What Are Condo Fees?
Condo fees (also called maintenance fees or common expenses) are monthly payments that cover the cost of maintaining and operating the common elements of your condo building.
What's Typically Included
Building Operations
- Property management
- Superintendent/concierge
- Security systems and monitoring
- Common area cleaning
- Garbage removal
- Snow removal
- Landscaping
Utilities (Varies by Building)
- Water
- Heat (in some buildings)
- Common area electricity
- Internet/cable (in some buildings)
Insurance
- Building insurance (structure and common areas)
- Director and officer liability
- Note: You still need your own unit insurance
Reserve Fund Contribution
- Portion goes to long-term savings
- For major repairs and replacements
- Required by law in most provinces
Amenities
- Pool maintenance
- Gym equipment
- Party room
- Rooftop terrace
- Guest suite
What's Usually NOT Included
Even with condo fees, you'll pay separately for:
- Electricity to your unit (usually)
- Natural gas (if applicable)
- Contents insurance
- Unit upgrades and repairs
- Property tax
- Mortgage payments
How Fees Are Calculated
Condo fees are based on your unit's share of common expenses, typically calculated by:
Unit Percentage Your unit is assigned a percentage of the total building, usually based on:
- Square footage
- Location/floor level
- Assigned parking/locker
Monthly Fee = Building Budget × Your Percentage
Example:
- Building operating budget: $500,000/year
- Your unit percentage: 1.2%
- Annual contribution: $6,000
- Monthly fee: $500
What's a Reasonable Condo Fee?
General Guidelines (per square foot)
- Budget buildings: $0.40-$0.55
- Mid-range: $0.55-$0.75
- Luxury/full amenities: $0.75-$1.00+
Example Calculations
- 600 sq ft at $0.60/sq ft = $360/month
- 800 sq ft at $0.65/sq ft = $520/month
- 1,000 sq ft at $0.70/sq ft = $700/month
Factors Affecting Fee Levels
- Building age
- Amenity level
- Staff (24/7 concierge costs more)
- Utilities included
- Reserve fund health
- Building size (smaller buildings = fewer units sharing costs)
Comparing Condo Fees
When evaluating buildings, consider:
What's Included Higher fees might include:
- Heat and/or hydro
- Water
- Cable/internet
- Better amenities
Building Age
- Newer buildings may have lower fees initially
- Fees often increase as buildings age
- Warranty period affects early years
Reserve Fund Health
- Underfunded reserves = future increases
- Well-funded reserves = more stability
Fee Increases
Why Fees Increase
- Inflation and cost of living
- Utility rate increases
- Building aging
- Insurance premium changes
- Reserve fund requirements
What's Normal
- 2-5% annual increase is typical
- Large increases (10%+) warrant investigation
- Decreases are rare and may be concerning
Red Flags
- Significant recent increases
- Planned major increases
- History of special assessments
Special Assessments
One-time charges outside regular fees:
Read our special assessment guide to understand what triggers them and how to prepare.
Why They Happen
- Unexpected major repairs
- Underfunded reserve fund
- Building defects
- Legal judgments
How They Work
- Corporation determines total cost
- Divided among owners by percentage
- Payment terms vary (lump sum or instalments)
- Can be thousands to tens of thousands
Condo Fees vs. House Costs
Condo fees often seem high, but consider what homeowners pay:
- Property insurance
- Maintenance reserves
- Exterior repairs
- Roof replacement
- Snow removal
- Landscaping
- Major systems
When comparing total housing costs, include all maintenance expenses. For a deeper analysis, see our condo vs house guide.
Tips for Buyers
- Look beyond the monthly number - Consider what's included
- Check the history - Ask about past increases and assessments
- Review the budget - Understand where the money goes
- Compare similar buildings - Apples to apples
- Factor into mortgage qualification - Lenders consider fees
- Ask about planned increases - Know what's coming
Condo Fee Impact on Mortgage
Lenders include condo fees when calculating affordability:
- Added to your monthly housing costs
- Affects how much you can borrow
- Higher fees = lower purchase price qualification
GDS/TDS Calculations Your condo fees are added to:
- Mortgage payment
- Property taxes
- Heating costs (if not included in fees)