Condo or apartment? In Canada, it comes down to ownership vs renting — and the financial and lifestyle trade-offs are significant.
The fundamental difference
| Feature | Condo (Condominium) | Apartment |
|---|---|---|
| Ownership | You own the unit | You rent the unit |
| Title | You hold title (registered on land registry) | Landlord holds title |
| Monthly payment | Mortgage + condo fees + property tax | Rent |
| Equity | ✅ You build equity with each mortgage payment | ❌ No equity — rent is an expense |
| Down payment | Required (5%–20%) | No (first and last month’s rent deposit) |
| Maintenance | Condo corp handles common elements; you handle your unit interior | Landlord handles everything |
| Condo fees | ✅ Yes ($300–$800+/month) | ❌ No (included in rent) |
| Property tax | ✅ Yes (your responsibility) | ❌ No (landlord’s responsibility) |
| Governance | Condo board / corporation | Landlord / property management |
| Tenant protections | N/A (you are the owner) | Provincial residential tenancy act |
Cost comparison
Monthly costs: owning a condo vs renting an apartment
| Cost | Condo (Owned) | Apartment (Rented) |
|---|---|---|
| Housing payment | $2,800 (mortgage on $500K, 5.5%, 25yr) | $2,400 (rent) |
| Condo fees | $450 | $0 |
| Property tax | $300 | $0 |
| Home insurance | $60 (unit owner policy) | $30 (tenant insurance) |
| Maintenance / repairs | $100 (interior unit only) | $0 |
| Total monthly | $3,710 | $2,430 |
| Equity built (est.) | ~$900/month in principal | $0 |
| Net monthly cost | ~$2,810 (after equity) | $2,430 |
The condo costs more per month, but $900 of the mortgage payment goes to equity. Over 5–10 years, the condo owner builds significant wealth — assuming the property holds or increases in value.
5-year financial comparison
| Factor | Condo Owner | Apartment Renter |
|---|---|---|
| Total payments (5 years) | ~$222,600 | ~$145,800 (with 3% annual rent increases) |
| Equity built | ~$54,000 (principal payoff) | $0 |
| Appreciation (3%/year on $500K) | ~$80,000 | $0 |
| Net wealth impact | +$134,000 (equity + appreciation) | $0 |
| Upfront capital needed | $25,000–$100,000 (down payment + closing) | ~$4,800 (first + last) |
| Flexibility | Low — selling takes 1–3 months | High — give notice and move |
Types of condo buildings vs apartment buildings
| Building Type | Condo | Apartment |
|---|---|---|
| New high-rise tower | Very common — developer sells units individually | Some purpose-built rental towers exist |
| Converted older building | Some older apartments have been converted to condos | Traditional rental stock |
| Low-rise (4–6 stories) | Common in suburbs | Common in older neighbourhoods |
| Purpose-built rental | N/A | Specifically built for rental — often institutional owners (REITs) |
| Mixed | Some buildings have condo units and rental units | Same building, different ownership model |
Condo fees explained
| What Condo Fees Cover | Typical % of Fees |
|---|---|
| Building insurance (master policy) | 15%–20% |
| Common area maintenance (hallways, lobby, elevators) | 15%–25% |
| Reserve fund contribution | 10%–20% |
| Utilities (water, sometimes heat) | 10%–20% |
| Landscaping and snow removal | 5%–10% |
| Amenities (gym, pool, concierge) | 10%–20% |
| Management company | 10%–15% |
| Garbage / recycling | 2%–5% |
Condo fee ranges by city
| City | Average Condo Fee (per sq ft/month) | Average on 700 sq ft Unit |
|---|---|---|
| Toronto | $0.60–$0.90 | $420–$630 |
| Vancouver | $0.45–$0.70 | $315–$490 |
| Calgary | $0.50–$0.75 | $350–$525 |
| Ottawa | $0.50–$0.70 | $350–$490 |
| Montreal | $0.30–$0.55 | $210–$385 |
Fees tend to increase over time (3%–5%+ annually) and can jump significantly when buildings age and need major repairs.
Investment comparison
| Factor | Condo (Owned) | Apartment (Rented — investing the difference) |
|---|---|---|
| Appreciation | ✅ Property typically appreciates 2%–5%/year | ❌ No property appreciation |
| Equity building | ✅ Each mortgage payment builds equity | ❌ No equity |
| Investment of savings | Limited (capital is tied up in the property) | ✅ Can invest the down payment and the monthly savings |
| Leveraged returns | ✅ 5%–20% down controls 100% of the asset | N/A |
| Special assessment risk | ❌ Could be $5K–$50K+ unexpectedly | ✅ No risk |
| Condo fee increases | ❌ Unpredictable increases | ✅ No fees (rent increases may be regulated) |
| Liquidity | Low — takes 1–3 months to sell | High — invest in liquid assets |
| Tax-free gains | ✅ Principal residence exemption | ✅ TFSA gains are tax-free |
When to buy a condo
| Situation | Buy? |
|---|---|
| Planning to stay 5+ years | ✅ Yes — enough time to build equity and absorb transaction costs |
| Stable income, down payment saved | ✅ Yes — you can handle the mortgage and fees |
| Want to build long-term wealth | ✅ Yes — ownership builds equity over time |
| Prefer stability (no landlord, no renovictions) | ✅ Yes — you control your housing |
| Planning to stay < 3 years | ❌ No — transaction costs may exceed equity gains |
| No down payment saved | ❌ No — need 5%–20% plus closing costs |
| Unstable income | ❌ No — mortgage, condo fees, and taxes are fixed obligations |
| Want maximum flexibility | ❌ No — renting is more flexible |
When to rent an apartment
| Situation | Rent? |
|---|---|
| New to a city or unsure of neighbourhood | ✅ Yes — try before you buy |
| Planning to stay < 3 years | ✅ Yes — avoid transaction costs |
| Saving for a down payment | ✅ Yes — rent while you save |
| Career requires mobility | ✅ Yes — flexibility to move easily |
| Market is overvalued | ⚠️ Maybe — renting and investing the difference can beat buying in overheated markets |
| Can invest the savings from lower rent | ✅ Yes — disciplined investing of the difference can build comparable wealth |
| Want no maintenance responsibility | ✅ Yes — landlord handles everything |
Key questions before buying a condo
- What are the current condo fees and how much have they increased over the past 5 years?
- What does the reserve fund study say? Is the fund adequately funded?
- Are there any pending or recent special assessments?
- What is the building’s age and condition? (Roof, windows, elevator, garage)
- Are there rental restrictions? (Important if you might rent it out)
- What does the condo insurance cover vs what you need to insure?
- What utilities are included in the condo fee?
- Is the building well-managed? Check meeting minutes for issues
- What is the resale history for similar units in the building?