Key points

  • Compare fee inclusions line by line.
  • Read the budget and reserve plan together.
  • Model fee changes in your monthly budget.

What the fee may pay for

Depending on the corporation, fees can cover management, common-area utilities, cleaning, landscaping, snow removal, building insurance, routine repairs, amenities and contributions to the reserve fund. Your own utilities, property tax, contents or unit insurance, and some maintenance may remain separate.

Get the current budget and ask which services are included in the specific unit’s fee. If heat, water or parking is included, confirm whether that has changed or is expected to change.

How to compare two condos

Compare the same cost categories: mortgage payment, tax, utilities, unit insurance, condo fee and expected upkeep. Then read the reserve fund study and minutes for planned capital work. One corporation may charge more today and save consistently for a major project; another may keep fees low until a special levy becomes necessary.

Recent increases are not automatically a sign of poor management. Ask what drove them: insurance, utilities, staffing, deferred maintenance or a deliberate reserve contribution increase.

How fees affect financing

Condo fees affect both your actual monthly cash flow and lender affordability calculations. CMHC states that 50% of condo fees are included in its gross and total debt service calculations for mortgage loan insurance. A lender may apply its own policies and review the building as well as the borrower.

Give your mortgage professional the real fee, not an estimate from an old listing. Recheck the numbers if the corporation announces a change before closing.

Common questions

Are condo fees tax deductible?

Tax treatment depends on property use and circumstances. Ask a qualified tax professional about your specific situation rather than assuming a deduction.

Sources and further reading

Primary references for legal and financial background. Inspection scope and provider services should always be confirmed for the specific property.