You have the down payment. You have the qualification. You're ready to sign. And then someone mentions closing costs — and you realize you need several thousand dollars more in cash at the notarial signing.
How much exactly? For a Quebec purchase in 2026, you generally need to plan between 2.5% and 4% of the purchase price in closing costs — on top of the down payment. Here's the detailed breakdown, line by line, with realistic 2026 ranges.
Overview — the main line items
Before diving into detail, here's the map of expenses to plan for. Some are due at the signing at the notary (the famous "disbursement"), others in the 30-90 days that follow.
| Line item | Typical 2026 amount | Paid when? |
|---|---|---|
| Notary fees | $1,200 to $1,800 | At signing |
| Notary disbursements (searches, publication) | $400 to $800 | At signing |
| Welcome tax (transfer duties) | See table below | 30-60 days after signing |
| Municipal/school tax adjustments | $500 to $3,000 | At signing |
| Location certificate (if redone) | $800 to $1,500 | Before or at signing |
| Pre-purchase inspection | $400 to $600 | Before the final offer |
| Property appraisal (if required) | $350 to $550 | Before lender commitment |
| Home insurance (year 1) | $700 to $1,400 | Before signing |
| Title insurance (optional, required by some lenders) | $250 to $450 | At signing |
| GST/QST (new build or substantially renovated only) | Variable | At signing |
Indicative total for a $500,000 existing property in Montreal: about $13,500 to $17,000 in closing costs, i.e. 2.7% to 3.4% of the purchase price.
The welcome tax — the heaviest line item
This is the item that most surprises first-time buyers. The welcome tax — officially the land transfer duties — is levied by the municipality on every real estate transaction in Quebec. It's due within 30-60 days after the notarial signature (not at the signing itself — which is what trips up buyers who think they're done).
The 2026 calculation table in Quebec
The calculation follows a progressive scale set by the Act respecting duties on transfers of immovables. The brackets are indexed annually by Revenu Québec.
| Base of imposition bracket | Rate |
|---|---|
| $0 to $55,200 | 0.5% |
| $55,200 to $276,200 | 1.0% |
| $276,200 to $552,300 | 1.5% |
| Above $552,300 (general scale) | 2.0% |
These thresholds are the ones published for 2026 (slight annual indexation). Always verify the thresholds applicable in the year of your transaction.
Base of imposition — watch this subtlety
The tax is calculated on the higher of the two amounts below:
- The price paid (purchase contract).
- The value entered in the municipal assessment roll, multiplied by the comparative factor of the municipality for the year (this factor reflects the gap between the roll value and market value).
In a fast-rising market, the purchase price is almost always higher than the roll x factor. But in some areas where the rolls have been recently updated, it's worth checking — the notary runs this calculation systematically.
Three worked examples
Example 1 — Bungalow in Sherbrooke, price $380,000
- 0.5% on the first $55,200 = $276
- 1.0% on $55,200 to $276,200 (i.e. $221,000) = $2,210
- 1.5% on $276,200 to $380,000 (i.e. $103,800) = $1,557
- Total welcome tax = $4,043
Example 2 — House in Longueuil, price $555,000
- 0.5% on $55,200 = $276
- 1.0% on $221,000 = $2,210
- 1.5% on $276,100 = $4,141
- 2.0% on $2,700 (above $552,300) = $54
- Total welcome tax = $6,681
Example 3 — House in Montreal (Rosemont), price $780,000
- 0.5% on $55,200 = $276
- 1.0% on $221,000 = $2,210
- 1.5% on $276,100 = $4,141
- 2.5% on $227,700 (Montreal, bracket $552,300 - $780,000) = $5,692
- Total welcome tax = $12,319
It's this last figure that stings the unprepared Montreal buyer.
Notary fees
In Quebec, a real estate sale must be notarized — it's an authentic act under civil law. You choose your notary (the buyer pays), and their fees cover:
- Preparation and reading of the deed of sale.
- Preparation of the hypothecary deed.
- Searches at the Land Register and the Register of Personal and Movable Real Rights (RDPRM).
- Publication at the Land Register.
- Disbursements for publication and search fees.
2026 range: $1,200 to $1,800 for fees, plus $400 to $800 in disbursements (searches, publications, stamps). Total notary line: $1,600 to $2,600.
Complex properties (divided co-ownership with a declaration to review, subdivision, multiple servitudes, estate) can climb to $3,000. Always ask for a written quote before signing with the notary.
Adjustments — the variable line
At signing, the notary adjusts between buyer and seller the property charges prorata temporis: what the seller has already paid for a period during which you'll be the owner, you refund; what they haven't yet paid and is running, they credit to you.
The main adjustments:
- Municipal taxes: paid annually at the start of the year or in 2-4 instalments. If the seller paid through December and you take possession in July, you refund them the 6 remaining months.
- School taxes: collected by the School Service Centre, annually in July. Similar proration.
- Condo fees (condo): monthly, adjusted to the day.
