Montreal Mortgage Rates

In order to get the best mortgage rate in Montreal, you will need to shop around across multiple lenders or with a mortgage broker, then compare the mortgage offerings each lender has. The lenders you may be able to get a mortgage from are:

Big 6 banks: Although Canada’s big 6 banks may not offer you the best mortgage rate off the bat, you may have more negotiating power with them and you will benefit from the convenience of many locations across Montreal. The big 6 banks include:

• Royal Bank: With over 250 mortgage brokers throughout the Montreal area, finding a Montreal mortgage broker that can help you find the best rate is easy. Some of the biggest mortgage brokers in Quebec and in Montreal are:

  Nesto Mortgages: Operating online as a digital mortgage broker, Nesto allows you to get pre-qualified for a mortgage in minutes. To be able to qualify for a mortgage with Nesto, you will need a good credit score

• Scotiabank
• Bank of Montreal
• CIBC
• National Bank

Medium Sized Lenders: These lenders are smaller in size and may have fewer branches in Montreal than the big 6 banks, but they may still offer very competitive Montreal mortgage rates. These lenders include:

• Laurentian Bank of Canada
• HSBC
• MCAP
• CMLS Financial
• Manulife Bank

Online Banks: Although these banks do not offer in-person service when getting a mortgage, they may make up for it with a better mortgage rate than banks with a branch network. Online banks include:

• Equitable Bank
• Tangerine
• Simplii Financial

Desjardins: With almost 300 locations in Quebec and over 40 locations in Montreal, Desjardins offers the size and branch network of a big bank, while providing the great service of a credit union. Desjardins may offer you more leeway in negotiating as a Caisse Populaires instead of a bank, and may be more flexible in helping you get a mortgage.

Mortgage brokers: With over 250 mortgage brokers throughout the Montreal area, finding a Montreal mortgage broker that can help you find the best rate is easy. Some of the biggest mortgage brokers in Quebec and in Montreal are:

Nesto Mortgages: Operating online as a digital mortgage broker, Nesto allows you to get pre-qualified for a mortgage in minutes. To be able to qualify for a mortgage with Nesto, you will need a good credit score, sufficient income, and a sufficient down payment for the mortgage amount.

Multi-Prets Mortgages:With over 25 locations in the Montreal area, Multi-Prets Mortgages offers both convenience and the ability to find the best mortgage rate in Montreal by comparing with over 20 lenders. As well, Multi-Prets Mortgages can help you to find a mortgage even if your credit score is low, you have defaulted in the past, or if you have a tough financial situation.

Dominion Lending Centres: As Canada’s largest mortgage broker and the second largest mortgage broker in Quebec, DLC offers you the ability to compare countless lenders to find the best rate. There are over 30 DLC mortgage brokers operating in Montreal.

Euipe Lupien: With teams of mortgage brokers operating in french and in english, you will be able to get the guidance you need in either language to shop around for the best rate.

Although all the major lenders including the big banks in Canada have offices in Montreal, the city is home to the headquarters of National Bank and the head office for RBC. RBC only has its head office in Montreal; the bank moved its corporate headquarters to Toronto in 1976, because of the separationist movement in Quebec during the 1970s. The other Canadian bank with its head office in Montreal is the Laurentian Bank of Canada.

• National Bank Headquarters: 600 Rue De La Gauchetière, Montréal, Québec
• Laurentian Bank Headquarters: 1360 René-Lévesque Boulevard West, Montréal, Québec
• RBC Head Office: 1 Place Ville Marie, Montréal, Québec

Getting the best mortgage rate in Montreal has the potential to save you thousands of dollars in interest throughout your mortgage term. This will mean you will have more money leftover after your monthly payments to pay down your mortgage, invest, save for the future, and to cover expenses.

Similar to finding the best mortgage rate, finding the best renewal rate in Montreal can be done by shopping around for the best rate and negotiating with other lenders and with your current lender. Finding a lower interest rate when you renew your mortgage will help to save you thousands over your new term. Even before your mortgage is set to become due, meeting with other lenders to learn more about their mortgage rates will put you in a better position to negotiate. If other lenders offer you a better rate, bring it to your lender to see if they can match it. If they choose not to, going with the lender with the lowest rate may be a better choice than renewing with your current lender at a higher rate.

