Borrowing against your home in Quebec: the hypothec, the AMF and the prior notice of exercise
Published November 13, 2026
Photo: Wikimedia Commons contributor (see file page) / Wikimedia Commons, CC BY-SA 2.5 ca, Wikimedia Commons. Photo credits
The short answer
In Quebec, a loan secured on your home is a hypothec, and a second one is called a second-ranking hypothec. Mortgage brokers need an AMF certificate, but the AMF says it does not regulate the offering of private loans. The welcome tax is paid when ownership changes, and before a lender can act on a default it must register a prior notice, with 60 days to fix the default on a home.
Quebec runs on the Civil Code, not the common law used in the other provinces, so the vocabulary changes before the numbers do. A mortgage is a hypothec, a lender is a hypothecary creditor, and the steps after a default have their own names. This page uses the Quebec terms and explains each one.
The hypothec in plain terms
A hypothec is a right registered against a property to secure a debt. A first-ranking hypothec gets paid first from a sale, and a second-ranking hypothec gets whatever is left after it. Because a second-ranking creditor stands behind the first, it takes more risk, and that is why private second loans usually cost more than a bank’s.
Who certifies brokers, and who does not cover lenders
The Autorité des marchés financiers certifies residential mortgage brokers. Anyone who acts as one, or whose pay depends on a loan secured by a hypothec on a building, needs an AMF certificate. The AMF keeps a register of firms and individuals authorized to practise, so you can check by name.
The gap is in lending. In a warning about fake loan websites, the AMF says it does not regulate the offering of private loans and that a person or firm offering them must be registered with the Office de la protection du consommateur. So a licensed broker and a private lender are verified in two different places. Check both before you sign, and be wary of any private lender who contacts you first.
What the paperwork costs
Registering a hypothec means filing at the land register. The Registre foncier du Québec grid in force from April 1, 2026 lists $145 per registration for a right such as a hypothec, as we read it from a summary of the grid. A notary or lawyer, the appraisal and the lender’s and broker’s fees come on top, and the broker should disclose theirs in writing.
The welcome tax belongs to a different event. Quebec.ca says the municipality collects it from any new owner when ownership transfers, and for 2026 the base brackets are 0.5% up to $62,900, 1% to $315,000 and 1.5% above that, with higher rates possible in some municipalities. Borrowing against a home you already own does not transfer it. Our costs and fees page lists the lines to expect.
How the numbers look in Quebec
CMHC’s Fall 2026 report gives Quebec 0.19% of mortgages 90 or more days behind in the second quarter of 2026, the lowest of the large provinces it reported. It does not discuss Quebec directly, but it says the better performance of credit unions may partly reflect their exposure to Quebec. Its podcast discussion names parts of Quebec as trade exposed, so do not read a low average as a guarantee for any one household.
The prior notice, step by step
Before a creditor can act on a default, it must register a prior notice of exercise of a hypothecary right and serve it. Under article 2748 of the Civil Code, the rights open to the creditor are to take possession to administer, take the property in payment, have it sold under judicial authority, or sell it itself.
Article 2758 gives the time to correct the default: 60 days from registration for immovable property, 20 for movable property and 10 where the creditor intends to take possession to administer. Those periods are the law’s, so a contract cannot shorten them. The second example shows what clearing arrears inside the window can look like. If the default is not fixed, the creditor continues with one of the rights above, and you should see a lawyer before then, not after. Our forced sale guide shows how this compares with other provinces.
A prior notice is not the end of the road. It is a deadline. Many people receive one and put it in a drawer, which wastes the 60 days. Open it the day it arrives, note the date it was registered, and call the creditor, a lawyer or a Licensed Insolvency Trustee within the week. Selling the home yourself inside the window, or refinancing elsewhere, can leave you with more money than a sale forced by the creditor.
What to ask a Quebec broker or lender
Are you certified by the AMF, and can I find your name on its register?
If the lender is private, are they registered with the Office de la protection du consommateur?
