A townhouse sits between a condo apartment and a detached house: more space and a private entrance than an apartment, usually a lower price than a detached house. The word describes the building, not the ownership, and a freehold townhouse and a condo townhouse are very different purchases. This page explains both, the stacked and back-to-back layouts, and what each costs to carry. It is part of our guide to property types in Canada, and the types of houses in Canada page compares townhouses with every other kind of home.
What is a townhouse?
A townhouse (also called a row house or terraced house) is a multi-storey home that shares one or two walls with the units beside it. Townhouses usually have their own front door, a small yard or patio, and living space on several floors.
| Feature | Townhouse |
|---|---|
| Storeys | Usually 2 or 3 |
| Shared walls | 1 (end unit) or 2 (interior unit) |
| Private entrance | Yes, a front door at ground level |
| Yard or outdoor space | Small front or back yard, patio, or rooftop terrace |
| Garage or parking | Often a garage (attached or detached) or a designated space |
| Size | Often about 1,000 to 2,200 sq ft |
Freehold vs condo townhouse
With a freehold townhouse you own the building and the lot under it, like a detached house that happens to share walls. With a condo townhouse you own your unit, while the land and the exterior are common elements run by a condo corporation that charges monthly fees. The three ownership structures (freehold, leasehold and condo) are compared in general in freehold vs leasehold vs condo.
| Feature | Freehold townhouse | Condo townhouse |
|---|---|---|
| Land ownership | You own your lot | The land is a common element shared through the condo corporation |
| Building ownership | You own the building | You own your unit |
| Condo fees | None | Monthly fees set by the corporation |
| Board and rules | None (municipal bylaws only) | The condo corporation’s declaration, bylaws and rules |
| Exterior maintenance | You handle it | The condo corporation handles it |
| Landscaping and snow | Your responsibility | Usually covered by the fees |
| Renovation freedom | Full, with permits | Interior only; exterior changes need approval |
| Reserve fund | None; you save for repairs yourself | The corporation’s reserve fund pays for major repairs |
| Price | Usually higher for a comparable unit, since the lot is yours | Usually lower |
Types of townhouses in Canada
| Type | Description | Common in |
|---|---|---|
| Freehold row house | Traditional townhouse: you own the land and the building | Ontario, Quebec, the Prairies |
| Condo townhouse | Registered as a condo unit and managed by a condo corporation | Ontario, Alberta |
| Strata townhouse | British Columbia’s version of a condo townhouse, run by a strata corporation | British Columbia |
| Bare land strata | You own the building and its lot but share common property such as roads; see our guide to land in British Columbia | British Columbia |
| Back-to-back townhouse | Shares its rear wall as well as its side walls, so there is no backyard | New construction in the Greater Toronto Area |
| Stacked townhouse | One unit above another, sharing a floor and ceiling, each with its own entrance | Greater Toronto Area, Vancouver, other urban areas |
Stacked townhouses are usually condo-owned rather than freehold, because one unit sits above another.
Townhouse costs
Prices vary widely by city, and within a city a freehold townhouse usually costs more than a condo townhouse of similar size because the lot comes with it. The monthly costs differ in kind as well as amount: the freehold owner pays for upkeep directly, while the condo owner pays fees that cover the exterior and common areas.
Monthly cost comparison
An illustrative comparison: a freehold townhouse with a $700,000 mortgage and a condo townhouse with a $575,000 mortgage, both at 5.5% over 25 years. Every other figure is an assumed monthly amount, not an average.
| Cost | Freehold townhouse | Condo townhouse |
|---|---|---|
| Mortgage payment | $4,273 | $3,510 |
| Property tax | $350 | $275 |
| Condo fees | $0 | $350 |
| Maintenance savings | $300 (self-funded) | $0 (in the fees) |
| Landscaping and snow | $100 | $0 (in the fees) |
| Insurance | $150 | $80 |
| Utilities | $300 | $250 |
| Total | $5,473 | $4,465 |
The condo owner’s fees replace the maintenance savings and the snow and landscaping bills, but the fees are set by the corporation and can rise, and a special assessment can be added if the reserve fund falls short. Current mortgage rates are on our mortgage rates page.
Pros and cons
Townhouse vs detached house
| Factor | Townhouse | Detached house |
|---|---|---|
| Price | Usually lower in the same area | Usually higher in the same area |
| Space | Moderate | Usually larger |
| Privacy | Shared walls, so noise is possible | No shared walls |
| Yard | Small | Usually larger |
| Maintenance | Less to maintain | More to maintain |
| Heating | Shared walls lose less heat | More exterior wall area |
Townhouse vs condo apartment
| Factor | Townhouse | Condo apartment |
|---|---|---|
| Price | Usually higher | Usually lower |
| Space | Usually larger, on several floors | Usually smaller, on one floor |
| Outdoor space | Yard or patio | Balcony |
| Privacy | Private entrance, fewer neighbours | Shared hallways, neighbours above and below |
| Parking | Often an attached garage | Underground or surface parking |
| Amenities | Rarely | Often a gym, pool or concierge |
| Fees | None (freehold) or usually lower (condo townhouse) | Usually higher |
What to check before buying a townhouse
Freehold townhouse
| Check | Why |
|---|---|
| Party wall arrangements | Who maintains and repairs the shared walls |
| Homeowners’ association (if any) | Some developments have an association with its own rules and fees |
| Lot size and layout | Yards can be very small in newer developments |
| Parking | Garage size and driveway space |
| Sound insulation | Quality varies between builders and eras |
| Permitted use | Zoning for a home business or an addition |
Condo townhouse
| Check | Why |
|---|---|
| Disclosure documents | The corporation’s finances, reserve fund and any litigation; in Ontario the status certificate, and in other provinces the documents covered in estoppel and information certificates (Form B in British Columbia) |
| What the fees include | Landscaping, snow, water, insurance, amenities |
| Reserve fund | Whether it is enough for future repairs such as the roof, siding and parking |
| Special assessments | Any planned or recently passed |
| Rules and restrictions | Pets, rentals, renovations, parking |
| Insurance | What the corporation’s policy covers and what condo insurance for your unit needs to cover |
| Property manager | Reputation and responsiveness |
Townhouse financing
Freehold and condo townhouses are financed with ordinary residential mortgages, under the same down payment rules as any other home. The minimum down payment is 5% of the first $500,000 and 10% of the rest for homes under $1.5 million, and 20% at $1.5 million or more. With less than 20% down you need mortgage loan insurance. The insurance rules are covered in CMHC mortgage rules.
The difference is in qualifying. For a condo townhouse, the condo fees count as a housing cost. For an insured mortgage, CMHC sets the gross debt service test. Housing costs (principal, interest, property tax, heat and 50% of any condo fees) are no more than 39% of gross income. Lenders set their own treatment of condo fees for uninsured mortgages. For a condo townhouse the lender also reviews the condo corporation’s documents, and the appraisal looks at comparable sales in the same complex.
Sources
The figures and rules on this page come from these sources, last checked against them between September 29, 2026 and 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
- CMHC: Calculating GDS / TDS
- CMHC: CMHC Purchase
- Financial Consumer Agency of Canada: How much you need for a down payment