How to Buy a Condo in Toronto

Why Buy a Condo in Toronto

Condominiums are one of the most accessible entry points into the Toronto real estate market. For first-time buyers, downsizers, and investors alike, condos offer a lower price point compared to freehold homes, with the added benefit of amenities like gyms, concierge services, and shared outdoor spaces.

That said, buying a condo is fundamentally different from buying a house. You are purchasing a unit within a larger corporation, and your ownership comes with shared responsibilities, rules, and ongoing monthly fees. A condo that looks great on the surface can have serious financial or structural issues hidden in its corporation's records. Doing your homework before you buy is essential.

Understanding Condo Fees

Every condo owner pays a monthly maintenance fee to the condominium corporation. These fees cover the cost of maintaining common elements such as hallways, lobbies, elevators, parking garages, amenities, and the building's exterior. In many Toronto condos, fees also include water, building insurance, and sometimes heat.

Monthly fees in Toronto typically range from $0.50 to $1.00 per square foot, though older buildings or those with extensive amenities can be higher. A 600-square-foot unit might have fees between $300 and $600 per month. These fees are in addition to your mortgage payment, property taxes, and any unit-specific utilities like hydro.

Be cautious of buildings with unusually low fees. While they may seem attractive, low fees can indicate that the corporation is underfunding its reserve fund, which could lead to a special assessment down the road. A special assessment is a one-time charge to all owners to cover unexpected repairs or shortfalls, and these can run into thousands or even tens of thousands of dollars per unit.

The Status Certificate

The status certificate is the single most important document you will review when buying a condo. It is a package prepared by the condo corporation's management company that provides a snapshot of the corporation's financial health and legal standing. Under the Ontario Condominium Act, your offer should always include a condition allowing you to review the status certificate, typically within 10 days.

Your real estate lawyer should review the status certificate on your behalf. Key items to examine include:

• The reserve fund study: This shows how much money the corporation has set aside for future repairs and whether it is adequately funded
• The annual budget and financial statements: Look for whether the corporation is operating at a deficit or surplus
• Any pending or planned special assessments
• Outstanding litigation against or by the corporation
• The declaration, bylaws, and rules that govern the building
• Any restrictions on pets, rentals, renovations, or use of the unit
• Insurance coverage for the building and individual units

New Build vs. Resale Condos

Buying a pre-construction condo is a very different experience from purchasing a resale unit. Pre-construction buyers put down a deposit (typically 15 to 20 percent of the purchase price, paid in instalments over a period of months or years) and wait for the building to be completed. Occupancy can be years away, and interim occupancy fees apply from the time you move in until the building is registered.

Resale condos allow you to see exactly what you are buying. You can walk through the unit, inspect the building, and review years of financial records. There are no surprises about layout, finishes, or views. The trade-off is that you may be buying into a building that is 10, 20, or 30 years old, which means the reserve fund and upcoming maintenance needs become even more important to evaluate.

In Ontario, new builds come with Tarion warranty coverage, which protects buyers against defects in workmanship and materials. Resale condos do not have this protection, which is why a thorough review of the status certificate and a home inspection of the unit itself are critical.

What to Look for When Viewing

When viewing a condo unit, pay attention to more than just the interior finishes. The building's common areas tell a story about how well the corporation is managed.

• Check the condition of hallways, the lobby, elevators, and the parking garage for signs of deferred maintenance
• Ask about noise levels from neighbours, traffic, and building mechanical systems
• Test water pressure in the kitchen and bathrooms
• Note the direction the unit faces: south and west-facing units get more natural light but can be warmer in summer
• Ask about the parking and locker situation, as these are often sold separately and can vary widely in size and accessibility
• Check cell phone reception inside the unit
• Visit at different times of day if possible to assess noise and light

Condo Insurance

The condominium corporation carries insurance for the building's structure and common elements, but this does not cover your personal belongings, any improvements you make to your unit, or your personal liability. You need your own condo insurance policy, often called a unit owner's policy.

Your condo insurance should cover your contents, any upgrades you have made (such as flooring, countertops, or fixtures), additional living expenses if your unit becomes uninhabitable, and personal liability. Most policies in Ontario cost between $25 and $50 per month, depending on the coverage amount and deductible.

Pay particular attention to the corporation's insurance deductible. If a claim originates in your unit (for example, a burst pipe), you may be responsible for the corporation's deductible, which can be $25,000 or more in some buildings. Make sure your personal policy covers this gap.

Rental and Pet Restrictions

If you plan to rent out your condo at any point, or if you have pets, check the corporation's declaration and rules before buying. Some condo corporations restrict the percentage of units that can be rented at any given time. Others prohibit short-term rentals entirely.

Pet policies vary widely. Some buildings allow pets of any size, others impose weight or breed restrictions, and a few prohibit pets altogether. These rules are enforceable and can be difficult to change, so make sure you are comfortable with them before committing.

Making an Offer on a Condo

Offers on condos follow the same Agreement of Purchase and Sale format as any other property in Ontario, but there are a few additional considerations. Always include a condition for the review of the status certificate. Clarify whether the parking spot and locker are included in the purchase price or need to be purchased separately.

Confirm what is included with the unit. Appliances such as the refrigerator, stove, dishwasher, and washer/dryer are commonly included, but this should be spelled out in the agreement. Window coverings, light fixtures, and any built-in furniture should also be addressed.

Your real estate agent will help you determine a competitive offer price based on recent comparable sales in the building and surrounding area. In popular Toronto buildings, units can sell quickly and sometimes attract multiple offers, so be prepared to move fast when you find the right one.