If researching and meeting with lenders is too time consuming, working with a mortgage broker to shop around to see if there are lower rates available can save you time and money, rather than renewing without trying to get a better rate.

Similar to other credit unions across Canada, Québec’s Caisse Populaires such as Desjardins are not required to stress test home buyers. However, Desjardins still does choose to stress test home buyers to protect against interest rate variations.

Mortgage brokers in Quebec are regulated by the OACIQ. This authority is in charge of regulating and issuing licenses for mortgage brokers all across the province, including in Montreal.

Finally, another important regulation in Quebec is a “legal mortgage”. Legal mortgages can be created in the case of: unpaid taxes, court judgements, or construction and home renovation claims, even without your consent. Although the seller will be required to inform the buyer before purchase, it is still a good idea to be cautious, especially if construction was performed on the property, but not finished.

Although home prices have risen strongly in Montreal, and are up 27% from the prior year, buying a home in Montreal is still affordable when compared to other major Canadian housing markets. With the median Montreal household income being ~$68,000 per year, the average home is ~7.5 times the median income. Compared to the median income to average home price being ~14 times in Toronto and ~14.5 times in Vancouver, Montreal is much more affordable. The other factor that makes Montreal still a fairly affordable city to purchase a home in is the down payment requirements. For the average home price of $514,868, the minimum down payment requirement will only be ~$26,500. This is much more attainable than a minimum down payment requirement for the average home price in Toronto being ~$216,000 and the minimum down payment for the average home price in Vancouver being ~$235,000.

Yes, working with a real estate agent in Montreal can be very helpful in your home buying journey. A real estate agent will not only guide you through the process and find you the right home, but they will also help you determine what to offer, where to search, and get you in touch with reputable professionals such as mortgage brokers and lawyers. A real estate agent is especially an important asset to have in your corner if you are a first time home buyer in Montreal, with their guidance helping to make the process less stressful. Since a real estate agent's commission will not be directly paid by you, there is little reason to avoid having an agent help you to purchase a home in Montreal.

Is it hard to get a self-employed mortgage in Montreal?

Getting a self-employed mortgage in Montreal can be harder to get because it's likely your income on your tax return does not reflect what your actual income is. As well, getting a self employed mortgage may be more difficult because you will have more requirements and will need more documentation in order to get accepted when compared to a traditional mortgage. When you are applying for a self-employed mortgage in Montreal, you will have the ability to either state your income or verify it in a non-traditional way, which may include through business financial statements or bank statements. Many Montreal lenders such as Scotiabank and RBC will have a different mortgage product for someone who is self-employed, while other lenders such as TD and BMO will have self-employed applicants apply for a normal mortgage. Common requirements in addition to sufficient income, a good credit score above 650, and a down payment above 5% are:

• 2+ years of operating your business
• A list of your assets and liabilities
• Notice of assessment(s)
• Income and expense reports

Yes, you are able to buy a plex with a normal mortgage so long as you are occupying at least one unit as your primary residence. Because you are occupying the property, the CMHC will also make it much easier for you to purchase the plex, with a lower down payment requirement for plexes below $1,000,000 than if you were not occupying a unit. Instead of requiring 20% down, you are able to purchase for as low as 10% down for plexes with 3 or 4 units, and as low as 5% down for duplexes. If you are looking to purchase a plex or another form of property that you plan on renting out and not living in, you may require a commercial mortgage depending on the number of units. Plexes are usually multi-story urban apartments, with a direct entrance for each unit. In Montreal, low rise apartment plexes are one of the most common forms of housing, and may offer you the ability to purchase a home to live in that also earns you rental income at the same time.

