Find the best mortgage rate in Quebec

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. 

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: November 2024 update

On November 15, 2024, the Canadian Real Estate Association (CREA) released its October housing market data, highlighting significant growth in Quebec's real estate activity. Sales surged, with 8,019 homes sold, marking a substantial 34.3% increase compared to the same period last year. The average home price also saw a modest rise of 8.2%, reaching $536,621.

New listings experienced a notable uptick of 11.6% year-over-year, with 12,593 homes entering the market. Despite this influx of new properties, the months of inventory — which measures how long it would take to sell all current listings at the current sales pace — decreased slightly to 4.8 months, down -1.0 months from last year. This indicates that while more homes are available, buyer demand is absorbing the supply quickly.

The heightened demand is further reflected in the sales-to-new-listings ratio (SNLR), which climbed by 10.8% to reach 63.7%. According to CREA, an SNLR between 45% and 65% suggests a balanced market, while a ratio above 65% indicates a seller’s market. With the SNLR now at the upper end of this threshold, buyers may face increased competition and potentially rising prices as the market continues to heat up.

Read more: National home sales rise 30% in October

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.

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:

1. Statistics Canada
2. APCIQ
3. CREA
4. Statistics Canada