Mortgage FAQ
Mortgage questions, answered clearly.
Down payments, pre-approvals, renewals, refinancing and buying as a newcomer in Quebec. Plain answers, with the caveats that matter.
Buying a home
How much down payment do I need in Quebec?
At least 5% of the first $500,000 and 10% of the portion from $500,000 to $1.5M. Homes at $1.5M or more need 20%. With less than 20% down, mortgage default insurance is required.
Can I use my FHSA and RRSP together?
Yes. You can withdraw from your FHSA tax-free and use the RRSP Home Buyers' Plan for the same qualifying purchase, which can significantly increase your down payment.
What closing costs should I expect?
The welcome tax, notary fees, a home inspection, the 9% Quebec sales tax on any mortgage insurance premium, home insurance and tax adjustments. Plan for 1.5% to 3% of the price.
Do I need a notary to buy a home in Quebec?
Yes. In Quebec, a notary prepares and registers the deed of sale and the mortgage deed, and handles the transfer of funds.
Does a pre-approval guarantee my mortgage?
No. The lender still reviews the property, the appraisal and your updated documents before final approval.
Renewal and refinancing
When should I start my renewal review?
About 4 to 6 months before maturity, which gives time to compare offers and switch if needed.
Can I switch lenders at renewal without a stress test?
For a straight switch with the same amount and amortization, generally yes, under rules in place since November 2024.
How much can I borrow when refinancing?
Up to 80% of the appraised value of your home, subject to income qualification.
Is it smart to consolidate debt into my mortgage?
It can lower your payments a lot, but it secures the debt against your home and can raise total interest. We compare both options before you decide.
Self-employed and newcomers
How do lenders calculate self-employed income?
Usually an average of your last 2 years of declared income, with some lenders adding back certain expenses or considering company profits for incorporated owners.
Can I get a mortgage on a work permit?
Possibly, depending on your permit, your employment and the federal foreign buyer rules, which currently restrict many non-Canadians until January 1, 2027, with exceptions.
Can money from my home country be my down payment?
Yes, with a clear paper trail showing the source and the transfer to your Canadian account, ideally at least 90 days before you buy.
Working with a broker
What does a mortgage broker cost?
In many residential files the broker is compensated by the lender. Any fee that applies to your file is disclosed in writing before you commit.
Why use a broker instead of my bank?
A broker compares several lenders, including banks, credit unions and alternative lenders, and explains the differences in terms and penalties, not only the rate.
How do I verify a broker's licence?
Every mortgage broker in Quebec must be registered with the Autorité des marchés financiers. You can search the AMF register online.
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