According to recent TRREB data, the average Toronto-area condo now sells for around $655,000, barely up from July’s $651,000 average. After years of sky-high prices, bidding wars, and frustration, affordability is slowly returning to the GTA — and buyers are finally getting some breathing room.
But before you rush to grab the keys, realtors warn that “cheap” doesn’t always mean “affordable.” The final cost of owning a condo involves far more than just your mortgage payment. Here’s what experts — and smart investors — are watching before signing the deal.
🏢 1. Know What Your Condo Fees Really Cover
Condo fees are often misunderstood. In older buildings, they might include heat, water, air conditioning, and even access to pools or gyms, while newer buildings tend to keep fees lower but charge utilities separately.
Realtors say to aim for fees under $1 per square foot — but don’t just look at the number. Check the building’s status certificate for what’s included and how well the condo corporation manages its reserve fund. A well-funded building can save you from nasty “special assessments” down the road.
💰 2. Budget for the Hidden Costs
Buying in Toronto means facing two land transfer taxes — one provincial and one municipal. That can easily add tens of thousands of dollars to your closing costs.
Other expenses to budget for:
- Home inspection: Especially wise in a cooling market.
- Title insurance & legal fees: Protect your ownership and legal rights.
- Moving and furnishing costs: Often overlooked, always painful.
And don’t forget ongoing expenses like property taxes and insurance, which your lender will likely require proof of before funding.
🧾 3. Review the Building’s Financial Health
Before making an offer, request the status certificate — it’s your financial X-ray into the building. It reveals if the reserve fund (a shared pool for repairs) is healthy or dangerously low.
If the fund is short, the condo board may issue a special assessment — an unexpected bill every owner must pay to cover shortfalls. Some buyers skip this step to “save time,” but that shortcut could cost thousands later.
🔧 4. Create Your Own “Reserve Fund”
Even in a condo, things break. Agents recommend setting aside $10,000–$25,000 as a personal reserve fund to handle surprises like appliance failures or AC repairs. Think of it as your safety cushion — something every responsible homeowner needs.
🏡 5. Get Pre-Approved Before You Shop
Knowing your true buying power upfront can save heartache later. Mortgage pre-approval helps you understand how interest rates, condo fees, and property taxes affect your real affordability.
At Lendworth, we help buyers get fast, transparent mortgage approvals across the GTA — including first-time buyers, refinances, and equity take-outs. With our equity-based lending, you may qualify even if your bank says no.
🌇 Final Thoughts
Toronto’s condo prices have dropped — but that doesn’t mean buying is risk-free. A good deal today can turn into regret tomorrow if you underestimate your true costs. The key is preparation, not panic.
If you’re ready to explore your condo-buying options — or simply want to see how much you can afford — Lendworth can help.
📞 Call us at (905) 597-1225
📧 Email: info@lendworth.ca
🌐 Visit: www.lendworth.ca
Lendworth Canada — Smarter Mortgage Solutions. Faster Approvals. Real Results.