Market Insight for October 23

Even as Toronto condo prices continue to fall, rising maintenance fees are giving some buyers another reason to think twice before making a purchase, according to local realtors.

Real estate agent David Coffey says he sees this regularly. Some buyers set a firm limit on the monthly maintenance fees they’re willing to pay, which can cause them to overlook condos that might otherwise be a great fit.

“They get a number set in their mind, and they’ll stick to that number so tightly that it becomes a detriment,” he said.

A recent analysis by Canadian real estate platform Wahi examined maintenance fees for one-bedroom condos sold in Toronto in 2025. Compared with its 2024 ranking, the findings showed that fees for these units rose by an average of 3.7 per cent over the year.

For sellers, however, experts say that highlighting a building’s amenities, features and other advantages can help buyers see the value behind the monthly costs.

Maintenance fees are an important part of the affordability equation for condo buyers, many of whom are working within a set monthly budget. Even if the purchase price is attractive, higher ongoing costs can affect how much a buyer is willing to spend.

Fees are generally based on a unit’s square footage and help pay for building expenses such as amenities, utilities, maintenance and repairs. Exactly what’s included depends on the building.

Condos with features such as swimming pools, underground parking and 24-hour security will generally have higher fees than units with fewer amenities. The fees are managed by the building’s condominium corporation, which is responsible for overseeing the budget and how money in the reserve fund is spent.

When it comes to resale value, the building’s amenities and how the unit compares with similar properties nearby can make a difference. Boutique condos and older buildings, for example, may appeal to buyers because of their distinctive interiors, character or more generous layouts, even if their maintenance fees are higher.

Coffey also cautions buyers against automatically assuming that very low maintenance fees are a good thing. Lower fees may mean fewer amenities or that the building isn’t setting aside enough money to cover future repairs. He recommends reviewing a condo’s status certificate before making a purchase to get a better understanding of the corporation’s financial position.

A condo building with a limited reserve fund could leave owners facing higher costs later. If there isn’t enough money available for major repairs or unexpected expenses, the corporation may need to increase maintenance fees or charge owners a special assessment.

According to the Condominium Authority of Ontario, a consumer protection organization connected to the province’s Ministry of Public and Business Service Delivery and Procurement, special assessments are one-time charges that condominium corporations can levy on owners to cover budget shortfalls.

Aleks Dhefto of the Condominium Authority of Ontario says unit owners are legally responsible for paying both their regular maintenance fees and any special assessments.

Rather than focusing only on the monthly fee, buyers should take a closer look at the overall financial health of the condominium corporation and the strength of its reserve fund, Dhefto said. Special assessments can become particularly expensive, potentially costing owners far more than they had anticipated.

Ontario condominium corporations are required to obtain a Reserve Fund Study every 3 years. These studies estimate the cost of major repairs and replacements over the next 30 years and recommend how much money should be set aside to cover those expenses.

If a building’s reserve fund falls short of the recommended amount, owners could eventually face higher maintenance fees or a special assessment to make up the difference. That’s why understanding a building’s finances is just as important as knowing what the monthly fees will be.

What Toronto condo fees actually pay for:

 Fees cover building operations, not unit-level utilities. That means:

• Building insurance (shared policy covering common elements)

• Water (usually included in fees, not billed separately per unit)

• Common area maintenance (lobby, hallways, garage, amenity spaces)

• Concierge and security (if the building has them)

• Amenity operation (gym, pool, party room, operating cost + utilities)

• Reserve fund contribution (the building’s savings account for future major repairs)

• Property management fees

What fees do NOT cover: your own electricity, internet, cable, unit insurance, or property taxes. Those are separate.

Why Condo Fees Are Climbing

No Legal Cap: Unlike residential rent in Ontario, there is no legal cap or rent-control mechanism governing how much a condo corporation can increase maintenance fees. Boards typically approve annual budget hikes of 2% to 5%, though higher jumps occur when building expenses surge.

Underfunded Reserve Funds: A review by the Ontario Auditor General revealed that 69% of Ontario condo corporations had inadequate reserve funds, forcing many buildings to implement steep catch-up increases.

Aging Infrastructure: Older high-rises built in the 1970s through 1990s face massive capital repair bills for elevators, garage membranes, windows, and risers.

Inflation & Insurance: Rising costs for municipal utilities, cleaning contracts, round-the-clock security, and commercial property insurance premiums are passed directly to owners.