Buying a condo can feel exciting and overwhelming, especially for first-time buyers. From finding the right building and location to understanding condo fees, status certificates, and insurance, there’s a lot to navigate. To simplify the condo-buying experience, we’ve created this step-by-step guide, which includes information on how to qualify for a condo mortgage and the advantages of choosing a condo over a house.
Key Points
- The process of getting a mortgage and buying a condo is similar to that of a traditional house, with some additional considerations, like condo fees, status certificates, and reserve funds.
- A Status Certificate contains key information, including budget, bylaws, recent reserve fund study, arrears, and legal issues, making it a crucial document.
- To qualify for a mortgage for a condo, you’ll need to meet requirements such as minimum down payment, passing the mortgage stress test, and ensuring the condo corporation is financially sound.
- Condos offer key advantages over houses, including lower purchase prices, shared amenities, and reduced maintenance.
How To Buy A Condo In Canada
The process of getting a mortgage for a condo is similar to getting a mortgage for a house. Here’s a step-by-step breakdown of how it works.
Step 1. Get A Mortgage Pre-Approval
You can get pre-approved for a mortgage through a mortgage lender, such as a bank, credit union, or mortgage company. If you want help finding a lender, you can work with a mortgage broker.
To get pre-approved, you’ll need to provide personal and financial information, including the following:
- Your income
- Debt level
- Proof of employment
A mortgage pre-approval can tell you the maximum amount of mortgage you qualify for and can estimate your mortgage payments.
| Pro Tip: Lock In Your Rate Depending on the lender you choose, your pre-approved interest rate is locked in for 60 to 130 days. That means if rates increase during that time, your offered rate stands. |
Step 2. Condo Shop
Now for the exciting part: condo shopping. It’s time to see what’s available on the market.
Start by researching neighbourhoods and buildings that interest you. If you’re looking at a new condo, make sure you consider the reputation of the developer. With an older condo, carefully look at the condition of the building.
When you find a condo of interest, start digging into the details and asking questions, such as:
- What are the monthly condo fees?
- What do the monthly condo fees cover? Snow removal, garbage, and recycling pick up? Landscaping?
- What are the condo amenities? Will you have access to a parking spot? What about a gym or pool?
- Are any utilities, like gas, electricity, or water, included in the condo fees?
- What are the by-laws and rules of the condo board?
- Is there enough money in the reserve fund to cover major condo repairs?
For help navigating this process, consider working with a real estate agent.
Step 3. Make An Offer With Conditions
When you find the condo that’s right, you’ll need to put in an offer that includes the offer price, the amount of your deposit, and any relevant conditions.
Some of the more common conditions include the following:
- Financing: Whether you can purchase the condo may be conditional on whether you can get final mortgage approval from your bank or financial institution. By including a financing condition, your offer is only valid if your financing is approved.
- Review Of The Status Certificate: This is an information package shared with prospective buyers. It can include information about any judgments or legal filings against the condo corporation, and information about possible increase in expenses, upcoming special assessments, or insurance claims.
- Home Inspection: A home inspection is when an expert goes through the home and identifies any issues or repairs that the home needs. You and your realtor can use this information to revise or withdraw your offer.
- Appraisals: Some lenders might require you to get an appraisal to verify the value of the condo.
Step 4: Complete The Transaction
Once the conditions are fulfilled or waived, have your lawyer review your paperwork, including the transfer of title and registration. Then your realtor can take it to the seller, who can accept, reject, or propose a counteroffer.
When your offer is accepted, your lender will need to provide your lawyer with the money from your mortgage, and you’ll need to provide your down payment. Your lawyer will also pay your closing costs, including your land transfer tax.
| Note: Land transfer tax is paid by the buyer. Plus, some municipalities add their own Municipal Land Transfer Tax (MLTT), like Toronto. |
As a final step, your lawyer will register the house in your name and provide the deed and the keys to your new home.
Condo Mortgage Requirements
To qualify for a condo mortgage, you’ll need to meet the following requirements:
- Down Payment. The minimum down payment starts at 5% for a purchase price of $500,000 or less. For a condo above $500,000, the minimum down payment is 5% on the first $500,000, and 10% the portion above $500,000. For condos $1.5 million or over, 20%+ of the purchase price is required (and no mortgage insurance would be available at this price point).
