Quebec

Quebec pro forma calculator

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Buying in Quebec carries one charge that exists nowhere else in Canada in the same form: the droit de mutation, known as the welcome tax, payable to the municipality after closing. Quebec also splits property tax into municipal and school lines, and adds provincial sales tax to mortgage insurance premiums. Each one belongs in the cash you need and the payment you carry.

What changes the numbers in Quebec

Droit de mutation (welcome tax)
A one-time municipal transfer duty billed after closing, not at signing. It is charged on brackets of the purchase or assessed value, whichever is higher.
Montreal upper brackets
Municipalities may levy above the provincial top bracket, and Montreal does. A Montreal purchase carries a higher welcome tax than the provincial schedule alone implies.
Mortgage insurance and QST
Below 20% down, mortgage default insurance applies. In Quebec the provincial sales tax is charged on the premium and is payable up front rather than added to the loan.
Municipal and school tax
Two separate annual bills. Quebec buyers expect to see both, and a single blended property tax line reads as an out-of-province tool.
Five-year term, 25-year amortization
The Canadian norm and structurally different from a US 30-year fixed: the rate is fixed for the term, then the loan is renewed at whatever rate applies. The suite already models this.
Calculators

Pro forma calculator

One stabilized year of property operations, from gross rent down to cash flow after debt service, with going-in return metrics. Every assumption is visible, and everything updates as you type.

SUMMARY
DSCR
1.35x
Clears the 1.25x minimum
Debt Yield
9.54%
Clears the 9% floor
Going-In Cap Rate
6.05%
NOI over purchase price
Cash-on-Cash Return
3.68%
Year-one cash flow over equity
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Lender conventions, not rules: DSCR minimums commonly run 1.20 to 1.35x, and debt yield floors 8 to 10% by asset class and market. Enter your lender’s numbers.

Annual Operating Income

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Parking, laundry, storage, pet and application fees, plus any utility or CAM costs recovered from tenants.

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The share of rental income lost to empty units and turnover, expressed as a percent of potential rental income.

Vacancy is applied to rental income only; other income is not vacancy-adjusted.

Effective Gross Income$747,000

Annual Operating Expenses

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Enter only what the owner pays. Water, sewer, gas, electric.

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Outsourced vendors. Trash, landscaping, snow removal, pest control, elevator.

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Superintendent, concierge, caretaker, and cleaning wages. Do not include the off-site management fee or vendors already entered under contract services.

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What a property manager charges to operate the property, usually a percent of collected income rather than a fixed amount.

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Money set aside each year for components that wear out on long cycles: roofs, mechanicals, appliances. Underwriters treat it as an operating cost even though it is not spent every year.

Reserves are deducted above the NOI line here, the lender and appraisal convention. Broker packages and NCREIF-style comparisons typically exclude them; excluding them here would show NOI $434,920, cap 6.26%, DSCR 1.39x.

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Total ExpensesExpense ratio 43.7% of EGI$326,480

Typical stabilized ratios run roughly 35 to 45%.

Investment Data

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Total Cost$7,350,000

Financing Data

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The loan amount as a percent of total project cost. Lenders cap it; the rest is the investor’s equity.

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Total Debt Service$312,197

Debt service here compounds monthly, the commercial convention. Canadian fixed residential mortgages compound semi-annually; the mortgage module prices those.

Annual Proforma

Potential Rental Income$756,000
Other Income and Reimbursements$28,800
Vacancy5% of rental income−$37,800
Effective Gross Income$747,000
Property Taxes$83,400
Insurance$33,600
Utilities$52,800
Maintenance$43,200
Contract Services$21,600
On-Site Staff and Janitorial$38,000
Management Fee4% of EGI$29,880
Reserves for Replacement$14,400
Other Expenses$9,600
Total Expenses$326,480
Net Operating Income$420,520
Debt Service5.850% · 30-yr am.$312,197
Cash Flow Before Tax$108,323

Investment Metrics

Purchase Price$6,950,000
Price per Unit48 units$144,792
Price per SF40,800 SF$170
Closing Cost$175,000
Renovation Cost$225,000
Total Cost$7,350,000
Loan to Cost60%
Initial Equity$2,940,000
Loan Amount60% of total cost$4,410,000
DSCRClears the 1.25x minimum1.35x
Debt YieldClears the 9% floor9.54%
Going-In Cap Rate6.05%
Unlevered Yield on Cost5.72%
Cash on Cash Return3.68%

Illustrative projection only. Not advice and not a forecast.

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Preset scenarios

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More calculators

The rest of this suite. Each answers one question.

Frequently asked questions

The welcome tax, or droit de mutation, is a one-time duty your municipality charges when a property changes hands. It is calculated on brackets of the higher of the purchase price and the municipal assessment, and the bill arrives after closing rather than at the notary. Budget for it separately: it is not part of your down payment and it is not collected with your mortgage payment.

Glossary

Plain-language definitions of every term this calculator uses.

Potential rental income

The rent the property would collect in a year with every unit occupied at market rent, before vacancy or any expenses.

Other income and reimbursements

Parking, laundry, storage, pet and application fees, plus any utility or CAM costs recovered from tenants.

Vacancy rate

The share of rental income lost to empty units and turnover, expressed as a percent of potential rental income.

Effective gross income

Potential rental income plus other income, minus the vacancy allowance. The income the property realistically collects in a year.

Operating expenses

The recurring costs of running a property: property taxes, insurance, maintenance, utilities, and property management fees. Debt service, depreciation, capital expenditures, and income taxes are not operating expenses.