Are you planning to buy a home in Montreal sometime soon? If so, you should get familiar with the current real estate market in the city to find out how much homes are going for these days, as well as what the temperature of the market is like.
Having a solid understanding of the market that you’re buying in will not only make you a more informed buyer but will also give you a clear picture of what you can and cannot afford.
Let’s take a look at where home prices are currently in Montreal, and go over some tips to make sure you make a sound purchasing decision.
Key Points You Should Know About The Average House Price In Montreal
- The average house price in Montreal is $549,900.
- The average house price in Montreal has increased by 6.5%.
Average House Price In Montreal
Unlike Toronto, the average house price in Montreal is a lot more affordable at $549,900. Home prices in the city have increased by 6.5% over the past 12 months, but remain lower than the national average.
| Home Prices | Year-Over-Year % Change | |
| Canada | $670,064 | 1.1% |
| Montreal* | $549,900 | 6.5% |
| Central Quebec | $305,800 | 12.3% |
| Gatineau | $474,421 | 5.6% |
Source: CREA Price Map
Median Single-Family Home Price In Montreal vs. Median Condominium Price In Montreal
The median price can sometimes be more indicative of house prices than the average as it’s not skewed by extremely high or low house prices. According to Centris, the median price for a single-family home was $785,000. On the other hand, the median price for a condominium in Montreal was $475,000.
| Median Price | |
| Single Family Home | $785,000 |
| Condominium | $475,000 |
What Affects The Price Of A House In Montreal?
Several factors can affect the price of a house, including the following:
- Location. It’s generally understood that the same home in one location can be vastly different from its value in another part of town. For instance, a 2-bedroom bungalow in a desirable neighbourhood in the city will likely be much more expensive than the same type of dwelling in a rural location.
- Age And Condition Of The Home. Properties that are well cared for and updated can fetch a higher price than homes that need some TLC. Generally speaking, older homes that have not been renovated over the years will likely require repair compared to newer homes with newer materials and finishes.
- Finishes And Features. Certain finishes are more expensive and considered more desirable than others. For instance, hardwood flooring, granite countertops, and stainless steel appliances are more highly favoured by buyers than wall-to-wall carpeting, laminate counters, and white appliances.
How Much House Can You Afford In Montreal?
A mortgage pre-approval is one of the best ways to calculate how much house you can afford.
When you apply for pre-approval, the lender will look at your income and debts to determine the loan amount you may be able to qualify for.
With a pre-approved mortgage amount in mind, you’ll have a much clearer understanding of how much house you can afford. With this figure in mind, you’ll be able to narrow down your choices when it comes to the properties you view.
Don’t Forget To Factor In The Cost Of Ownership
While a pre-approval is a good indicator of how much house you can afford, it’s important to not spread yourself too thin. Be sure to factor in the other costs associated with running a home, including home insurance, property taxes, utilities, maintenance and repairs, furnishings, and so forth.
How To Improve Your Chances Of Getting Approved For A Mortgage
To boost the odds of getting approved for a mortgage to buy a home in Montreal, follow these tips.
Take Time To Save For A Large Down Payment
The more money you put down towards the purchase price of a home, the less you’ll have to borrow. This can be a good thing for a few reasons, including:
- A lower loan amount can increase your chances of getting approved for a mortgage, especially if the loan amount is much less than the purchase price.
- If you provide a down payment of 20% or more, you won’t have to pay for mortgage default insurance.
- You may be able to secure a lower interest rate. The lower the risk you are to your lender, the more likely they will be to offer a lower rate.
- A larger down payment means you’ll borrow less, which can result in lower mortgage payments. And smaller monthly payments mean more money left over for other expenditures.
Strengthen Your Credit Score
Your credit score plays one of the biggest roles in your ability to secure a mortgage. So the higher it is, the better. Generally speaking, a score of 680 will get you the best rate with A lenders.
If your credit score is currently on the low side, you may want to take the time to improve it before applying for a mortgage. Here are some things you can do to strengthen your credit score:
- Pay your bills on time
- Pay your credit card bill in full rather than making minimum payments
- Don’t spend any more than 30% of your credit limit
- Don’t constantly take out additional loans, credit cards or credit lines
- Keep old credit accounts open
- Pay down your debt
Housing Market Forecast For Montreal In 2025
It’s expected that Montreal’s housing market will experience a housing market boom throughout 2025. According to the Quebec Professional Association of Real Estate Brokers (QPAREB), sales of homes jumped across the province over recent quarters. Market analysts believe this significant growth is due to lower interest rates.
Market conditions continue to remain heavily in favour of sellers and support a healthy increase in home prices. Experts suggest that the average home price will rise by roughly 6.5% by the end of 2025. This is a result of a shortage of housing supply and strong demand.
How Much Can You Afford In The Purchase Of A Home?
The average home price in Montreal may be $549,900, but you can find properties that are priced well below and well above this amount. Regardless, what’s important is that you find a home that your budget can cover. For this reason, you may want to consider calculating how much home you can afford.
A quick and simple way to figure this out is to use an online mortgage affordability calculator, which are offered by Canada’s Big Banks. To use these calculators, you’ll need to plug in a few pieces of information, including the following:
- Annual household income
- Down payment
- Monthly debt payments
- Property location
- Property type
Based on the information you enter, the affordability calculator will calculate an amount you can afford when buying a home.
Final Thoughts
Montreal is a fabulous place to call home, and it’s relatively affordable compared to other busy cities across Canada. That said, buying a home in Montreal still requires a hefty financial commitment. Before agreeing to purchase a home in Montreal, be sure to get your finances in order and do your homework to make a more informed buying decision.
