Published 27 September 2026 · By Jatin Dua, Broker of Record, RE/MAX Quantum Realty
Usually yes, and the reason is mechanical, not just buyer taste. Under CMHC’s rules, 50 percent of the condominium fee counts in a buyer’s gross and total debt service ratios, which are capped at 39 and 44 percent. With the stress test, a buyer qualifying at about 6.09 percent over 25 years loses roughly $23,000 of borrowing power for every extra $300 a month in fees. That does not mean your unit is worth $23,000 less than a similar low-fee unit, because the fee often buys heat, hydro, amenities or a better-funded reserve. It does mean you have to show buyers what the fee pays for, and price against similar units with their fees in view.
Why fees reach the price
Buyers compare condos by monthly cost, not just by price. A $600,000 unit with $450 a month in fees and a $600,000 unit with $900 a month are not the same purchase. But there is a harder mechanism underneath the preference: lenders count the fee when they decide how much a buyer can borrow. CMHC’s underwriting rules say that 50 percent of the condominium fees must be included in the gross debt service (GDS) and total debt service (TDS) calculations, and they cap those ratios at 39 and 44 percent of income. Every dollar of fee therefore displaces borrowing.
The worked maths
Buyers also have to qualify at a stress-tested rate. OSFI’s minimum qualifying rate for uninsured mortgages is the greater of 5.25 percent or the contract rate plus two percentage points, and insured mortgages follow the same test. With a contract rate around 4.09 percent that means qualifying at about 6.09 percent. At that rate, on a 25-year amortization with Canadian semi-annual compounding, each $100,000 of mortgage costs about $645 a month in the calculation.
| Extra monthly fee | Counted in GDS (50%) | Approx. borrowing power lost |
|---|---|---|
| $300 | $150 | about $23,000 |
| $400 | $200 | about $31,000 |
| $500 | $250 | about $39,000 |
Illustrative figures for a buyer whose limit is set by the GDS ratio; actual qualification depends on the lender, the buyer’s income, debts and down payment. For the buyer stretching to afford your unit, which in a condo market is often the buyer who sets the price, that lost borrowing power is real money.
When high fees are not the problem they look like
A high fee is not automatically a bad fee. Before you assume it will hurt, check what it covers:
- Utilities. Many older buildings include heat, water and sometimes hydro in the fee; a newer building with lower fees may bill hydro and water separately, so the buyer’s true monthly cost is closer than it looks.
- Amenities and staff. A 24-hour concierge, pool and gym cost money, and some buyers want them.
- The reserve fund. A corporation that charges enough to keep its reserve fund healthy is less likely to hit owners with a special assessment. Ontario requires reserve fund studies at least every three years and a funding plan that keeps the fund adequate, which can mean higher contributions.
- Size. Fees are usually set by unit share, so a large unit carries a large fee. Compare fees per square foot, not in total.
All of this is in the status certificate and the corporation’s budget, which a buyer’s lawyer will read.
How to sell a high-fee unit well
- Show the all-in monthly cost. Put fee, estimated hydro and water, and property tax side by side with the competing listings. If yours includes utilities, say so in the first line of the listing.
- Lead with the reserve fund. A strong reserve fund and no planned special assessment are selling points; have the latest reserve fund study summary ready.
- Price against fee-adjusted comparables. When you compare your unit with a similar one in a lower-fee building, adjust for the fee difference rather than pretending it is not there.
- Target the right buyers. Downsizers and cash-rich buyers who are not near their borrowing limit care less about the fee and more about the building.
Two tools help here: the AI condo value estimator below gives you a range in about a minute, and the net proceeds calculator turns any price into what actually lands in your account.
What about fee increases?
Buyers look at the trend as well as the number. The status certificate must state any increases in common expenses and the reasons for them. A corporation that has raised fees steadily and modestly to fund its reserve looks responsible; one that held fees flat for years and then jumped 15 percent in a single budget raises questions about what is coming next. If your building has had a large recent increase, know the reason and be ready to explain it.
Where I fit
I read the corporation before I price the unit, because fees and reserve funds move the number. Run the estimator below, then book a call and bring your fee and the last budget; I will show you how buyers will compare it.
Free tool — AI condo value estimator
Condo Valuation
What’s your condo
worth today?
Three quick steps. Condos don’t price like houses — your floor, your view, and whether you own parking move the number more than anything else. This weighs all of them.
Reading recent condo sales…
Estimated market value
—
$0–$0
Most likely $0 · about $0 per square foot
What moved the number
Starting from what comparable units in your area sell for, here’s what your specifics added or subtracted.
Market context
—
—
Two units, same floor plan,
$90,000 apart.
That happens constantly in condos — one has the parking, the right exposure, or a board that keeps the reserve fund healthy. A model can’t see your status certificate. I can.
Frequently asked questions
Do high condo fees lower resale value?
Usually, because lenders count 50 percent of the fee in a buyer’s debt service ratios under CMHC’s rules, which reduces what the buyer can borrow. Fees that include utilities or fund a strong reserve reduce the effect.
How much do condo fees affect how much a buyer can borrow?
At a stress-tested rate of about 6.09 percent over 25 years, each extra $100 a month of fees removes roughly $7,750 of borrowing power for a buyer limited by the GDS ratio, so $300 a month is about $23,000. Illustrative only.
What is a normal condo fee in Toronto?
It varies widely with building age, amenities, what utilities are included and unit size. Compare fees per square foot and account for included utilities rather than looking at the monthly total.
Are high condo fees a sign of a well-run building?
Sometimes. Higher fees can fund a healthy reserve and reduce the risk of special assessments. Read the reserve fund study and the budget in the status certificate to tell the difference.
Will buyers see my fee increases?
Yes. The status certificate must state increases in common expenses and the reasons for them.
Can I lower my condo fees before selling?
Not individually; fees are set by the board in the budget. What you can do is present the all-in monthly cost clearly and highlight what the fee includes.
Sources
- CMHC — Calculating GDS / TDS — 50% of condominium fees counted; 39% / 44% limits
- OSFI — Minimum qualifying rate for uninsured mortgages
- Condominium Authority of Ontario — Reserve funds and reserve fund studies — studies at least every three years
- Condominium Authority of Ontario — Status certificates — 10 days, up to $100, Condominium Act s. 76
- TRREB — Market Watch, August 2026 — condominium apartment tables by region and municipality
Related reading
- Condo boards and AGMs: an Ontario owner's guide
- Best realtor for condos in Toronto
- Should I buy a condo or a house in Toronto?
- How to sell your home fast in Toronto
About the author — Jatin Dua, Toronto and GTA real estate broker
I am Jatin Dua, Broker of Record and co-founder of RE/MAX Quantum Realty Inc., Brokerage, Unit 101, 799 The Queensway, Etobicoke. I work with buyers and sellers across Toronto and the GTA, and I have helped more than 100 families sell their condos. Four-plus years of active GTA transactions and over $100 million in sales volume. Every market figure here comes from TRREB’s published tables and every rule from the regulator or the legislation, so you can check all of it without asking me.
Reach me at connect@jatindua.com or 833-330-1925, or book a call.