As a homeowner you can expect to pay carrying costs every month, which include mortgage fees, taxes, and utility bills. Predicting your carrying costs is an important part of budgeting for your home’s purchase. Here are some of the monthly homeownership costs you’ll pave to pay every month in Montreal and in other regions of Quebec:
Your mortgage payment includes the principal (the loan you are paying back on a monthly basis) and the interest on that loan. The amount paid as part of your total mortgage payments will depend on your pre-determined interest rate, the amount of your downpayment, the duration of your mortgage, and the frequency of your payments. You can calculate expected mortgage payments on our mortgage calculator.
A $300,000 property bought with a 20% downpayment ($60,000) would leave you with a $240,000 loan to be repaid on a monthly basis. With a 2.89% interest rate (Montreal’s current lowest rate) over 25 years and with a monthly payment frequency, this would amount to $1,122 per month.
There are two types of property taxes in Quebec: municipal tax, and school taxes. Property taxes cover public expenses related to your property, such as:
- Garbage removal
- Recycling collection
- Snow removal
- Fire services
- Public Landscaping
- Road maintenance
- Street lighting
Property taxes are determined by each municipality and may change on a year to year basis. Generally speaking, they range between 0.5% and 2.5% of your property’s market value.
School taxes contribute to the maintenance of educational institutions in your neighbourhood, and are paid in two instalments per year to the Comité de Gestion de la Taxe Scolaire de l’Île de Montréal (CGTSIM). The 2016-2017 school tax rate is $0.17765 per $100 of assessed value. Last year’s rate was $0.18839.
For example, if your home is assessed at a value of $300,000, and your tax rate is 1%, your property tax bill will be issued yearly at $3000. Your school tax will depend on municipality and year, but you can expect around $532.95 for a $300,000 property.
Condo fees are mandatory monthly fees paid to your condo association, which covers maintenance of the building and its amenities, insurance, and contributions to the reserve fund for larger expenses.
Condo fees vary from condo project to condo project, but in Montreal the average amount is $193 per month. Your fees will be higher if your project includes a gym, pool, and/or concierge service.
Utilities and bills
Your utility costs will include electricity, water, internet and heating costs. The cost of utilities will vary widely from property to property based on square footage, season, and the type of heating system installed.
If you own a rental property, some of these costs may be covered as part of the rental agreement.
Home insurance protects you against incidental damage to your home, such as flooding, vandalism and theft. If your downpayment amounts to less than 20% of the property’s value, you will also be obligated to take out mortgage insurance protecting yourself against potential defaults on your loan repayment.
In Montreal, you can expect an average home insurance cost of $50 / month.
Total Expected Costs for a $300,000 Condo
Mortgage payment fees: $1,122
Property Taxes: $250
School Taxes: $44
Condo Fees: $200