Two Ontario condos can have similar prices and very different monthly fees. That does not automatically make the lower-fee building the better purchase.
Condominium fees reflect the costs allocated to owners for operating, maintaining and planning for the corporation’s common property and obligations. Buyers should investigate what they receive, what the corporation is responsible for and whether the finances appear sustainable.
What are condo fees?
Condominium owners contribute to the corporation’s common expenses. The amount attributable to a unit is determined according to the condominium’s governing documents.
Common expenses can include operating costs and contributions toward the reserve fund used for major repair and replacement of common elements and assets.
What can condo fees include?
Every condominium is different. Depending on the property, common expenses may help fund items such as building insurance, management, landscaping, snow removal, common-area utilities, cleaning, elevators, amenities, security, maintenance and reserve-fund contributions.
Some buildings may include certain utilities or services that owners elsewhere pay separately.
Why a low condo fee is not automatically better
A lower monthly expense is attractive, but buyers should consider the broader financial picture. A corporation still needs to pay operating expenses and plan for major repairs. The question is not simply “How low is the fee?” but “What does the fee cover, and is the corporation appropriately funded?”
Why a high condo fee is not automatically bad
A higher fee may reflect amenities, utilities, staffing, an older or more complex property, or different maintenance responsibilities. Comparing buildings requires an apples-to-apples look at what owners receive and what costs remain outside the fee.
Review the status certificate
For resale condominiums, the status-certificate package is a key source of information. It can contain the corporation’s budget, financial statements, reserve-fund information, governing documents and prescribed information about the unit and corporation.
Buyers should have the package reviewed by an Ontario real-estate lawyer.
Ask about recent and expected increases
Condo fees can change. Look at the current budget and available financial information rather than assuming today’s monthly amount will remain unchanged indefinitely.
Understand the reserve fund
The reserve fund is intended for major repair and replacement of common elements and assets. Buyers should pay attention to reserve-fund information and the reserve-fund study, and obtain professional advice about anything concerning.
Consider special assessments separately
A special assessment is different from the regular monthly common expense. It can create an additional obligation for owners when circumstances require additional funds. Investigate disclosed assessments and have your lawyer review them.
Compare total monthly ownership cost
When comparing a condo to another condo or freehold property, look beyond the headline fee. Consider mortgage payments, property taxes, utilities, insurance, parking, maintenance obligations and services included in the common expenses.
OntarioHomeIntel condo-fee checklist
- Confirm the current monthly common expense.
- Determine what utilities and services are included.
- Review the corporation’s current budget.
- Review reserve-fund information and the reserve-fund study.
- Ask about recent fee changes.
- Investigate disclosed special assessments.
- Understand which repairs are the owner’s responsibility.
- Compare total monthly ownership cost, not just condo fees.
- Have the status certificate reviewed by your lawyer.
How to compare condo fees before making an offer
- Write down the monthly fee for each property you are comparing.
- List the utilities, parking, amenities and services included in that fee.
- Add the costs you will still pay separately, such as hydro, insurance and parking where applicable.
- Review the status certificate, budget and reserve-fund information with your lawyer.
- Compare the total monthly ownership cost rather than choosing based on the condo fee alone.
Bottom line
Condo fees should be evaluated in context. A buyer needs to know what the corporation provides, how the property is funded and what financial obligations could fall outside the monthly fee. The status certificate and professional review are essential parts of that analysis.
Related OntarioHomeIntel resources
Free Ontario Condo Buyer Checklist
Keep condo fees, status-certificate review, reserve-fund questions, special assessments, rules and closing steps organized in one printable guide.
This article provides general Ontario real-estate information and is not legal, accounting or financial advice.