If you want to live in a city or a pricier market, condos can be a great way to stay near the action without paying for a whole house. Condos are increasingly attractive to homebuyers across Canada, especially as single-family homes become more expensive. There are plenty of perks when you buy a condo, but you’ll be making some sacrifices too. Here’s a condo buying guide, including what you need to know and what to look for if you’re buying a condo.
Condos are becoming increasingly popular with Canadian buyers, with a growing number of new developments popping up in major cities and some smaller towns across the country. Statistics Canada reported that 1.9 million Canadians were living in condos in 2016, and that number is rising.
“Condo prices don’t typically increase at the same rate as detached homes. They’re a great way to get your foot in the real estate door and the likelihood of being approved for a mortgage for that amount is very plausible.”
– Judy Sehling, agent with the Houseful™ agent network from the Greater Vancouver area
As homeownership becomes more expensive, a condo can be an affordable way to live in a big city without shelling out the kind of money that you would for a single-family home or a townhouse. If you’re looking to buy a home but you don’t have the budget for a house in the neighbourhood you’re eyeing, condos can be a great entrypoint into the housing market
Condos can be a great option for people leading busy lives. Condo fees cover maintenance costs like shovelling snow, waste management, outdoor maintenance, pool cleaning, and window cleaning. You won’t have to worry about shovelling the walk or remembering to take out the trash. If you leave for a vacation, you’ll have less to worry about while you’re away. This also makes condo life appealing for frequent business travellers or people with second homes.
Condos have varying on-site amenities that can include gyms, green space, pools, saunas, and playgrounds. Having these amenities nearby might make you more likely to exercise, could be convenient if you have young kids, and could save you money on a gym membership. The lifestyle of each condo differs. Some are more family friendly or explicitly cater to professionals or people looking for a quiet place to live.
If you have concerns about safety, most condos offer security features or guards. Living next to other people who you see regularly can also be a comfort if you’re single or living alone. If you live in a house, strangers might notice mail piling up or a car left in the driveway, which can make you more vulnerable to theft. Condos can be a great lifestyle choice for people who travel often and want to come and go without concerns about safety.
Some condos offer events for owners and tenants, or may have established programs for seniors, parents, or single people. Ask about events or programs your condo runs, and consider getting involved in the condo board or decision-making committee. Consider if your lifestyle matches what you’re seeing in the building and would you be comfortable here?
All of these advantages make condos an affordable, appealing option. But condos can also come with surprise price tags and limitations. Here are a few things you need to consider before you decide if you’re all in.
Condo fees pay for the upkeep of the building, including building maintenance. Fees can also cover things like garbage collection, heat, water, sewage, and in some cases electricity or other costs. It’s important to factor these in when you’re budget planning or considering a condo purchase.
Many condos come with a small porch, but most don’t include any private outdoor or garden space. Green spaces, pools, and gyms are shared and you’ll be passing other people in your building regularly when you leave and when you come home. Joined walls also mean that you might hear tenants upstairs or next door. For people who appreciate privacy or silence, this is a good factor to consider thoughtfully. If you’re buying a new condo that isn’t fully built yet, ask about insulation and soundproofing before you commit.
Condo fees are generally predictable, but the cost of unexpected major repairs or renovations can fall on the condo owners as a collective. Some condos have a board or committee who vote on repairs, upgrades, and costs, but you may still end up paying for them.
It can be a relief not to worry about repairs to shared spaces or landscaping, but this also means that you won’t always have a say in when repairs or maintenance takes place. You’ll also need to accept the aesthetic of the shared spaces, such as the paint colours, entrance details, and other factors that may change without your approval. There may also be restrictions on how you can change, renovate, or decorate –– especially in parts of the condo that are visible to the public.
The kind of condominium that’s right for you depends on your lifestyle, practical needs, where you’re buying, and personal taste. Condos come in a variety of styles, square footages, and layouts. Some are on the 31st floor with a birds-eye view of a city, while others are structured more like traditional townhomes with two floors. In general, all condos are individually owned units within a building.
