A Newcomer's Guide to Buying Real Estate in Montreal

Montreal attracts newcomers from every corner of the world, and many arrive with a clear goal: buy property as soon as possible. That ambition is well-founded. Montreal's real estate market has demonstrated consistent long-term appreciation, rental demand is structurally strong, and homeownership builds equity that renting simply cannot. But Quebec has a legal and regulatory framework that is unlike any other province in Canada, and newcomers who navigate it without guidance frequently encounter avoidable problems. This guide covers what you need to know before you start.

Quebec Is Not Like the Rest of Canada

If you have received advice about buying property from friends or family in Toronto, Vancouver, or Calgary, treat it as background context only. Quebec operates under the Civil Code of Quebec rather than Common Law, and the entire real estate transaction process reflects that difference.

Key distinctions to understand from the outset:

• OACIQ, not CREA. All real estate brokers in Quebec must be licensed through the Organisme d'autoréglementation du courtage immobilier du Québec. Before working with any broker, verify their license at oaciq.com. A broker licensed in Ontario, for example, cannot legally represent you in a Quebec transaction.
• The Promesse d'achat. Quebec uses a formal promise to purchase rather than the Agreement of Purchase and Sale used in other provinces. It is a legally binding document once signed by both parties, and the conditions it contains, financing, inspection, and others, must be met within the timeframes specified or the deal collapses.
• No automatic cooling-off period. For resale properties in Quebec, there is typically no right of rescission once the offer is accepted. This is different from Ontario's 10-day cooling-off period for new construction. In Quebec, the due diligence happens before you sign, not after.
• Notary, not lawyer. Real estate closings in Quebec are handled exclusively by a notary. The notary verifies title, prepares the deed of sale, registers the transfer, and holds funds. You will pay notary fees at closing, typically between $1,500 and $2,500.
• Welcome tax. Quebec imposes a land transfer tax, known as the taxe de bienvenue, on all property purchases. The rate is progressive based on purchase price and can amount to several thousand dollars on a typical Montreal purchase. Factor this into your closing cost calculations.

Can You Buy as a Newcomer?

Your eligibility to purchase depends on your residency status under Canada's federal foreign buyer rules, which took effect in January 2023.

Permanent residents are fully exempt from all restrictions and can purchase without limitation.

Work permit holders may qualify if they have worked in Canada for at least three of the four years preceding the purchase, or if they are purchasing a primary residence and meet certain income and tax filing criteria.

International students may purchase a primary residence priced below $500,000 if they meet specific enrollment and residency conditions.

Non-residents outside these categories face restrictions in designated census metropolitan areas, which includes Montreal. There are additional Quebec-specific rules to consider in some cases.

Before making any assumptions about your eligibility, confirm your status with a qualified broker. The rules have nuances, and the consequences of a non-compliant purchase are significant.

Mortgage Qualification Without Canadian Credit History

This is the most common practical obstacle newcomers face. Canadian lenders assess mortgage applications using Canadian credit bureau data. A newcomer who arrives with a spotless financial record in their home country begins with no Canadian credit history at all, which translates directly into limited mortgage options at standard terms.

Newcomer Mortgage Programs

Several major Canadian banks offer programs specifically designed for newcomers that substitute alternative documentation for Canadian credit history. RBC's Newcomer Advantage, TD's New to Canada program, and BMO's equivalent all allow applications with foreign income verification, international bank statements covering 90 days, a letter of employment or job offer, and proof of foreign assets. These programs typically require a down payment of 20 to 35 percent and may carry a slightly higher rate than standard insured mortgages.

Building Canadian Credit Quickly

If you plan to purchase within one to two years, begin building Canadian credit immediately upon arrival. Open a Canadian bank account and apply for a secured credit card, where your credit limit equals a cash deposit you provide. Use it for regular purchases and pay the full balance each month. Even 12 months of this activity creates a credit footprint that meaningfully expands your lender options.

Down Payment Requirements

For owner-occupied properties, the minimum down payment in Quebec is 5 percent on the first $500,000 of purchase price, scaling to 10 percent on the portion between $500,000 and $999,999, and 20 percent on purchases of $1 million or more. For investment properties where you will not occupy a unit, 20 percent is required regardless of purchase price, and CMHC mortgage insurance does not apply. Funds from abroad are accepted but must be documented through bank statements showing the origin of the funds over at least 90 days.

Property Types You Will Encounter

The plex is Montreal's most distinctive property type and one of the most effective wealth-building tools available to newcomers. A duplex, triplex, or quadruplex allows you to live in one unit while tenants in the other units contribute to your mortgage. Many newcomer families use this structure to enter the market at a lower effective cost while building equity and generating income. Plex inventory is concentrated in CDN, Rosemont, Verdun, and the Plateau.

Divise versus indivise co-ownership is a Quebec-specific distinction that newcomers frequently confuse. A divise condo gives you a legally registered individual lot number for your unit, equivalent to a standard condo anywhere else. An indivise property gives you a fractional share of an entire building without individual lot registration. Indivise units are often priced lower, but they require a larger down payment since conventional insured mortgages do not apply, and the co-ownership agreements governing them require careful review. Do not purchase an indivise property without understanding exactly what you are buying.

Standard condominiums are plentiful across Montreal, particularly in Griffintown, Ville-Marie, and CDN. Before making an offer on any condo, request the syndicate's financial statements, the reserve fund study, the declaration of co-ownership, and the minutes of the last three annual general meetings. These documents will reveal the financial health of the building and any known defects or upcoming assessments.

The Buying Process, Step by Step

1. Confirm your eligibility. Establish your residency status and understand your purchase rights before spending time on a property search.
2. Get pre-approved. A mortgage pre-approval letter defines your budget and signals seriousness to sellers. In competitive situations, sellers routinely favour buyers with pre-approval over those without.
3. Engage a buyer's broker. In Quebec, the seller's broker commission is split between both brokers. Buyer representation typically costs you nothing directly. There is no rational reason to navigate this market without a licensed professional on your side.
4. Search and visit. Your broker filters listings, arranges visits, and provides market data to help you assess each property against current comparable sales.
5. Submit a Promesse d'achat. Your broker prepares the formal offer, which includes purchase price, conditions, and a closing date. Read every clause before signing.
6. Fulfill conditions. Typically you will have 7 to 14 days to secure final mortgage approval and complete a professional building inspection. Both are standard conditions and both are important to fulfil rigorously.
7. Sign at the notary. The notary registers the title transfer and you receive your keys.

The buyers who navigate this market best are the ones who prepare before they search, not while they are searching. Pre-approval, eligibility confirmation, and a clear understanding of Quebec's process should all be in place before you visit your first property.

Working With a Broker Who Speaks Your Language

Montreal's newcomer population speaks dozens of languages, and the value of working with a broker who communicates in your own language cannot be overstated. Real estate contracts, mortgage conditions, inspection reports, and notary documents contain consequential details. Misunderstanding any one of them can be costly.

I work with clients from a wide range of backgrounds and offer consultations in Farsi, English, and French. If you are new to Montreal and navigating the property market for the first time, I am glad to walk you through the process from the beginning.