Toronto Condo Buyer's Guide
Complete Guide to Buying A Toronto Condo
Everything you need to know about purchasing a condominium in Toronto — from creating your wish list to closing the deal with confidence.
Often known as condominiums, condos in Toronto are a fantastic alternative to single-family residences and have become a popular choice of residence for city inhabitants, bachelors, couples, seniors, and more. While the allure of city-living and endless amenities draws many to condominiums, the inexpensive, low-maintenance environment may appeal to others.
For some buyers, a condo is a temporary residence. For some, a condominium might be their forever home. Our professional real estate brokers have worked with individuals from all walks of life to find the perfect Toronto condominium for their unique lifestyle.
In this Guide to Buying a Condo In Toronto, we will look at:
- Creating Your Condo Wish List
- Get A Mortgage Pre-Approval
- Hire The Right Realtor and Team
- The Property Search
- Submitting An Offer
- Meeting Offer Conditions
- Closing Your Toronto Condo
The procedure to buy a condo in Toronto is similar to purchasing a single-family home. However, it involves several other unique terms and conditions.
Step 1
Create A Condo Buyer Wish List
Many potential luxury condo buyers become preoccupied with the home’s details, such as the size of the backyard, walk-in closets, en-suite bathrooms, open floor plans and the inclusion of a swimming pool. However, these desirable features are preferences rather than necessities. When searching for your new Toronto condo, it is essential to prioritize the important elements to you before focusing on their wants.
The best way to learn about the real estate market and available condo features is by visiting properties. The more you look, the more features you want in your future home become clear. Creating a “condo wants and requirements” list can help you stay on track when visiting condo properties in Toronto.
Curate your wants and requirements list based on the possibilities available in your local market. You may broaden your search to include cities such as Durham, Mississauga and Toronto, or narrow your search to specific areas like Pickering, Ajax and Downtown Toronto. When shopping for your condo, it is beneficial to inform your Realtor about desired neighbourhoods and community preferences.
Remember to update your list when you come across existing or pre-construction Toronto condominiums and share it with your Realtor and trusted people to prevent losing out on potential properties.
Step 2
Get A Mortgage Pre-Approval
Getting pre-approved for a mortgage is vital to understanding how much you can pay before searching for or buying a condo in Toronto. A condo mortgage differs from a house mortgage in a few ways.
Lenders will include the estimated maintenance bills when determining how much you can pay. For houses under 500 square feet, many banks will want a 20% downpayment (and others will not finance them at all). Conversely, many banks will not lend money to condo hotels, and most lenders and CMHC have a hidden list of condominiums they won’t finance, generally due to building issues. Therefore, always include a financing condition or speak with your lender before you make an offer.
Speak with multiple lenders or a mortgage broker to compare rates and terms. Pre-approval letters typically last 90-120 days, so time your search accordingly.
Step 3
Hire The Right Realtor and Team in Toronto
How do you choose the best Real Estate Team in Toronto out of thousands of agents? Your condo buying experience should be hassle-free and enjoyable, and you should feel confident that your real estate team is equipped to take on the market.
The Toronto Condo Team Is Your #1 Source For Condos in Toronto
Founded in 2004, we are Canada's largest independent brokerage. Our team operates across six modern offices in the GTA and is a proud member of the Toronto Real Estate Board (TRREB).
Franco Dinatale
Broker / Team Lead
Leila Esko-Kiani
Senior Buyer Specialist
David Feld
Condo Market Analyst
Molly Hilton
Client Experience Manager
Step 1
The Condo Property Search in Toronto
Begin Visiting Condominiums in Person
Start by touring buildings and units that match your wish list. Take notes on layout, natural light, storage space, and overall building condition. Visit at different times of day to assess noise levels and elevator wait times.
Conducting Due Diligence
Due diligence is critical when buying a Toronto condo. This includes reviewing the Status Certificate, understanding the reserve fund, checking for special assessments, and verifying the building's financial health before you commit.
Developer Reputation & Construction Quality
Research the developer's track record, past projects, and how they handle deficiencies. Inspect the building's common areas, hallways, and finishes. Pay attention to soundproofing and overall construction quality — poor builds lead to higher maintenance fees and costly repairs down the road.
Building Management, History & Maintenance
A proactive condo management company keeps the building running smoothly. Research their reputation and response times. Look into the building's history for past issues like water damage or structural repairs. Well-maintained buildings with clean common areas and tidy landscaping hold their value better.
