# Average Mortgage Payments in Quebec City

This piece was originally published on February 20, 2017, and was updated on October 31, 2022.

Ever wonder how much a home in Quebec’s capital would cost? According to the Canadian Real Estate Association (CREA), the average price of a home in Quebec City and the surrounding metropolitan area was \$319,200 in September 2022. If you’re interested in purchasing a home in Quebec City, you’ll want to know how much your mortgage payments will be.

But to calculate the average mortgage payment, a few decisions must first be made. These decisions include:

• How large of a down payment should you put down?
• What’s the best mortgage rate available?
• How long should you take out your mortgage for?
• What payment frequency are you most comfortable with?

The first decision we’ll tackle is the down payment amount.

## Down payment

Because the average house price is under \$500,000, the required minimum down payment is simply 5% of the purchase price of the home. If you’re purchasing a home for \$319,200, the minimum down payment required is \$15,960 and you have to pay \$12,130 in mortgage default insurance (often known as CMHC insurance). This would result in your required total mortgage being \$315,370. But if you decide to make a 20% down payment of \$63,840 to avoid having to pay mortgage insurance, your total mortgage amount will be \$255,360.

If you wish to purchase a home in Quebec City that’s more than \$500,000, your minimum down payment is calculated as follows:

• If the home price is above \$500,000, the minimum down payment is 5% of \$500,000 (\$25,000) plus 10% of the portion of the home’s price above \$500,000. The formula is as follows: \$500,000 x 5% + (home price – \$500,000 x 10%).
• If the home price is \$1 million or more, the minimum down payment is 20% of the home price. The formula is as follows: home price x 20%.

## Mortgage rate

Looking for the best mortgage rate will require comparing multiple rates from various providers. By selecting the lowest mortgage rate available to you, you’ll be able to save on the total amount of interest paid over the life of the loan. In order to find the lowest rate, consider using a mortgage broker. A mortgage broker can help find you the lowest mortgage rate by providing offerings from multiple providers on your behalf.

During your mortgage rate search, you’ll come across variable and fixed rates. The main difference between fixed rates and variable rates are that with a fixed rate you’re guaranteed your rate for the term selected, whereas with a variable rate, your rate will fluctuate with the prime rate. With a fixed rate, you’ll know the rate for the whole term. With a variable rate, your mortgage rate will fluctuate.

Once you’ve decided between a fixed or variable rate, you have to decide on the mortgage term. The term can span multiple years with the most common being five years. To calculate the average mortgage payment in Quebec City we will use the best 5-year fixed rate currently on the market (4.99% as of October 31, 2022).

## Amortization period

The amortization period determines how long you’re going to take to pay off your mortgage. A longer amortization will decrease your monthly mortgage payments but will increase the total interest paid on your mortgage. In contrast, a shorter amortization period will increase your monthly payments and reduce the total interest paid on your mortgage. When deciding on an amortization period, you must determine your ability to meet your mortgage payments and whether you can handle larger payments. Amortization periods typically range between five and 30 years, with the most popular term for new mortgages being 25 years—this will be the period used for our calculation. It can be very useful to check out our amortization calculator if you want to get a sense of what your monthly mortgage payments would be under different amortization length scenarios.

## Payment frequency

Providers offer multiple payment frequencies with the most popular offerings being monthly, bi-weekly, or accelerated bi-weekly. Selecting a payment frequency that works best with your lifestyle can make budgeting easier and less of a hassle. To calculate the average mortgage payment in Quebec City, we’ll use a monthly payment.

## Mortgage payment

Now that we have decided on a 5% down payment and have selected the best 5-year fixed-rate mortgage of 4.99% with a 25-year amortization period, we can use a mortgage payment calculator to determine our monthly mortgage payment. The average monthly mortgage payment for a \$319,200 home in Quebec City is \$1,832.