Thinking about buying a condo? You're not alone—more and more homebuyers, especially in busy cities like Toronto, are choosing the condo lifestyle for its convenience, amenities, and low-maintenance appeal. But before you sign on the dotted line, there's one key cost you need to understand: condo fees.
These monthly fees can come as a surprise to first-time buyers, and they’re not just a small add-on—they can significantly impact your budget. So, what exactly are you paying for? And how can you tell if the fees are fair?
Let’s break it all down.
What Are Condo Fees, Anyway?
Every condo owner shares responsibility for the building's overall upkeep. That’s where condo fees come in. They’re mandatory monthly payments that go toward maintaining the property and keeping everything running smoothly—from snow removal to pool cleaning, and everything in between.
The amount you pay usually depends on the square footage of your unit. In other words, the bigger your condo, the bigger your share of the building’s expenses.
How Much Should You Expect to Pay?
Condo fees vary widely depending on where the building is located, how old it is, and what amenities it offers. In general, you could be looking at anywhere from $200 to over $1,000 a month.
For example:
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In Toronto, fees are typically around $0.70 per square foot. So a 700 sq. ft. unit would cost about $490/month.
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In Montreal, you might pay closer to $0.27 per square foot, or about $189/month for the same size unit.
Also, don't be tempted by condos with ultra-low fees—it might look like a good deal now, but it could mean the building is cutting corners or doesn't have a healthy reserve fund (more on that in a moment).
What Do Condo Fees Actually Cover?
This is where many buyers get confused. It’s easy to assume your fees just go into a general pot, but in reality, they fund very specific things:
✅ Building Maintenance
Think of all the shared spaces in a condo: hallways, elevators, lobbies, parking garages, gardens. Your fees help clean, repair, and maintain these areas year-round.
✅ Utilities
Depending on the building, some (or all) utilities may be covered. This often includes:
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Water
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Heating
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Garbage removal
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Common area electricity (hallway lights, elevators, etc.)
Modern buildings may have individually metered units, meaning you’ll pay your own hydro bill separately—so make sure to ask!
✅ Amenities
Pools, gyms, party rooms, guest suites—all of these require ongoing upkeep. Whether you use them or not, you’re contributing to their maintenance through your fees.
✅ Reserve Fund Contributions
This is one of the most important (but least talked about) components. A portion of every owner’s fees goes into a reserve fund—a savings account set aside for major repairs down the road. We're talking big-ticket items like replacing the roof, upgrading HVAC systems, or repaving the parking garage.
If the fund isn’t well managed or adequately funded, the condo board may issue a special assessment, requiring owners to pay extra money out of pocket for unexpected repairs. That’s why reviewing the reserve fund’s health is crucial before buying.
✅ Insurance and Admin Costs
Your condo corporation needs to carry insurance for the building itself (this doesn’t include your personal unit, which you’ll still need insurance for). The fees also pay for things like property management, audits, and legal services.
Are Property Taxes Included?
Nope! Condo fees don’t cover your property taxes—that’s a separate cost you'll need to budget for. The tax rate depends on the city and the value of your unit. In Toronto, the residential property tax rate is about 0.72%, while in Vancouver it’s closer to 0.28%. Be sure to check with your local municipality to get an estimate for your specific unit.
Smart Tips for Buyers
If you’re thinking about buying a condo, here are a few quick tips to help you avoid financial surprises:
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Ask what’s included. Every building is different. Find out which utilities are covered and which aren’t.
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Compare fees across buildings. Higher fees aren’t always bad—it might mean better maintenance and fewer surprises down the road.
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Review the status certificate. This document outlines the condo’s financial health, including the reserve fund, current and upcoming fees, and any planned special assessments. Your lawyer should always review this before you firm up a deal.
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Plan for fee increases. As buildings age, costs rise. It’s normal for condo fees to increase over time, so build a buffer into your monthly budget.
Condo living has a lot to offer — no snow shoveling, built-in amenities, and a sense of community. But it’s important to understand the full financial picture before you commit. Condo fees aren’t just another bill—they’re an investment in your home’s long-term value and livability.
Still have questions about buying a condo or navigating fees in your area? Reach out to The Zadegan Group—we’re here to help you find the right fit and make a confident move.
