Montreal plex buyer's guide: 2026 rules and figures

The rules and figures that decide a Quebec income-property purchase, each with its source. These values are indexed or revised annually: verify them at the source before making an offer.

Last verified against primary sources: July 2026. Transfer-duty brackets and thresholds are indexed annually.

Welcome tax: Montreal (2026)

0.5% to $62,900 · 1% to $315,000 · 1.5% to $552,300 · 2% to $1,104,700 · 2.5% to $2,136,500 · 3.5% to $3,113,000 · 4% above

Source: Ville de Montréal

Welcome tax: Quebec base schedule (2026)

0.5% to $62,900 · 1% to $315,000 · 1.5% above. Municipalities outside Montreal may add up to 3% on the portion above $500,000.

Source: Gouvernement du Québec

Minimum down payment: owner-occupied

1–2 units: 5% on the first $500,000 then 10% · 3–4 units: 10% · Not owner-occupied: 20%

Source: SCHL / CMHC

Maximum insured loan-to-value

95% for 1–2 units · 90% for 3–4 units · Maximum purchase price $1,500,000 · 25-year amortization, or 30 years for first-time buyers and new construction (since December 2024)

Source: SCHL / CMHC

Mortgage loan insurance premium

1–4 unit homeowner loans: 0.60% at 65% LTV · 1.70% at 75% · 2.40% at 80% · 2.80% at 85% · 3.10% at 90% · 4.00% at 95%. Multi-unit (5+) premiums moved to risk-based pricing on July 14, 2025 and rose in most files.

Source: SCHL / CMHC

CMHC MLI Select: 5+ units

50 / 70 / 100 points give a 10 / 20 / 30% premium discount, up to 95% LTV and 50-year amortization. Surcharge of 0.25% per 5-year increment beyond 25 years. Since risk-based pricing took effect on July 14, 2025, effective premiums rose in most files: budget the premium with your broker.

Source: SCHL / CMHC

TAL suggested rent increase (2026)

3.1% for leases beginning between 2 April 2026 and 1 April 2027. Applies to sitting tenants.

Source: Tribunal administratif du logement

Median prices: Montreal CMA (Q1 2026)

Condo $425,000 · Duplex $710,000 · Triplex $900,000 · Quadruplex $1,100,000 · Single-family $639,000 · Plex (all) $865,000

Source: APCIQ

Rents: occupied stock vs. asking

An occupied 4½ (2-bedroom) averages $1,346 in Greater Montreal against roughly $1,826 asked on turnover. That spread is the value-add.

Source: SCHL : Enquête sur les logements locatifs

Economic value: the lender's value (5+ units)

Method: the lender normalizes four expense lines (management, maintenance and repairs, janitorial, vacancy), divides the normalized NOI by the debt coverage ratio (typically 1.10–1.30), discounts that payment at the qualification rate over the amortization, then divides the resulting loan by the loan-to-value ratio (often 75%). The normalized amounts are not public: each institution sets its own, generally drawing on CMHC standards. This calculator uses illustrative values (management 5% of revenue, maintenance $500/unit, janitorial $200/unit, vacancy floored at 3%), these are not any specific bank's schedule. When the economic value sits below the purchase price, the buyer covers the gap in cash.

Source: Méthode : Collège MREX

Capital cost allowance (CCA)

Class 1: 4% declining balance on the building portion. Half-year rule in year one. Land is not depreciable. CCA claimed is recaptured on sale and taxed at the marginal rate.

Source: Agence du revenu du Canada

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