Townhouses strike a balance between condo affordability and detached-home space — but freehold and condo townhouses are very different ownership structures.
What is a townhouse?
A townhouse (also called a row house or terraced house) is a multi-story home that shares one or two walls with adjacent units. Townhouses typically have their own front door, a small yard or patio, and multiple floors of living space.
| Feature | Townhouse |
|---|---|
| Stories | Typically 2–3 |
| Shared walls | 1 (end unit) or 2 (interior unit) |
| Private entrance | Yes — front door at ground level |
| Yard / outdoor space | Small front and/or back yard, patio, or rooftop terrace |
| Garage / parking | Often includes a garage (attached or detached) or designated parking |
| Size | Typically 1,000–2,200 sq ft |
Freehold vs condo townhouse
| Feature | Freehold Townhouse | Condo Townhouse |
|---|---|---|
| Land ownership | ✅ You own the land | ❌ Condo corp owns the land |
| Building ownership | ✅ You own the building | ✅ You own the interior unit |
| condo fees | ❌ None | ✅ $200–$500/month |
| Condo board / rules | ❌ None | ✅ Condo corp governs |
| Exterior maintenance | You handle everything | Condo corp handles it |
| Landscaping / snow | Your responsibility | Usually included in fees |
| Renovation freedom | Full (with permits) | Interior only (exterior needs approval) |
| Reserve fund | ❌ None — you save on your own | ✅ Condo reserve fund for major repairs |
| Resale value | Generally stronger | Good, but fees and rules can affect buyers |
| Typical price | Higher (you own the land) | Lower (land is shared) |
Types of townhouses in Canada
| Type | Description | Common In |
|---|---|---|
| Freehold row house | Traditional townhouse — own land and building | Ontario, Quebec, Prairies |
| Condo townhouse | Registered as a condo unit — condo corp manages | Ontario, Alberta |
| Strata townhouse | BC equivalent of condo townhouse — strata corp | British Columbia |
| Bare land strata | Own building + land but share common areas (roads, etc.) | British Columbia |
| Back-to-back townhouse | Shares rear wall as well as side walls — no backyard | GTA new construction |
| Stacked townhouse | One unit on top of another — shares floor/ceiling | GTA, Vancouver, urban areas |
Townhouse costs
Purchase price comparison (2026)
| City | Freehold Townhouse | Condo Townhouse | Detached Home | Condo Apartment |
|---|---|---|---|---|
| Toronto (GTA) | $800,000–$1,100,000 | $600,000–$850,000 | $1,000,000–$1,500,000+ | $500,000–$750,000 |
| Vancouver (GVA) | $900,000–$1,300,000 | $700,000–$1,000,000 | $1,500,000–$2,500,000+ | $550,000–$850,000 |
| Calgary | $400,000–$600,000 | $300,000–$450,000 | $550,000–$800,000 | $250,000–$400,000 |
| Ottawa | $500,000–$700,000 | $400,000–$550,000 | $600,000–$900,000 | $350,000–$500,000 |
| Montreal | $450,000–$650,000 | $350,000–$500,000 | $550,000–$850,000 | $300,000–$500,000 |
Monthly cost comparison
| Cost | Freehold Townhouse | Condo Townhouse |
|---|---|---|
| Mortgage (on $700K, 5.5%, 25yr) | ~$4,300 | ~$3,500 (on $575K) |
| property tax | $350 | $275 |
| Condo fees | $0 | $350 |
| Maintenance reserve | $300 (self-funded) | $0 (included in fees) |
| Landscaping / snow | $100 | $0 (included in fees) |
| Insurance | $150 | $80 |
| Utilities | $300 | $250 |
| Total | ~$5,500 | ~$4,455 |
Pros and cons
Townhouse vs detached
| Factor | Townhouse | Detached |
|---|---|---|
| Price | ✅ Lower | ❌ Higher |
| Space | Moderate (1,000–2,200 sq ft) | Large (1,500–4,000+ sq ft) |
| Privacy | ⚠️ Shared walls — noise possible | ✅ No shared walls |
| Yard | Small | Large |
| Maintenance | Less to maintain | More to maintain |
| Appreciation | Good (especially freehold) | Historically strongest |
| Energy efficiency | ✅ Shared walls reduce heating costs | ❌ More exterior surface area |
Townhouse vs condo apartment
| Factor | Townhouse | Condo Apartment |
|---|---|---|
| Price | Higher | ✅ Lower |
| Space | ✅ Larger (multi-floor) | Smaller (single floor) |
| Outdoor space | ✅ Yard/patio | Balcony only |
| Privacy | ✅ Private entrance; fewer neighbours | Shared hallways; above/below neighbours |
| Parking | Usually attached garage | Underground or surface lot |
| Amenities | ❌ Rarely | ✅ Gym, pool, concierge |
| Fees | Lower or none (freehold) | Higher |
| Family-friendliness | ✅ Multiple floors; yard; storage | ⚠️ Limited space for families |
What to check before buying a townhouse
Freehold townhouse
| Check | Why |
|---|---|
| Shared wall agreement | Understand maintenance responsibilities for party walls |
| HOA (if any) | Some have voluntary homeowner associations with rules and fees |
| Lot size and layout | Yards can be very small in newer developments |
| Parking | Confirm garage size and driveway accommodation |
| Sound insulation | Quality varies — newer builds may have thin party walls |
| Permitted use | Can you run a home business? Build an addition? Check zoning |
Condo townhouse
| Check | Why |
|---|---|
| Status certificate (ON) / Form B (BC) | Financial health of the condo corp; reserve fund; pending litigation |
| Condo fees — what’s included | Landscaping, snow, water, insurance, amenities |
| Reserve fund adequacy | Is there enough for future repairs (roof, siding, parking)? |
| Special assessments | Any upcoming or recently passed? |
| Rules and restrictions | Pet policies, rental restrictions, renovation rules, parking |
| Insurance | What does the condo master policy cover vs your personal policy? |
| Condo management company | Reputation and responsiveness |
Townhouse financing
| Feature | Freehold Townhouse | Condo Townhouse |
|---|---|---|
| Down payment | Same as detached (5%–20%) | Same as condo (5%–20%) |
| CMHC insurance | ✅ Available | ✅ Available |
| Condo fees in qualification | Not applicable | 50%–100% of fees added to GDS/TDS |
| Appraisal | Comparable sales approach | Comparable sales; condo factors |
| First-time buyer programs | ✅ Eligible (HBP, FHSA, rebates) | ✅ Eligible |
Condo fees reduce your borrowing power because lenders include them in your debt service calculations.