When living in a condominium in Ontario, understanding how your monthly condo fees can change over time is essential. These fees cover shared expenses like maintenance, utilities, insurance, and reserve fund contributions. But how much can they grow, and what control do you have as an owner?
📈 What Triggers Condo Fee Increases
Condo fees can be adjusted due to:
- Rising operating costs – Daily upkeep, snow removal, landscaping, and janitorial services all fluctuate with inflation.
- Insurance premiums – As rebuilding costs and liability risks increase, so do property insurance rates.
- Reserve fund shortfalls – If a building’s reserve fund dips below thresholds, the condominium corporation may raise fees or levy special assessments.
- Major repairs or upgrades – Large-scale expenditures—such as roof replacements, parking lot resurfacing, or HVAC system overhauls—can require additional contributions.
- Windfall expenses – Unexpected issues like repairs after storms or fixing damage from an accident can lead to abrupt fee hikes or levied payments.
How Much Is “Normal”?
Ontario’s Condominium Act does not set a cap on annual fee increases. However, increases typically range from 2–5% per year, mirroring inflation or the cost of selected services. Still, significant projects or repairs can lead to one-time increases of 10% or more.
Your Rights as an Owner
- Review the annual budget and reserve fund study – All owners should receive these documents before the AGM. They outline projected expenses and planned fee adjustments.
- Attend the AGM – This meeting is your chance to ask questions and vote on the budget.
- Request financial statements – Owners have the right to review financial records, including reserve fund balances and any deficits.
- Vote against the budget – If you disagree with a proposed increase, you can vote no. If enough owners object, voting can be held without a meeting. Consistent opposition could even trigger legal review.
When Fee Increases Affect Your Mortgage
High or growing condo fees can impact your ability to qualify for a mortgage. Lenders assess your total debt service (TDS) ratio, which includes your condo fees. If fees spike, your maximum borrowing power may shrink—even if your income stays the same.
Learn more about how condo fees can affect your mortgage approval.
How to Prepare and Protect Yourself
- Budget ahead – Expect at least a 3–4% annual increase.
- Watch for reserve fund warnings – A small reserve fund balance or an outdated readiness study could signal higher future levies.
- Run an affordability test – Use an online calculator to factor rising condo fees into your monthly budget.
- Talk to a mortgage advisor – If fees increase significantly, refinancing could help cover higher payments or consolidate debt.
What You Can Do If Fees Skyrocket
- Review the reserve fund study—ask why fees jumped.
- Push for a special resolution at the AGM.
- Explore cost-saving measures—can the corporation switch vendors or delay non-essential work?
- Consider refinancing your mortgage to ease the cash flow burden.
- If you’re seriously concerned, consult a legal professional for a Section 137 request (Ontario’s equivalent of a production order under the Condominium Act).
Key Takeaways
- Condo fees in Ontario typically rise set at inflation rates (~2–5%), but large repairs can lead to steeper jumps.
- Owners have rights to review nearly all financial documents and to vote against proposed budgets.
- Big fee increases may limit your mortgage eligibility—especially regarding your TDS ratio.
- Planning, budgeting, and professional guidance can help you navigate unexpected fee hikes.
Thinking about how high condo fees might disrupt your home financing?
Get in touch with us or start your application to see if refinancing could give you extra flexibility.
