How to Buy a House in Montreal in 2025

This Page's Content Was Last Updated: May 26, 2025
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What You Should Know

  • Buying a house in Montreal includes plenty of preparation work, such as improving your credit score, reducing debt, and doing your research.
  • Scout out neighbourhoods based on location, amenities, and price.
  • While home prices in Montreal are more affordable than Toronto and Vancouver, you’ll still need to come up with a sizeable down payment.
  • Work with a real estate agent experienced in the Montreal real estate market, as they’ll guide you through the homebuying process with no direct cost to you.
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montreal skyline
Caption: Montreal panorama at dusk as viewed from Mount Royal

Montreal has something for everyone who wants to call it home, from its vibrant culture to its plentiful green spaces. The city’s excellent public transportation system, extensive network of bike lanes and pedestrian-friendly streets make it easy to get around. And its top-ranking educational institutions, from universities such as McGill, Concordia, and the University of Montreal, to a variety of CEGEPs, offer many postsecondary education options.

More and more Canadians are looking to buy a home in Montreal, enticed by affordable home prices and rent as well as the lowest cost of living in Canada out of the major cities. For those looking to move to Montreal, this 10-step guide will help you understand what you need to know about buying a home in Montreal, Quebec.

It might come as a surprise to some that home prices in Montreal are quite affordable when compared to other urban centers, especially considering that Montreal is Canada’s second biggest city. Canada’s biggest and third biggest cities, Toronto and Vancouver, are well known for their expensive real estate markets, but Montreal offers a much more affordable option for those looking to purchase a home.

Although buying in Montreal is far cheaper than other major cities, it's still a significant expense to account for. That’s why it’s important to research the local market, understand the different neighborhoods in Montreal, and figure out which ones best fit your needs and budget.

The first step to buying a home in Montreal is doing your research about home prices. This will give you an idea of what’s available and how much you should expect to pay. Can you afford to buy a house in Montreal? Let’s take a look to see what income and down payment you would need in order to afford a home in Montreal.

Just How Cheap Are Homes in Montreal?
Comparing Buying a Home in Montreal vs. Toronto and Calgary
Typical Home Price
Minimum Income Needed
Minimum Down Payment Needed
Monthly Mortgage Payment

10 Steps to Buying a Home in Montreal

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Step 1: Saving for a Down Payment

While Montreal homes are affordable, you’ll still need to have tens of thousands of dollars saved up for a down payment. Generally, the more you’re able to save up for a down payment, the less money you’ll have to borrow as a mortgage. You’ll want to start saving money as soon as possible, even if you’re not looking to buy a home anytime soon.

The best way to start saving for a down payment is by creating a budget and tracking your expenses. This will help you figure out how much money you can set aside each month in order to reach your savings goal, or how much you need to reduce your spending to have enough money to save up.

The minimum down payment to buy a home in Montreal is the same as in the rest of Quebec and Canada: a minimum of 5% of the home’s purchase price if it’s under $500,000 or a minimum of 20% of the home’s purchase price if it’s $1.5 million or over. For homes between that price range, the minimum down payment in Montreal is 5% of the portion under $500,000 and 10% on the portion over $500,000.

CMHC Insurance 💡

There’s an additional cost to buy a home in Montreal if you were to make a down payment of less than 20%: CMHC insurance or a similar mortgage default insurance premium. This would cost you between 2.8% to 4.0% of the total amount of your mortgage.

The First Home Savings Account (FHSA) can be a good way to save money for a down payment, as it combines the tax benefits of an RRSP and a TFSA. This gives you a tax deduction when you contribute and lets you withdraw the money tax-free in order to buy a home.

Those that have maxed out their FHSA contributions may want to put their additional savings into their TFSA or RRSP. One feature of the RRSP is the Home Buyers' Plan, which allows for a withdrawal to purchase your first home. However, you’ll need to repay the withdrawn amount back into your RRSP in the future.

