London condo buyer FAQ

Condo fees pay for the building's operating costs (insurance, management, maintenance, cleaning, landscaping, snow removal, common-area utilities and amenities) and a contribution to the reserve fund for major repairs. Some buildings also include in-suite heat, water or hydro, which makes fees look higher but may lower your other bills.

Mainly because of included utilities, building age and systems, amenities, the number of units sharing costs, and how well the building has saved. A low fee isn't automatically good, because it can mean the building is under-saving for future repairs.

A one-time charge to owners, on top of regular fees, when the condo corporation needs money it doesn't have, often for a major repair. If one has been levied on a unit you're buying, your offer should specify whether the seller or buyer pays it.

Yes. Lenders typically include a portion of your condo fee, often half, in your housing costs when calculating how much you can borrow. Higher fees can reduce your maximum mortgage.

The same as for any home: 5% of the first $500,000 and 10% of the portion from $500,000 to $1.5 million for an insured mortgage, and 20% for homes of $1.5 million or more. Less than 20% down requires mortgage default insurance.

It's the condo corporation's official statement about a unit and the corporation: fees, reserve fund, special assessments, lawsuits, insurance, budget and the governing documents. You should make any resale condo offer conditional on your lawyer reviewing it.

Under Ontario law, the corporation must provide it within 10 days of receiving the request and fee. Allow for that, plus your lawyer's review time, when setting your condition deadline.

It's often worth it, especially for townhouses and older units. An inspector can check the unit's plumbing, electrical, heating and cooling, windows and signs of water. The building's major elements are assessed through the reserve fund study instead.

A professional study that lists the building's major components, their expected life and replacement cost, and a funding plan to pay for them. It's the best guide to whether fees or special assessments are likely to rise.

It depends on the building. Some allow pets freely, others limit number, size or type, and some prohibit them in the declaration. Check before you buy.

Most Ontario condos allow long-term rentals, often with conditions like minimum lease terms and providing the lease to management. Check the declaration and rules, and understand your obligations as a landlord under the Residential Tenancies Act.

Usually not as an investment. The City of London requires short-term rentals to be licensed and located in the host's principal residence, and many condo buildings restrict short-term stays as well. Check both the City's current rules and the building's documents.

Inside your unit, generally yes, but many buildings require approval for flooring changes (often with acoustic underlay), plumbing and electrical work, and anything that affects common elements.

Yes. When you buy a new condo from a developer, you have 10 days after receiving the signed agreement and disclosure statement (whichever is later) to cancel and get your deposit back. Use it to have a lawyer review the documents.

With a new condo, you often move in before the building is registered and before you legally own your unit. During that period you pay an occupancy fee covering interest on the unpaid balance, estimated common expenses and estimated property taxes. It doesn't build equity.

Yes. The corporation's policy covers the building and the standard unit, but not your belongings, upgrades or personal liability. Make sure your policy also covers the corporation's deductible, which can be charged back to you if damage starts in your unit.