Buying a Condo in Canada

Condo fees and qualifying

Lenders count 50% of monthly condo fees in your gross debt service ratio, which should be at most 39% of income (44% including other debts).

Documents to review

Ask for the condo corporation's status or estoppel certificate (CMHC lists a fee of up to $100 outside Quebec), its budget, reserve fund study, bylaws and recent minutes. They show whether fees may rise or a special assessment is coming. CMHC's condominium buyer's guide has checklists for new and resale units.

Same purchase rules

• You need at least 5% of the first $500,000, plus 10% of any part of the price above $500,000. At $1,500,000 or more, the minimum is 20%.
• Default insurance below 20% down
• Closing costs: legal fees from about $500, inspection about $500

Reserve funds and special assessments

Each condo corporation keeps a reserve fund for major repairs. If it runs short, owners can face a special assessment, a one-time charge on top of monthly fees. Review the reserve fund study and recent board minutes before you firm up an offer.

New-build condos

Buyers of new condos may qualify for a GST/HST new housing rebate, and first-time buyers may get a larger rebate. Deposits on pre-construction units are often paid in instalments before occupancy.