An Overview of the Quebec Mortgage Market – Mortgage Broker Dorval

Quebec has enjoyed slow, steady real estate appreciation over the past few years. This is a sharp contrast from the overheated Toronto and Vancouver real estate markets. It is quite different from Alberta’s boom and bust real estate market. Quebec’s housing market has slowed but remains stable. This is partially due to differences between Quebec and the rest of the country. But what makes the Quebec mortgage market unique?

Provincial Regulation

Quebec’s credit unions didn’t have to face the same stiff mortgage rules Canada’s big banks did in 2018. This resulted in mortgage broker Dorval based or in other Quebec neighborhoods to boom. They were able to offer mortgages to homebuyers across Canada who didn’t qualify for loans from the big banks. The Quebec credit unions had to abide by federal rules on mortgage insurance, but they were not obligated to perform the B-20 stress test. Note that the mortgage broker didn’t use a stress test may be obligated to use it in the future, if the federal government imposes it on Quebec.
This resulted in the province not seeing a drop in sales and price activity due to the mortgage stress test. More importantly, it brought Quebec’s mortgage brokers to national prominence. They’re sometimes issuing mortgages for people in other provinces as well as meeting local demand.
Quebec never had enough foreign buyers to enact regulations restricting foreign property ownership. This means they didn’t see a decline in property purchases the way Vancouver did when it passed laws raising transfer taxes on non-resident buyers or strict rental controls.

The Multi-Family Market

Montreal is the second largest housing market in Canada. However, it is structurally different from other major Canadian cities. The Quebec real estate market is dominated by low-rise multiplexes. This means there are far more townhomes and rowhouses than single family homes. That makes housing somewhat cheaper for locals. For example, the median home price in Quebec was around 400,000 dollars in 2018 while the average Toronto home was around 750,000 dollars. Yet this gave Quebec more room for appreciation. Home prices rose about 10 percent in 2018. That may decline when the condo towers being built in downtown Montreal hit the market.
At the same time, the sheer number of multi-family low-rise buildings creates more opportunity for real estate investors. The challenge is finding profitable properties. A second challenge is finding lenders who will loan you money to buy it. Consult with a mortgage broker Dorval investors recommend so you can find the best rates for a real estate investment loan.

The Impact of Caisse Populaire on the Mortgage Market

Caisse Populaire are similar to credit unions. They are non-profit organizations that offer low interest rate loans to members. One benefit of the presence of caisse populaire in the Quebec mortgage market is that they create more low-cost competition for mortgage loans. This allows Quebec mortgage brokers to tap into a larger, cheaper pool of mortgage lenders. This often allows mortgage customers to save quite a bit of money. Furthermore, credit unions and caisse pouplaire tend to focus on the needs of the community and its members. They may offer low to no interest loans to help the dispossessed buy a permanent home or investors renovate property to provide affordable housing. Caisse populaires are known for being flexible when approving loans, and this increases the odds of your loan being approved, too. They also provide exemplary customer service.

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