Selling for $450,000? Here's How Much You'll Actually Walk Away With in Quebec
A $450,000 sale does not mean $450,000 lands in your bank account. The number that really matters is your net proceeds: what's left once your mortgage, selling costs and closing adjustments are accounted for. The good news: you can estimate it before you even list, and refine it as your closing date approaches.
The costs you need to identify
Real estate broker remuneration. In Quebec, there is no fixed commission rate. You and your broker agree on it in your brokerage contract, either as a percentage of the sale price or a flat fee, with GST and QST added. Your Net Proceeds Report shows this amount clearly, so there are no surprises.
Mortgage payout and prepayment penalty. If you still owe money on your mortgage, the notary pays off the lender directly from the sale proceeds. This is usually the single largest deduction. If you sell before the end of a closed mortgage term, you may also face a prepayment penalty. On a fixed-rate mortgage, it is usually the greater of three months' interest or the interest-rate differential; on a variable-rate mortgage, it is often three months' interest. Ask your lender for an official payout statement and penalty estimate for your expected closing date. Don't rely on the balance shown in your banking app.
Notary and discharge fees. As the seller, you're responsible for the costs of paying off and discharging your mortgage, plus any work done on your behalf (tax statements, settling unpaid taxes, etc.). Your lender may charge a separate discharge fee, and the notary may bill for their own work and disbursements. Ask for an itemized estimate so nothing gets counted twice.
Certificate of location. The buyer's lender will want a certificate of location that reflects the property as it is today. If yours is old, or you've added a pool, shed, fence or extension since it was prepared, you'll likely need to order a new one. Get a quote from a land surveyor early, since it can take several weeks.
Municipal and school tax adjustments. Property taxes are prorated between buyer and seller around the closing date. If you've prepaid taxes covering a period after the buyer takes possession, you'll typically be reimbursed through the notary's adjustments. If taxes remain unpaid for your period of ownership, that amount reduces your proceeds instead. Quebec municipal taxes generally run January to December, while school taxes run July to June, so both your tax bills and the exact closing date matter.
What you don't pay: the welcome tax. The transfer duties (welcome tax) are paid by the buyer, not the seller.
A $450,000 sale: a sample breakdown
Say you sell a qualifying principal residence for $450,000, with a $210,000 mortgage balance remaining, an estimated $3,000 prepayment penalty and a small tax adjustment in your favour. Here's what a working estimate might look like before brokerage fees:
- Sale price: $450,000.00
- Mortgage payout: −$210,000.00
- Estimated prepayment penalty: −$3,000.00
- Lender discharge fee (illustrative): −$250.00
- Seller-side notary fees and disbursements (illustrative): −$750.00
- Municipal/school tax adjustment in your favour (illustrative): +$600.00
- Proceeds before brokerage fees: $236,600.00
Brokerage fees are then deducted based on your agreement, along with a new certificate of location if you need one. Your free Net Proceeds Report includes all of them, plus 2 to 3 pricing scenarios, so you see your true bottom line.
Keep in mind the smaller figures above are illustrative, not standard Quebec fees, and this example excludes moving costs, repairs or anything specific to your own sale. Your lender's final payout statement and the notary's statement of adjustments will set the real numbers.
What if it's not your principal residence?
A cottage, rental property or other non-principal residence can leave you with a tax bill after closing. Capital gains tax is based on your taxable gain, not the sale price or the cash you receive at closing, and your original purchase cost, eligible improvements and selling expenses all factor into that calculation. A qualifying principal residence may be exempt from tax on all or part of the gain, but reporting requirements still apply. Rental properties can be more complex, especially if you've claimed capital cost allowance or changed the property's use over time. Talk to an accountant before assuming every dollar from closing is yours to spend.
Making your estimate useful before you list
Start with a realistic expected sale price, not just your asking price. Get a dated mortgage payout and penalty estimate from your lender. Ask about separate lender and notary discharge fees. Check whether your certificate of location is still current. Gather your municipal and school tax bills for the notary. And if there's a potential taxable gain, set aside a tax reserve based on professional advice. Then refine your estimate once your offer price and closing date are confirmed.
Want your exact number? Get your free Net Proceeds Report at sellmyhomemontreal.ca, or call or text me at 514-220-5759. No cost, no obligation.