Updated: April 2025  |  bremo.io financial guides

Getting a Mortgage in Quebec City: Rates, Process, and What's Different

Getting a mortgage in Quebec City follows the same national rules as the rest of Canada — CMHC stress test, minimum down payments, amortization limits — but with some Quebec-specific elements that buyers should understand. This guide covers everything from qualifying to closing in Quebec's capital city.

Current Mortgage Rates in Quebec City

Mortgage rates in Quebec City are set by national lenders and are largely the same as elsewhere in Canada. Shop among national banks, credit unions, and mortgage brokers for the best rate:

• Major banks (National Bank of Canada, Desjardins, TD, BMO, RBC, Scotiabank): compare all before committing
• National Bank and Desjardins have particularly strong Quebec market presence and competitive rates
• Mortgage brokers can access multiple lenders simultaneously and are particularly useful for buyers with complex situations

The CMHC Stress Test

All mortgages in Canada require qualification at the stress test rate — the higher of your contract rate +2% or 5.25% — regardless of your actual rate. This means: if your mortgage rate is 4.5%, you must qualify as if you were paying 6.5%. This reduces the maximum mortgage you can afford.

Down Payment Requirements in Quebec City

• Minimum 5% on homes priced up to $500,000
• 5% on first $500,000 + 10% on the amount from $500,000 to $999,999
• Minimum 20% on homes priced at $1,000,000 or above (no CMHC insurance available)

Desjardins — Quebec's Dominant Lender

Desjardins (the cooperative financial group headquartered in Lévis, Quebec) is the dominant mortgage lender in the Quebec City market. They have deep local expertise, competitive rates, and French-language service. Most Quebec City buyers should include Desjardins in their mortgage comparison, alongside National Bank of Canada which also specializes in Quebec.

The Notary's Role in Quebec City Mortgage Closing

Unlike other provinces where lawyers handle mortgage closings, Quebec requires a notaire (notary). The notary:

• Conducts title searches and confirms clear ownership
• Prepares and signs all mortgage and purchase documents
• Registers the deed and hypothec (mortgage) at the Quebec land registry
• Holds funds in trust and distributes to seller

The buyer typically pays notary fees: $1,200–$2,000 for a standard residential purchase with a mortgage.

Mortgage Options for Buyers in Quebec City

Fixed vs. Variable Rate

Both are available from Quebec lenders. Fixed rates provide payment certainty. Variable rates move with the Bank of Canada's policy rate. In periods of declining rates, variable mortgages benefit from decreasing payments; in rising rate environments, fixed provides protection.

Amortization

Standard insured mortgages allow 25-year maximum amortization. Uninsured (20%+ down payment) can now extend to 30 years as of August 2024 under new federal rules, reducing monthly payments but increasing total interest paid.

First-Time Buyer Mortgage Programs

Quebec City first-time buyers can access:

• FHSA (First Home Savings Account) for tax-free down payment savings
• Home Buyers' Plan — withdraw up to $35,000 from RRSP for down payment
• Quebec first-time buyer welcome tax rebate (up to $5,000)
• Quebec calculates droits de mutation (welcome tax) on a sliding scale: 0.5% on the first $52,800 of the purchase price, 1% from $52,800 to $264,000, and 1.5% on any amount above $264,000. Quebec City has no additional municipal surtax — unlike Montreal which adds a 3% tier above $500,000.