Closing Costs When Buying a Home in Montreal

Closing costs are expenses paid beyond your down payment to legally complete a home purchase.

In Montreal, buyers should typically budget 2% – 3.5% of the purchase price.

Example:

$500,000 home → roughly $10,000–$17,500 closing costs.

The Main Closing Costs

Welcome Tax (Land Transfer Tax)

Quebec’s land transfer tax is commonly called the “Welcome Tax.”

Paid at closing through the notary.

Montreal Welcome Tax Rates (Approximate)

First $58,900 → 0.5%
$58,901–$294,600 → 1%
$294,601–$589,200 → 1.5%
Higher tiers apply above this range.

Example:

$500,000 home ≈ $6,500 tax

Notary Fees (Instead of Lawyers)

Quebec uses notaries for real estate transactions.

Typical costs:

$1,200 – $1,800 including disbursements.

They handle:

• Title verification

• Mortgage registration

• Funds transfer

• Property registration

Title Insurance

Often optional but commonly recommended.

Typical cost:

$250 – $400

Property Tax & Condo Fee Adjustments

Buyer reimburses seller for prepaid amounts.

Mortgage Costs

Appraisal: $300 – $500

Mortgage Insurance: added to mortgage if applicable.

Home Insurance

Required prior to possession.

Interest Adjustment

Interest payable between closing and first payment date.

Costs Some Buyers Forget

• Moving taxes (Montreal moving-day logistics)

• Condo documents

• Immediate repairs

Experts recommend saving 3–4% total.

Simple Rule of Thumb

Budget about $12,000 per $500,000 purchase price in Montreal.