Mortgages in Montreal – Explore Rate & Lenders in Montreal

Common Questions About Mortgages in Montreal

What are common mortgage rates in Montreal?

Mortgage rates in Montreal tend to align with Quebec and national trends. Fixed rates often range 3.5 % to 5.5 %, with variable rates tied to Quebec prime rate. Lender spreads and condo risk factors may slightly adjust pricing in the Montreal market.

How much down payment is needed in Montreal?

For homes priced under $500,000, the minimum down payment is 5%. For homes between $500,000 and $999,999, it's 5 % on the first $500,000 and 10 % on the remainder. Homes priced $1,000,000 or more require 20% down. If your down payment is under 20%, you'll need mortgage default insurance via CMHC or other insurers.

Are there programs for first-time buyers in Montreal?

Yes. Options include:

• First-Time Home Buyer Incentive (FTHBI)

• Home Buyers' Plan (HBP) allowing RRSP withdrawal

• First Home Savings Account (FHSA)

• Quebec-specific programs like Regime d'accession a la propriete (RAP)

These may help you reduce your down payment burden and expand your borrowing capacity.

Fixed vs variable mortgage in Montreal - which is better?

• Fixed rate: provides predictability and shields you against rate hikes

• Variable rate: may save interest when rates fall but exposes you to rate increases

Many Montreal borrowers choose a 3 or 5-year fixed with conversion options. Use the mortgage payment calculator to see differences in cash flow and interest cost.

What documents do mortgage lenders in Montreal require?

You'll typically need:

• Proof of income (T4, tax returns, pay stubs)

• Recent credit report

• Down payment sources

• Property details (condo certificate, inspection, city permits)

• Notices of Assessment or tax returns

• Photo ID and proof of legal residence

For condos or coops, the condominium corporation documents and reserve fund status are also scrutinized.

How long does mortgage approval take in Montreal?

If documentation is complete and property is typical, approval can take 2 to 4 weeks. For condos, coops, multiunits or heritage properties, additional review or co-op board approval may extend timelines.

How does condo financing differ in Montreal?

Condos require:

• Review of condo corporation financials and bylaws

• Reserve fund health

• Percentage of units rented versus owner occupied

• Potential board approval (coops especially)

Some lenders limit financing if the proportion of rentals or delinquencies is high.

Can I refinance or renew my mortgage in Montreal?

Yes. Many Montreal homeowners refinance to lower rates, consolidate debt, or access equity. Mortgage renewals often trigger renegotiation of rates and terms. If your home has appreciated, you may also increase your borrowing margin.

What credit scores do Montreal lenders target?

Most lenders favor credit scores of at least 650 to 700. Lower scores may still qualify with stronger down payment, co-signers or additional documentation. Consistent credit history and low debt service help credibility.

What are closing costs in Montreal?

Expect 1.5 % to 3 % of the home price in closing costs. These include:

• Notary or legal fees

• Land transfer tax (if applicable)

• Title and registration costs

• Home inspection and appraisal

• Condominium or co-op documentation fees

What is the land transfer tax in Quebec (Montreal)?

Quebec does not impose a provincial land transfer tax. Instead, registration and notarial registration fees apply. Use the land transfer tax calculator to check out-of-province comparisons.

Can self-employed and small business owners qualify?

Yes. Many Montreal lenders accept business financials, tax returns, or bank statements in lieu of traditional employment income. Some lenders use "self-employed programs" which give flexibility to strong business performance even if personal income is less standard.

Is bilingual documentation required in Montreal?

Because Quebec is bilingual, lenders will require contracts, appraisals, and legal documents often in French or bilingual forms. Ensure that all mortgage and property documents meet provincial language requirements to avoid delays.

What happens if mortgage rates rise after I pick a variable rate?

If interest rates increase, your payments (and interest portion) will rise. Many variable mortgages allow you to convert to fixed rates or have interest rate caps. Use the mortgage payment calculator to model scenarios of rate increase.

What should I look for in a Montreal mortgage lender?

Choose lenders or brokers who:

• Understand Quebec laws and bilingual documentation

• Have experience with Montreal neighborhoods and condo financing

• Provide clear breakdowns of fees, penalties, and flexibility

• Offer fast underwriting and local appraisal access

A local broker who knows Montreal's market nuances can smooth approvals for unique properties.

What's the first step to applying for a Montreal mortgage?

1. Use the mortgage payment calculator to estimate affordability

2. Gather income, credit, down payment and property documents

3. Get pre-approval to strengthen your offer

4. Apply for a Montreal mortgage to see tailored offers from lenders experienced in your neighborhood and property type