Verified October 24, 2026 against the Condominium Authority of Ontario (CAO), the Condominium Act, 1998 notice forms on ontario.ca, and CMHC.
Short answer: Condo fees, also called common expense or maintenance fees, pay to run and repair the parts of the building you share with other owners, and part of every payment goes into the reserve fund for big future repairs. Your share is set by a percentage in the condo’s declaration, based mainly on unit size, parking and locker. The board approves a new budget each year, so fees can rise every year, and the biggest driver is usually the reserve fund study, which Ontario condos must update at least every three years. Before you buy, read the budget and reserve fund study in the status certificate, check what the fee includes, and remember lenders count half of the fee when they work out what you can borrow.
What condo fees are
When you buy a condo in Ontario, you own your unit and a share of the common elements: hallways, lobby, elevators, roof, parking garage, amenity rooms, grounds and building systems. The condominium corporation, run by a volunteer board elected by owners, looks after those shared parts. The money comes from the owners through monthly common expense fees.
The CAO describes them simply: condo fees, also known as common expense fees or maintenance fees, pay to maintain the common elements, and part of the payment goes to the reserve fund. The same rules apply whether you own a unit in a downtown Toronto tower, a mid-rise in Mississauga or a condominium townhouse in Brampton. Freehold townhouses tied to a common elements condominium (often called POTL homes) pay a different, usually smaller fee for shared roads or amenities.
What fees usually cover, and what they do not
Every building is different, so the only reliable answer is the corporation’s budget and declaration. Most GTA condo budgets fall into two parts: an operating budget for day-to-day running costs, and the contribution to the reserve fund.
| Usually in the fee | Sometimes in the fee | Usually not in the fee |
|---|---|---|
| Building insurance for the common elements and standard units | Heat and air conditioning for your unit | Property tax on your unit |
| Property management and administration | Water for your unit | Your own condo unit insurance policy |
| Cleaning, garbage, snow removal and landscaping | Hydro for your unit (many newer buildings submeter it) | Your mortgage |
| Elevator, mechanical and fire safety contracts | Bulk internet or cable | Rental equipment in your unit, such as a water heater, if separately contracted |
| Hydro, heat and water for the common areas | Concierge or 24 hour security | Special assessments, which are billed on top |
| Contribution to the reserve fund | Pool, gym and party room operating costs | Chargebacks for damage you or your tenant cause |
This is why comparing fees between two buildings without reading what each one includes can mislead you. A $700 fee that includes heat, water and hydro can cost you less each month than a $550 fee that includes none of them. Ask the listing agent or the property manager for the list of utilities included, and confirm it against the budget in the status certificate.
How your share is calculated
Each unit is given a percentage of the common expenses in the corporation’s declaration. The CAO says the percentage is based on the unit’s size, parking space and locker, and the builder sets these proportions when the condo is created. If the budget goes up 5%, every unit’s fee goes up 5%, because everyone pays the same fixed share of a bigger total.
Two practical points follow:
- Parking and lockers can carry their own share. In many buildings each parking space and locker is a separate unit with its own percentage. Check whether the quoted fee includes them.
- Special assessments follow the same percentage. The CAO notes that special assessment amounts are proportional to each unit’s percentage of common expenses. A larger unit pays a larger share of any one-time levy.
To compare buildings, divide the monthly fee by the unit’s interior square footage. A 650 square foot unit with a $650 fee works out to $1.00 per square foot per month. That figure is only a starting point, because it does not show what the fee includes or how healthy the reserve fund is.
How and why condo fees rise
The annual budget
The board approves a budget for each fiscal year, and the fee is set from it. There is no legal cap on how much fees can rise in a year. Costs that push budgets up include insurance premiums, utilities, contract prices for cleaning, security and elevators, wages and repairs that come out of the operating budget.
The reserve fund study
The reserve fund is a mandatory account for major repairs and replacements of the common elements, such as roofs, windows, elevators, garage membranes and mechanical systems. The CAO’s guide sets out the cycle:
- A first study, with a site inspection and a 30 year projection, is due within one year of the condo’s registration.
- Updates are due at least every three years after that, alternating between studies with and without a site inspection.
