Should I buy a condo or a freehold home as a first-time buyer in Ontario?
The choice between a condo and a freehold home involves financial and lifestyle factors that only you can weigh. From a legal and ownership perspective, they are meaningfully different.
A freehold owner owns the property and the land outright. You are responsible for all maintenance — inside and outside — but you have no mandatory monthly fees beyond property taxes and utilities, and no condominium corporation rules to follow.
A condominium owner owns their unit and a proportionate share of the common elements (lobby, roof, parking, etc.). You pay a monthly common-expense fee that covers shared expenses and contributions to the reserve fund. You are bound by the corporation's declaration, by-laws, and rules, which can govern pets, short-term rentals, renovations, and more. On the positive side, exterior maintenance is typically the corporation's responsibility.
First-time buyers often find condos more affordable to enter (particularly in urban Ontario markets), but the ongoing common-expense fee must be factored into total housing costs. Your lawyer will highlight the additional legal steps specific to condo purchases (status certificate review, by-law review), which are worth understanding before you decide.
Key takeaways
- Freehold owners hold the land and building with full control and full maintenance responsibility.
- Condo owners share costs and governance through a corporation with monthly fees.
- Condo fees must be factored into total housing costs when comparing options.
- Condo purchases involve additional legal steps, including a mandatory status certificate review.