Welcome tax
Quebec municipalities charge transfer duties when ownership changes. Buyers usually call this the welcome tax. It is separate from your down payment and mortgage.
The bill often arrives after the sale closes, so it can catch buyers who only saved for the down payment. Some municipalities can have their own rates and brackets, so estimate it for the exact municipality before removing conditions.
Treat the welcome tax as cash you need shortly after purchase, not as a small admin fee.
Notary fees and closing adjustments
In Quebec, the notary handles key legal steps in the transaction. Your bill can include legal work, registration, disbursements, title-related checks, mortgage publication, and other closing tasks.
You may also owe adjustments for items the seller already paid, such as municipal taxes, school taxes, condo fees, fuel, or utilities. These are normal, but they still need cash.
Inspection, insurance, and moving
A home inspection is money spent before the deal is firm. Skipping it can make an offer look cleaner, but it can also hide expensive problems with the roof, foundation, drainage, electrical, plumbing, heating, or moisture.
Insurance should be priced before closing, especially for older homes, condos, flood-risk areas, or properties with prior claims. If you have an insured mortgage, remember that insurance costs can also include sales tax that may be payable upfront depending on the situation.
Moving costs are easy to undercount. Include movers or truck rental, packing materials, storage, time off work, address changes, furniture gaps, appliance delivery, locks, paint, and basic setup.
Utility setup and immediate repairs
Budget for utility setup, connection fees, deposits where applicable, internet installation, Hydro-Quebec account changes, heating fuel adjustments, and first bills that arrive before the household budget has settled.
Immediate repairs are common even when the home passed inspection. Appliances fail, leaks appear, door locks need replacing, gutters need clearing, and small safety fixes become urgent once you live there.
Separate repairs from upgrades. A leaking roof, unsafe stairs, old wiring, and a broken furnace are not renovation dreams. They are ownership costs.
Condo special assessments
For condos, the monthly fee is not the whole risk. A special assessment can happen when the syndicate needs money for repairs, legal costs, insurance gaps, or underfunded building work.
Read the declaration of co-ownership, financial statements, minutes, insurance documents, reserve fund information, and any engineering or building reports. Look for repeated water issues, envelope repairs, elevator work, roof work, litigation, and rising insurance costs.
A cheap condo fee can be a warning sign if the building has been delaying repairs.
Maintenance reserve
A maintenance reserve is cash set aside for the home after closing. It is different from the down payment and different from closing costs.
Detached and older homes usually need a larger reserve because more systems are yours alone. Condos still need a reserve for interior repairs, appliances, deductibles, fee increases, and special assessments.
If buying the home leaves you with no repair cash, the home is not affordable yet. It is just financeable.
Real examples
These are planning examples, not quotes. The point is to force every cost into the decision before you sign.
| Scenario | Costs to expect | What to do before offering |
|---|---|---|
| Large-city condo | Welcome tax, notary, inspection, moving, condo document review, possible special assessment risk | Read syndicate documents and add the full condo fee to the monthly budget |
| Older house outside a large city | Inspection findings, insurance, heating system, roof, drainage, immediate safety repairs | Keep a repair reserve and price insurance before conditions are removed |
| First-time buyer using most savings | Down payment looks fine, but cash is thin after welcome tax and notary fees | Reduce price target or delay until closing costs and emergency cash are separate |
| New build or major renovation | Setup costs, taxes, deficiencies, appliance purchases, landscaping, window coverings | Ask what is included and budget for everything missing on possession day |