When preparing to buy a condo, it’s important to have all the information you need to make a smart purchase. This means understanding not just how much you’ll need to buy the condo but also how much you’ll need to own the condo. So how much does a condo cost per month in Toronto? First, let’s start with the cost to buy a condo.
HOW MUCH DOES IT COST TO BUY A CONDO?
This price will vary on many factors such as the size of your condo, the neighbourhood, and the view, just to name a few. Right now the city of Toronto’s average price per square foot is hovering around $1400.
If we look at the latest real estate numbers, the average price for a condo in Toronto proper in November was $659,855. This means when it comes to buying a condo, the average down payment needed sits around $131,971 if you’re able to afford the full 20%.
Knowing how much you can afford for a down payment will impact your monthly costs. The higher your down payment, the lower your monthly mortgage payments. In addition to your down payment, you’ll also need to budget for the closing expenses. You can take a deeper look at the cost to buy a condo in our article, How Much Does it Cost to Buy a Condo in Toronto?
HOW MUCH DOES A CONDO COST PER MONTH?
When breaking down your monthly condo expenses, your general expenses are made up of:
- Condos fees
- Property tax
Your mortgage payments will depend on the mortgage rate you are able to secure. And let’s not forget, you’ll need to qualify for mortgage at a rate of 5.19% or 2% higher than your negotiated rate (whichever is larger) as per the mortgage stress test.
Also known as maintenance fees, condo fees will vary per building anywhere from $0.55 to $0.80 per square foot. Generally, older buildings and smaller boutique buildings will have higher maintenance fees.
If you purchase a parking spot or a locker there will be an additional flat fee added to your maintenance fees. Parking will cost you anywhere from $50 to as high as $100 more per month and a locker can cost an additional $15 to $25 per month.
When determining how much a condo costs per month be cognizant of what utilities your maintenance fees cover. More and more condos hitting the market are excluding hydro and even water in their maintenance fees. This will vary property to property.
How much you pay in property taxes is determined by the value of your property times the property tax rate for that year. The 2019 property tax rate is 0.614770%. The frequency of your property tax payments can vary depending on the pre-authorized tax payment program you sign up for. You can learn about the instalment plans here.
HOW MUCH DOES IT COST TO OWN A CONDO: AN EXAMPLE
As an example, we will use the average condo price from November 2019 ($659,855) and suppose that it is 659 square feet in size ($1000psf) and that you have secured a 5 year fixed mortgage rate of 3.5%.
20% Down Payment: $131,971
Mortgage Amount: $527,884
Monthly Mortgage: $2,636
Condo Fees: $428.35
Property Taxes: $338
Other expenses that you will want to budget for are any utilities not included in your maintenance fees, as well as things like cable and internet which more and more new condos are offering as an add-on to your monthly maintenance fees.
CALCULATING THE COST OF OWNING A CONDO
Here are some of the fundamental equations to keep in mind when calculating the cost of a condo per month. For your everyday expenses you should include in your budget, head over to to First Time Home Buyer Finances: Life After the Purchase.
- You can easily calculate how much your future condo will cost per month using our mortgage calculator.
- To calculate condo fees, if you aren’t sure what the condo fees for a property are, we recommend using $0.65 per square foot to ballpark your potential fees. Add $50 for a parking spot and $25 for a locker as an approximate budgeting tool.
- Property Taxes are currently 0.614770% x property value. You can divide by 12 months to help determine your budget on a monthly basis.
If buying a condo is a goal for you in 2020, fully understanding what you can afford both to buy and to own are important. Are you wondering when the best time to buy a condo in Toronto is?? We help you decide when buying a condo is ideal for you in this article.
If you are debating the condo vs house purchase and are wondering if you should wait and save to buy a Toronto house, we recommend reading 5 Advantages of Living in a Condo for Your First Home.
We hope that we’ve given you the tools to guide you towards a ballpark answer for how much a condo costs per month to own. Just remember, there are lots of variables to factor in, but as the gap between the cost to rent a condo and own a condo shrinks, it’s in your best interest to pay your own mortgage, rather than someone else’s. Looking to start your home owning journey? Book a call with us to get started.