Buy a property

The choice between buying a residential or commercial property depends on many factors, including your financial goals, risk tolerance, property management skills, and more. Here are some points to consider:

• Financial goals: Generally, commercial properties can generate a higher return than residential properties, but they also require a larger initial investment. If you are looking for stable rental income, a residential property may be a better option. However, if you are willing to invest a larger amount and take on higher risk for a higher potential return, then a commercial property might be more suitable.
• Risk tolerance: Commercial properties are generally riskier than residential properties. For example, occupancy rates may vary more widely and be more dependent on the state of the economy.
• Property Management: Commercial properties may require more intensive management than residential properties. For example, you may need to manage multiple tenants, maintain company-specific equipment, etc.
• Financing: Financing for commercial property can be more difficult, and interest rates can be higher.
• Legislation: In Quebec, as elsewhere, there are different regulations and laws concerning residential and commercial buildings. It would be good to consult an expert or do your own research on these topics.

Ultimately, contact us to discuss your personal situation and goals before making a decision.

In fact, Montreal is divided into 19 boroughs, and each has a distinct building aesthetic and way of life.

INNO link Canada is a group of experts in the field of real estate. Our main goal is to provide the best services for your needs. We will analyze your wishes and provide the most suitable property.

We will provide you with the best list that suits you and your family. The satisfaction of our customers shows us that we are on the right track to provide exceptional service. With our experienced team, be sure to choose the best property. Our experts will guide you for more information like neighborhood, accessibility, etc. to help you make the best choice, especially for a first-time buyer.

Our services are also suitable for newcomers to help them settle in Quebec.

The INNO Link Canada reception team is a complete team of real estate brokers and experts: building inspector, mortgage broker and notaries. We’ve assembled this team to help you find your dream home

Things to consider when purchasing:

1. Pre-sale appraisal fee

In some cases, it is recommended to do this expertise, but it is not always necessary. The fees for a property appraisal expertise in Quebec can vary depending on several factors, such as the complexity of the appraisal, the size of the property, its location, etc. Typically, these fees can range from a few hundred to a few thousand dollars. For example, for a single-family home, you can expect to pay between $300 and $600 on average, but this cost could increase if the property is large or complex. For a commercial or industrial property, the fees can be significantly higher.

It is always recommended to request several quotes from different appraisers before making a choice. Also, make sure the appraiser is a member of the Order of Chartered Appraisers of Quebec to ensure you receive professional and reliable service. It should also be noted that the fees paid for an appraisal do not reflect a specific market value of your property. The market value is rendered by what the buyer is willing to pay on the open market.

Note that these numbers are estimates based on data available through September 2021, the last update date of my knowledge base. It is therefore possible that prices have changed slightly since then. You should verify current fees by contacting one or more licensed appraisers directly.

2. Cost of a property inspection

We will always accompany you throughout the inspection of the property before buying it. The cost of a pre-purchase property inspection can vary greatly depending on several factors, including property size, location, age, type (single home, condominium, multi-unit building, etc.) and the level of detail of the inspection required.

In 2021, the fees for a standard home inspection in Quebec were generally between $300 and $700. However, note that these costs may have increased slightly since then, due to inflation or other factors.

A more detailed inspection, such as a pest inspection, foundation inspection, or heating and cooling system inspection, can cost more. Additionally, some properties, such as historic buildings or larger properties, may require specialist inspections which may also increase the cost.

It is important to remember that the cost of inspection is often much lower than the potential costs associated with problems that may be uncovered during the inspection. Additionally, a thorough inspection can give you valuable peace of mind when buying a property.

We recommend several certified property inspectors for accurate quotes based on your specific needs.

3. Notary fees

In Quebec, notaries generally set their own fees, and these can vary depending on the complexity of the transaction. These fees may include:

• • The notary’s fees: they are generally calculated according to the time spent on the file. For a standard real estate transaction, this could be between $1,000 and $2,200, but it can vary.
  • Disbursements: these are fees paid by the notary on your behalf for services such as obtaining a certificate of location, title searches, etc.
  • The welcome tax (real estate transfer tax): this tax is calculated according to the highest amount between the purchase price of the property and its municipal value. The rate varies depending on the city and the value of the property.
  • Registration fees: these fees are paid to register the new property and the mortgage with the Land Registry of Quebec.

4. Mortgage insurance

Mortgage insurance is generally required by lenders as part of a mortgage loan when the buyer pays less than 20% of the purchase price of the property as a down payment. It is designed to protect the lender against default by the borrower.

In Quebec, as in the rest of Canada, there are three main providers of mortgage insurance:

• • Canada Mortgage and Housing Corporation (CMHC): This is a Crown corporation that provides mortgage insurance for homes priced under $1 million.
  • Genworth Canada: This is a private insurance company that also offers mortgage insurance services.
  • Canada Guaranty: it is the third provider of mortgage insurance in Canada, also a private company.

The cost of mortgage insurance varies depending on several factors, including the amount of the loan and the percentage of the down payment. It is usually added to the mortgage amount and paid by the borrower over time.

It is important to note that mortgage insurance is not the same as mortgage life insurance, which is a form of insurance that pays off the remaining balance of your mortgage if you die, or home insurance, which protects your home from damage such as fire or flood.

