Buying a condo involves unique mortgage considerations that don't apply to freehold houses. Understanding these differences helps you navigate the process smoothly and avoid surprises.
Key Differences: Condo vs. House Mortgages
Warning: Very low condo fees often mean special assessments are coming. Check the reserve fund carefully.
Condo Insurance Requirements
Building Insurance (Corporation)
Covers the structure itself. Not your responsibility.
Unit Insurance (Your Responsibility)
Lender requires:
- Contents insurance
- Personal liability
- Unit improvements/betterments
- Gap coverage (if applicable)
Typical cost: $25-$75/month
Finance Your Condo Purchase
Get pre-approved with a team that understands condo financing.
Get StartedFAQ
Q: Can I get CMHC insurance on a condo?
A: Yes, same rules as houses—5% minimum down on homes under $500K. However, the building must meet CMHC criteria.
Q: What if the building has a special assessment?
A: Depends on the amount and purpose. Small assessments rarely affect approval. Large assessments may require the seller to pay before closing or affect your financing.
Q: How do condo fees affect my payment?
A: They don't directly increase your mortgage payment, but lenders consider them when qualifying you. Your total monthly housing cost includes both mortgage AND condo fees.
Q: Can I rent out my condo unit?
A: Check the building's rules. Some condos restrict rentals. High rental percentages can also affect future buyers' financing options.
Q: What if I want to buy in a new building?
A: Pre-construction has different considerations—see our new construction mortgage guide.
What's Next
Condo purchases require specialized knowledge. Get pre-approved with our team who understands condo-specific requirements and can guide you through status certificate review and building approval.
Finance Your Condo Purchase
Our team understands condo-specific requirements and can guide you through the process.
