Find The Best Mortgage Rates In Quebec

Your Guide To Getting The Best Mortgage Rates In Quebec

If you are searching for the best mortgage rates in Quebec, is the top choice for borrowers across Canada. We have the resources and understanding of mortgages that can help you complete the process of securing a mortgage in Quebec.

About Quebec

Quebec is the biggest of Canada’s ten provinces in size and population, accounting for almost one-sixth of the country’s total land area. Its capital, Quebec City, is Canada’s oldest city. The term ‘Quebec’ is derived from an Algonquian phrase that means “where the river narrows,” and it welcomes tourists to Quebec City’s breathtaking vista of the magnificent St Lawrence River and the pastoral Orleans Island.

Key Facts About Quebec:

  • Montreal, the province’s primary metropolis, is Canada’s second biggest city, covering Montreal Island, Jesus Island to the north, and many villages on the St Lawrence River’s south coast.
  • The Chateau Frontenac Hotel is the most photographed in the world, according to Guinness World Records!
  • The province produces a significant amount of maple syrup.
  • Poutine was also invented in the province.
  • The Quebec Winter Carnival Event, often known as Carnaval, is the world’s largest winter festival.

Compare Quebec Mortgage Rates

Below is a table displaying the best rates from the five largest banks in the country. You can easily compare the rates offered by major Canadian lenders and banks, including TD Bank, RBC, CIBC, HSBC, and Scotiabank. We take care of the research to guarantee you the lowest possible rates upfront every time.

Compare Big Bank Rates In Quebec

It can be time-consuming and frustrating to compare rates by yourself. With us, you can find everything you need in one convenient location. Also, ensure that you consider the mortgage product term length and type when comparing rates. For instance, if you are in the market for a fixed-rate mortgage, it is essential to examine the range of terms given by various banks, such as three-year and five-year offerings, and not just the interest rate.

About The Quebec Housing Market

Most regions of Quebec were deemed hot markets in 2021 and 2022 due to a limited number of current listings, a large number of property transactions, and an extraordinary increase in sale prices.

Since 2020, low mortgage interest rates in Quebec, limited property availability, and high demand have resulted in price increases due to bidding wars. In 2021, the average price of a single-family house in Quebec climbed by 24% to $365,000, while condos increased by 21% to $328,000.

First-Time Home Buyer Programs In Quebec

In Quebec, various first-time home buyer incentives and programs are available to help ease the financial burden on first-time homeowners. These programs can help you save money on your down payment, which is frequently one of the most challenging aspects of buying your first home. 

The Montreal Home Ownership Program was launched in 2018 to give first-time home purchasers financial support in lump-sum payments. If the household has children, the land transfer tax (known as the welcome tax in Quebec) may be refunded in full. If the property was purchased before 2018, families with at least one kid are still eligible for the return if it has at least three bedrooms. The size of the lump-sum payment is determined by the purchase price of the property.

What are The Different Types Of Mortgages?

Open vs. Closed Mortgage

With an open mortgage, you can decide to prepay any amount of your mortgage at any moment without incurring a penalty. An open mortgage comes with a higher interest rate in Quebec as a trade-off for the freedom to pay it off whenever you choose.

However, a closed mortgage offers a more enticing interest rate in Quebec than an open mortgage because you are constrained in how much additional you may contribute to your mortgage each year.  

Fixed Mortgages

Over the course of a fixed-rate mortgage, your interest rate remains constant (1-10 years). The five-year fixed-rate mortgage is undoubtedly the most popular option among Canadian homeowners. Nevertheless, there may be better choices for some despite its popularity. Homebuyers who want a consistent payment schedule, stick to a strict monthly budget, or are generally more cautious are drawn to fixed-rate mortgages. 

Variable Interest Rate Mortgages

Throughout your term, a variable interest rate may rise and fall. Your rate may be lower than if you pick a fixed rate if you select a variable interest rate such as the 5-year variable rate in Quebec.

Two categories of variable mortgages exist a) variable rates with fixed payments and b) variable rates with variable payments.

Fixed Payments With A Variable Interest Rate

In general, despite changes in interest rates in Quebec, the payment under this option stays the same over time.

If the interest rate rises, less of your payment will go to the principal, and more will go toward the interest.

More of your payment goes toward the principal as the interest rates in Quebec decrease. This results in quicker mortgage repayment.

However, your lender may re-adjust your payments if the interest rates in Quebec rise above a specific percentage or trigger rate based on the terms of your mortgage contract.  Thanks to this increase in payments, your mortgage will be paid off at the end of the amortization period. 

Adjustable Payments With A Variable Interest Rate

If the interest rate increases, your payment amount changes if you have flexible payments. Each payment has a particular portion that goes toward the principal. As interest rates vary, the interest component also changes. After the term, you will know the principal you have paid.

