Costs to consider when buying a property in Montreal

When buying or selling a property, there are several fees and taxes to consider in addition to the sale price. Here is an overview of the most common fees and taxes to consider when buying or selling a property.

Real estate brokerage fees: If you work with a real estate broker, you will have to pay brokerage fees for their services. Fees vary by broker, but are generally around 5% of the sale price.

Notary fees: When selling a property, you will have to pay notary fees for the preparation of legal documents. Fees vary by region, but are generally around 1% of the sale price.

Inspection Fees: Before buying a property, you may want to hire an inspector to assess the condition of the property. Inspection fees vary depending on the size and location of the property, but can cost between $300 and $500.

Sales taxes: When you sell a property, you may have to pay sales taxes, which vary by region. In Quebec, the sales tax (QST) is 9.975% and the goods and services tax (GST) is 5%.

Registration fees: When buying or selling a property, you may need to pay a registration fee to register the transaction with the relevant authorities. Fees vary by region and can cost several hundred dollars.

Property Taxes: Property taxes are an annual tax that property owners must pay to municipal governments. Property tax rates vary by region and are generally based on property value.

Appraisal Fees: When you buy a property, your mortgage lender may require an appraisal of the property to establish its value. Appraisal fees vary depending on the size and location of the property, but can cost between $300 and $500.

Ultimately, the fees and taxes associated with buying or selling a property vary by region and individual circumstances. It is important to fully understand these costs before making a decision to buy or sell to avoid unpleasant surprises. By working with qualified real estate professionals, you can get an accurate estimate of the costs and taxes associated with your real estate transaction.

If you still have questions, or if you'd like to buy a property, contact us today.