Welcome Tax — Droits de Mutation Immobilière
Quebec's equivalent of a land transfer tax is the Droits de mutation immobilière, colloquially known as the "Welcome Tax" (taxe de bienvenue). It is levied by each municipality and calculated on the greater of the purchase price and the municipal assessment. The brackets are set provincially but municipalities apply them.
Notary Required — A Quebec-Specific Rule
Unlike every other Canadian province where solicitors (lawyers) handle real estate closings, Quebec law requires that all real estate transactions be completed by a notary (notaire). Read our full guide to Quebec mortgage rules, hypothecs, and civil law → Solicitors cannot perform notarial acts in Quebec. Your notary acts as an impartial officer of the law, searches title, drafts the deed of sale, and registers the transaction in the Quebec Land Registry.
Notary fees for a standard residential purchase in Quebec typically range from $1,500–$2,500, depending on the complexity and the notary's office. The notary for the purchase is typically chosen by the buyer. The lender also requires a notary to prepare the hypothec (mortgage deed) — this may be included in the purchase notary fees or billed separately.
QST on CMHC Mortgage Insurance
Quebec charges its Quebec Sales Tax (QST) of 9.975% on CMHC mortgage default insurance premiums. Like Ontario's PST on CMHC insurance, this provincial tax cannot be added to the mortgage — it must be paid in cash at closing through your notary.
Quebec Closing Costs Breakdown
Quebec buyers should budget 1.5–4% of the purchase price in closing costs. Key items include:
- Welcome Tax (Droits de mutation) — largest cost; 1.5–2% on most Quebec homes
- Notary Fees — $1,500–$2,500 for purchase deed plus hypothec deed
- QST on CMHC Premium — 9.975% of CMHC premium (insured mortgages only; cash at closing)
- Home Inspection — $400–$700 (called an "inspection préachat" in Quebec)
- Municipal Tax Adjustment — prorated at closing if seller has prepaid
- School Tax Adjustment — Quebec has a separate school board tax; prorated at closing
- Moving & Miscellaneous — $1,000–$3,000
Quebec Mortgage Tips
All Transactions Through a Notary — Plan Your Timeline
Quebec real estate closings require notarial involvement from the start — not just at closing. Your notary will search the Quebec Land Registry, verify title, confirm no hypothecs exist on the property, and prepare the deed of sale (acte de vente) and mortgage deed (acte d'hypothèque). Allow 2–4 weeks for notary work after your offer is accepted. Choose your notary before your offer is firm.
French Language Requirements for Mortgage Documents
Quebec's Charter of the French Language (Bill 101) requires that consumer contracts, including mortgage documents, be provided in French unless the borrower explicitly waives this right in writing and requests an English version. All major Canadian lenders operating in Quebec have French-language mortgage processes. Your notary will also prepare all documents in French by default.
Promise to Purchase vs. Agreement of Purchase and Sale
Quebec uses a "Promise to Purchase" (promesse d'achat) rather than the Agreement of Purchase and Sale used in other provinces. The promise to purchase is a legally binding offer document that, once accepted, creates binding obligations on both parties. It typically includes conditional clauses for financing and inspection. Work with a broker and notary familiar with Quebec's specific form requirements.
Desjardins — Quebec's Dominant Local Lender
Desjardins (Caisse Desjardins) is Quebec's largest financial cooperative and a major mortgage lender, particularly strong in smaller cities and rural Quebec. Desjardins often offers competitive Quebec-specific products and has deep integration with local notaries. Compare their rates alongside the major banks — their variable and fixed offerings are frequently among the most competitive in the province. Bank vs. broker vs. credit union — where to get your mortgage →
Key Programs for Quebec Buyers
First Home Savings Account (FHSA)
The federal FHSA is available to Quebec residents. Contribute up to $8,000/year (max $40,000 lifetime) — deductible against federal and Quebec income tax, and qualifying withdrawals are tax-free. An important advantage in high-tax Quebec, where the income tax deduction provides meaningful savings at higher marginal rates. Full FHSA guide →
RRSP Home Buyers' Plan (HBP)
Withdraw up to $35,000 per person from your RRSP (RÉER in French) tax-free for a first home purchase. Quebec recognizes the federal HBP rules — withdrawals are treated the same way provincially. The 15-year repayment period applies. Contributions to RRSP in Quebec generate both federal and Quebec provincial tax deductions, making this particularly powerful for Quebec earners. How the HBP works in 2026 →
RÉER — Quebec RRSP Supplement
Quebec residents contribute to the same federal RRSP (RÉER) but receive a Quebec provincial deduction in addition to the federal deduction. Combined marginal rates in Quebec are among the highest in Canada, which means RRSP contributions and FHSA contributions have enhanced tax value for Quebec filers. Maximize contributions before purchasing to maximize HBP eligibility.
Frequently Asked Questions — Quebec
How much is the Welcome Tax on a $550,000 home in Quebec City? +
0.5% × $58,900 = $294.50 + 1.0% × $235,700 = $2,357 + 1.5% × $255,400 = $3,831. Total Welcome Tax = $6,482.50. Quebec City does not add a Montreal-style surcharge, so this is the total amount. Your notary will confirm the exact calculation based on the greater of purchase price and municipal assessment.
Why do I need a notary in Quebec instead of a lawyer? +
Quebec's civil law tradition (distinct from the common law used in other provinces) requires that real property transfers be authenticated by a notary — a public officer with the legal authority to create authentic documents that are enforceable without court proceedings. This is a structural feature of Quebec's legal system, not optional. Your notary must be a member of the Chambre des notaires du Québec.
Does QST apply to my CMHC insurance in Quebec? +
Yes. Quebec applies 9.975% QST to the CMHC default insurance premium on insured mortgages. This amount must be paid in cash at closing — it cannot be added to your mortgage balance. It is important to budget for this before closing day. Your notary will include this amount in the closing statement they prepare.
Is the Welcome Tax the same as a land transfer tax? +
Functionally yes — it is Quebec's provincial equivalent of a land transfer tax. The legal term is "droits de mutation immobilière" (real property transfer duties). The popular name "Welcome Tax" (taxe de bienvenue) comes from Quebec politician Jean Bienvenue who introduced the modern version in 1976. Unlike Ontario's LTT, there is no provincial first-time buyer rebate on the Welcome Tax — though some municipalities may have local programs.
Can I get a mortgage in English in Quebec? +
Yes, but you must explicitly request it. Under Quebec's Charter of the French Language, lenders must provide mortgage contracts in French. If you prefer English, you must sign a waiver stating that you have requested an English version of the contract. All major Canadian banks and Desjardins can accommodate English-language mortgage documentation upon request. Your notary's documents will typically remain in French as the official registry language, though bilingual notaries can explain everything in English.
Ready to Buy in Quebec?
Our AMF-licensed Quebec brokers work with Desjardins, National Bank, and 14 other lenders to find you the most competitive rate — available in both English and French, with no obligation.
Find a Licensed Broker