Land Transfer Tax In Quebec

Land transfer tax rates – known as welcome tax in Quebec – are calculated based on the purchase price of your property, with a marginal tax rate range of 0.5%-1.5%. A municipal land transfer tax is also needed in Montreal (see details in the Montreal section below).

What Affects My Mortgage Rate In Quebec? 

Getting the lowest interest rate in Quebec depends heavily on factors like credit score and income. The riskier the borrower, the greater the interest rate could be due to these factors.  However, given that no-frills mortgage packages frequently provide rock-bottom mortgage rates in Quebec, it is undoubtedly not the most crucial factor in a mortgage. In other words, even if a borrower is eligible for the lowest rate, choosing the lowest-rate program frequently requires them to forego other advantages like prepayments and porting rights.

Instead of choosing the lowest mortgage rates in Quebec, there are several alternative options to save money throughout the mortgage, such as rounding up mortgage payments or making lump sum payments as bonuses or other income is received during the year. It’s crucial, nevertheless, to stay under your lender’s permitted yearly maximum for additional payments.

Down Payment

When applying for a mortgage, you must be aware of the down payment amount you put forth. Your down payment figure can determine whether or not you are required to add mortgage default insurance. If your down payment is less than 20% of the purchase price, then mortgage default insurance must be included in your regular mortgage payments. Additionally, if you decide to increase your downpayment past the 20% requirement, this could reduce your monthly payments due to lower interest rates and save money overall in interest payments. Knowing this crucial information from the beginning can help you make an informed financial decision when purchasing a home.

Amortization Period

Having a longer amortization term means your mortgage payment will be reduced since they are spread out over a lengthier period (the maximum is 25 years on mortgages with less than a 20% down payment and 30 years on mortgages with 20% or higher down payments). Higher interest rates in Quebec might accompany longer amortizations. As your mortgage is paid off over a longer period of time, you will pay more in interest. 

Property Usage

Purchasing a property that you plan to occupy is referred to as owner-occupied and is understood to be your primary dwelling place. Borrowers will usually pay higher interest rates in Quebec than on a personal house if they’re purchasing an investment property to rent. Due to this rationale, people often pay the mortgage on their principal property before any rental property. This is why lenders thus include more risk in the rates for rental properties.

Mortgage Type

Your mortgage rate will depend on the type of mortgage rates in Quebec: variable vs. fixed or open vs. closed. Each option is an individual decision based on several considerations.

For example, while comparing open and closed mortgages, it’s crucial to remember that open mortgages are more expensive due to the freedom to pay the loan off at any moment without incurring fees.

While fixed mortgages, such as the 5-year fixed rate in Quebec, have historically been more expensive than variable mortgages. Some borrowers still prefer the security of knowing their payment would remain the same throughout their mortgage.

Your Credit Score

A credit score of at least 680 is required to be considered by mortgage lenders in Quebec. To qualify for the lowest rates, borrowers’ scores should be at least 700 points, with a maximum score of 900. There are choices available for those with lesser scores, but you can anticipate higher interest rates in Quebec and shorter durations in these cases.

How Compare Mortgages Works

Our mortgage advisors are usually rewarded based on customer satisfaction with the service rendered. We’re always available to help you reach your goal of owning a home while guiding you through the uneasy home financing process. 

Generally, mortgage professionals who work with borrowers are aware of the best mortgage rates in Saskatchewan. However, only a few will give you that rate without making it a hassle. Here at Compare Mortgages, we are working to change the industry and its ideologies while providing the best rate upfront.

Learn About Rates & Mortgages In Quebec 

Our Frequently Asked Questions (FAQ) section is here to help you make educated decisions on the best mortgage rates in Quebec every time.

Why compare Quebec mortgage rates on Compare Mortgages?

Comparing mortgage rates in Quebec on Compare Mortgages guarantees that you get the most recent rate information, which can effectively help you save on your mortgage throughout your homeownership journey. 

When you are comparing mortgage rates in Quebec, ensure that you evaluate similar mortgage types (variable rate vs fixed rate) and terms (three or five years) so that you are not simply looking at rates; you are comparing similar products.

Mortgage rates and features see variations based on the specific lender, therefore, you would only get a clear comparison by evaluating similar offerings. 

Are Quebec mortgage rates higher than other cities?

Quebec mortgages today would see variations based on the lender or bank offering the product. With Compare Mortgages’ advanced technology, we get an accurate overview of the entire market at any point in time to guarantee that you always have access to the most current mortgage rates in Quebec. This way, you are able to make guided decisions about whether to leave your rate or lock it in. 

Should I get a fixed-rate or variable-rate mortgage in Quebec?

The choice of a variable rate, like the 5-year variable rate in Quebec or the fixed-rate mortgage hinges on how much risk you can tolerate and your level of comfort. 

If you have a preference for being able to know ahead how much mortgage payments you would be making monthly, then a fixed rate would be a good call given that payments remain the same. A fixed-rate remains the same through the term that you select (1-10 years).