Red Flags & Ownership Mix
Be honest about deal-breakers — units facing busy streets, limited closet space, or awkward layouts. Also consider the owner-occupancy rate: buildings with high owner occupancy tend to be better maintained with stronger community engagement than those dominated by tenants.
Due Diligence of the Unit
Inspect the unit thoroughly — test appliances, check water pressure, look for signs of water damage or mould, assess storage, and verify square footage matches the listing. Hire a professional home inspector for an unbiased evaluation of what you're actually buying.
Due Diligence of the Neighbourhood
Research the surrounding area for amenities, transit access, school quality, noise levels, future development plans, and walkability. A great unit in a declining neighbourhood may not appreciate as expected. The location is just as important as the unit itself.
Step 5
Submitting An Offer for a Toronto Condo
Price: Understanding The Cost Of The Condo Unit
Your Realtor will help you determine a competitive offer price based on comparable sales, market conditions, and the unit's unique features. Be prepared for potential bidding wars in Toronto's competitive market.
The Formalities
Your offer will include the purchase price, deposit amount, closing date, and any conditions (financing, inspection, status certificate review). Each element protects your interests as a buyer.
Keeping Your Deposit Ready
In Toronto, condo deposits typically range from 5% to 10% of the purchase price. Ensure your deposit is readily accessible, as it is usually due within 24 hours of offer acceptance.
Conditions
Common conditions include financing approval, home inspection, and lawyer review of the Status Certificate. These clauses protect you and give you time to verify everything before committing.
Offer Process
Your Realtor will present the offer to the seller's agent. There may be negotiations on price, closing date, or conditions. Be patient and trust your agent's guidance throughout the back-and-forth.
Step 6
Meeting Conditions
Financing Condition
This is a clause in a contract that permits a condo buyer to back out of a deal if they cannot get financing within a certain amount of time (typically 3-5 days). Always include this unless you are paying cash.
Status Certificate Review Condition
The status certificate review condition permits a Toronto condo buyer to have their lawyer evaluate the condominium status certificate (the lawyer has 1-3 days to review the certificate, which they must be supplied with within ten business days). This document reveals the building's financial health, rules, and any pending legal issues.
Home Inspection Condition
While not typical in condo sales, a home inspection condition allows a buyer to hire a professional inspector to evaluate the unit and back out if it isn't up to their standards (usually 1-5 days, depending on market conditions). Condo inspectors may only evaluate the unit and what the particular owner owns and controls so that they won't provide an opinion on electricity, plumbing, or roofing.
Important Reminder
Never waive conditions without fully understanding the risks. In competitive markets, sellers may prefer firm offers, but your Realtor can advise on whether waiving conditions is appropriate for your situation.
Step 7
Closing Your Toronto Condo
Price: Understanding The Cost Of The Condo Unit
Your Realtor will help you determine a competitive offer price based on comparable sales, market conditions, and the unit's unique features. Be prepared for potential bidding wars in Toronto's competitive market.
The Formalities
Your offer will include the purchase price, deposit amount, closing date, and any conditions (financing, inspection, status certificate review). Each element protects your interests as a buyer.
Keeping Your Deposit Ready
In Toronto, condo deposits typically range from 5% to 10% of the purchase price. Ensure your deposit is readily accessible, as it is usually due within 24 hours of offer acceptance.
Conditions
Common conditions include financing approval, home inspection, and lawyer review of the Status Certificate. These clauses protect you and give you time to verify everything before committing.
Offer Process
Your Realtor will present the offer to the seller's agent. There may be negotiations on price, closing date, or conditions. Be patient and trust your agent's guidance throughout the back-and-forth.
Step 7
Closing Your Toronto Condo
The date you accept the title and pay for the condo is referred to as "closing." It is important to note that several days before the deadline:
Your condo insurance coverage must be prepared
With your lawyer, you sign all of the final papers
The title insurance will cover you
For the remaining balance on your down payment, you will need to present a certified check
The lender will advance the cash for your mortgage
The money will be transferred to the Seller on closing day, and ownership will be transferred to you
Additional Closing Items:
Seller Closings
Final Statement of Adjustments
A Trust Ledger
Are You Thinking Of Buying A Condo & Need Guidance?
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