- Your fee is a percentage share of the budget set in the declaration, so it can vary with unit size.
- Low fees can be a warning sign if the reserve fund is not being topped up, because boards may need to raise contributions to keep it adequate.
- A special assessment can be levied without owner approval and unpaid amounts can lead to a lien.
Buyers often ask what the average condo fee is in Ontario. The honest answer is that there is no single normal number, because fees depend on the building's size, age, amenities and budget.
What you can do is compare buildings on a like-for-like basis and look for signs that a low fee is not sustainable. This guide shows you how.
Why there is no single normal fee
Your fee is your unit's percentage share of the corporation's common expense budget. That percentage is set in the declaration and may vary with unit size. The budget itself pays for maintaining the common elements, reserve fund contributions, and services such as cleaning, building maintenance and condo management.
A building with extensive amenities, or one that includes some utilities in the fee, will generally cost more to run than a simple one. That is why a headline average is a weak guide to any one unit.
Comparing fees per square foot
A useful way to compare is to divide the monthly fee by the unit's square footage. You can do this yourself for each unit you are considering. Remember that the percentage share may vary with unit size, so two units in one building can differ slightly.
- Compare buildings of a similar age and with similar amenities.
- Check what the fee includes, since utilities may or may not be in it.
- Ask for the budget and the status certificate for each unit.
- Compare the figure to the building's own history, not only to other buildings.
Why a very low fee can be a red flag
Owners pay into the reserve fund through their monthly fees. The board decides how much goes in and may need to raise contributions to keep the fund adequate. If fees are held down by contributing too little, the shortfall tends to appear later as a fee increase or a special assessment.
The reserve fund may be used only for major repair and replacement of the common elements and assets. A reserve fund study looks at components expected to need major repair or replacement within at least 30 years, and its funding plan is projected over at least 30 consecutive years. A study is only as useful as the plan the board follows.
What to look for in the reserve fund and status certificate
After the first study, a corporation must update its reserve fund study at least every three years, alternating between Class 2 (with a site inspection) and Class 3 (a review of records and interviews, with no site inspection). A new corporation must complete a Class 1 study within the first year after the declaration and description are registered.
The board must review the study within 120 days of receiving it and propose a plan that makes the fund adequate by the fiscal year after the study is completed. Directors who depart from the study provider's professional advice may face liability.
A status certificate must be provided within 10 days and may include a statement on the most recent study and the state of the fund, arrears, and special assessments levied since the current budget and why.
| Warning sign | Why it matters |
|---|---|
| No recent reserve fund study | Updates are required at least every three years |
| Fund described as weak | Fees may need to rise to make it adequate |
| Recent or planned special assessments | Owners must pay their share, and unpaid amounts can lead to a lien |
| Many units in arrears | May signal financial strain; the certificate can list arrears on the unit you are buying |
What to do next
- Calculate the monthly fee divided by square footage for each unit.
- Ask for the latest reserve fund study summary and the board's funding plan.
- Read the status certificate for special assessments and the reasons.
- Ask what the fee includes and excludes.
- Budget for your own insurance and a cushion for increases.
- Have a lawyer review the documents before you finalize your purchase.
Frequently asked questions
What is the average condo fee in Ontario?
There is no single figure that fits every building, because the fee depends on the budget, the amenities and your unit's percentage share. It is more useful to compare similar buildings and to check what each fee includes.
Is a low condo fee always a good thing?
Not necessarily. Reserve fund contributions come out of the fees, and boards may need to raise them to keep the fund adequate. A low fee can mean a future increase or special assessment.
Can my condo board charge a special assessment without a vote?
Yes. A board can levy a special assessment through common expense fees without owner approval, for reasons such as unforeseen expenses, a major repair that exceeds its budget, or litigation costs.
What happens if I do not pay a special assessment?
An unpaid special assessment gives the corporation a lien against the unit, covering the unpaid amount, interest, and reasonable legal costs and expenses.
Sources
- Condominium Authority of Ontario – Reserve Funds — condoauthorityontario.ca
- Condominium Authority of Ontario – Common Expenses — condoauthorityontario.ca
- Condominium Authority of Ontario – Special Assessments — condoauthorityontario.ca
- Condominium Authority of Ontario – Status Certificates — condoauthorityontario.ca
Links go to official government, court and regulator pages. The law changes — confirm you are reading the current version.
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