Buying your first home is one of life’s most significant milestones. It’s exciting, nerve-wracking, and filled with important decisions that will shape your financial future for years to come. In Quebec City, where historic neighborhoods blend with modern developments, first-time buyers face unique opportunities and challenges. Frederic Murray, who has built the Groupe Murray portfolio to over 200 units across nearly two decades, understands this market intimately.
This comprehensive guide will walk you through every step of the home-buying journey, from initial preparation to receiving your keys.
Is Now the Right Time to Buy?
One of the first questions every prospective buyer asks. Immeubles Murray offers this perspective:
The Case for Buying
Several factors favor home ownership:
- Building equity instead of paying a landlord
- Potential for property appreciation over time
- Stability and security of ownership
- Freedom to customize your space
- Hedge against rising rents
- Tax advantages of home ownership
The Case for Waiting
Sometimes patience makes sense:
- Insufficient down payment saved
- Unstable employment situation
- Plans to relocate within a few years
- Debt levels too high
- Market conditions unfavorable
The Honest Answer
Frederic Murray believes the right time to buy depends on personal circumstances more than market timing:
- Can you afford the true costs of ownership?
- Is your employment stable?
- Do you plan to stay for at least five years?
- Have you saved an adequate down payment?
- Are you emotionally ready for the responsibility?
If you answered yes to these questions, the timing may be right regardless of market conditions.
Understanding Your Budget
Before looking at properties, understand what you can truly afford. Murray Immeubles recommends a thorough financial assessment:
The Down Payment
Your down payment significantly impacts your purchase:
- Minimum 5% for properties under $500,000
- 10% for the portion between $500,000 and $999,999
- 20% to avoid mortgage insurance (CMHC)
- Larger down payments mean lower monthly costs
Mortgage Pre-Approval
Getting pre-approved offers crucial advantages:
- Know your maximum purchase price
- Lock in interest rates for 90-120 days
- Demonstrate seriousness to sellers
- Identify potential issues early
- Streamline the offer process
The True Cost of Ownership
Your monthly housing costs extend beyond the mortgage:
- Mortgage principal and interest
- Property taxes (municipal and school)
- Home insurance
- Heating and utilities
- Maintenance and repairs (budget 1-2% of home value annually)
- Condo fees if applicable
The 32% Rule
Most lenders follow this guideline:
- Total housing costs should not exceed 32% of gross income
- This includes mortgage, taxes, heating, and 50% of condo fees
- Some flexibility exists based on overall financial picture
- Frederic Murray recommends staying below this threshold for financial comfort
Closing Costs: What to Expect
Many first-time buyers are surprised by closing costs. The Groupe Murray ensures buyers understand these expenses:
Welcome Tax (Land Transfer Tax)
Quebec’s transfer duties are calculated on a sliding scale:
- 0.5% on the first $55,200
- 1.0% on $55,200 to $276,200
- 1.5% on $276,200 to $500,000
- 2.0% on amounts above $500,000
- Due within 90 days of transfer
Notary Fees
Quebec requires a notary for real estate transactions:
- Typically $1,000 to $2,000
- Includes title search and registration
- Varies by transaction complexity
- Shop around for competitive rates
Home Inspection
A worthwhile investment for protection:
- Generally $400 to $600
- Varies by property size
- Essential for identifying issues
- Negotiate repairs or price reduction based on findings
Mortgage Insurance (CMHC)
Required when down payment is less than 20%:
- 2.8% to 4.0% of mortgage amount
- Added to mortgage balance
- One-time premium, not annual
- Protects lender, not buyer
Other Potential Costs
Additional expenses to budget for:
- Appraisal fees ($300-$500)
- Survey or certificate of location ($500-$1,500)
- Moving expenses
- Immediate repairs or updates
- New furniture and appliances
Immeubles Murray advises budgeting 3-5% of the purchase price for closing costs.
Government Programs for First-Time Buyers
Several programs help first-time buyers. Frederic Murray highlights the most valuable:
Home Buyers’ Plan (HBP)
This federal program offers significant assistance:
- Withdraw up to $35,000 from your RRSP tax-free
- Couples can each withdraw $35,000 ($70,000 total)
- Repay over 15 years starting the second year after withdrawal
- Must be a first-time buyer (or not owned in past 4 years)
- Property must be your principal residence
First Home Savings Account (FHSA)
A newer program combining RRSP and TFSA benefits:
- Contribute up to $8,000 per year
- Lifetime contribution limit of $40,000
- Contributions are tax-deductible
- Withdrawals for home purchase are tax-free
- Can be combined with HBP
GST/HST New Housing Rebate
For those buying new construction:
- Rebate on GST paid for new homes
- Various thresholds and calculations apply
- Consult with builder or accountant for details
Municipal Programs
Some municipalities offer additional incentives:
- Tax credits for heritage property renovation
- Grants for energy efficiency improvements
- Neighborhood revitalization programs
The Groupe Murray recommends consulting with a mortgage professional to maximize available programs.
Choosing the Right Neighborhood
Location determines much of your home’s value and your quality of life. Murray Immeubles knows Quebec City’s neighborhoods intimately:
Questions to Guide Your Choice
Consider what matters most to you:
- How long is your acceptable commute?
- Do you prefer urban energy or suburban quiet?
- What schools are in the area?
- Are essential services within walking distance?
- What is the neighborhood’s trajectory?
- Does the area match your lifestyle?
