Welcome tax, closing costs and insurance in QuebecBuy with full knowledge.
Insurance, a team of experts, real costs and planning: everything you need to know so your purchase goes smoothly, with no bad surprises.
Insurance involved in a purchase
Four protections, very different roles.
They are often confused, yet they don’t protect the same person or the same risk.
Protects the lender
Mortgage default insurance (CMHC)
Generally required when the down payment is less than 20% of the price, subject to eligibility. It protects the financial institution if the borrower stops paying — not the buyer. It is offered by CMHC, Sagen or Canada Guaranty.
Premium based on the loan amount and loan-to-value ratio: 2.80% (80.01–85%), 3.10% (85.01–90%), 4.00% (90.01–95%).
An extra 0.20% when amortization exceeds 25 years (30 years reserved for first-time buyers and new builds).
The premium is added to the loan and repaid with your payments; the 9% tax on the premium is paid in cash at the notary.
Available for purchase prices under $1.5M; minimum down payment of 5% on the first $500,000 and 10% on the portion above.
Benefit: it lets you buy sooner, often at a lower rate than a conventional loan.
Example: $500,000 property, 5% down ($25,000) → $19,000 premium added to the loan and $1,710 tax payable at the notary.
Protects your family
Mortgage life & disability insurance
Depending on the contract, it may repay the balance upon death, cover payments during disability or provide a benefit for covered critical illnesses; some products cover job loss. These protections are generally optional and should match your needs.
Two main options: insurance offered by the lender (creditor insurance) and individual insurance purchased through a financial security advisor.
Lender insurance: life coverage is generally tied to the balance and the benefit goes to the lender. Check medical underwriting, exclusions and what happens if you switch lenders.
Individual insurance: may provide fixed coverage, your choice of beneficiary and protection independent of the lender. Costs and benefits depend on the contract and your profile.
According to the AMF, a lender may require the loan to be insured but cannot force its own product or insurer, nor tie a better rate to that purchase.
Avoid double coverage: first review your existing protection (group insurance, life insurance already in place).
Read the disability definition, exclusions and maximum age before signing, and compare at least two options.
Protects your property
Home insurance
Required by the lender before the loan is disbursed: the property secures the mortgage. The lender is listed as mortgagee on the policy.
Covers the building and your belongings against fire, theft, vandalism and other perils depending on the policy.
Includes civil liability coverage if someone is injured at your home or you damage someone else’s property.
Endorsements to consider: sewer backup, ground water damage, earthquake, replacement cost.
Condos: distinguish the syndicate’s insurance from personal coverage. Confirm protection for belongings, improvements and liability, as well as applicable legal requirements.
Request a quote: the price depends on the building, area, deductibles and coverage. Confirm the start date and provide proof to the lender and notary.
Request your quote as soon as the offer is accepted: an older roof, oil heating or a flood zone can complicate insurability.
Protects ownership rights
Title insurance
This coverage may protect against certain title-related risks, depending on the policy and issues identified in the transaction.
May cover certain title defects, fraud or irregularities, subject to policy terms and exclusions.
Does not replace the notary’s title examination, legal checks or advice.
Discuss its relevance, coverage and cost with the notary for your particular purchase.
Ask why it is recommended for your file and which risks remain excluded.
Why a team of experts matters
A successful project is a team effort.
Each professional brings complementary expertise. Together, they secure your decision at every step.
Mortgage broker
Compares offers from many institutions to find financing suited to your reality, free of charge for most residential files.
Solid pre-approval before you shop
Rate and terms negotiation
Follow-up through signing at the notary
Real estate agent
Knows the local market, helps you target the right property and defends your interests during the offer and negotiations.
Comparative market analysis
A purchase offer with the right conditions
Coordination of inspection and deadlines
Financial security advisor
Assesses your protection needs and recommends life, disability and critical illness coverage that truly protects your family and your mortgage.
Personalized needs analysis
Comparison with lender insurance
Portable, tailored coverage
Accountant or planner
Optimizes the tax strategy for your down payment and budget, especially for self-employed workers and investors.
Best use of the FHSA, HBP and TFSA
Proof of income and returns in order
Tax impact of a rental property
Notary
Secures the transfer of ownership and helps you understand legal commitments. Fees depend on the file: there is no single mandatory fee schedule.
Examines titles, charges and relevant documents
Prepares the deed of sale and mortgage deed
Handles funds, adjustments and registration formalities
The notary and the building inspector complete the team: one legally secures the transaction and checks titles, the other reveals the property’s real condition.
The right experts at the right time.
01
Before the search
Mortgage broker and financial security advisor; accountant when needed. Establish financing, a comfortable budget and protection needs.
02
During the search
Real estate broker and mortgage broker. Check that properties and proposed terms fit the project.
03
Before the offer
Confirm available cash and financing, inspection and document-review conditions with realistic deadlines.
04
After acceptance
Coordinate final financing, inspection, insurance and the notary’s file. Pre-approval is not final approval of the property.
