Condo Fees in Ontario Explained: What They Cover

Why a very low condo fee can be a red flag

New buyers often treat a low fee as a win. Sometimes it is. But a fee that looks too good can mean the building is not collecting enough to maintain itself, especially for the reserve fund.

Every Ontario condo must keep a reserve fund for major future repairs, and must complete a reserve fund study to plan for them. If the board keeps fees artificially low, the reserve fund can fall short. When a big repair comes (a new roof, garage membrane, or elevator modernization) and the reserve cannot cover it, owners get hit with a special assessment: a one-time charge that can run into the thousands or tens of thousands per unit.

So the real question is not "is the fee low?" It is "is the fee enough to keep this building healthy?" A slightly higher fee with a well-funded reserve is often the safer, cheaper choice over time.

Why do condo fees go up?

Condo fees rise for ordinary reasons: inflation in labour and materials, rising insurance premiums, aging building systems, and reserve fund top-ups identified by the reserve fund study. A building whose fees never move can actually be a concern, because costs do rise, and the money has to come from somewhere eventually.

How to check condo fees before you buy: the status certificate

Before you buy any condo in Ontario, you or your lawyer should review the status certificate. It is the single most important document for understanding a building's financial health, and it is where the truth about the fees lives. It shows the current fee for the unit, whether the unit is up to date on payments, the size and health of the reserve fund, any planned fee increases, and any special assessments that are pending or being discussed.

This is exactly the kind of document a good buyer's agent and lawyer read carefully on your behalf. If you are weighing a condo against a freehold home, the ongoing fee is a major part of the comparison, and so are the related POTL fees you can encounter on some freehold and townhouse properties.

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Frequently asked questions

What do condo fees cover in Ontario?

Condo fees cover the shared operation of the building: cleaning, landscaping, snow removal, common-area utilities, building insurance, amenities like a gym or concierge, and contributions to the reserve fund for major future repairs. They often include some unit utilities such as water and heat, but not your property taxes or contents insurance.

What is a reasonable condo fee in Ontario?

A common benchmark is about $0.60 to $0.90 per square foot per month, so roughly $400 to $700 for many units. Buildings with pools, concierge, and extensive amenities cost more to run and can reasonably charge more. Judge the fee per square foot, and against the reserve fund, not by the raw dollar amount.

Why are some condo fees so low?

Sometimes the building is efficient and well run. But an unusually low fee can mean the reserve fund is underfunded, which raises the risk of a future special assessment. Always check the reserve fund in the status certificate before assuming a low fee is a good sign.

Can condo fees increase after I buy?

Yes. Boards adjust fees to keep pace with rising costs and to fund the reserve as the building ages. Reasonable, gradual increases are normal and healthy. The status certificate discloses any increases already planned.

What is a special assessment?

A special assessment is a one-time charge to owners, on top of regular fees, to pay for a major expense the reserve fund cannot cover. It can range from hundreds to tens of thousands of dollars per unit, which is why the reserve fund's health matters so much.

Last updated July 24, 2026. General information, not legal or financial advice. Always review the status certificate for the specific building.