Complete List of Fees Not to Forget When Buying a House in Quebec

Buying a house in Quebec is an exciting step, but it comes with various fees that are often overlooked. To help you plan your budget, here is a complete list of expenses to anticipate:

1. Down Payment

The down payment is the amount you must pay when purchasing your home. It represents a portion of the total cost of your property and is generally at least 5% of the property value.

2. Appraisal Fees

A professional appraisal is sometimes required by financial institutions to obtain a mortgage loan. It can also be done to know the market value of the property before purchase. Depending on the building and location, an appraisal costs at least $500.

3. Pre-purchase Inspection Fees

It is strongly recommended to hire a building inspector to ensure there are no hidden defects. Inspection fees cost at least $500.

4. Notary Fees

In Quebec, the closing of a real estate transaction takes place at the notary's office. In principle, the buyer chooses the professional who will prepare the deed of sale, register it in the land registry, and perform all necessary verifications. Estimating the total amount is difficult, as no mandatory rate is imposed by the Quebec Chamber of Notaries, and it can vary greatly depending on the type of property and the region. However, the fee agreement or professional mandate specifies the costs allocated to the file. If changes occur, the buyer must be informed throughout the process. At this stage, the bill can easily exceed $2,000.

5. Welcome Tax (Transfer Duty)

The municipality collects a tax when you complete the sale of a property. This corresponds to 0.5% for the bracket from 0 to $51,700, 1% for the bracket from $51,700 to $258,600, and 1.5% for the bracket of $258,601 and above.

6. Property and School Taxes

As a new owner, you will have to pay municipal and school taxes to finance public services. These are calculated based on the value of your property. This value is estimated during a municipal assessment. At the time of sale, the notary will calculate your share of taxes to pay based on the purchase date of your home.

7. Home Insurance

Home insurance protects your property in case of fire, theft, or vandalism. It also covers civil liability in case of bodily or material damage. Expect to pay between $300 and $500 per year to subscribe.

8. Moving Costs

The price of a mover varies between $50 and $250 per hour depending on the moving date. You should also budget $300 for truck rental and pizza for the friends who helped you.

9. Condominium Fees

When you move into a condominium, you must pay condominium fees related to building maintenance. This can include, for example, snow removal, heating, or plumbing. Costs vary depending on the building and activities.

10. Sales Taxes for New Properties

GST and QST also apply to the sale price when purchasing a house. They represent approximately 15% of the property value. However, you may benefit from several partial refund or exemption conditions.

11. Renovations

Even recent homes sometimes require renovation work, such as a coat of paint, caulking doors and windows, or new ceramic in the bathroom. If you wish to undertake major renovations, it could cost you $25,000 to $75,000 to redo your kitchen and $10,000 to redo your bathroom.

12. Internet and Cable Connection

When you move into a new home, you must pay for an internet connection and cable, if necessary. However, it is also possible to pay the same fees as usual by asking your provider to simply change your address.

13. Life Insurance

Life insurance reimburses all or part of your mortgage loan in case of death of your spouse. It is optional and its cost is variable.

In Conclusion

Buying a house represents a significant investment that goes well beyond the purchase price. By taking all these fees into account, you can better plan your budget and avoid unpleasant surprises. Don't hesitate to consult professionals to get accurate estimates tailored to your situation.