Down Payment Assistance in Montreal💡

There are down payment assistance programs (DPAPs) available to homebuyers in Montreal. This includes first time home buyer incentives as well as government and municipal funding options.

The City of Montreal's Home Ownership Program provides financial assistance to first-time home buyers or those with children, to purchase a new or existing home in Montreal. For new homes, you could receive between $5,000 up to $22,500, based on the location, if you have children, and the property's environmental certification. For existing homes, you could receive a rebate on the home's real estate transfer tax (welcome tax), from $5,000 up to $7,000.

Step 2: Build Up Your Credit Score and Income

When it’s time to apply for a mortgage in Montreal, something that lenders will look at closely are your financials. This includes things like your credit history, income, and existing debts. When it comes to your credit and income, history is important, as lenders want to know that it has been good in the past and will likely be good in the future.

For mortgages in Montreal, just like the rest of Quebec and Canada, you’ll want to have a credit score of at least 600. You should try to improve your credit score above 680 as a higher score may qualify you for lower mortgage rates or a larger selection of lenders to choose from. This may reduce the cost of your mortgage.

If your credit score and/or income are too low to qualify for a mortgage from a bank, you may need to go with a private mortgage lender or alternative lenders in Montreal instead. While you may still be qualified for a private mortgage, their private mortgage interest rates can be significantly higher than rates offered by the major banks.

Another thing to consider is whether your income is high enough to buy a home. Your income and debt will be tested to see if you can still afford your mortgage payments should rates rise. This is done through what’s called a mortgage stress test, which banks are required to conduct. Failing the stress test will make you ineligible for a mortgage from a bank, but you may still qualify for a mortgage with a private lender.

The final history component that lenders check is your employment history. You’ll want to have been employed for at least two years prior to getting a mortgage, with a reasonable expectation that your employment will continue in the future. If you’re self-employed, this might mean having two years of consistent self-employment income.

Step 3: Check Your Mortgage Affordability

Knowing how much money you can borrow is important in order to know what kinds of homes that you can afford. Your mortgage affordability is based on your debt service ratios, called gross debt service (GDS) and total debt service (TDS), which measures your monthly income versus your monthly payments, such as your mortgage payment, housing costs, and debt payments.

There are limits to how high your debt service ratios can be. The maximum limit that is allowed by lenders determines how much you can afford to borrow. Each lender may set their own limits, but these limits generally follow the rules set by mortgage insurers, such as the CMHC's (Canada Mortgage and Housing Corporation) 39% limit for gross debt service and 44% limit for total debt service.

In order to afford a larger mortgage, you’ll need to either increase your income, reduce your debt payments, or both. Knowing your mortgage affordability allows you to know your maximum affordable home purchase price.

Step 4: Locate a Neighbourhood

bio
Caption: Montreal Biosphere

Montreal is divided up into neighbourhoods that are called boroughs, with each borough having a distinct personality. From the densely populated Plateau-Mont Royal to the surrounding suburbs around the island, there’s something for everyone in Montreal.

When choosing a neighbourhood in Montreal, just like with any other city, there are things that you should consider. This might include nearby schools, grocery stores, shops, restaurants, public transit options, location, walkability, and even the safety of the neighbourhood.

At the bottom of this page, we’ve displayed neighbourhood stats on population, median household income, unemployment rate, most common home type, percentage of residents that are post-secondary educated, public transit users, and immigrants, as well as the median monthly shelter cost for owners and renters.

Comparing Montreal Neighbourhoods (2021 Census)

