Buying a Condo vs a House in Canada: Complete Comparison

Choosing between a condo and a house comes down to price, monthly costs, how much maintenance you want to take on, how much the land under a house matters to you, and how you want to live. This page compares the two on each of those, with a worked cost example. It is part of our guide to property types in Canada. For the steps of buying a condo and how its financing works, see buying a condo in Canada.

Prices compared

The MLS Home Price Index benchmark is the price of a typical home of each type in a market, so it compares like with like better than an average. The latest benchmarks from the local real estate boards:

A condo apartment is usually smaller than a detached house and comes without land, so the gap is partly a difference in what you get. Townhouses sit between the two; see what is a townhouse.

Cost comparison: condo vs house

The example below uses round prices for an Ontario condo and detached house outside Toronto, with 20% down so no mortgage default insurance premium applies. Your own figures depend on the property, the municipality and your mortgage rate; current rates are on our mortgage rates page.

Upfront costs

A buyer in Toronto also pays the city’s municipal land transfer tax; the land transfer tax calculator works out both. With less than 20% down, the minimum down payment is lower, but the mortgage needs default insurance, whose premium is added to the loan.

Monthly costs

What condo fees replace

Condo fees look like an extra cost, but they pay for things a house owner pays for separately:

The house owner’s costs in the table add up to roughly $8,000 to $17,000 a year, or about $670 to $1,420 a month. Once they are counted, a house’s upkeep can match or exceed a typical condo fee; the difference is that a house owner’s costs are irregular and easy to put off. What condo fees include and how they rise is covered in condo fees, reserve funds and special assessments.

Appreciation

Why the land under a house matters

1. Land holds value; buildings wear out. A detached house comes with its own lot, while a condo owner’s share of the land under a tower is small.
2. Supply. Little new land for detached houses is available in established neighbourhoods, while developers can keep adding condo towers.
3. Competition from new buildings. Older condos compete with new ones that have newer finishes and systems.
4. Building age. As a condo building ages, major repairs and the fees that pay for them can weigh on its units’ prices.

Example: ten years of growth

The growth rates below are assumptions for illustration, not a forecast; actual price growth varies widely by city and period.

The house gains more in dollars partly because it costs more to begin with. Comparing returns on the money put in also has to count the mortgage interest, property tax, maintenance and the larger down payment the house needs.

When a condo can be the better buy

• Prime urban locations with transit access and limited new supply nearby
• Areas where rental demand is strong, for a buyer who may rent the unit out later
• A new-build purchased at a genuine discount; see buying pre-construction
• Investing for rental income rather than price growth; see the condo investment analysis

Lifestyle comparison

Condo-specific risks

Special assessments

When the reserve fund can’t cover a major repair, the board can levy a special assessment, a one-time charge to every owner on top of the regular fees. How assessments are calculated, what triggers them, and how to spot the risk in the reserve fund study are covered in condo fees, reserve funds and special assessments; in Ontario, any assessment already levied shows on the status certificate.

Condo board rules

Provinces limit what these rules can do. In B.C., “As of November 24, 2022, no strata corporation or section is allowed to have a residential rental-restriction bylaw”, though short-term rental bylaws are still allowed (B.C. government). The building’s declaration, by-laws and rules come with its estoppel or status certificate.

House-specific risks

Which fits which buyer

A condo tends to suit buyers who:

• want low maintenance and a lock-and-leave home
• need a lower price to buy in their preferred area
• want to live centrally, near transit and work
• are first-time buyers using a condo as a stepping stone
• are buying for rental income in a transit-accessible area

A house tends to suit buyers who:

• want land and the long-term value that comes with it
• value privacy, outdoor space and freedom to renovate
• plan to stay 10 years or more
• have a family or large pets
• are comfortable with hands-on maintenance or hiring contractors
• want to add a secondary suite, such as a basement apartment or a laneway house

The stepping-stone approach

Many buyers start with a condo and move to a house later:

This works where condo prices at least keep pace with inflation. Where they are flat or falling, the condo’s equity grows mainly from mortgage paydown.

Before buying a condo

The checks that matter most for a condo are the certificate and its reserve fund study, the fee history, the rules, and how the condo corporation’s master insurance policy fits with your own unit policy. Buying a condo in Canada walks through the process step by step.

Related pages

• Buying a condo in Canada
• Condo vs apartment: owning a unit vs renting one
• How much mortgage can I afford?
• What are closing costs in Canada?
• Buying a home in Toronto
• Buying a home in Vancouver