- Fuel (oil, propane remaining in the tank): quantity measured, refunded to the seller at recent cost.
Realistic 2026 range: $500 to $3,000 depending on time of year and the municipal charge level. A January signing after the seller's annual payment = high adjustment. A December signing = low adjustment.
Home insurance — mandatory before signing
No mortgage lender finances without proof of home insurance in force on the possession date. You must provide the notary with a certificate from the insurer at least 48 hours before signing.
2026 range: $700 to $1,400 for a standard single-family home, $400 to $800 for a condo (the syndicate covers the building envelope). Prices influenced by: claims history, presence of a pool, roof age, postal code, presence of a monitored alarm system.
Inspection and appraisal — two often-confused expenses
The pre-purchase inspection ($400 to $600) is done for you by a building inspector of your choice, before removing the inspection condition from your offer. It protects you, not the lender.
The property appraisal ($350 to $550) is sometimes required by the lender to confirm that market value justifies the mortgaged amount. It's more and more often replaced by an automated valuation (AVM) at no charge, but for atypical properties, rural areas, or large mortgages, the lender may require a formal appraisal.
The municipal assessment entered in the roll is a third document — used for the welcome tax and municipal taxes, but not used by lenders to validate the loan.
The location certificate — sometimes to be redone
The location certificate is the land surveyor's plan that attests to the location of buildings on the lot, servitudes, and encroachments. The seller must provide one that is up to date and representative of the current state of the property.
If the certificate is over 10 years old, or if work has been done since (extension, pool, shed), it must be redone. 2026 cost: $800 to $1,500. Depending on the purchase offer, it can be charged to the seller or the buyer — a point to negotiate at the time of the offer.
Special cases — GST, QST, refunds
New or substantially renovated property: GST (5%) and QST (9.975%) apply on the price, with partial rebates for new housing (up to a value ceiling). If you're buying a resale from a private seller, no GST/QST. If you're buying from a builder or an investor who has substantially renovated, yes — and it's a major item to calculate with your notary before the offer.
First-time buyer — provincial and municipal rebates: some municipalities offer partial welcome-tax rebate programs for first-time buyers (Montreal, Quebec City, Laval, Longueuil and several others have versions of the program, with variable criteria — price cap, income, first-time buyer status). Check with your municipality — savings can reach $3,000 to $6,250 depending on the case.
Expected total — recap
For an existing property at $550,000 in Longueuil, first purchase:
| Line item | Amount |
|---|---|
| Notary (fees + disbursements) | $2,200 |
| Welcome tax | $6,519 |
| Adjustments (average) | $1,200 |
| Inspection | $500 |
| Appraisal (if required) | $450 |
| Home insurance year 1 | $1,000 |
| Title insurance | $300 |
| Location certificate (if redone) | $1,100 |
| Total closing costs | $13,269 |
| As a % of purchase price | 2.4% |
Without the certificate to redo, it drops to about $12,200 (2.2%). With special cases (Montreal above $552K, complex property, GST/QST new build), it can climb to 4-6% of the price.
What Courteo does
Courteo is not a notary or a real estate broker. We connect you with an AMF-licensed mortgage broker who structures your financing while accounting for closing costs — because forgetting $15,000 of cash to plan for at disbursement can compromise your transaction at the last minute. For the exact welcome tax and adjustment calculation, your notary will do the final tally the week before signing.
Frequently asked questions about closing costs in Quebec
Can closing costs be added to the mortgage?
Generally no. Closing costs must be paid in cash at the time of signing (or within 60 days for the welcome tax). A mortgage loan finances the property purchase, not accessory fees. Some lenders offer programs that include a cashback at signing to help cover costs — but the interest rate is generally marked up in exchange, and the calculation is rarely to your advantage over the term. A broker can compare the scenarios with and without cashback.
When does the welcome tax bill arrive exactly?
Between 30 and 90 days after the notarial signing, in the form of an invoice mailed by the municipality. The delay varies — Montreal sends quickly, some rural municipalities can take up to 6 months. The bill is payable in one instalment, generally interest-free if paid within 30 days of issuance. Plan the cash from signing — not 6 months later when you've spent it on furniture.
Can you negotiate with the seller to pay part of the costs?
Some items, yes — the location certificate to be redone is often negotiated (seller or 50/50). Notary fees for the hypothecary deed, no — that's your notary, chosen by you. The welcome tax, never — it's a legal tax exclusively borne by the buyer under provincial law. You can always negotiate a reduced purchase price to compensate for your estimated costs — but formally, each party pays its own fees.
Do closing costs count in the minimum down payment calculation?
No — closing costs are on top of the down payment. You must demonstrate to the lender that you have the down payment (5% to 20%+ depending on the program) and at least 1.5% of the purchase price available in your own funds to cover closing costs. Some lenders require proof of these funds on file before even the loan commitment. That's one reason the initial qualification must include a complete review of your liquidity, not just your down payment.