Thinking of Buying a Condo in Canada? Evaluating the Pros and Cons of Condos

Buying a condo can provide the ideal housing opportunity for certain families while others simply cannot imagine investing anything other than a single-dwelling home. However, condo ownership can—and does—have its privileges. And as with all things good, there are a few aspects of the condominium lifestyle that won't appeal to all buyers. For potential Canadian home buyers still weighing the pros and cons of condos, here are a few top considerations.

For informational purposes only. Always consult with a licensed mortgage professional before proceeding with any real estate transaction.

Enjoy a Low Maintenance Lifestyle… But at a Cost

The fact that most of the exterior and common area maintenance is handled by a Homeowner's Association (HOA) is a huge perk to those who prefer low maintenance ownership situations. While owners are still responsible for interior issues and certain exterior responsibilities, HOAs typically arrange for quite a few community services and pay for them using monthly or annual HOA dues. These services may include:

• Trash Removal
• Snow Removal
• Landscaping and Tree Trimming
• Exterior Painting
• Sewer Maintenance
• Driveway and Parking Lot Upkeep
• Maintenance of Community Amenities
• Cleaning and Maintenance of Common Spaces (Clubhouses, Gyms, Walkways, etc.)
• Fencing and Roofing Maintenance

Cons: HOA dues have a drastic range concerning cost depending on the location of the condo, the condition and age of the units and the amenities offered amid the community. When major issues arise, most condominium communities will place a special assessment upon owners to cover those unexpected costs. While buying this type of home can be affordable, fees can add up but this isn't always the case.

Is a Community Lifestyle Right for the Family?

Families who enjoy getting to know their neighbours and who don't mind engaging with them regularly are likely to find the condo lifestyle a good fit. After all, shared walls and common spaces will certainly lead residents into potential friendship-forging situations over time. Another bonus to buying a condo is that there are multiple neighbours that generally keep an eye on things to provide a greater sense of security.

Cons: Obviously, those wanting a bit of space or who don't desire to share common walls and common spaces might find that living in a condo ‘cramps' their lifestyle and privacy. Furthermore, along with a sizeable community, there can be a bit of excessive noise at times that might not appeal to certain buyers.

Qualifying for a Condo Loan: New Regulations Can Be a Pro or Con

Canadian mortgage regulation amendments made in January of 2018 dictate that any new mortgage applicants and anyone renegotiating or renewing their current contracts must meet new guidelines. Essentially, borrowers will now be qualified based upon ‘posted rates,' and these are generally about 200 basis points above any discounted mortgage rates. These updated regulations can make a condo easier to qualify for, specifically those who cannot currently qualify for a higher-priced single-family dwelling.

Cons: For first-time homebuyers, these new restrictions may mean that renting a bit longer before buying may be necessary, even to buy a condo. However, new buyers could consider getting a co-signer for affordable units and still qualify for a mortgage under the new rules.

Interesting in Buying a Condo or Other Property in Canada?

Don't go in blindly into the Riverview real estate market without carefully weighing the pros and cons of homeownership regardless of the type of dwelling or location that you are seeking. To get 'in the know' and avoid complications, consult a professional real estate agent near your desired location today.

For informational purposes only. Always consult with a licensed mortgage professional before proceeding with any real estate transaction.