What Are the Costs of Buying a Toronto Condo?

There’s a lot to love about condo living – and it’s not just about lifestyle. Speaking generally, condos are the most affordable type of home in West Toronto, meaning they’re a great opportunity to break the cycle of renting and begin investing in your future. 

If you’re considering the purchase of a Toronto condo this post will break down some of the costs that you can expect to encounter during and after the transaction. 

Hoping to buy a condo in West Toronto? Check out these posts from our blog for helpful tips.  

• How Buying a Condo in West Toronto is Different Than Buying a House
• Can you Raise a Family in a Condo
• 3 Reasons Real Estate Transactions Fall Through and How to Avoid Them

Costs of Buying 

The Downpayment 

Hands down, the most significant cost you’ll encounter when buying a condo in Toronto is your downpayment. While lenders have historically required a downpayment of 20% to qualify for a mortgage, this benchmark has shifted in recent years. 

In some cases, buyers may qualify for a mortgage with a downpayment of less than 20%. However, in these instances, they are required to obtain mortgage insurance – which comes at an additional expense. 

If you’re unsure about whether or not you can afford to make a downpayment, speak to our team. We’ll help you calculate the costs and build a strategic budget for your purchase. 

Status Certificate 

Status certificates are unique to condos, and they cover a lot of important information such as how the building is owned and operated, its financial standing and outstanding debts, its physical condition and more. 

These certificates can be quite lengthy and procuring them often comes at a cost. However, the good news is that this cost is fairly minimal. In Ontario, a condo corporation cannot charge you more than $100 for a certificate. 

Condos make a great option for downsizers looking to move on from their larger family home. Want to know more about downsizing with ease? Click here to read our blog post on the topic. 

Land Transfer Tax

In Toronto, buyers are subject to both provincial and municipal land transfer taxes. Rather than one universal rate, the Ontario land transfer tax is calculated based on a sliding scale, with rates ranging from 0.5% to 2.5% of the purchase price. Similarly, Toronto levies its municipal land transfer tax with rates ranging from 0.5% to 2.5% as well. 

While this cost can add up fairly quickly, most first-time buyers in Canada are eligible for a rebate on Land Transfer Taxes. Your real estate agent will help you determine how much you will owe during the purchase. 

Legal Fees

Along with your real estate agent, buying a condo will also require the help of a lawyer, which will come at a cost. Once again, these fees will range based on the parameters of your transaction. However, an initial budget of $1,500 is usually enough to cover this expense. 

Ready to buy your first home? Explore these related readings for helpful advice and information. 

• Incentives & Tax Breaks For First-Time Buyers
• How to Maximize Your First Home Without Going Over Budget
• How to Get Better Credit Using ‘The Five Cs’

Costs After You’ve Moved In

Mortgage Payments

As you may expect, mortgage payments will be your most significant monthly expense. This cost will vary based on a variety of factors like your purchase price, down payment, interest rate, and amortization period. To estimate your mortgage payment, you can use online calculators or consult with a mortgage specialist.

Condo Fees

Condo fees, also known as maintenance fees, cover the costs of maintaining the building and shared amenities. These fees can vary widely depending on factors such as the size of the unit, included utilities, and the amenities offered. In most cases, a condo’s monthly fees will be outlined in the listing itself. 

Insurance

Condos, like homes, require insurance. Building insurance is typically covered by the condo corporation and built into your monthly fees. However, contents or resident’s insurance covers your personal belongings and it’s up to you to cover this cost. 

Extra Utilities & Expenses

While most utilities are built-in your condo fees, there will be other monthly services to budget for. For example, a parking space, phone or internet, or other utility costs could add to your monthly expenses. 

Searching for the perfect Toronto condo to begin your journey of homeownership? We can help you find it. Send us an email or call 416-769-6050 to get started.