- The board must review each study within 120 days of receiving it and propose a plan for future funding.
- Owners must receive a Notice of Future Funding of the Reserve Fund within 15 days of the board proposing that plan. The plan takes effect on the 31st day after the notice is sent.
Before the first study, a new condo must contribute at least the greater of 10% of its operating budget or the amount reasonably needed for future repairs. After the first study, the CAO says most corporations need to increase contributions to reach adequate funding, and the usual approach is to raise fees step by step in line with the study. That is why fees in a new building often jump in the first few years.
Building age
Older buildings tend to face larger repairs. In Wahi’s July 2026 GTA condo fees report, based on 2025 one-bedroom sales at about 2,000 building addresses using ITSO and TRREB data, median one-bedroom fees ranged from $254 to $2,275 a month, and seven of the ten highest-fee buildings were completed in 1991 or earlier. Fees in a 1980s tower can reflect window, balcony and elevator work that a 2020 building will not face for years.
What a steady increase does over time
The table shows a $650 fee under three increase rates. The rates are assumptions for illustration, not forecasts for any building.
| Annual increase | Monthly fee after 10 increases | Total paid over 10 years |
|---|---|---|
| 0% (no increase) | $650 | $78,000 |
| 3% | $874 | $89,418 |
| 5% | $1,059 | $98,108 |
| 8% | $1,403 | $112,995 |
How it is calculated: the fee after 10 increases is $650 × (1 + rate)10. At 5% that is $650 × 1.6289 = $1,059. The 10 year total assumes the fee rises once a year after the first year, so it adds 12 months at $650, 12 months at $682.50 and so on for ten years. At 5% that is $7,800 × 12.578 = $98,108.
A modest yearly increase is often a good sign: it usually means the board is following its reserve fund plan rather than holding fees down and storing up a special assessment. If your fee has already gone up and you want to know your options as an owner, see my condo fee just went up: what are my options.
How condo fees affect your mortgage
Lenders look at two ratios. The gross debt service (GDS) ratio compares your housing costs with your gross income, and the total debt service (TDS) ratio adds your other debts. For insured mortgages, CMHC caps GDS at 39% and TDS at 44%, and says 50% of the condo fees must be included in both calculations.
That has a direct effect on what you can borrow. Using the 39% GDS limit:
- A $650 fee adds $325 a month to your housing costs for qualifying. $325 × 12 ÷ 0.39 = $10,000 more gross annual income needed than for the same purchase with no fee.
- Every extra $100 a month in condo fees adds $50 to the qualifying costs, which takes about $1,538 more gross income a year at 39% GDS.
Lenders also apply the mortgage stress test and their own policies, so treat this as a guide to the size of the effect, not a qualification result. For a full example of qualifying income, see how much income you need to buy an $850,000 home in the GTA. For the cash you need on closing day, including any adjustment for prepaid condo fees, see cash needed to close on an $800,000 home.
This guide is general information, not legal, tax or mortgage advice. Talk to a mortgage professional and a real estate lawyer about your own purchase.
Condo fee calculator
Enter the monthly fee, the unit size and an assumed yearly increase. The calculator shows the fee per square foot, where the fee could be after the number of years you choose, the total you would pay over that time, and the extra income a lender would look for at a 39% GDS ratio. The increase rate is your assumption, so try a few.
What happens if fees go unpaid
Condo fees are not optional, even if you disagree with the budget. The CAO explains that a condo corporation automatically has a lien on a unit when the owner does not pay common expenses. The process runs like this:
| Step | What happens |
|---|---|
| Fees go unpaid | A lien arises automatically. It covers the unpaid amount, interest and reasonable legal and collection costs. |
| Notice of Lien | The corporation can send the owner a Notice of Lien. If the amount is still unpaid 10 days later, it can register a Certificate of Lien. |
| Three month deadline | An unregistered lien expires three months after it arises, and the corporation loses its priority. |
| Notice of Sale Under Lien | Can be issued 15 days after the certificate is registered, with a 45 day period to pay. |
| Court and sale | If still unpaid, the corporation can go to the Superior Court of Justice for possession and sale. Any balance goes to the former owner within 90 days of the sale. |
The CAO says sales are rare and that owners who are struggling should talk to the corporation right away, because it may agree to a payment plan. The owner can pay the arrears at any point before the unit is sold, and the lien must then be discharged.
