Property-Buying in Quebec: 5 Essential Facts you should know

Best Mortgage Montreal will show you how to get a low interest rate mortgage and at the same time save on the costs of your notary fees and other closing expenses.

Talk to one of our expert brokers today.

Phone 1 (514) 994-1030 or 1 (514) 819-9181 to find out more.

Buying a new property in Canada is not the same everywhere throughout the country – in fact the process differs from province to province. Here’s a quick guide to the essential facts you’ll need to know before buying a property in Quebec.

1 Down-payment

The minimum down-payment for property in the province of Quebec is 5 per cent of the full purchase price – in other words, if you agree to buy the property for $250,000 you will have to pay out at least $12,500 as a down-payment.

2 Amortization

The maximum length of any mortgage in Quebec (what is known as the amortization or reimbursement period) is 25 years.

3 Pre-approval

Many homeowners in Quebec are only willing to show you their properties if you have already been pre-approved for a mortgage. This means that your financial situation has been pre-assessed by a lending institution and that you have been informed of the maximum size of loan that you can expect to be able to borrow. If you don’t have pre-approval you may only be allowed to inside to see the property at an open house viewing.

4 Getting pre-approval for your mortgage

Pre-approval for a mortgage is helpful so that you know exactly how much you can plan to spend on your new property – and it shows sellers that you are serious in intent.

Mortgage brokers can be useful in facilitating the mortgage pre-approval process. They work daily with the many different types of mortgages available on today’s market from a wide range of financial institutions and have a detailed overview of the terms on offer and the local Quebec property market.

As intermediaries between you and the financial institutions that may be willing to finance your property transaction, mortgage brokers are in a good position to compare offers and negotiate a good deal on your behalf.

Find out more about how our experienced Quebec mortgage brokers can help get you the best deal by taking a look at:

5 Transferal of Ownership

In Quebec, as the buyer you have to select and pay the fees of the notary who will be responsible for finalizing the transfer of ownership – in other words your notary will pay the seller, register the property in your name and hand you the final deed of sale and the property keys.

At Best Mortgage Montreal we can show you how to save on your notary and other fees when you negotiate your mortgage through one of our professional brokers.

Call us on 1 (514) 994-1030 or 1 (514) 819-9181 to find out more.

A few more useful tips…

1 Researching the Quebec property market

Aim to get as much information as possible before deciding which property and which area are most suitable for you and your life style. There is plenty of information out there – you just need to take the time to investigate and figure out what aspects are most important to you.

– Sign up with one or more real estate broker to see what they have to offer.

– Don’t forget to browse online.

– Make the most of open-house viewings – this is one good way to view properties even if you haven’t been pre-approved for a mortgage.

– Walk around the neighbourhoods that most appeal and jot down the telephone numbers of properties you like that display sign-boards showing they are up for sale. Then call to schedule an appointment for a viewing.

2 Making an Offer to Purchase

An offer to purchase is a formal demonstration of your serious interest in purchasing a specific property. This written document will specify:

– the purchase price you are willing to pay

– date of occupancy

– inclusions (domestic appliances, curtains and drapes, garden plants, etc)

– all the conditions you expect to be fulfilled (eg, plumbing/roof and any other repairs, removal of hazardous substances (asbestos, mold), and any other actions that need to be completed prior to the sale – see more about his below.

The home owner can then choose to accept or reject your offer or in many cases will present a counter-offer. Once you both agree on all the details and sign the offer to purchase it becomes a binding contract for both you and the home owner.

3 Conditions

Most offers to purchase come with clearly stipulated conditions attached which both home owner and buyer agree to fulfill before the sale can be finalized. Conditions allow both you and the seller to be upfront about what you expect from the transaction so that both parties understand fully and declare their willingness to fulfill their obligations.

Some of the most common conditions are:

Subject to inspection: So that you can be sure that electricity, plumbing, roof, drainage and other systems and structures are in a fit state and avoid unwelcome surprises

Subject to lawyer’s approval: So that both you and the seller can discuss the offer to purchase in detail with your respective lawyers.

Subject to bank appraisal: So you don’t end up paying more than the property is truly worth.

Subject to condo documents: For example, if you are buying a condo and need to have your lawyer inspect all financial statements, byelaws, estoppel (fees) certificate, etc.

Subject to financing: ie, you have to show proof that you have been approved for a mortgage

– Subject to you, the buyer, selling your home

Be sure to discuss conditions in full with your real estate agent and/or lawyer before making your offer to purchase.

For more advice and assistance in the ins and outs of purchasing a property in Quebec please feel free to contact our brokers at Best Mortgage Montreal who will be pleased to share their expert knowledge with you.

Telephone 1 (514) 994-1030 or 1 (514) 819-9181 to speak to us today.

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