Condo fees are something all unit owners have to contend with, and understanding them on a deeper level can be great for financial planning, especially when you consider how a myriad of external factors determine exactly how much you’ll be paying on the regular.
Our MyChoice team researched this topic by reviewing the Condominium Authority of Ontario’s common-expenses guide, its status-certificate guide, Ontario’s Condominium Act, 1998 and CMHC’s condominium buyer’s guide.
This guide explains how your share is calculated, what regular fees cover and do not cover, how special assessments and liens work, and which records may reveal financial risk before you buy.
What Are Condo Fees In Ontario?
Condo fees, alternatively known as common expense fees, are a set of monthly costs charged to condominium owners for the upkeep and maintenance of common spaces. These fees are generally payable to the condominium corporation and scale with the size of your property plus any parking, meaning families and individuals with larger units tend to pay more overall.
Despite this variation in what different unit owners may need to pay, condo fees are generally non-negotiable since they’re based on the condominium’s yearly operating budget – which also means they may increase over time.
| Amount | What it is | Document to check |
|---|---|---|
| Regular common expenses | The approved budget multiplied by your unit’s percentage. | Declaration and current budget |
| Special assessment | An additional sum of money to address a financial shortfall. | Board notice, status certificate and governing documents |
| Chargeback | An authorized cost added to one unit’s common expenses. | Notice, declaration and applicable Condo Act authority |
How Do Condo Fees Affect Your Insurance?
Condo fees contribute to your condominium’s insurance. The condo corporation has an insurance policy that generally covers the common elements and the portions of each unit, as laid out in the standard-unit definition. However, this insurance does not replace your condo insurance policy.
Your own policy may cover your personal belongings, liability, improvements or upgrades to your unit, additional living expenses after an insured loss, or amounts charged to your unit for certain losses or corporation deductibles. Also, if deductibles or premiums rise, so may the corporation’s budget, meaning condo fees could be higher. And if a major uninsured expense or insurance shortfall occurs, a special assessment may be charged.
What Condo Fees Usually Cover
| Often funded through common expenses | Usually separate or document-dependent |
|---|---|
| Cleaning, property management and common-area maintenance | The owner’s mortgage and property tax |
| Corporation insurance for the property it is required to insure | Unit-owner insurance, improvements, contents and personal liability |
| Common utilities and services listed in the budget | Individually metered hydro, gas, internet or other personal services |
| Contributions to the reserve fund | A special assessment added because regular funding is insufficient |
| Snow removal, landscaping, elevators and amenities | Repairs assigned to the owner by the declaration or standard-unit rules |
Don’t assume that corporation insurance will take the place of condo-unit insurance. Responsibility after damage is divided by the corporation’s declaration, its standard-unit by-law and both insurance policies.
Ask an insurance broker to review governing documents and insurance policies before choosing your loss-assessment coverage and insurance limits.
Reserve Funds And Special Assessments
The condominium’s reserve fund pays for major repairs and replacement of common elements and corporation assets. Ask about the condominium’s reserve-fund study, a document that estimates expected work and timing, then informs a funding plan. The current balance means little without comparing it with the study’s projected balance, the age of major components and the board’s planned contributions.
Ask about any special assessment, an additional cost beyond regular fees. Reasons for assessments may include unexpected repairs, litigation, an insurance shortfall, or inadequate budgeting over time. An owner’s share normally follows the same declaration percentage used for common expenses. Find out the assessment amount, its purpose, due dates, any contractor or engineering support and whether further stages are expected.
Read More: See When Condo Loss-Assessment Coverage May Apply
How To Review Condo Fees Before Buying
When looking at a resale unit, be sure to get a current status certificate and have it reviewed by your real estate lawyer. Anyone can ask for a status certificate according to the CAO. The corporation can charge a fee of up to $100 including tax and must normally provide the certificate within 10 days.
| Review | Question to answer |
|---|---|
| Declaration | What percentage applies to the unit, parking and locker, and what must the owner repair or insure? |
| Current budget | What services are included, and is the budget relying on a one-time item to stay balanced? |
| Audited statements | Are there deficits, arrears, or unusual receivables? Are there recurring operating shortfalls? |
| Reserve-fund study and plan | Which large projects are approaching, and does planned funding track the study? |
| Status certificate | Are there arrears, declared increases, assessments, litigation or insurance details affecting this unit? |
| Meeting and project records | What major work, contract or financing decision is being discussed but not yet reflected in the fee? |
Do not compare buildings on condo fees alone. Annual fees per square foot can provide a rough screen, but also compare included utilities and amenities, reserve funding, insurance deductibles and planned major projects. A condo with a $650 fee that includes heat and has a sound reserve plan could be a better risk than one charging $450 with neither.
Read More: Compare Condo Fees With Condo Property Tax