What to check before you buy
For a resale condo, the status certificate is the key document. The corporation can charge up to $100 including taxes and must provide it within 10 days. According to the CAO, it can include the current budget, the latest audited financial statements, the unit's fee and whether it is in arrears, any increase in common expenses with the reason, the most recent reserve fund study and the reserve fund's condition, and any special assessments since the current budget. Ask your lawyer to review it before your conditions expire.
Fee questions to answer
- What exactly does the fee include? Heat, water, hydro, internet, parking and locker?
- What is the fee per square foot, and how does it compare with similar buildings nearby of a similar age?
- Has the fee gone up each year? Steady increases in line with the study are normal. Years of flat fees in an older building are worth questions.
- Has the board sent a Notice of Future Funding? It shows the planned reserve contributions for years ahead.
- Is there any special assessment, or any large project in the study coming up soon, such as windows, balconies or garage repairs?
- Is the corporation in any lawsuit or insurance dispute that could add costs?
- What is the building's insurance deductible for water damage, and could it be charged back to your unit under the declaration?
If you are buying a new condo
The builder's first-year budget is an estimate. Expect the fee to change once the corporation takes over and the first reserve fund study is done. Before you close, you may also pay interim occupancy fees, which are not condo fees; see interim occupancy fees in Ontario. Still deciding between a condo and a house? Our house or condo guide compares the two.
Comparing condos? We can pull fee, size and sale price data for buildings you are considering and help you read the status certificate questions with your lawyer. Talk to us about buying, or get a free home evaluation if you are thinking of selling your unit.
Common questions
What do condo fees cover in Ontario?
They pay to maintain and run the common elements, such as hallways, elevators, the roof, garage and amenities, plus building insurance, management and common area utilities. Part of every payment goes to the reserve fund for major repairs. Some buildings also include heat, water or hydro for your unit, so check the budget.
How are condo fees calculated?
The board sets an annual budget, and each unit pays a fixed percentage of it. The percentage is set in the declaration, mainly based on the unit's size, parking space and locker.
How much can condo fees go up in a year in Ontario?
There is no legal cap. Fees rise when the budget rises, most often because of the reserve fund study, insurance, utilities and contract costs. The status certificate shows any increase and the reason.
Do condo fees affect how much mortgage I can get?
Yes. For insured mortgages, CMHC requires 50% of condo fees to be counted in your GDS and TDS ratios. At the 39% GDS limit, a $650 monthly fee means about $10,000 more gross annual income is needed.
What happens if I do not pay my condo fees?
The corporation gets an automatic lien on your unit for the arrears, interest and collection costs. It can register the lien if the amount is unpaid 10 days after a Notice of Lien, and as a last step it can seek a court order to sell the unit.
What is a reserve fund study?
It is a report that estimates the cost and timing of major repairs over at least 30 years and how much the corporation should save. In Ontario the first study is due within a year of registration and updates at least every three years. The board must then send owners a Notice of Future Funding.
This guide is general information, not legal, tax or mortgage advice. Confirm details with your lawyer, lender and the condominium corporation before you buy.
Sources
- Condominium Authority of Ontario, Common expenses fees (modified April 6, 2026)
- Condominium Authority of Ontario, Guide on Condo Reserve Funds
- Province of Ontario, Notice of Future Funding of the Reserve Fund (Condominium Act, 1998, s. 94(9))
- Condominium Authority of Ontario, Status certificates (modified August 12, 2026)
- Condominium Authority of Ontario, Liens (modified April 6, 2026)
- CMHC, Calculating GDS and TDS
- Wahi, 2026 GTA Condo Fees Report (July 27, 2026; ITSO and TRREB data, 2025 one-bedroom sales)
Featured image: a high-rise condominium tower in Toronto, from the Local Toronto media library. It is a general photo, not a building discussed in this guide.
Local Toronto, HomeLife Landmark Realty Inc., Brokerage.