Established cities like Vancouver and Toronto (where other property types are more expensive) have a high percentage of condo dwellers. In smaller cities and towns like St. Catharine’s, Sudbury, and St. John’s where homes are more affordable, condos are in lower demand.
When you buy a condo, you might be buying a new construction, or purchasing a resale condo that’s already been built. There are pros and cons to both resale and new condo purchases.
New condominiums often go up for sale before they’re fully constructed. In this case, you might be choosing a condo unit based on a floor plan, a mockup of the layout, and the location. New condos allow you to move into a brand new unit, often with new appliances and freshly updated features. But construction can go on longer than originally proposed, and changes and risks might affect what your final unit looks like. Make sure you understand the regulations, contract, and the condo board’s budget before agreeing to a purchase. Ask your real estate agent to help you understand the terms and grey areas of your condo purchase. Question whether the rendering or mock-up of the condo properly represents exactly how your property will look, and whether it will come with all the appliances and features shown.
Make sure your purchase agreement clearly outlines an end date and relevant terms if the date changes. Many condos require occupancy fees from the point at which you purchase the condo, even if you can’t move in yet. These “phantom fees” need to be paid according to the purchase agreement, so make sure you understand all conditions and terms.
When you buy a resale condo, you’re purchasing a unit that’s already been built. This is advantageous in that you can see exactly what you’re purchasing by touring the unit in person. You’ll be able to check out the view, tour the building and amenities, and imagine yourself in the space more tangibly than you would with a new build. Hire a property inspector to make sure there aren’t any surprises, and observe smells and sounds to see how much you notice things like noises in the next unit. Consult with your real estate agent and lawyer to make sure you understand all hidden costs and condo fees. Find out how old the building is and do some research on the property, looking for reviews from past tenants and any pending lawsuits or legal disputes relating to the building.
The Houseful agent network is Canada wide, with expert knowledge pertaining to each market. Whether you’re searching for a home in an urban centre like Toronto or Vancouver, or looking to buy in a small town or rural area like Elk Point, Alberta, or Dundas, Ontario, we’re here to help you find a condo or home that’s right for you.
Ready to get started on your home search? See what’s on the market near you and connect with your local agent at Houseful.ca.
Find more information on how to buy a home, how to sell your home, and mortgage and finance tips, see our Home Journey How-To’s or sign up at Houseful.ca.
This article offers general information only and is not intended as legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. While the information presented is believed to be factual and current, its accuracy is not guaranteed and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the author(s) as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or its affiliates.
Whether you’re strolling along the waterfront, hiking through a park or wandering through tree-...
Navigating a foreign homebuying market can be challenging as a recent immigrant. Learn the basics for new arrivals and non-citizens.
Buying a house by yourself? Use these tips to plan ahead and find the home that’s right for you.
OJOHome Canada Ltd. (“Houseful”) is a wholly-owned subsidiary of Royal Bank of Canada
20 King Street West, 8th Floor
Toronto, ON, Canada, M5H 1C4
833-709-1946
IDX information is provided exclusively for consumers’ personal, non-commercial use and that it may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Information deemed reliable but not guaranteed to be accurate. Listing information updated daily.
Houseful is committed to ensuring accessibility for individuals with disabilities. We are continuously working to improve the accessibility of our web experience for everyone. We welcome feedback and accommodation requests, please submit them here.
The trademarks REALTOR®, REALTORS®, and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA. The trademarks, Multiple Listing Service® and the associated logos are owned by CREA and identify the quality of services provided by real estate professionals who are members of CREA. Used under license.
Please use the following address to send referral payments:
Lockbox: OJOHome Canada Ltd. PO Box 9479, Stn A, Toronto, ON M5W 4E1
Lockbox Number: T09479C
® / ™ Trademark(s) of Royal Bank of Canada. Used under licence.
