Best Current Mortgage Rates in Quebec

The Quebec mortgage market has evolved after the Bank of Canada reduced its policy rate to 2.25%, followed by a pause in a context of increased economic and geopolitical uncertainty.

This stability in the policy rate does not necessarily mean mortgage rates will continue to decline. In 2026, several external factors, including rising oil prices and global tensions, are putting upward pressure on inflation and bond yields, which can lead to higher fixed mortgage rates even without further action from the central bank.

While the Bank of Canada’s policy rate influences overall borrowing costs, mortgage rates in Quebec are primarily determined by bond markets, lenders’ funding costs, and competitive dynamics.

Quebec’s housing market has continued to show resilience, supported by stable demand and ongoing population growth, particularly in major urban centres.

Home prices have increased over the past few years, although the pace of growth has begun to moderate. Despite this, Quebec remains one of the more affordable provinces in Canada for homeownership.

Market conditions are gradually moving toward balance, although some regions remain competitive due to limited inventory and sustained demand.

New listings continue to lag behind demand in certain areas, particularly in the Montreal Metropolitan Area where population growth continues to support housing activity.

Economic factors supporting Quebec’s mortgage market include relatively stable employment levels, a diversified economy including aerospace, technology, and services, and a competitive lending environment where strong regional players such as Desjardins and National Bank operate alongside Canada’s major banks.

Why Comparing Mortgage Rates Matters in Quebec

Comparing mortgage rates is essential for Quebec borrowers, where the average mortgage amount of $202,014 is lower than the national average of $320,298.

While mortgage sizes tend to be smaller, rate differences still have a meaningful impact on long-term costs and monthly budgets. Even a small change in your interest rate can translate into thousands of dollars in savings over the life of your loan.

For example, on a $300,000 mortgage amortized over 25 years, the difference between a 4.20% and 4.30% rate would save you about 1,000$ on your payments and nearly 1,500$ on interest, over a 5 year period.

Quebec’s mortgage market remains highly competitive, supported by a mix of national banks, Quebec-based institutions, virtual lenders, and Desjardins, the province’s biggest financial institution and Canada’s largest credit union.

Desjardins and National Bank continue to play leading roles alongside Canada’s major banks, contributing to strong competition and flexible mortgage options across the province.

While the big banks maintain a solid presence, Desjardins holds the biggest share of mortgages in Quebec, and virtual lenders are also a quite popular option for first time home buyers looking for competitive rates.

Working with a licensed mortgage broker can help you efficiently compare these lenders and identify the mortgage products best suited to your lifestyle and financial goals.

Quebec stands as Canada’s largest province by land area and second-largest by population, housing 8.8 million residents as of 2023.

The province maintains a homeownership rate of 61%, slightly below the national average but supported by relatively affordable housing costs compared to other major Canadian markets.

The average home price in Quebec reached $547,974 in September 2025, representing strong value compared to markets like Toronto and Vancouver.

This affordability translates to manageable mortgage amounts, with the average new mortgage in Quebec totaling $202,014 according to Q1 2023 data.

Montreal’s Metropolitan Area dominates Quebec’s housing landscape, housing 4.3 million people, nearly half the province’s population.

The city’s diverse economy spans aerospace, technology, manufacturing, and services, providing employment stability that supports mortgage qualification and housing demand.

Beyond Montreal, Quebec City serves as the provincial capital and a significant economic center, while regions like Sherbrooke, Saguenay, and Trois-Rivières offer even more affordable housing options.

The province’s economic diversity, from natural resources to high-tech industries, creates multiple regional housing markets with varying price points and mortgage needs.

Quebec’s unique cultural and linguistic character influences its mortgage market, with institutions like Desjardins emerging from the province’s cooperative movement to become a major financial force.

This local presence creates additional competition and choice for Quebec mortgage borrowers.

First-Time Home Buyer Programs in Quebec

First-time homebuyers in Quebec can access several programs to ease their entry into homeownership, though the province does not offer a provincial land transfer tax rebate like some other provinces.

Federal Programs Available to Quebec Residents:

• First-Time Home Buyers’ Tax Credit provides up to $1,500 in tax relief
• Home Buyers’ Plan allows withdrawal of up to $60,000 from RRSPs without tax penalty
• First Home Savings Account (FHSA) combines RRSP and TFSA benefits for home purchases

Municipal Programs:

• Quebec City Family Access Program offers down payment assistance for qualifying families
• Montreal Home Purchase Assistance provides loans and grants for first-time buyers in specific neighborhoods
• Various municipal programs exist in smaller Quebec communities

Quebec Provincial Tax Credits:

Several tax credits available through the Quebec provincial tax system can benefit first-time buyers, including credits for home accessibility improvements and energy-efficient upgrades.

When applying for mortgages, first-time buyers should mention their status to lenders, as many institutions offer specialized programs with features like extended amortization periods, reduced fees, or educational resources.

Home Buying Costs in Quebec (Taxes and Fees)

Understanding closing costs helps Quebec homebuyers budget accurately and avoid surprises. The largest additional cost is typically Quebec’s Welcome Tax (taxe de bienvenue), also known as land transfer tax.

Welcome Tax Calculation:

• 0.5% on the first $50,000 of property value
• 1.0% on the portion between $50,000 and $250,000
• 1.5% on the portion between $250,000 and $500,000
• 2.0% on the portion between $500,000 and $1,000,000
• 2.5% on amounts above $1,000,000

Example for $500,000 Home Purchase:

• First $50,000: $250 (0.5%)
• Next $200,000: $2,000 (1.0%)
• Next $250,000: $3,750 (1.5%)
• Total Welcome Tax: $6,000

Municipal variations exist, with Montreal having additional brackets that can increase costs. Quebec City and other municipalities may have different rates or exemptions.

Additional Closing Costs:

• Legal fees and notary costs: $1,500-$3,000
• Home inspection: $400-$800
• Title insurance: $200-$400
• Appraisal fees: $300-$800
• PST on insurance premiums for insured mortgages

Budget approximately 2-4% of your purchase price for total closing costs, with higher percentages for lower-priced homes due to fixed-cost components.