FAQ - FREQUENTLY ASKED QUESTIONS ABOUT REAL ESTATE IN QUEBEC
ANSWERS TO YOUR FREQUENTLY ASKED QUESTIONS WHEN BUYING A PROPERTY
You often ask us these questions in connection with your real estate project or your move to Montreal. HP & Associés agency will help you with your real estate project and your new life in Montreal. Moving to Canada in the Belle Province always raises recurring questions about real estate. These few answers should enlighten you and help you move forward in complete serenity!
A collection of frequently asked questions when buying real estate in Quebec, and their concrete answers.
How long should the purchasing process take?
As fast as 45 days, and even 30 days in some cases. The process is quick, safe and well legislated. Of course, it is necessary to do the necessary verifications diligently and to take advice from professionals in order to complete your real estate purchase correctly.
I just arrived in Quebec... how soon can I buy a property?
Right now! There are no restrictions for non-residents, or newly arrived workers, to purchase real estate. If you choose to use financing for the purchase, the banking institutions will ask you for a 35% down payment. However, after 6 months in Canada, and having built a credit history, you may qualify for financing with a lower down payment.
What are the acquisition costs of a property?
The acquisition costs of a residential property in Quebec are generally around 2%. This includes inspection fees ($800), notary fees, which are a fixed amount regardless of the purchase price ($3000), and transfer duties, or "Welcome tax" (generally 1% to 1.5% of the purchase price).
Will I have to pay a capital gains tax on my home in Quebec?
The principal residence is exempt from capital gains tax for all Canadian residents. Other properties are subject to capital gains tax.
What are the recurring costs of owning a property?
Municipal taxes: annual tax to be paid to the municipality in which the property is located. This usually corresponds to 1% of the assessed value of the property. The tax rate varies from one municipality to another
School taxes: annual tax payable to the regional school board. The rate set for 2021-2022 is approximately $0.1054 per $100 of property assessment, this tax is applicable even if you do not have children in school.
Condo fees: If you have purchased a condominium, you will be required to pay monthly fees to ensure the management, maintenance, insurance and general good functioning of the building.
You will also have to pay the related fees such as electricity (Hydro-Quebec), gas if applicable, telecommunications, home insurance, snow removal, landscaping, etc.
Is the property sold with the kitchen equipment?
The properties in Quebec are sold with a fully equipped kitchen, i.e. with the necessary connections for its proper functioning, storage cabinets and work counters.
It is also very common for all appliances to be included in the sale (refrigerator, oven, microwave, dishwasher, washer and dryer). To be confirmed with your real estate broker.
Is the process different if we want to buy a house or buy in a condominium?
The process is essentially the same, with the exception of the verifications that must be made before the buyer declares himself satisfied with the suspensive clauses. We are thinking here of the examination of the co-ownership documents, the financial statements and the study of the minutes of the general meetings. Buying in a condominium rather than a house implies a very different choice and lifestyle. Both types of ownership are equally popular and the acquisition process is equally efficient for both..
Who should I refer to for the inspection of the property I wish to purchase ?
We strongly recommend that you use a building inspector who is recognized by the Quebec Association of Building Inspectors (QABI) and who has professional liability insurance against faults, errors or omissions.
How much do real estate brokerage fees cost?
Brokerage fees are usually paid entirely by the seller. Your real estate broker may offer additional services and can discuss the terms with you.
I've heard that the real estate market is very responsive in Montreal... is this still the case?
Definitely! As a general rule, the real estate market in Quebec is very active. On average, properties sell quickly and title can be transferred in 30-45 days. Properties that are put up for sale have multiple offers within the first few hours of being put on the market.
It is important to be accompanied by an experienced real estate broker and to be well informed beforehand in order to be very reactive when the time comes.
Is it more interesting to rent or buy a property?
If your financial situation allows it, it is certainly more interesting to buy a property, both financially and in terms of quality of life..
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