able to qualify for. Here are some of the major ones:
- Down payment: In Canada, property purchases require a minimum down payment between 5% and 20%, depending on the purchase price. However, if your down payment is less than 20%, you’ll have to pay for mortgage default insurance (also known as CMHC insurance). This will cost you more, but, as it makes your mortgage less risky from your lender’s perspective, it generally results in a lower mortgage rate. Note that even with a lower mortgage rate, it's still worth avoiding the cost of mortgage default insurance, so you should always aim to have a down payment of at least 20%.
- Amortization period: Mortgages with amortization periods of more than 25 years generally have higher interest rates. This is because this type of mortgage can't be insured with mortgage default insurance. Despite this, mortgages with longer amortization periods can be more financially manageable, because they mean a lower monthly payment for the homeowner.
- Property purpose: You’ll generally be offered a higher rate on a mortgage for a property that you don’t plan to personally live in.
- Mortgage type: A refinanced mortgage, or a mortgage with features like a home equity line of credit (HELOC), will typically come with a higher rate than a mortgage for a renewal or new purchase.
- Credit score: A low credit score may mean you cannot get approved by an ‘A lender’, like a big bank or credit union. If you’re forced to take a mortgage from a ‘B lender’, you’ll be charged a higher rate. The majority of homeowners in Canada have a strong credit score, so most mortgages are done with ‘A’ lenders.
Historical trends in Quebec mortgage rates
Quebec mortgage rates rise and fall, as do rates across Canada. Here’s a quick snapshot of the lowest mortgage rates of the year in Canada over the past few years, to give you an idea of where we are today.
Source: Ratehub Historical Rate Chart
Quebec land transfer tax
Like most other provinces in Canada, Quebec charges a land transfer tax on all property purchases. In Quebec, it's also called the taxe de bienvenue. Land transfer taxes are based on a percentage of the purchase price.
Below are Quebec's marginal land transfer tax rates outside of Montreal.
Montreal land transfer tax
Quebec allows for municipalities to set additional land transfer tax rates for higher property price brackets. This is only used in Montreal, where additional marginal tax rates are in place, as shown in the table below.
The bracket thresholds for Quebec land transfer taxes are indexed annually, based on the Quebec consumer price index.
Quebec first-time home buyers
Unlike some provinces, Quebec doesn't offer a rebate of the land transfer tax for first-time home buyers. However, Quebec's first-time home buyers are still eligible for first-time home buyer programs at the federal level. These can still result in thousands of dollars of savings, so it's well worth checking them out.
For more information, check out these helpful pages!
- Best Mortgage Rates in Canada
- Best Mortgage Rates in Montreal
- 5-Year Fixed Mortgage Rates
- 5-Year Variable Mortgage Rates
- Variable or Fixed Mortgage Rates
- Amortization Calculator
- Mortgage Term vs. Amortization
- Land Transfer Tax
- New to Canada Mortgages
- First-Time Home Buyer Programs
Sources:
Jamie David, Director of Marketing and Head of Mortgages
Jamie has 15+ years of business and marketing experience. She contributes her mortgage expertise to The Globe and Mail and authors Ratehub’s mortgage and homebuying guides. read full bio