Highest and Lowest Stats
Francophones
10%
Pierrefonds-Roxboro Côte-des-Neiges–Notre-Dame-de-Grâce
53%
Montréal-Nord
Anglophones
2%
Anjou
27%
Côte-des-Neiges–Notre-Dame-de-Grâce
Bilingual
41%
Montréal-Nord
72%
L'Île-Bizard–Sainte-Geneviève
Working Language
English (51%)
Côte-des-Neiges–Notre-Dame-de-Grâce
French (83%)
Anjou
Immigrants
22%
Rosemont–La Petite-Patrie
52%
Saint-Laurent
Median Monthly Housing Cost (Owners)
$376,000
Rivière-des-Prairies–Pointe-aux-Trembles
$900,000
Outremont
Median Monthly Housing Cost (Renters)
$785
Montréal-Nord
$1,360
Outremont
Most Common Home Types
Apartments (96%)
Ville-Marie
Detached Homes (62%)
L'Île-Bizard–Sainte-Geneviève
Population
18,885
L'Île-Bizard–Sainte-Geneviève
170,583
Côte-des-Neiges–Notre-Dame-de-Grâce
Post-Secondary Education
49%
Montréal-Nord
78%
Le Plateau-Mont-Royal
Unemployment Rate
5.0%
Rivière-des-Prairies–Pointe-aux-Trembles
8.3%
Le Plateau-Mont-Royal
Peak Home Construction Periods
1960 or before (70%)
Outremont
1981 - 1990 (29%)
Rivière-des-Prairies–Pointe-aux-Trembles
5-Year Population Growth
0.8%
Ahuntsic-Cartierville
8.2%
Le Sud-Ouest
Population Density
800/km2
L'Île-Bizard–Sainte-Geneviève
13,015/km2
Le Plateau-Mont-Royal
Median Age
34.0 years
Le Plateau-Mont-Royal and Ville-Marie
44.8 years
L'Île-Bizard–Sainte-Geneviève
Median Income
$32,400
Montréal-Nord and Villeray–Saint-Michel–Parc-Extension
$50,400
Outremont
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Step 5: Estimate Closing Costs

As a buyer, closing costs are fees that you’ll need to pay for when purchasing a home. The most common closing costs for home buyers in Montreal include land transfer tax, legal fees, and any necessary home inspections or appraisals.

In Montreal, land transfer tax is commonly referred to as the welcome tax. Montreal land transfer tax rates start at 0.5% and go up to 4.0% based on the purchase price of the home. First-time home buyer programs in Montreal may provide a rebate on this tax, or provide other financial assistance, if you qualify.

Estimating your buyer closing costs is a good idea to ensure that you have the funds available when it comes time to close on your home. Your real estate agent or lawyer will help you figure out what closing costs you’ll need to pay, as well as provide estimates for each of them.

How Much Are Closing Costs in Montreal? 💡

You should aim to have around 3% to 4% of your home’s purchase price saved up to cover closing costs associated with your home purchase in Montreal.

Step 6: Get a Mortgage Pre-Approval

While you may have already estimated your mortgage affordability, you should still aim to get a mortgage pre-approval before starting your home search. Getting pre-approved for a mortgage gives both you and your potential home sellers the confidence that you’ll be able to obtain financing for the purchase and go through with the deal. As a buyer, it also gives you a maximum purchase price limit to stay under, through the mortgage amount that your lender has pre-approved.

Getting a mortgage pre-approval also allows you to lock in a mortgage rate, sometimes for 120 days or even longer, which means that you can search for homes while having a guaranteed mortgage rate.

Lock these mortgage rates until December 9, 2025 (130 days)
5-Year Fixed5-Year Variable
%
%
Lock these mortgage rates until November 29, 2025 (120 days)
TermRate
1-Year Fixed
%
2-Year Fixed
%
3-Year Fixed
%
4-Year Fixed
%
5-Year Fixed
%
5-Year Variable
%

Step 7: Find a Real Estate Agent

A real estate agent is your advocate when it comes to buying a home. With their expertise and guidance, real estate agents can help you find the perfect home. Best of all, there isn’t a direct cost to using a real estate agent to buy a home either! That’s because in Montreal, real estate agent commissions are paid by the seller of the home. This means that you get to have a professional on your side working for you without it costing anything out-of-pocket.

Finding a real estate agent means more than just looking up a name on the internet. It’s important to do your research and find an agent with expertise and experience working in Montreal, as well as one who has a good reputation. Reviews from past clients can be a great way to get an idea of what it’s like to work with a particular real estate agent.

