What is freehold ownership in Canada?

Freehold (also called fee simple) is the most complete form of property ownership in Canada. You own both the building and the land it sits on with no time limit on ownership. You have full control over the property, subject only to municipal bylaws, zoning, and any registered covenants or easements. Freehold properties include detached houses, semi-detached houses, and freehold townhouses. There are no mandatory monthly fees to a management company or condo corporation.

What is leasehold ownership?

Leasehold means you own the building or unit, but the land is owned by someone else — typically a government entity, Indigenous band, developer, or institutional landowner. You lease the land for a set period (often 49 or 99 years) and pay ground rent to the land owner. When the lease expires, ownership of the land and anything on it typically reverts to the landowner, unless the lease is renewed. Leasehold properties are less common but exist across Canada, particularly in BC (Indigenous leasehold land), parts of Ottawa, and some condo developments.

Does leasehold affect my ability to get a mortgage?

Yes. Most lenders are cautious about leasehold properties. They typically require at least 20–25 years remaining on the lease beyond the end of the mortgage amortization. For example, if you're getting a 25-year mortgage, the lease should have at least 45–50 years remaining. Some lenders won't finance leaseholds at all. Mortgage insurance (CMHC) is generally not available for leasehold properties unless specific conditions are met, meaning you usually need 20% down.

What are condo fees and what do they cover?

Condo fees (also called maintenance fees or common element fees) are monthly payments made by each unit owner to the condo corporation. They cover the maintenance and operation of shared spaces and building systems — including common area cleaning, elevator maintenance, building insurance, reserve fund contributions, landscaping, snow removal, and sometimes heat, water, and other utilities. Fees vary widely — from $200/month for a small low-rise townhouse condo to $1,000+ per month for a luxury high-rise. The amount is based on the unit share of common expenses (usually proportional to unit size).

Is freehold always better than condo?

Not necessarily. Freehold gives you more control and no monthly fees to a condo corporation, but you are responsible for all maintenance and repairs yourself — a new roof, furnace replacement, driveway repair, and landscaping all come out of your pocket. Condo ownership includes maintenance handled by the condo corporation and funded through your monthly fees (and the reserve fund for major repairs). For people who want low-maintenance living (retirees, frequent travellers, busy professionals), a condo may be the better choice. The right ownership type depends on your lifestyle, budget, and preferences.

Freehold vs Leasehold vs Condo: Canadian Ownership Types Explained (2026)

Understanding the type of ownership you are buying is one of the most fundamental aspects of real estate in Canada. Each ownership type carries different rights, costs, and long-term implications.

Overview of ownership types

Feature	Freehold	Leasehold	Condominium
Own the building?	Yes	Yes (during lease)	Yes (your unit)
Own the land?	Yes	No — leased from landowner	Shared (common elements)
Time limit?	No	Yes (lease term)	No
Monthly fees?	No (just your own costs)	Ground rent + your costs	condo fees
Control over property?	Full (subject to bylaws)	Limited by lease terms	Limited by condo bylaws
Maintenance responsibility	All yours	Varies by lease	Condo corporation handles common areas
Financing	Standard	Restricted — fewer lenders	Standard (with condo-specific rules)
Resale impact	Strongest demand	Discount of 15%–40%	Strong demand (varies by market)

Freehold ownership

Types of freehold properties

Property Type	Freehold?	Notes
Detached house	Yes	Most common freehold type
Semi-detached	Yes	Shares a wall but each side is separately owned
Freehold townhouse	Yes	No condo corporation — you own the lot and building
Condo townhouse	No — it is a condo	Has a condo corporation and fees despite being a townhouse
Duplex / triplex	Yes	Freehold — you own the entire building and land

Freehold costs (beyond the purchase)

Cost	Typical Range	Frequency
property tax	$3,000–$10,000+	Annual
Home insurance	$1,200–$3,000	Annual
Maintenance reserve	1%–3% of home value	Annual (recommended savings)
Roof replacement	$8,000–$25,000	Every 20–30 years
Furnace / AC replacement	$5,000–$12,000	Every 15–20 years
Driveway / landscaping	$2,000–$10,000	Variable
Water heater	$1,500–$3,000 (or rental)	Every 10–15 years

Freehold advantages

Full control over your property and land
No monthly fees to any governing body
Strongest appreciation potential (land value)
Maximum privacy and autonomy
Easier to renovate or expand (subject to permits)
No reserve fund shortfalls or special assessments from a condo corporation

Freehold disadvantages

All maintenance and repairs are your responsibility
Larger upfront costs (freeholds are typically more expensive than condos)
Unexpected major repairs can strain finances
More time spent on property management

Leasehold ownership

How leasehold works

In a leasehold arrangement:

A landowner (lessor) owns the land
The property owner (lessee) leases the land for a set term
The lessee owns the building and has full use of the land during the lease
The lessee pays ground rent to the landowner (in addition to any mortgage)
When the lease expires, the land (and typically the building) reverts to the landowner

