Buying a Condominium in Toronto is no easy task. Finding the right building is tough; finding the right unit in the right building seems, at times, insurmountable. Understanding Condo Fees is crucial to success in your purchasing journey. A full comprehension of the topic can make the difference between a successful purchase and a home buyer’s nightmare.
What Are Condo Fees?
Condo Fees (legally referred to as Common Expenses), are a monthly fee payable by unit owners to the Condominium Corporation. The Condominium Act mandates the payment of these fees. Some buildings may refer to condo fees as “Maintenance fees”, or “Common Elements fees”.
The amount payable is proportionate to that unit’s apportioned interest as described in the condominium’s declaration. Lockers & Parking units, if owned, can also require contribution. The incorporating documents, such as the Declaration and Description, contain the breakdown. You can also find it in the Status Certificate.
Owners cannot be exempt from paying common expenses. Condo liens occur when an owner defaults on payment. Read more on common expense default here.
Common Elements Condominiums – condos with no units – can also charge common expenses. This is very common in Parcels of Tied Land (POTL).
What do These Fees Cover?
Condo fees are a monthly prorated contribution to building operating expenses. Operating expenses vary by condo corporation and can include things like maintenance expenses, reserve fund contribution (see below) building insurance, hydro, water, and even internet.
Condo fees are almost always billed monthly in Ontario, though the budget is prepared annually (and the owner’s amount split into 12 equal payments). Some corporations allow owners to prepay for the year, but monthly billing is standard, and usually through pre-authorized debit.
Depending on a building’s construction style, condo fees can include utilities, like hydro and water. At times, buildings may also sign bulk agreements for cable TV, internet, or other digital services, and choose to pass the subsidized cost to the residents in the fees.
Typically speaking:
- Water: Often included, especially in older buildings.
- Hydro (electricity): Sometimes included, but newer condos often have individual meters.
- Gas: Less common, except in townhome-style condos.
- Internet/Cable: Occasionally bulk-negotiated and included, but only if specified.
When can Condo Fees Increase?
Regular condo fees typically increase once per year. According to the Condominium Act, the common expenses must be stated in the condominium’s declaration. This document will also include each owner’s share payable to the common expenses.
An operating contribution and a reserve fund contribution make up condo fees.
The operating contribution is based on the annual budget of the condominium corporation – which must be detailed and shared with the owners. Adjustments to common expenses occur usually at that time.
Reserve Fund Studies
Each Condominium must have a Reserve Fund. This fund is essentially a large bank account with sufficient balance to cover the cost of major repairs.
A mandate of Condominiums in Ontario is to undergo reserve fund studies. New condo corporations have to perform a reserve fund study. Following this, condo corps must redo or update the study at least every three years. These studies outline a 30 year plan of predicted repairs and replacements necessary as well as their inflated costs.
The corporation adjusts the owners reserve fund contribution based on the findings of the study.
According to the Condominium Act, initial contributions to a reserve fund must be 10 per cent of the operating budget. After the initial study, the contribution amounts may change dramatically.
Most condominium fees rise substantially when this occurs (in the first 1-2 years of new condo ownership). It is important to ask if about this study before you buy.
At times, the reserve fund may not be sufficient, and contributions to common expenses will not replenish it fast enough. In this case, the board may choose to levy a special assessment.
Special assessments are usually 1-time payments. However, directors can break them into smaller interval payments (if the assessments are extraneously large). Use cases include:
- To replenish the fund,
- Pay for a particularly large repair, or
- Pay into proceeds of a lost lawsuit.
Special assessments are common expenses. An owner’s refusal to pay will result in a lien.
Average Condo Fees in Toronto (2026)
If you are buying a condo in Toronto, one of your first questions is likely “how much will condo fees cost?” The answer depends on the building, but here are the current Toronto market averages.
Current Averages
Condo fees in Toronto typically range from $0.80 to $1.20 per square foot per month. This means a 700 square foot unit might pay anywhere from $560 to $840 monthly, depending on the building. At the lower end, you will find older buildings with minimal amenities. At the higher end, expect newer towers with full service concierge, pools, gyms, and party rooms.
Across the GTA, condo fees have been rising approximately 3 to 5 percent annually, driven by increasing insurance costs, labour expenses, and inflation on maintenance contracts.
Condo Fees by Building Age
Building age is one of the biggest factors affecting condo fees per square foot in Toronto.
New buildings (under 10 years old) typically charge $1.00 to $1.50 per square foot. These higher fees reflect modern building systems, premium amenities, and the requirement to build up reserve fund contributions after the first reserve fund study.
Older buildings (20 years or more) often have lower base fees, ranging from $0.65 to $0.95 per square foot. However, lower fees do not always mean lower costs. Older buildings carry higher risk of special assessments for major repairs like window replacements, elevator modernization, or garage waterproofing.
What Counts as High vs Low
In the Toronto market, fees above $1.25 per square foot are considered high. Buildings in this range typically offer full amenities including concierge, pool, fitness centre, party room, and sometimes even guest suites. New construction almost always falls into this category.