Along with a real estate agent, you will also need to find a notary.

Step 8: Finding Your New Home

Searching for your new home is probably the most exciting part, but also the most daunting. Your real estate agent can help you narrow down your search based on price range, location, and other criteria that are important to you. Agents have access to a variety of listings, both listed and unlisted in the market, that can help you find the perfect property. You can still search for homes on your own as well, even while working with an agent.

Once you’ve found a few properties that you are interested in, you’ll need to dig in deeper and examine them carefully besides just having a walk-through tour of the home. A home inspection is generally recommended and worth the cost, as they can help identify potential problems and defects so that you can make an informed decision about whether or not to buy a particular property. Sellers may provide a warranty against defects on the home.

Step 9: Making Offers

In Montreal, when you do decide to buy a home, you’ll need to make an offer on the home to the seller. A home offer usually includes details about the price you’re willing to pay and any other conditions that may affect the seller's decision.

If you tie conditions to your purchase of the home, such as basing your purchase on whether or not you can get approved for financing or on a satisfactory home inspection, then it is called a conditional offer. In some highly competitive and sought after homes, buyers may even choose to submit offers without any conditions. That’s generally not recommended, as conditional offers are meant to protect you as a buyer.

Sellers may accept your offer, reject your offer, or provide a counter-offer. You may be competing against other buyers. In Montreal, the offer price of other buyers is hidden from you. That’s also known as blind bidding.

Step 10: Closing Date

If a seller accepts your offer, a range of motions must be completed before ownership is transferred to you. This includes getting a mortgage approval, signing contracts, transferring funds, and completing other necessary paperwork. Your real estate lawyer and agent will handle and guide you through this process.

Once this has been completed, you will officially become the owner of your new home!

old montreal
Caption: Old Montreal
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Montreal Neighbourhood Profiles and Statistics