What are the lender fee and the broker fee in dollars, and will I get them in writing?
What is the term, what is due at the end, and what does a renewal cost?
What happens if I miss a payment, and when would you register a prior notice?
Other places to look first
A caisse populaire, a credit union or a bank may offer a refinance or a home equity line at a lower cost. A Licensed Insolvency Trustee can tell you whether a consumer proposal or a different plan suits your debts better than adding another hypothec. Selling is also honest advice when payments will not hold. Run your figures through the calculator before you decide.
Where to start by city
Montreal and Quebec City do not behave like Gatineau or Sherbrooke, and Montreal adds its own welcome tax brackets. The city pages below give local figures with sources, starting with Montreal and Quebec City. The form at check my options works across the province, in English, whether or not your city has a page yet.
Land transfer tax and registration in Quebec
Quebec's welcome tax, officially a duty on transfers of immovables, is collected by the municipality from any new owner when ownership is transferred. For 2026 the base brackets are 0.5% on the first $62,900, 1% from $62,900 to $315,000 and 1.5% above $315,000, and a municipality may add higher rates, as Montreal does. A new hypothec is not a transfer of ownership, and we found no welcome tax line for registering one.
The Registre foncier du Québec fee grid in force from April 1, 2026 lists $145 for registering a right such as a hypothec, as we read it from a search summary of the grid. Your notary or lawyer will confirm the fee for your file and add their own fees, plus any cost for a new certificate of location or other documents the lender requires.
A $50,000 second-ranking hypothec on a $450,000 Quebec home
Made-up figures except the registration fee, which is $145 as listed on the Registre foncier grid from April 1, 2026. The first hypothec balance is $250,000. The new loan is interest only at an assumed 12.5% for one year, with an assumed 3% lender fee, a $1,000 broker fee and $1,800 for notary and appraisal costs.
Combined loan-to-value
66.7%
$300,000 owed on a $450,000 home
Interest for a year
$6,250
$50,000 at 12.5%
Lender fee
$1,500
3% of $50,000
Broker fee
$1,000
Notary and appraisal
$1,800
Land register fee
$145
Cost of borrowing in year one
$10,695
Clearing a default inside the 60 day window on a home
Made-up figures. A homeowner is three months behind on an assumed $2,200 monthly payment, and an assumed $900 in legal costs is added after the prior notice is registered. The 60 days is the period in article 2758 of the Civil Code of Québec.
Three missed payments
$6,600
$2,200 times 3
Costs added after prior notice
$900
One more payment falling due in the window
$2,200
To bring the loan current within 60 days
$9,700
Questions people ask
What is a hypothec, and how does it differ from a mortgage?
A hypothec is Quebec's civil law security on property. In everyday talk it is the mortgage. A loan with a first claim on your home is a first-ranking hypothec, and one that sits behind it is a second-ranking hypothec, with the same registration and prior notice rules.
Does the AMF regulate private lenders in Quebec?
The AMF says it does not regulate the offering of private loans, and it points borrowers to the Office de la protection du consommateur for them. It does certify mortgage brokers. So a private lender and a broker are checked in different places, and you should check both.
What is the prior notice of exercise of a hypothecary right?
It is the written warning a creditor must register before acting on a default. The creditor can then take possession to administer, take the property in payment, or have it sold by court authority or by the creditor. For a home, the debtor has 60 days from registration to fix the default.
Do I owe the Quebec welcome tax on a second hypothec?
The welcome tax is charged on a transfer of ownership, and a new hypothec does not transfer the home to anyone. We found no welcome tax line for registering one. You would still pay the registration fee, notary or lawyer costs and the lender's charges.
Why are Quebec arrears lower than Ontario's?
CMHC put Quebec at 0.19% for the second quarter of 2026, against 0.32% in Ontario. CMHC noted that credit unions, which have more exposure to Quebec, performed better, and said this may partly reflect that exposure. It also named parts of Quebec as trade exposed.