- CMHC Insurance. If you want to buy your condo with less than 20% down, you’ll need to purchase mortgage default insurance. This policy is meant to protect the lender if you can’t make your payments.
- Mortgage Stress Test. If you borrow from a federally regulated institution, like a bank, you’ll need to pass a stress test to get a mortgage. The Office of the Superintendent of Financial Institutions (OSFI) requires you to prove that you can afford mortgage payments at a qualifying rate, which is the higher interest rate of 5.25% or the rate your lender offers plus 2%. This 5.25% rate is the regulatory floor now in effect as of November 2025
- Debt Service Ratio. Your total debt should not exceed 44% of your gross income, according to the CMHC. Your total debt load includes your housing costs along with all of your other debts. Note that these are maximum thresholds used by CMHC for insured mortgages — some lenders may apply slightly different limits for uninsured cases.
- Status Certificate. Your lender may also require you to obtain a copy of the condo’s status certificate. These documents contain key information about the condo unit and the condo corporation.
A lender may decline your mortgage application if:
- The condo has major legal issues
- The reserve fund is underfunded
- There’s a history of special assessments or poor management
- The building is a hotel-condo, co-op, or under litigation
Things To Remember When Buying A Condo
Before deciding on a condo, you want to have all the information necessary to make an informed decision. Here are a few things to research and understand before you put in an offer.
Research The Building And Developer
When you find a condo you’re interested in, take time to research the building and developer. Look into details such as the age of the building, what amenities are included, and whether there are plans for repairs.
You can also reach out to current residents to ask about their experience with the building. Researching the developer and looking at past projects can give you an overview of the quality of their condos and their overall reputation.
Understand Unit Boundaries
Make sure you understand where your condo unit ends and the common property begins. For example, do you need to pay for window washing or is that the responsibility of the condo? You can ask for a copy of the condo’s plan so you know what is considered part of your condo and what you are responsible for maintaining.
Ask About Infrastructure For An Electric Vehicle (EV)
If you own an electric car, you’ll need to ask about the availability of EV charging stations. Does the building already provide charging stations, or is it up to tenants to install their own?
If the building has charging stations, are they shared or individual? If it’s up to you to install the charging station, what are the guidelines around the installation process and what approvals do you need to get.
Different provinces have different regulations, so make sure you understand the required process for your location and the condo building.
Understand The Rules For Renting Out The Condo
If you’re thinking about buying a condo as a rental property, familiarize yourself with the condo’s regulations around rentals. Different provinces have different responsibilities for unit owners.
For example, in Ontario, you have to provide notice that your unit has been rented within 10 days. You have to include the tenant’s name, your address, and a copy or summary of the tenancy agreement.
Ask About Condo Fees
Your condo fees are a monthly payment that goes toward the maintenance and repair of common property. They can cover landscaping, snow and garbage removal, common amenities, and certain utilities.
Determine if your monthly condo fees are realistic and what they include. High fees aren’t always a bad thing. This can reflect good maintenance and a strong reserve fund. Also, ask if they are likely to increase.
Get Insurance For Your Condo
Condo insurance is different from home insurance. When you purchase condo insurance, it covers damages or loss inside the condo and personal liability if someone is injured in your condo.
Your condo corporation also has insurance that covers the outside structure of the building and common areas. Review your personal condo insurance policy and the condo corporation’s policy for a complete picture of what’s covered.
Should You Buy A Condo Or House?
You might question whether a condo or a house is the better choice, and there’s no one right answer. What’s right for you depends on your individual needs, wants, and budget.
Here are a few key benefits of buying a condo over a house:
| More Affordable | The cost of a condo is often more affordable than a single-family home. |
| Amenities | Many condos offer shared amenities like a gym, sauna, or swimming pool. |
| Less Maintenance | If you’re not interested in mowing your lawn or shoveling your driveway, you can often avoid these chores by purchasing a condo. |
| Security | Living in a shared building can provide a sense of added security, knowing your neighbours are around and lending a watchful eye when you’re away. |
| Location | Buying a condo might provide a more affordable way to live in the location you want, such as downtown. |
Learn more: Pros And Cons Of Buying A House vs Buying A Condo
Final Thoughts
Buying a condo is a big deal and can feel like an overwhelming process. If you’re not sure where to start, use this guide as your roadmap. By understanding each step of the condo-buying process, you can make more informed decisions.
