Quebec has a distinct real estate closing process from the rest of Canada — notaries instead of lawyers, welcome tax instead of land transfer tax, and certificates of location instead of surveys. Here is everything you need to budget for.
Quebec welcome tax (droits de mutation)
The welcome tax is Quebec’s equivalent of land transfer tax, paid on every property purchase:
| Property Value Portion | Tax Rate |
|---|---|
| First $58,900 | 0.50% |
| $58,901 to $294,600 | 1.00% |
| $294,601 to $500,000 | 1.50% |
| Over $500,000 (standard) | 2.00% |
| Over $1,000,000 (standard) | 2.50% |
Montreal and some municipalities have higher rates above $500,000.
Welcome tax examples
| Purchase Price | Welcome Tax Calculation | Total Welcome Tax |
|---|---|---|
| $300,000 | ($58.9K × 0.5%) + ($235.7K × 1.0%) + ($5.4K × 1.5%) | $2,732 |
| $400,000 | ($58.9K × 0.5%) + ($235.7K × 1.0%) + ($105.4K × 1.5%) | $4,232 |
| $500,000 | ($58.9K × 0.5%) + ($235.7K × 1.0%) + ($205.4K × 1.5%) | $5,732 |
| $600,000 | ($58.9K × 0.5%) + ($235.7K × 1.0%) + ($205.4K × 1.5%) + ($100K × 2.0%) | $7,732 |
| $700,000 | Above + ($200K × 2.0%) | $9,732 |
| $1,000,000 | Above + ($500K × 2.0%) | $15,732 |
Montreal additional rates
Montreal applies higher rates for properties above $500,000:
| Property Value Portion | Montreal Rate |
|---|---|
| $500,001 to $1,000,000 | 2.00% |
| $1,000,001 to $2,000,000 | 2.50% |
| Over $2,000,000 | 3.00% |
Quebec-specific closing costs
Quebec has several costs that differ from the rest of Canada:
Notary fees (instead of lawyer fees)
In Quebec, notaries handle real estate closings — not lawyers. Notary fees cover:
- Title examination (no title insurance used in Quebec)
- Deed of sale preparation and registration
- Mortgage deed preparation (hypothec)
- Publication of rights at the Land Registry
| Service | Typical Cost |
|---|---|
| Notary fees (purchase) | $1,500–$2,500 |
| Notary fees (mortgage — hypothec) | $500–$1,000 |
| Land Registry publication fees | $200–$400 |
| Total notarial costs | $2,200–$3,900 |
Certificate of location
A certificate of location is Quebec’s equivalent of a survey. It includes a plan of the property showing boundaries, buildings, easements, and encroachments.
| Detail | Information |
|---|---|
| Who provides it | Seller (typically) |
| Cost if seller needs a new one | $1,500–$2,000 |
| Validity | Must be less than 10 years old AND reflect current state of property |
| If no valid certificate exists | Buyer can negotiate who pays for a new one, or accept cost |
QST on CMHC insurance
Quebec charges 9.975% QST on CMHC insurance premiums — the highest provincial tax rate on mortgage insurance:
| Mortgage Amount | CMHC Premium (5% down) | QST (9.975%) | Total Insurance Cost |
|---|---|---|---|
| $380,000 | $15,200 | $1,516 | $16,716 |
| $475,000 | $19,000 | $1,895 | $20,895 |
| $570,000 | $22,800 | $2,274 | $25,074 |
QST must be paid in cash at closing — it cannot be added to the mortgage.
Complete Quebec closing cost estimate
Scenario 1: $450,000 home in Montreal (first-time buyer, 10% down)
| Cost | Amount |
|---|---|
| Welcome tax | $4,982 |
| First-time buyer exemption | $0 (no provincial exemption) |
| Notary fees (purchase + mortgage) | $2,500 |
| Land Registry publication | $300 |
| Certificate of location (if seller provides) | $0 |
| Home inspection | $500 |
| Property tax adjustment | $1,500 |
| QST on CMHC premium (9.975% × $12,555) | $1,252 |
| Home insurance | $1,800 |
| Moving costs | $2,000 |
| Total closing costs | $14,834 |
Scenario 2: $350,000 condo in Quebec City (first-time buyer, 5% down)
| Cost | Amount |
|---|---|
| Welcome tax | $3,482 |
| Notary fees | $2,000 |
| Land Registry publication | $250 |
| Home inspection | $400 |
| Condo contingency fund certificate | $100 |
| Property tax adjustment | $1,000 |
| QST on CMHC premium (9.975% × $13,300) | $1,327 |
| Home insurance | $1,200 |
| Moving costs | $1,500 |
| Total closing costs | $11,259 |
Scenario 3: $700,000 home in Laval (repeat buyer, 20% down)
| Cost | Amount |
|---|---|
| Welcome tax | $9,732 |
| Notary fees | $2,800 |
| Land Registry publication | $350 |
| Home inspection | $550 |
| Certificate of location review | $0 (seller provides) |
| Property tax adjustment | $2,000 |
| QST on CMHC | $0 (20% down) |
| Home insurance | $2,400 |
| Moving costs | $3,000 |
| Total closing costs | $20,832 |
Quebec vs Ontario closing cost comparison
| Cost ($500K Home) | Quebec | Ontario | Ontario + Toronto |
|---|---|---|---|
| Transfer tax | $5,732 | $6,475 | $12,950 |
| First-time buyer savings | $0 | $4,000 | $8,475 |
| Legal/notary | $2,500 | $2,000 | $2,000 |
| Title insurance | N/A (not used) | $400 | $400 |
| PST/QST on CMHC (10% down) | $1,392 | $1,116 | $1,116 |
| Total (first-time, 10% down) | ~$14,500 | ~$11,500 | ~$14,500 |
| Total (repeat buyer, 20%) | ~$13,000 | ~$14,500 | ~$21,000 |
Quebec is cheaper than Toronto for repeat buyers but similar for first-time buyers (because Ontario has better first-time buyer rebates).