In Canada, “condo” and “apartment” often describe the same kind of unit in the same kind of building. The difference is ownership: a condo is a unit someone owns, with a share of the building’s common elements, while an apartment is a unit you rent, either in a purpose-built rental building or from a condo owner. So the condo vs apartment question is really whether to own a unit or rent one. This page compares the two on ownership, monthly costs, five-year wealth and flexibility. It is part of our guide to property types in Canada; if you have decided to buy, buying a condo in Canada covers the process and financing.
The fundamental difference
| Feature | Condo (owned) | Apartment (rented) |
|---|---|---|
| Ownership | You own the unit | You rent the unit |
| Title | Registered in your name | Held by the landlord |
| Monthly payment | Mortgage, condo fees and property tax | Rent |
| Equity | Each mortgage payment repays some principal | None; rent is an expense |
| Down payment | Required; see the minimum down payment | None; a rent deposit, under your province’s rules |
| Maintenance | The condo corporation looks after the common elements; you look after your unit | The landlord looks after everything |
| Condo fees | Yes; see what condo fees cover | No; the landlord pays them if the unit is a rented condo |
| Property tax | Yes, your responsibility | No, the landlord’s |
| Governance | The condo board and corporation | The landlord or property manager |
| Tenant protections | Not applicable (you are the owner) | Your province’s residential tenancy law |
Cost comparison
Monthly costs: owning a condo vs renting an apartment
Suppose a condo costs $625,000, bought with 20% down ($125,000), so the mortgage is $500,000 at 5.5% over 25 years. A similar apartment rents for $2,400 a month.
| Cost | Condo (owned) | Apartment (rented) |
|---|---|---|
| Mortgage or rent | $3,052 | $2,400 |
| Condo fees | $450 | $0 |
| Property tax | $300 | $0 |
| Insurance | $60 (condo unit policy) | $30 (tenant insurance) |
| Maintenance and repairs | $100 (inside the unit) | $0 |
| Total monthly | $3,962 | $2,430 |
| Principal repaid in year 1 | $9,672 | $0 |
The owner pays more each month, but part of the mortgage payment is principal, which stays with the owner as equity. Whether owning comes out ahead depends on what happens to the condo’s value, how fast fees and rent rise, and what the renter does with the money not spent on a down payment and higher monthly costs.
Five-year comparison
Continuing the example over 5 years, with the owner’s costs held flat for simplicity, rent and tenant insurance rising 3% a year, and the condo’s value rising 3% a year:
| Factor | Condo owner | Apartment renter |
|---|---|---|
| Total housing payments (5 years, 60 months) | $237,717 | $154,814 |
| Mortgage principal repaid | $54,062 | $0 |
| Increase in the condo’s value | $99,546 | $0 |
| Equity gained (principal plus value increase, before selling costs) | $153,609 | $0 |
| Cash needed up front | The $125,000 down payment plus closing costs | A rent deposit |
| Flexibility | Selling takes time and costs money | Give notice under the lease and move |
The renter’s side isn’t zero in practice: the down payment, closing costs and the monthly difference can be invested, and those returns are what owning has to beat. If the condo’s value falls or fees jump, the owner’s equity gain shrinks or disappears; if values rise faster, it grows. Selling also has costs (agent commission, legal fees) that the example leaves out.
Condo buildings and rental buildings
| Building type | Condo | Apartment |
|---|---|---|
| New high-rise tower | Very common; the developer sells units individually | Some purpose-built rental towers |
| Converted older building | Some rental buildings have been converted to condos | Traditional rental stock |
| Low-rise (4–6 storeys) | Common in suburbs | Common in older neighbourhoods |
| Purpose-built rental | Not applicable | Built and kept as rental, often owned by large landlords or REITs |
| Mixed | Some owners rent out their units | A rented condo unit is an apartment to its tenant |
Renting a unit in a condo building means living under the condo’s rules as well as the lease, and the landlord’s own situation (selling, moving in) can end the tenancy under provincial rules.
Condo fees
A condo owner’s fee pays for the building’s insurance, upkeep, common utilities, management and a reserve fund for major repairs, and it usually rises over time; a tenant’s rent includes these costs indirectly. Typical fees by city, what they cover and how special assessments work are on our page about condo fees, reserve funds and special assessments.
Investment comparison
| Factor | Owning a condo | Renting and investing the difference |
|---|---|---|
| Property value | Can rise or fall with the local market | No exposure to property prices |
| Equity | Each mortgage payment repays principal | Builds only through what you invest |
| Where savings go | Mostly tied up in the property | The down payment and monthly savings can be invested |
| Leverage | A down payment controls the whole property, which magnifies gains and losses | Usually none |
| Special assessments | A one-time charge can arrive with little notice | None |
| Fee increases | Set by the condo board | None, though rent can rise (within limits in some provinces) |
| Liquidity | Selling takes time and costs money | Investments can usually be sold quickly |
| Tax on gains | A home you live in can qualify for the principal residence exemption | Gains in a TFSA are tax-free |
When owning or renting tends to fit
| Situation | Owning a condo | Renting an apartment |
|---|---|---|
| Staying 5 years or more | Time to build equity and spread the buying and selling costs | Flexible, but no equity |
| Staying under 3 years | Buying and selling costs can exceed the equity gained | Avoids transaction costs |
| Stable income and a down payment saved | Can carry the mortgage, fees and tax | Can keep saving or investing |
| New to a city | Hard to judge neighbourhoods and buildings | A chance to learn the area first |
| Career needs mobility | Selling or renting out the unit takes time | Easier to move |
| Wants control over the home | No landlord, no risk of being asked to leave | Subject to the landlord and the tenancy rules |
| Unstable income | Mortgage, fees and tax are fixed obligations | Rent is also fixed, but leaving is easier |
Key questions before buying a condo
- What are the current fees, and how much have they risen in the past 5 years?
- What does the reserve fund study say? Is the fund on plan?
- Are there any pending or recent special assessments?
- What is the building’s age and condition (roof, windows, elevators, garage)?
- Are there rental restrictions, in case you rent the unit out later?
- What does the corporation’s insurance cover, and what does a condo insurance policy need to cover?
- Which utilities are included in the fee?
- Is the building well managed? What do the board minutes show?
- What have similar units in the building sold for?
The answers come mostly from the condo’s estoppel certificate and the documents attached to it (in Ontario, the status certificate).
Sources
The figures and rules on this page come from these sources, last checked against them on October 2, 2026. How we check facts.
- Bank of Canada: Conventional 5-year mortgage rate (data series)
- Bank of Canada: Conventional 5-year mortgage rate (data series)
- Bank of Canada: Conventional 5-year mortgage rate (data series)
- Bank of Canada: Data table