Condo insurance and mortgages: what London buyers need to know

Updated October 30, 2026 · 8 min read

Mortgages for condos

Down payment

The minimum down payment for a condo is the same as for any home in Canada. For an insured mortgage, that's 5% of the first $500,000 and 10% of the portion between $500,000 and $1.5 million. Homes of $1.5 million or more require at least 20% down. With less than 20% down, you'll pay mortgage default insurance, which is added to your mortgage. Check the Financial Consumer Agency of Canada for current rules.

How condo fees affect what you can borrow

Lenders calculate your debt service ratios, which compare your housing costs and total debts with your income. For condos, lenders typically include a portion of your monthly condo fee, often half, as a housing cost alongside your mortgage payment, property taxes and heating. The practical result: for example, a $600/month condo fee can reduce your maximum mortgage noticeably compared with a $300 fee (illustrative numbers only). Ask your lender or broker how they treat fees before you start shopping.

Building-specific lender concerns

Lenders occasionally look more closely at certain buildings, such as those with significant litigation, very high rental ratios or unusually small units. That's rare for typical London condos, but it's another reason to get your financing fully approved, including the property, before your financing condition expires.

Pre-construction condos

If you're buying a pre-construction unit, your mortgage approval will happen closer to closing, possibly years away, and lending rules and your circumstances can change in between. Talk to a lender at the start, and again well before closing. See buying a pre-construction condo.

Condo insurance: who covers what

The corporation's master policy

The condo corporation insures the building: common elements and the units as originally built (the "standard unit", which is defined by the corporation). Your fees pay for this policy. A copy is attached to the status certificate.

Your unit owner's policy

You need your own policy, sometimes called condo insurance or an HO-6-style policy, to cover what the master policy doesn't. Typically that's:

• Your belongings: furniture, electronics, clothing
• Improvements and betterments: upgrades beyond the standard unit, such as better flooring, custom kitchens or renovated bathrooms
• Personal liability: if you accidentally cause injury or damage to others, such as a leak that floods the unit below
• Additional living expenses if your unit becomes uninhabitable after an insured loss
• Loss assessment / deductible coverage: see below

The deductible trap

Condo corporations' insurance deductibles have risen significantly across Ontario. Under the Condominium Act, a corporation may be able to charge the deductible back to an owner when damage originates in their unit, for example from a burst pipe, an overflowing tub or a failed washing machine hose. Depending on the building's by-laws, this can apply even if you weren't negligent.

For example, if the corporation's deductible is $25,000 or $50,000 (illustrative amounts; actual deductibles vary by building) and your policy only covers $5,000 of assessments, you could owe the difference. When you get insurance quotes:

1. Find the corporation's deductible amounts in the status certificate's insurance section.
2. Ask your insurer for loss assessment / deductible coverage at least equal to that amount.
3. Ask whether water damage and sewer back-up are covered, and at what limits.

Other costs to budget for

• Property tax: you pay it on your unit (and any separately titled parking or locker units).
• Utilities not included in fees: often hydro, and sometimes water or heat. Some London buildings sub-meter units.
• Special assessments: rare in well-run buildings, but plan for the possibility. See reserve funds.
• Move-in fees and elevator booking deposits: charged by some buildings.
• Closing costs: land transfer tax, legal fees, title insurance and adjustments. First-time buyers may qualify for a land transfer tax refund.