The spring 2021 CMHC housing market outlook for Montreal highlighted that migration in Montreal is expected to remain fairly low in 2021, even as pandemic restrictions start to lift. This primarily will mean less demand for rental housing, however migration is still expected to eclipse 2020 numbers. Home building continues to be strong in Montreal and sees no signs of slowing down, with low inventory levels of rental homes and homes to purchase. As people want to have more space as they increasingly work from home, the CMHC expects that we will continue to see a pick-up in home construction for single family, semi-detached, and townhouses. With the combination of a low supply of homes on the market and lower affordability, sales are likely to slow into the near future, however prices are expected to remain strong.

As the economy continues to recover in Canada from the COVID-19 pandemic, and as inflation is starting to set in on everyday commodities, it is increasingly likely that the Bank of Canada raises their overnight rate in 2022 or early 2023. As well, with a slowdown in home sales expected in many markets across the country and having already started in some markets, we may see a pull back in competition among lenders. Both of these likely events will increase the mortgage rates Montreal home buyers will have access to. This is important to consider if you are looking for a mortgage or are looking to purchase in the future.

Montreal’s housing market has seen one of the biggest increases among major Canadian cities, but is still one of the most affordable markets. The average price of a home in March 2021 is $514,868, up 27% from March 2020. This housing price increase is similar to other housing markets across Canada such as Vancouver, Toronto, Ottawa, and Calgary:

The median price for a single family home in Montreal is now $481,000, while the median condo price is $347,065, and the median plex price is $660,000. Plexes are multi-story buildings with 2 or more apartment units on top of each other, with each unit having its own entrance. Quebec is one of the only regions in North America where plexes are one of the main components of the housing market. Overall, the biggest reason for home prices rising throughout Montreal has been because of people looking for more space and with many millennials looking to break into the housing market, combined with a record low number of homes on the market. If prices continue to rise and the housing market in Montreal continues to remain very competitive, it will be especially important to find out how large of a mortgage you can afford and to get pre-approved on a mortgage.

As the COVID-19 pandemic also continued to attract people to the suburbs across Canada, the outskirts of the Greater Montreal Region saw a large increase in the number of housing transactions. Suburban condos were very popular with older people in Montreal, for the ability to live in a quieter and more spacious location than in the city core. Younger buyers continued to be attracted to single family homes in the suburbs for the extra space that it offers. The demand for both single family homes and condos in the suburbs was also fueled by more people having the ability to work-from-home, which has made being close to the Montreal core less important.

The average home price in Montreal has gone from ~$161,000 in 2001 to over $514,000 in 2021. This is a 320% price increase over the last 20 years. The average mortgage amount in Montreal has likely risen in tandem with prices and is up ~320% as people need larger mortgages to pay for more expensive homes. Data overtime has also shown that the number of Montreal households with mortgages has increased, from 62% in 2006 to 65% in 2016, which shows that younger households are purchasing and the effect of higher house prices require more people needing a mortgage.

With home prices in Montreal rising, some homebuyers are being priced out of more expensive Montreal neighborhoods, such as in the center and western parts of Montreal Island, with the following home prices:

On the other hand, other areas of the region still remain within reach for many home buyers, such as the eastern part of Montreal Island and surrounding neighborhoods around Montreal Island:

With continued demand for housing and with home prices rising, housing starts in Montreal have risen with 17,321 new homes starting to be built year-to-date in June 2021. This is up 53% from the same period in 2020. This is showing that builders in the Montreal region are reacting quickly to the demand for inventory in the housing market. Eventually, as new homes continue to get built to keep pace with demand, Montreal’s housing market should become less competitive with home buyers having more options to choose from.

Montreal normally has a large number of renters, especially with many post-secondary students and new immigrants coming to the city. COVID-19 has affected the demand for rentals from these two groups, meaning the vacancy rate rose to 2.7% in 2020, up from 1.5% in 2019. With the outlook for COVID-19 in Canada improving with cases falling, Montreal's rental market should continue to recover with students coming back to class next school year and with immigration picking back up. As this continues, vacancy rates will likely fall, and finding a rental home will only get harder and more expensive, potentially making purchasing a home more attractive.