Data: 2021 Census
old montreal 2
Old Montreal
Ward 1 - Ahuntsic-Cartierville
Francophones
32%
Ahuntsic-Cartierville
25%
Montréal
Anglophones
7%
Ahuntsic-Cartierville
13%
Montréal
Bilingual
59%
Ahuntsic-Cartierville
61%
Montréal
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Ward 2 - Anjou
Francophones
47%
Anjou
25%
Montréal
Anglophones
2%
Anjou
13%
Montréal
Bilingual
50%
Anjou
61%
Montréal
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Ward 3 - Côte-des-Neiges–Notre-Dame-de-Grâce
Francophones
10%
Côte-des-Neiges–Notre-Dame-de-Grâce
25%
Montréal
Anglophones
27%
Côte-des-Neiges–Notre-Dame-de-Grâce
13%
Montréal
Bilingual
61%
Côte-des-Neiges–Notre-Dame-de-Grâce
61%
Montréal
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ward image
Lachine Canal
Ward 4 - Lachine
Francophones
22%
Lachine
25%
Montréal
Anglophones
15%
Lachine
13%
Montréal
Bilingual
62%
Lachine
61%
Montréal
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Ward 5 - LaSalle
Francophones
18%
LaSalle
25%
Montréal
Anglophones
22%
LaSalle
13%
Montréal
Bilingual
58%
LaSalle
61%
Montréal
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ward image
Plateau Mont-Royal district in Montreal, Canada
Ward 6 - Le Plateau-Mont-Royal
Francophones
17%
Le Plateau-Mont-Royal
25%
Montréal
Anglophones
11%
Le Plateau-Mont-Royal
13%
Montréal
Bilingual
70%
Le Plateau-Mont-Royal
61%
Montréal
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Ward 7 - Le Sud-Ouest
Francophones
20%
Le Sud-Ouest
25%
Montréal
Anglophones
13%
Le Sud-Ouest
13%
Montréal
Bilingual
65%
Le Sud-Ouest
61%
Montréal
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Ward 8 - L'Île-Bizard–Sainte-Geneviève
Francophones
13%
L'Île-Bizard–Sainte-Geneviève
25%
Montréal
Anglophones
13%
L'Île-Bizard–Sainte-Geneviève
13%
Montréal
Bilingual
72%
L'Île-Bizard–Sainte-Geneviève
61%
Montréal
Show More
ward image
Montreal Olympic Stadium
Ward 9 - Mercier–Hochelaga-Maisonneuve
Francophones
42%
Mercier–Hochelaga-Maisonneuve
25%
Montréal
Anglophones
2%
Mercier–Hochelaga-Maisonneuve
13%
Montréal
Bilingual
55%
Mercier–Hochelaga-Maisonneuve
61%
Montréal
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Ward 10 - Montréal-Nord
Francophones
54%
Montréal-Nord
25%
Montréal
Anglophones
3%
Montréal-Nord
13%
Montréal
Bilingual
42%
Montréal-Nord
61%
Montréal
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Ward 11 - Outremont
Francophones
11%
Outremont
25%
Montréal
Anglophones
16%
Outremont
13%
Montréal
Bilingual
71%
Outremont
61%
Montréal
Show More
Ward 12 - Pierrefonds-Roxboro
Francophones
10%
Pierrefonds-Roxboro
25%
Montréal
Anglophones
22%
Pierrefonds-Roxboro
13%
Montréal
Bilingual
67%
Pierrefonds-Roxboro
61%
Montréal
Show More
Ward 13 - Rivière-des-Prairies–Pointe-aux-Trembles
Francophones
45%
Rivière-des-Prairies–Pointe-aux-Trembles
25%
Montréal
Anglophones
2%
Rivière-des-Prairies–Pointe-aux-Trembles
13%
Montréal
Bilingual
52%
Rivière-des-Prairies–Pointe-aux-Trembles
61%
Montréal
Show More
Ward 14 - Rosemont–La Petite-Patrie
Francophones
33%
Rosemont–La Petite-Patrie
25%
Montréal
Anglophones
2%
Rosemont–La Petite-Patrie
13%
Montréal
Bilingual
63%
Rosemont–La Petite-Patrie
61%
Montréal
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Ward 15 - Saint-Laurent
Francophones
18%
Saint-Laurent
25%
Montréal
Anglophones
19%
Saint-Laurent
13%
Montréal
Bilingual
62%
Saint-Laurent
61%
Montréal
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Ward 16 - Saint-Léonard
Francophones
41%
Saint-Léonard
25%
Montréal
Anglophones
4%
Saint-Léonard
13%
Montréal
Bilingual
53%
Saint-Léonard
61%
Montréal
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Ward 17 - Verdun
Francophones
19%
Verdun
25%
Montréal
Anglophones
11%
Verdun
13%
Montréal
Bilingual
68%
Verdun
61%
Montréal
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ward image
Ward 18 - Ville-Marie
Francophones
13%
Ville-Marie
25%
Montréal
Anglophones
22%
Ville-Marie
13%
Montréal
Bilingual
63%
Ville-Marie
61%
Montréal
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Ward 19 - Villeray–Saint-Michel–Parc-Extension
Francophones
33%
Villeray–Saint-Michel–Parc-Extension
25%
Montréal
Anglophones
11%
Villeray–Saint-Michel–Parc-Extension
13%
Montréal
Bilingual
54%
Villeray–Saint-Michel–Parc-Extension
61%
Montréal
Show More

Data Sources:

Disclaimer:

  • Any analysis or commentary reflects the opinions of WOWA.ca analysts and should not be considered financial advice. Please consult a licensed professional before making any decisions.
  • The calculators and content on this page are for general information only. WOWA does not guarantee the accuracy and is not responsible for any consequences of using the calculator.
  • Financial institutions and brokerages may compensate us for connecting customers to them through payments for advertisements, clicks, and leads.
  • Interest rates are sourced from financial institutions' websites or provided to us directly. Real estate data is sourced from the Canadian Real Estate Association (CREA) and regional boards' websites and documents.