The Best Mortgage Rates in Quebec

Quebec City Key Stats

• Quebec City population (2011): 765,706
• Dwelling units (2011): 361,447
• Unemployment Rate (2012): 5.7
• Average Weekly Earnings (2012): $763.16

Source: Stats Canada, CMHC

Quebec City Mortgage Rates to Moderate in 2013

The Quebec one-year posted mortgage rate is expected to be in the 3.2 to 3.4 per cent range, and the five-year posted rate is to be within 5.2 to 5.3 per cent this year. This is anticipated to increase in 2013 to 3.5 per cent to 4.2 per cent for the one-year posted, and 5.1 to 5.4 per cent for the 5 year posted mortgage rate. This increase can be attributed to solid economic growth in the province of Quebec as 2013 progresses.

Source: CMHC

Quebec City 2012 Housing Market Outlook

Quebec City enjoys healthy stability in its housing market, supported by its status as a government-based city, high employment, and strong migration from other parts of the province.

The single starts market, however, is anticipated to decrease, as land values have risen along with construction costs. There are 1,250 single detached start units expected for 2012, down from 1,349 in 2011. This is expected to lower even further to 1,100 in 2013. Demand is being pushed to multiples, particularly condo units, as first time homebuyers and baby boomers snap up units at both the low and high end price points. Starts for this segment are to increase to 4,100 in 2012, from 4,096 in 2011. This will moderate, however, in 2013 as levels reduce to 3,900.

MLS resales are to enjoy growth this year, with a 7.5 per cent increase to 7750, up from 7,207 in 2011. This is expected to increase further still to 7,900 in 2013.

Source: CMHC Housing Market Outlook

Quebec Housing Market & Mortgage Rate Forecast

The Canadian Mortgage and Housing Corporation (CMHC) has reported in their latest Housing Market Outlook for Montreal that mortgage rates are expected to continue to decrease throughout 2008 , but will be within 25-50 basis points of their current levels. For 2009, posted mortgage rates will begin to drift up slightly as the year progresses. For 2008 and 2009, the one-year posted mortgage rate is forecast to be in the 6.50- 7.50 per cent range, while three and five-year posted mortgage rates are forecast to be in the 6.75-7.50 per cent range.

Quebec City house prices

The CMHC believes that resales on the MLS shall be down in all major centres of the province in 2008 including Quebec with a 4 per cent decline. Despite these declines resale volumes will remain relatively high across these areas. Meanwhile, average prices shall continue to climb, recording growth of between 2% - 10%.

CMHC Quebec City housing market forecast