Condo vs Freehold: A Complete Comparison for Canadian Buyers

What You Own With Each

Freehold: you own the land, the structure, and everything in it outright. Your decisions about the property are your own, subject only to municipal zoning. No monthly fees to a corporation. Condo: you own your unit plus a proportional share of the common elements. The condo corporation — governed by elected owners — manages everything outside your unit: hallways, elevators, roof, mechanical systems, amenities. Your monthly maintenance fee funds all of this.

Monthly Costs Compared

Freehold has no maintenance fee — but you pay 100% of all repairs, insurance, and upkeep personally. A new roof can cost $15,000–$30,000; an HVAC replacement $5,000–$15,000. Condos charge $400–$900/month in maintenance fees in most major Canadian cities, covering building insurance, common area upkeep, and often heat and water. The real risk: a special assessment when the reserve fund is inadequate — this can be tens of thousands of dollars with short notice.

What to Check Before Buying a Condo

The status certificate is essential — your lawyer must review it before you remove conditions. Key questions: Is the reserve fund adequately funded (look for a recent reserve fund study)? Are there any pending special assessments? What percentage of units are investor-owned vs owner-occupied (higher owner-occupancy = better maintained building)? Are pets, short-term rentals, or BBQs prohibited? Are there any ongoing lawsuits against the corporation?

Which Is Right for You

Condos suit buyers who want urban locations, low exterior maintenance, and amenities — and can accept shared governance and restrictions. Freehold suits buyers who want control over their property, outdoor space, and no monthly fees — and can handle all maintenance themselves. For investors: check condo rules on rentals and short-term use before buying. For families: freehold's outdoor space often becomes important once children arrive.

Checklist

Checklist