Finally, in order to find the best solution, we put you in touch with mortgage experts to discuss your options and find the product that best suits your needs.

5. Title Insurance

Title insurance is not mandatory in Quebec, but it is recommended to protect the buyer and the mortgage lender against various risks related to real estate ownership, such as fraud, title problems or latent defects.

Fees for title insurance can vary depending on the amount of the transaction and the insurance company, but generally they range from a few hundred to a few thousand dollars.

It would therefore be prudent to contact several title insurance companies for quotes. Also, title insurance is usually a one-time payment and covers as long as you own the property.

It is important to consult a lawyer or notary during the purchase process to ensure that all legal aspects of the transaction are handled properly, including the decision to purchase title insurance.

You may need title insurance given the particular situation of the transaction, for example while waiting for the new certificate of location to be ready. So we suggest you contact us for current advice specific to your situation.

6. Prepaid adjustments

Prepaid adjustments for utilities and property taxes are fees that are billed in advance, usually when a property sale is completed.

Utilities: Utilities can include electricity, gas, water and other services needed for a property. During a sale, the buyer and seller must determine who should pay for the services used during the month of the sale. For example, if the sale occurs on the 15th of the month, the buyer should be responsible for half the cost of utilities for that month. However, since these services are generally billed at the end of the month, the buyer may have to pay the entire bill, and the seller may have to reimburse his share. This can be handled by prepaid adjustments when closing the sale.

Property taxes: Property taxes are generally paid once a year. If a sale takes place after the seller has paid the property taxes for the year, the buyer may have to reimburse the seller for the part of the property taxes corresponding to the period of the year during which he will own the property. For example, if the property taxes are paid in January and the sale takes place in June, the buyer may have to reimburse the seller for half of the property taxes paid. This can also be handled by prepaid adjustments when closing the sale.

Prepaid adjustments are an important aspect of closing a property sale. They ensure that costs are split evenly between buyer and seller based on how long each owns the property. They are usually negotiated during the closing process and are detailed in the deed of sale.

7. Home Insurance

The cost of home insurance depends on several factors, including:

• • Home Value: The more expensive the home, the more expensive the insurance will be.
  • Location of home: Certain areas may have higher insurance rates due to factors such as crime rate, risk of natural disasters, etc.
  • House details: The age of the house, the type of construction, the type of roof, etc. can all affect the cost of insurance.
  • Chosen cover: The more risks you want to cover, the higher the cost of insurance will be.
  • Deductible: A higher deductible can reduce the insurance premium.
  • Claims history: If you have a history of insurance claims, this could increase your costs.

As a real estate expert, we refer you to experts in several insurance companies in order to obtain quotes. Don’t forget to compare not only the costs, but also the coverages offered and the terms of the policies.

8. Mortgage life insurance

Mortgage life insurance is a form of insurance designed to pay off a property’s mortgage in the event of the death of the borrower. Here are some of the benefits of this type of insurance:

Financial security for loved ones: In the event of the premature death of the borrower, mortgage life insurance ensures that the mortgage debt will be repaid. This can save the borrower’s family from having to sell the home to pay off the mortgage, and can help provide financial stability.

Ease of obtaining: Generally, mortgage life insurance is easier to obtain than other types of life insurance. This is because it is usually linked to obtaining a mortgage, and does not always require a full medical examination.

Constant premiums: In most cases, mortgage life insurance premiums remain constant throughout the term of the policy, even if the life expectancy of the borrower decreases.

Peace of mind: Knowing that the house will be paid for in full in the event of death can give peace of mind to the borrower and their family.

We refer you to a financial advisor or insurance agent to discuss which options are best for your particular situation

9. Sales tax

If you buy a new property for which the construction has been completed, you may be liable for QST and GST (Goods and Services Tax), unless the property is exempt for some reason. The rates of these taxes may vary.

If you are building a new house, you may also be liable for QST and GST on building materials and contractor services.

This is a complex situation and we refer you to consult a real estate tax expert for advice specific to your situation. Tax laws can change and vary from province to province.

10. Property transfer tax

When buying a property in Quebec, several types of taxes and fees may apply. Here are the main ones:

• • Welcome tax (Real estate transfer rights): Also called transfer tax, it is a municipal tax that is calculated according to the value of the property you are buying. It is generally due within 30 to 60 days of signing the deed of sale.
  • Municipal and school taxes: These are annual taxes based on the assessed value of the property by the municipality. You usually have to pay your share for the current year when buying the property.
  • Goods and Services Tax (GST) and Quebec Sales Tax (QST): These taxes generally apply to the purchase of new or substantially renovated properties. However, there are refunds for certain properties under certain conditions. These taxes do not generally apply to the purchase of used properties.
  • Mortgage Registration Fee: If you are financing your purchase through a mortgage, you will need to pay a fee to register the mortgage.
  • Notary fees: These fees cover the preparation of the legal documents necessary for the transaction, the verification of the legal status of the property, the registration of the property and the mortgage at the registry office, etc.

There may be other costs associated with the purchase of the property, such as inspection costs, appraisal costs, insurance costs, etc. It is recommended that you work with a property advisor and notary to ensure that you understand all the costs associated with buying a property.