Average Condo Fees in Ontario: What Drives Monthly Costs

If you are budgeting for a condo, you probably want a simple table of average monthly fees for Toronto, Ottawa, Hamilton and everywhere else. That table would be tidy, but it would also be misleading.

This article explains why a city average tells you little, what actually sets the fee for a particular unit, and how to find the real number before you make an offer.

Why a city average can mislead you

There is no current official city-by-city fee data that we can responsibly point you to, and older published figures go stale quickly. Fees also vary widely inside a single city. A newer building with few amenities and an older high-rise with a pool and gym can sit side by side with very different costs.

Any average you see online mixes buildings of different ages, sizes and services. Treat it as a rough starting point at most, and rely on the numbers for the specific building you are considering.

What your monthly fee pays for

Condo fees are the owners' share of the corporation's common expenses. Each unit pays a percentage share fixed by the declaration, based on unit size, parking space and locker. That is why two units in the same building can pay different amounts.

Reserve fund contributions are part of the common expenses. A reserve fund is a mandatory account used for major repairs and replacements of common elements and assets. Each corporation must contribute an amount reasonably expected to cover future major repairs and replacements, and a reserve fund study and funding plan set that amount.

What pushes fees higher

Be careful with a very low fee. It may reflect a lean building, but it can also mean the reserve fund is not being topped up enough. If a board departs from professional advice on contributions, the CAO notes it could create director liability. Underfunding often shows up later as higher fees or a special assessment.

Fees are not the only cost: special assessments

If the operating budget falls short, a corporation may levy a one-time special assessment, and the board can do this without owners' permission. A shortfall can come from an unforeseen repair or a lost court case.

Special assessments are shared in the same percentages used for common expenses, and owners must pay their portion. Unpaid amounts can lead to a lien that includes interest and legal costs. When you budget, set aside room for the chance of an assessment, not just the monthly fee.

What to do next

Ask for the building's own documents before you commit. A status certificate shows the budget, a statement on the reserve fund and any legal issues. The corporation can charge up to $100 including taxes and must deliver it within 10 days of receiving the request and payment.

• Get the status certificate and read the budget and reserve fund statement.
• Ask when the last reserve fund study was done and whether it was a Class 1, 2 or 3 update.
• Ask whether the board has proposed a funding plan and sent owners the required notice.
• Ask what the fee includes, such as heat, water, hydro, parking and locker.
• Ask about past or planned special assessments and any legal issues.
• Have a lawyer review the status certificate before your conditions expire.

Frequently asked questions