Buying a House in Montreal: The Essential Guide to Start Off Right

Buying a House in Montreal: The Essential Guide to Getting Started Right

Do you dream of buying a house in Montreal, but you don’t know where to start? Between rising prices, neighborhoods that are very different from one another, and the Quebec market’s peculiar rules, it’s easy to feel overwhelmed.

This guide gives you a clear and concrete overview to prepare your home purchase in Montreal with full confidence.

1. Understanding the Montreal real estate market

Before visiting the first house, it’s crucial to understand the context.

1.1. A market in constant motion

Montreal remains one of the most affordable large cities in North America, but:

• Prices have risen significantly over several years.
• Good properties in sought-after areas go quickly.
• Multiple offers (several buyers on the same house) are common in certain neighborhoods.

Consequence: to succeed in your Montreal home purchase, you must be financially prepared and reactive.

1.2. Choosing your neighborhood wisely

Each neighborhood has its own personality, prices, and pace of life. A few examples:

• Plateau-Mont-Royal: very lively, cafés, restaurants, green lanes, close to the center; higher prices, properties often older.
• Rosemont–La Petite-Patrie: family-friendly, parks, schools, Jean-Talon Market nearby, good balance between price and quality of life.
• Villeray–Saint-Michel–Parc-Extension: undergoing transformation, still good opportunities, proximity to the metro in several areas.
• Ville-Marie (downtown): urban living, condos, proximity to offices/universities; ideal if you want everything on foot or by metro.
• Verdun / LaSalle: riverfront, bike paths, good accessibility, townhouses, duplexes and triplexes.
• Ahuntsic-Cartierville: more residential, tree-lined streets, sought-after single-family homes.

Ask yourself these questions:

• How much time am I willing to spend commuting?
• Do I want to be close to the metro, the river, parks, schools?
• Do I prioritize an already established area or an emerging area?

2. Your budget: more than the listed price

Buying a house in Montreal isn’t just the property price. There are several elements to plan for.

2.1. Mortgage pre-approval

It’s one of the first concrete steps:

• You meet with a lender (bank or mortgage broker).
• They assess your borrowing capacity based on your income, debts, down payment, and credit history.
• You obtain a pre-approval with a maximum amount and often a guaranteed interest rate for a set period.

Benefits:

• You know your budget precisely.
• Your offer is more credible in the seller’s eyes.
• You can act faster when you find the right house.

2.2. The down payment

In Quebec, the minimum down payment is generally:

• 5% of the purchase price (mortgage loan insurance required with CMHC or equivalent).
• 20% or more to avoid this insurance and reduce your monthly payments.

Simple example:

For a house at $600,000:

• 5% = $30,000
• 20% = $120,000

2.3. Closing costs (often forgotten)

Plan for about 1.5% to 3% of the purchase price to cover:

• Notary fees
• Tax adjustments (municipal/school taxes share to be reimbursed to the seller)
• Pre-purchase inspection
• Title insurance (sometimes)
• Moving costs and initial repairs

3. The famous “welcome tax” and other taxes

When you buy a house in Montreal, you must pay:

3.1. Transfer tax (called the “welcome tax”)

It’s a tax paid to the city after the purchase. The amount depends on the property price, on a progressive scale. The higher the price, the higher the tax.

Result: on a house worth several hundred thousand dollars, the bill can reach several thousand. You must therefore plan for it in your budget.

3.2. Municipal and school taxes

Each year you pay:

• Municipal taxes (city services, infrastructure, etc.)
• School taxes (financing of the school system)

The amount varies by borough, property value, and current rates.

4. Property types: house, duplex, condo…

In Montreal, buying a house can take several forms:

4.1. Single-family home

• A single dwelling unit
• More privacy, potentially larger yard
• Usually more expensive than a condo of the same size
• Entirely your responsibility (roof, foundations, maintenance, etc.)

4.2. Duplex, triplex, and multi-unit buildings

• You live in one unit and rent the others.
• Rents can cover part of the mortgage.
• Property management, landlord responsibilities.
• Interesting for building long-term wealth, but more complex.

4.3. Condo: divided vs undivided

For condominiums (very common in Montreal):

• Divided condo
• Each owner holds their private portion (their unit) and a share of the common areas.
• Separate notarized deed, own lot number.
• Standard mortgage.
• Condominium association, contingency funds, building regulations.
• Undivided condo
• Owners jointly own the building (no separate lots).
• Mortgage often more complex (often with a single lending institution, higher down payment).
• Cheaper to buy, but more financing and resale constraints.

Understanding this difference is essential before signing anything.

5. From viewing to inspection: the major steps

5.1. Viewings

During viewings:

• Look at the overall condition: roof, windows, basement, moisture traces, cracks, age of main systems (heating, plumbing, electricity).
• Assess the neighborhood: noise, traffic, shops, schools, parks, transit access.
• Check the location certificate if possible (property plan and description).

5.2. The offer to purchase

With your broker (or alone if you’re buying without one), you draft a offer to purchase:

• Offered price
• Possession date
• Inclusions / exclusions (appliances, light fixtures, etc.)
• Conditions (financing, inspection, sale of your current property, etc.)

These conditions protect you. For example, the inspection condition allows you to renegotiate or withdraw if serious problems are found.

5.3. The pre-purchase inspection

The pre-purchase inspection is strongly recommended:

• The inspector examines the house (structure, envelope, electrical, plumbing, roof, etc.).
• They produce a detailed report of anomalies, urgent repairs, and future maintenance.

This report:

• Prevents unpleasant surprises.
• Gives you a reason to renegotiate the price or request repairs.

6. The role of professionals

For a successful home purchase in Montreal, surround yourself with the right allies:

• Real estate broker: advises on the market, finds properties, prepares offers, negotiates for you.
• Mortgage broker or advisor: helps you choose the right product, the best rate, and understand the long-term impact of your choices.
• Notary: verifies title deeds, prepares and signs the sale deed and mortgage deed, ensures the transaction complies.
• Building inspector: assesses the true condition of the house before purchase.

7. Some strategies to maximize your chances

• Define your priorities: location, size, number of bedrooms, parking, transit access, etc.
• Be realistic about the budget: don’t aim for the maximum of your pre-approval; keep a cushion for unforeseen expenses.
• Regularly monitor the market: compare properties sold in your target area to know if a price is reasonable.
• Be ready to act quickly: in a competitive market, a strong file (pre-approval, available deposit) can make the difference.

Conclusion: well-prepared, your project becomes real

Buying a house in Montreal is a major life project, with its challenges but also beautiful opportunities. By understanding:

• how the market works,
• the real costs (down payment, taxes, closing costs),
• the different property types,
• and the key steps (pre-approval, offer, inspection, notary),

you transform a stressful process into a structured and controlled project.

The next step? Clarify your budget, choose 2–3 neighborhoods that match your lifestyle, and start tracking properties that are on the market there.

Step by step, your home purchase in Montreal moves from dream to reality.