Quebec City Neighborhood Overview
Each area offers distinct characteristics:
Old Quebec
- Historic charm and UNESCO heritage
- Premium prices for unique properties
- Tourist activity year-round
- Limited parking availability
- Walkable to everything
Montcalm
- Tree-lined residential streets
- Victorian and Edwardian architecture
- Near Plains of Abraham
- Avenue Cartier shopping and dining
- Family-friendly atmosphere
Saint-Jean-Baptiste
- Vibrant urban neighborhood
- Active nightlife on Rue Saint-Jean
- Young professional demographic
- Strong community spirit
- Mix of housing options
Saint-Roch
- Revitalized tech hub
- Contemporary lofts and condos
- Trendy restaurants and bars
- Growing rapidly
- Excellent investment potential
Limoilou
- Traditional working-class character
- Increasingly popular with young families
- More affordable than central neighborhoods
- Authentic local atmosphere
- Strong community bonds
Sainte-Foy
- Near Laval University
- Suburban feel with urban amenities
- Family-oriented neighborhoods
- Shopping centers and services
- Easy highway access
Frederic Murray has properties across these neighborhoods and understands each area’s unique appeal.
The Home Search Process
With budget and neighborhood defined, the search begins. Immeubles Murray shares strategies for success:
Define Your Must-Haves
Distinguish between needs and wants:
Non-Negotiables might include:
- Minimum number of bedrooms
- Parking requirements
- Maximum commute time
- Specific neighborhood
- Accessibility features
Nice-to-Haves might include:
- Finished basement
- Updated kitchen
- Large backyard
- Garage versus outdoor parking
- Specific architectural style
Stay Flexible
Perfect properties rarely exist:
- Be willing to compromise on wants
- Consider renovation potential
- Look past cosmetic issues
- Focus on what cannot be changed (location, size, layout)
Research Before Visiting
Maximize your time by screening properties:
- Review all available photos carefully
- Study the floor plan
- Research the neighborhood
- Check recent comparable sales
- Note questions for the visit
Tour Strategically
Make the most of property visits:
- Visit at different times of day
- Check natural lighting
- Test water pressure and fixtures
- Open closets and cabinets
- Look for signs of problems
- Observe the neighborhood
The Groupe Murray approach emphasizes thorough evaluation before making offers.
Making an Offer
When you find the right property, act decisively. Frederic Murray advises:
Understanding Market Conditions
Your strategy depends on the current market:
Seller’s Market:
- Multiple offers common
- Quick decisions required
- Offer at or above asking price
- Minimize conditions
- Personal letters can help
Buyer’s Market:
- More negotiating power
- Room for conditions
- Offer below asking price
- Take time to decide
- Negotiate repairs or credits
Balanced Market:
- Fair negotiations
- Reasonable conditions acceptable
- Offers near asking price
- Standard timelines
Key Offer Components
Your offer includes several elements:
- Purchase price
- Deposit amount (shows seriousness)
- Conditions (inspection, financing, etc.)
- Included items (appliances, fixtures)
- Possession date
- Offer expiration time
Common Conditions
Protect yourself with appropriate conditions:
- Professional home inspection
- Financing approval
- Review of condo documents (if applicable)
- Sale of existing property
- Clear title
Murray Immeubles recommends keeping conditions reasonable but not compromising on essential protections.
The Inspection Process
Never skip the home inspection. Immeubles Murray considers it essential:
What Inspectors Examine
A thorough inspection covers:
- Roof condition and age
- Foundation integrity
- Electrical systems
- Plumbing systems
- Heating and cooling
- Windows and doors
- Insulation and ventilation
- Signs of water damage or mold
- Structural elements
Attending the Inspection
Be present if possible:
- Ask questions in real-time
- See issues firsthand
- Understand severity of problems
- Learn about home maintenance
- Get context for the written report
After the Inspection
Review findings carefully:
- Distinguish major issues from minor ones
- Get repair estimates for significant problems
- Negotiate repairs or price reduction
- Consider walking away from serious structural issues
- Factor future maintenance into your decision
Frederic Murray has seen inspections save buyers from costly mistakes many times.
Closing the Transaction
The final steps require attention to detail. The Groupe Murray guides buyers through:
Choosing a Notary
In Quebec, notaries handle real estate closings:
- Research and compare several options
- Ask for referrals from trusted sources
- Confirm fees upfront
- Ensure availability for your timeline
- Communicate clearly about your needs
Before Closing Day
Prepare for a smooth closing:
- Arrange funds for down payment and closing costs
- Secure homeowner’s insurance
- Arrange utility transfers
- Plan your move
- Complete final walkthrough
The Final Walkthrough
Verify the property’s condition:
- Confirm agreed repairs were completed
- Check that all included items remain
- Test appliances and systems
- Note any new damage
- Ensure property is vacant and clean
At the Notary’s Office
The closing appointment finalizes everything:
- Review and sign all documents
- Pay remaining funds
- Receive keys to your new home
- Get copies of all signed documents
- Celebrate your achievement!
Life as a New Homeowner
Congratulations on your purchase! Frederic Murray offers advice for new owners:
Immediate Priorities
Take care of these items first:
- Change all locks for security
- Locate main water shut-off and electrical panel
- Test smoke and carbon monoxide detectors
- Set up mail forwarding
- Update your address everywhere
Build an Emergency Fund
Homeownership brings unexpected expenses:
- Target 3-6 months of housing costs
- Add funds for major repairs
- Budget for seasonal maintenance
- Plan for eventual system replacements
Maintain Your Investment
Regular care preserves value:
- Schedule seasonal maintenance tasks
- Address small repairs before they grow
- Keep records of all work done
- Consider home warranty for older systems
- Learn basic DIY skills
The Groupe Murray manages over 200 units and understands the importance of consistent maintenance.