Fees below $0.80 per square foot are considered low. These buildings are usually older with minimal amenities, often in suburban locations. Low fees can be attractive, but always check the reserve fund status before assuming you are getting a deal.
Condo Fee Inclusions and the MLS
The operating contribution to a condominium budget can vary widely. Some buildings include hydro, water, & cableTV/internet in their common expenses. Other buildings may choose only to include the bare minimum (building insurance & maintenance/management costs). It depends on the decisions of the board and the original builder’s intentions. For example, the developer could install hydro meters for every unit, eliminating the need for hydro to be shared via condo fees.
The MLS clearly states the inclusions of a condo fee. It’s important to check which expenses are included in your payments.
This will also make a difference when applying for mortgage financing. Banks estimate expenses not covered by condo fees as part of their debt service calculations. Condo fees are not included in your mortgage payment, but lenders do factor them into affordability when qualifying you. So in addition to mortgage + property taxes, expect condo fees as a separate recurring expense.
Condo fees do not typically include municipal property taxes. This is because each condominium unit is considered its own piece of property with ownership (no different than a house on a lot). Each owner is responsible for their own property tax bill, separate from condo fees. However, in rare cases (like some commercial condos or unique arrangements), taxes may be bundled into fees. Always confirm via the Status Certificate
Are Condo Fees Based On Square Footage?
Condo fees are calculated largely based on the percentage of ownership in the building, which is outlined in the Declaration. Larger units with more square footage or additional common element rights (parking, locker, terraces) will carry higher fees. However, other factors that may influence the proportion payable include:
- Exclusive use of any common elements (for example, a private terrace or balcony)
- Parking space (size, number of spaces, & location), locker size
- Services or amenities available to a unit – i.e. a secondary private elevator
- Operating cost or share ownership in Condo Amenities
The most accurate way to check the proportion of condo fees payable is via the declaration or status certificate.
Are Condo Fees Subject to GST/HST?
Residential condo fees are not subject to GST or HST. The Excise tax act specifically exempts residential condominium units. However, commercial condominium units are subject to GST or HST unless the small supplier rule is met.
The Small Supplier Rule dictates that a supplier collecting less than $30,000 per year does not need to register and collect GST/HST. For more information, its recommended you contact a tax professional.
Can I Expense my Condo Fees?
If you are a real estate investor, you are likely wondering if common expenses can be deducted from rental income. Generally, this is permitted as the fees would be considered, in essence, a cost of goods sold. However, expert accounting advice is recommended in this field.
Are Condo Fees Included in Rent?
Unless otherwise stated, its generally accepted (in residential leases) that monthly common expenses are included in the gross (total) rent payable. The landlord would then be responsible for the condo fees. However, there are instances where the rent does not include condo fees.
Examples of this would be a commercial triple-net lease, where the lessee is responsible for all operating costs (including taxes, maintenance, and insurance, or TMI).
The MLS has a section that allows landlords to describe what is included in the rent. It is normally easier to include condo fees and then deduct them from your income statement. If you’re looking to purchase a property for rental income, its important to understand how this may affect your bottom line.
Are Condo Fees Worth It?
Condo fees can feel like an extra burden on top of your mortgage, but understanding what they cover helps put them in perspective.
What You Are Really Paying For
A $600 monthly condo fee adds up to $7,200 per year. That sounds like a lot until you consider what it includes.
If you owned a freehold home, you would pay separately for building insurance, exterior maintenance, landscaping, snow removal, and contributions to your own savings for major repairs like a new roof or furnace. In a condo, all of this is bundled into your fees. Many Toronto buildings also include water in the fees, and some include heat or hydro as well.
The reserve fund contribution is particularly valuable. Every month, a portion of your fees goes into a fund that covers major repairs and replacements. When the roof needs replacing or the elevator needs modernizing, the money is already there. Freehold owners often face unexpected five figure bills for similar repairs.
When High Fees Make Sense
Higher condo fees are often justified when the building includes amenities you will actually use. A gym membership in Toronto can cost $50 to $100 per month on its own. If your building has a quality fitness centre, pool, and party room that you use regularly, those amenities are effectively included in your fees.
High fees also make sense in well managed buildings with healthy reserve funds. Check the status certificate. A building with strong reserves and no recent special assessments is worth paying more for than a building with low fees and an underfunded reserve.
If utilities are included in your fees, do the math. Heat and hydro for a Toronto condo can run $100 to $200 per month. A building with slightly higher fees that includes utilities may actually cost you less overall.
When to Be Concerned
Be cautious if fees have been increasing faster than 5 percent per year. Rapid fee increases often indicate poor financial planning or deferred maintenance catching up with the building.
Check the reserve fund study in the status certificate. If the fund is below the recommended level, a special assessment may be coming. Recent or upcoming special assessments are a red flag, especially if they are for basic maintenance items that should have been anticipated.
Walk through the building with a critical eye. Deferred maintenance in the lobby, hallways, or parking garage often signals broader financial problems. A building that cannot afford to maintain visible common areas may be struggling with larger issues behind the scenes.
Condo Fees & You
Condo fees are a complex and diverse topic and should be thoroughly understood prior to purchase. If you have questions about condo fees, Contact Us.