05
Before signing
Confirm funds to transfer, documents, insurance start dates and adjustments with the notary.
06
After buying
Review coverage and your budget, plan maintenance and repairs, and prepare for mortgage renewals.
Purchase costs
How much to plan for a $500,000 property?
Scenario: existing house in Laval, first purchase, minimum 5% down payment. 25-year amortization. Variable costs are illustrative ranges, not guaranteed prices; request quotes.
Four down payments, four scenarios.
An existing $500,000 owner-occupied property, amortized over 25 years. The premium is calculated on the loan before insurance, not the property price.
Down payment
Loan before premium
CMHC premium
Premium tax — cash
Loan including premium
5 % — $25,000.00
$475,000.00
$19,000.00
$1,710.00
$494,000.00
10 % — $50,000.00
$450,000.00
$13,950.00
$1,255.50
$463,950.00
15 % — $75,000.00
$425,000.00
$11,900.00
$1,071.00
$436,900.00
20 % — $100,000.00
$400,000.00
$0.00
$0.00
$400,000.00
At 20% down, mortgage default insurance is generally not required. These examples are not an approval: the lender and insurer must confirm eligibility. A surcharge may apply beyond 25 years.
The $19,000 premium can be added to the loan, bringing it to $494,000. The $32,320.50 subtotal excludes inspection, notary fees, other expenses and an emergency reserve: it is not the full budget.
2026 welcome tax: 0.5% up to $62,900, 1% from $62,900 to $315,000, 1.5% from $315,000 to $500,000 — i.e. $314.50 + $2,521 + $2,775. In Laval, the portion above $500,000 is taxed at 3%.
The tax base is the higher of the price paid or the assessed value multiplied by the comparative factor (1.03 in Laval for 2026).
Also keep a cushion of at least 1% to 2% of the price for unexpected costs and early maintenance. GST and QST may apply to new builds.
With a 20% down payment ($100,000), there is no CMHC premium and no premium tax.
Welcome tax: your questions.
What amount is the tax calculated on?
On the base of imposition: the higher of the price paid and the municipal assessment. In our examples, the purchase price is used as the base of imposition.
When and how is it paid?
The municipality sends the bill after the transfer is registered, usually within 3 to 6 months of the purchase. It is paid in one instalment, on top of your down payment and notary fees.
Which transactions are exempt?
Some situations are exempt, for example a transfer between spouses or, in certain cases, between parent and child. The exact rules depend on the Act respecting duties on transfers of immovables and your municipality — let’s check them together.
Can I get the welcome tax refunded?
Yes, if you are a first-time buyer: Québec’s refundable tax credit refunds up to $5,875 of duties paid since January 1, 2026 (100% of the first $5,000, plus 25% of the excess). Some municipalities also run their own programs.
Structure and plan
A well-prepared purchase is a purchase without surprises.
Most bad surprises happen when financing, budget and checks aren’t done in the right order.
01
Review your finances
Income, debts, credit, available savings and a realistic monthly budget including taxes, heating, maintenance and condo fees.
02
Get pre-approved
Know your real capacity and hold a rate before you shop, rather than a simple pre-qualification.
03
Build the down payment
Optimize the FHSA, HBP and TFSA, and set aside cash for closing costs and the welcome tax.
04
Protect the project
Arrange home insurance and suitable life and disability coverage before signing.
05
Make a conditional offer
Include financing, inspection and document review conditions, with realistic deadlines.
06
Change nothing before the notary
Avoid new credit, major purchases or job changes between approval and signing.
Check these eight points before buying.
Borrowing capacity: the maximum loan is not necessarily your comfortable budget.
Monthly budget: mortgage, taxes, heating, insurance, maintenance and condo fees where applicable.
Down payment: amount, source and FHSA or HBP withdrawal deadlines, subject to eligibility.
Available cash: transaction costs and an emergency reserve in addition to the down payment.
Protection: income, family, death, disability and critical illness according to your needs.
Taxes: self-employment, corporations, rental income, co-ownership and registered plans.
Property: inspection, location certificate, condo documents and anticipated repairs.
Financing: rate, penalties, prepayment privileges, portability and loan conditions.
The most common surprises
Receiving the welcome tax bill months after the purchase without having budgeted for it.
Financing declined after a new credit purchase or a job change.
Major repairs discovered too late, for lack of an inspection.
A property that’s hard to insure (roof, heating, flood zone).
Mortgage insurance that doesn’t pay because the exclusions weren’t read.
Not enough cash on signing day at the notary.
Plan before you buy.
A good mortgage is more than a rate. It belongs in an overall financial strategy. Our role is to arrange suitable financing, make costs clear and direct you to the right professionals.
Can I buy this property?
Can I really afford to keep it?
Do my financing and protections suit my situation?
General information, current according to public sources consulted in 2026. Rates, premiums and costs may change and vary with your file and municipality; confirm them with the relevant professionals.
