By Mohsin Lakhani · Benson Crew Real Estate, REAL Broker Ontario Ltd., Brokerage
Condo fees make freehold look cheaper on paper, but freehold ownership comes with maintenance costs that never show up on a mortgage calculator. Neither option is automatically the better deal — the real answer depends on running both numbers side by side for the specific properties you're comparing.
Monthly condo fees typically bundle exterior maintenance, building insurance, common-area upkeep, and amenities. They're predictable — the same number every month, regardless of whether anything breaks. What they don't cover is your unit's interior, and depending on the building's reserve fund, a poorly funded corporation can hit owners with a special assessment on top of regular fees.
This is exactly why reviewing a building's status certificate before waiving conditions matters — it discloses the corporation's financial health and any pending special assessments before you're locked into a purchase.
Freehold means no monthly fee, no corporation, and no shared costs — but also no one splitting the bill when the roof needs replacing, the furnace fails, or the driveway needs repaving. Every repair is entirely on the owner, as it happens, which means the real monthly cost of freehold ownership is better estimated as a maintenance reserve than assumed as zero.
A reasonable planning number: budget 1% to 2% of your home's value annually toward maintenance and repairs, spread out however your specific property's age and condition suggest.
Take two properties priced similarly — a condo townhome with a $450/month fee, and a freehold townhouse with no fee but an estimated $500/month maintenance reserve based on 1.5% of a $800,000 purchase price annually. On paper, the freehold looks like it saves $50 a month. In practice, that gap can flip entirely depending on the building's amenities, the age of the freehold property's major systems, and how conservatively you're budgeting for repairs.
The takeaway isn't that one option wins — it's that "no condo fee" doesn't mean "no monthly cost." Run the comparison for your actual target properties before assuming either way.
Not necessarily. It depends on the property's age, condition, and how well-funded a comparable condo building's reserve fund is. Both numbers need to be run for your specific situation.
A status certificate applies to condo purchases only — it discloses the building corporation's finances. Freehold purchases don't have an equivalent document, which is part of why a thorough home inspection matters even more.
Yes. Condo fees typically increase annually to keep pace with rising maintenance and insurance costs, and can jump more significantly if the building faces a large capital project.
No — a newer build generally needs a smaller near-term reserve, though it's still wise to plan ahead for major systems as they age.
This post is provided for general informational purposes only. Costs vary significantly by property, building, and location — confirm specifics for any property you're considering with your realtor and a home inspector.