Also known in the province of Quebec as a “Welcome Tax”, Montreal’s land transfer tax is owed when you close on a home purchase. The municipal transfer tax rate in the city is the following:

This means that if you were to purchase the average priced home in Montreal at $514,868, you would owe $6172 in land transfer taxes, while If you were to purchase the average single family home for $481,000, you would owe $5664 in transfer taxes. Other home closing costs you can expect to owe include:

• Lawyer & legal fees
• Property appraisal fees
• Title insurance
• home inspection costs
• A property survey fee

All of these costs should be considered when you are deciding on how large your budget should be, considering they can add up to ~3% of your purchase price and you may not have enough in your mortgage amount to cover them.

For first time home buyers in Montreal, many programs exist to help you get into the housing market. The provincial government offers the Quebec Home Buyers’ Tax Credit, which can give you up to a $750 tax credit when you purchase a home in the province. The City of Montreal also has a program that may provide you with a full rebate on land transfer taxes for resale homes, and a lump-sum payment in addition to a land transfer tax refund for new build homes. Determining your eligibility for these programs before purchasing a home can help you better decide on how large of a budget you can afford to spend when looking for a home.

Montreal, along with the province of Quebec is seen as one of the more affordable regions to live in all of Canada. This is because of subsidized childcare, low home rental rates, and having the cheapest electricity rates in the country. The cost of living in Montreal for a family of 3 with a small child is only $2627 per month. This breaks down to $1136 for housing, $984 for food, $328 for transportation, and $179 for childcare.

Montreal is the largest city in Quebec and the second-largest city in all of Canada, with a population of over 4.3 million people. Net migration to the city was ~21,000 people in 2020, with international migration bringing ~50,000 to the city, while migration out of the city into other locations in Quebec led to ~25,000 people leaving Montreal. With the help of international migration, The population in the Greater Montreal Region is expected to see rapid growth over the next 10 years, reaching over 5.2 million people by 2030. This continued population growth will only add to the demand for housing in and around the city, meaning it'll be crucial to continue to build more homes to accommodate the growing population.

Montreal is one of the largest French-speaking cities in the world and the largest in North America. The city is known for having a very vibrant art scene, along with other creative industries such as: digital arts, video games, and film and television content production. Another very unique aspect of the city’s artistic culture is the over 100 festivals in Montreal every year. Overall, Montreal's unique culture has continued to attract creative and artistic people from all over, especially when mixed with the lower cost of living the city offers.

The population of Montreal continues to undergo a shift as the city continues to get older, with the population of those over 65 years old going from 13.6% in 2006 to 15% in 2016. As Montreal’s population has continued to age, the city has welcomed many new immigrants which has helped to balance out the aging in the overall population. As the population continues to get older into the future, condominiums and homes in the suburbs will continue to see demand rise, as many older people no longer need or want to be in the city core.

Montreal has a very diverse economy, with some of its largest industries being: engineering, technology, finance, aerospace, pharmaceuticals, manufacturing, and transportation. The technology sector in Montreal has continued to see rapid growth with the city being very active in AI research and with the video game industry, where Montreal is home to large game developers such as Ubisoft, EA, Gameloft, and THQ. The city of Montreal also has a large number of headquarters across industries, which include companies such as Laurentian Bank, Canadian National Rail, CAE, Air Canada, Saputo, Bell Canada, Dollarama, and Via Rail. As Montreal's economy continues to grow and benefit from its skilled workforce, demand to live in the region should continue to benefit.

The property tax rate in Montreal for 2020 is 0.8528%, which is similar to other large Canadian cities in 2020:

However, with some of the lowest housing values and prices among big cities in Canada, Montreal homeowners will pay even lower property taxes with much lower appraised housing values.

The province of Quebec has some of the highest income tax rates in all of Canada, meaning that for those living in Montreal, you can expect to owe a large income tax amount. This may make it harder to afford a large mortgage with more of your earned income being paid in taxes, which will reduce how large of a mortgage you will be able to afford. For more information on how much you may be paying in taxes by living in Montreal and Quebec, see WOWA’s Quebec income tax calculator.