Common leasehold structures in Canada

Type	Location	Lease Term	Examples
Indigenous leasehold	BC (Musqueam, Squamish, etc.), Ontario	49–99 years	University Endowment Lands, Musqueam in Vancouver
Government leasehold	Ottawa, federal lands	40–99 years	NCC-owned land in Ottawa
Institutional leasehold	Various	30–99 years	Church-owned land, university land
Developer leasehold	Rare	Varies	Developer retains land, sells units on leasehold

Leasehold costs

Cost	Details
Ground rent	$300–$2,000+/month depending on location and lease terms
Ground rent escalation	Some leases increase rent — fixed increases, CPI-tied, or market resets
Lease renewal fee	Negotiated at renewal — can be significant
Pre-payment of ground rent	Some leases allow lump-sum prepayment for a discount

Lease renewal risk

The biggest risk with leasehold is what happens as the lease approaches expiry:

Years Remaining	Impact
50+ years	Minimal impact on value and financing
30–50 years	Some financing difficulty, modest value discount
20–30 years	Significant financing restriction, 15%–25% value discount
Under 20 years	Very few lenders will finance, 25%–40%+ value discount
Under 10 years	Essentially cash-only, deep discount

Financing leasehold properties

Lender Type	Leasehold Policy
Big 5 banks	Generally finance with 25+ years remaining beyond amortization
Monoline lenders	Most avoid leasehold entirely
Credit unions	Some will finance — check locally
CMHC insurance	Available only if lease meets specific criteria (registered, long-term)
Private lenders	Will finance but at higher rates

Musqueam leasehold example (Vancouver)

Musqueam leasehold properties in Vancouver have been a high-profile example of leasehold risk:

Homes originally sold at significant discounts to freehold comparable properties
When leases came up for renewal, ground rent increased dramatically (in some cases from a few hundred dollars per year to $30,000+ per year)
Property values dropped sharply
Owners who bought near the end of a lease term faced severe losses

This example illustrates why lease terms and renewal conditions must be carefully analyzed before purchasing any leasehold property.

Condominium ownership

How condo ownership works

When you buy a condo, you own:

Your unit — the interior space as defined in the declaration
A share of common elements — hallways, elevators, parking, amenities, building structure

The condo corporation (elected board of unit owners) manages:

Building maintenance and repairs
Insurance for common areas and the building structure
Reserve fund for major future expenses
Enforcement of condo bylaws and rules

Condo fees breakdown

Category	Portion of Fees	What It Covers
Building operations	30%–40%	Common area maintenance, cleaning, security, management company
Utilities	15%–25%	Heat, water (if included), common area electricity
Reserve fund contribution	15%–25%	Future major repairs (roof, elevator, parking, facade)
Insurance	10%–15%	Building insurance (not your contents — you need your own)
Amenities	5%–15%	Pool, gym, concierge, party room

Condo fees by property type

Property Type	Typical Monthly Fees
Low-rise townhouse condo	$200–$400
Low-rise apartment (no amenities)	$300–$500
Mid-rise with basic amenities	$400–$700
High-rise with full amenities	$600–$1,000+
Luxury high-rise	$1,000–$2,000+

Special assessments

If the reserve fund is insufficient for a major repair, the condo corporation can levy a special assessment — a one-time charge to all unit owners. Special assessments can range from $2,000 to $50,000+ per unit.

Warning signs of potential special assessments:

Reserve fund study shows underfunding
Building is 15+ years old with no major upgrades completed
Status certificate reveals pending major repairs with insufficient reserves

Status certificate: your protection

Before buying a condo, your lawyer should review the status certificate, which includes:

Document	What It Reveals
Declaration and bylaws	Rules, restrictions, pet policies, rental restrictions
Reserve fund study	Is the fund adequately funded for upcoming major expenses?
Financial statements	Is the corporation financially healthy?
Insurance certificate	What does building insurance cover?
Outstanding litigation	Is the corporation suing or being sued?
Special assessments	Any pending or recent special assessments
Arrears	How many units are behind on fee payments?

Co-operative housing (co-op)

A fourth ownership type that is often overlooked:

Feature	Co-op
What you own	Shares in the co-op corporation (not real property)
Right to occupy	A specific unit, based on your share ownership
Monthly costs	Housing charge (covers mortgage, maintenance, property tax)
Financing	Very limited — most banks will not finance co-op shares
Resale	Board must approve new buyers — can limit marketability
Pricing	Often significantly below market (25%–50% discount)

Which ownership type is right for you?

If You Want…	Best Choice
Maximum control and autonomy	Freehold
Low-maintenance living	Condo
Entry-level pricing	Condo or co-op
Strongest appreciation (long term)	Freehold
Amenities (pool, gym, concierge)	Condo
Flexibility to renovate	Freehold
Discounted purchase price	Leasehold or co-op
Investment property simplicity	Condo (especially in urban markets)