Officially it’s the property transfer duty. Everyone calls it the welcome tax. Either way, the bill lands when you’ve stopped expecting one, and it catches the buyers who put every dollar into the down payment.
When it arrives
Not at the notary. The municipality generally sends it a few months after the transfer of ownership, often just as moving, furniture and the first surprise costs have done their work on your cash.
How it is calculated
It’s calculated on the greater of the price paid or the municipal assessment, in successive brackets at rising rates. The more the property is worth, the heavier the top bracket. Montréal applies additional brackets above certain thresholds, which changes the math compared with other municipalities.
Exemptions exist
Certain transfers are exempt: between spouses, between direct ascendants and descendants, and a few other cases set out in law. A family transfer doesn’t automatically trigger the bill. But the notary confirms that. It’s not a general rule.
Where it belongs in your budget
Along with notary fees, the inspection, insurance and tax adjustments, these are amounts paid from your own cash, never from the mortgage. Many lenders also want a reserve left afterward. Emptying the accounts weakens the file instead of helping it.
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