Mistakes to avoid when buying a condo in Toronto are easy to spot once you know where to look. Most of them come down to skipped paperwork, surprise costs and a rushed offer.
I’m Marco Pedri, and I help first time buyers and move-up buyers purchase condos across the city. In this guide, I’ll walk you through the biggest errors I see, so your first condo purchase goes smoothly.
Why Condo Buying in Toronto Needs a Careful Plan
A condo is not the same as a house. You own your unit, and you share the building with a condo corporation, which runs the common areas and collects monthly fees.
This shared setup brings real benefits, such as lower upkeep and shared amenities. It also brings rules, budgets and risks you need to understand before you sign anything.
Toronto condos also come with higher closing costs than many buyers expect. A plan keeps those numbers from catching you off guard.
When you buy a condo unit, you also buy a share of the building’s shared spaces. Toronto condos range from small downtown Toronto units to larger family suites, so compare many Toronto condos before you choose.
Why Is No One Buying Condos in Toronto?
In today’s market, many buyers stepped back from the condo market in the last few years. According to Canadian Mortgage Professional, higher interest rates and economic uncertainty pushed buyers to the sidelines.
The same article, citing Urbanation data, reports 246 new condo sales in the Greater Toronto and Hamilton Area in the first quarter of 2026. It was a 35-year low.
It also reports a record 4,295 completed but unsold units in the same quarter. Lots of supply and fewer buyers is a big part of the story.
What the Slow Condo Market Means for Buyers
A slower condo market gives buyers more room to think. You have more units to compare and more time to review each building.
It also raises the stakes on research. A low price on a unit is no bargain if the building has weak finances.
The article notes resale prices in comparable buildings were down 25% from the first quarter of 2022. Prices change often, so ask me for current sales in the buildings you like.
Mistake 1: Skipping the Status Certificate Review
The status certificate is the most important document in a resale condo purchase. Skipping this review is the mistake I fear most for my clients.
Your real estate lawyer reviews it for you, but you should understand what it shows. It tells you how the building is run and how healthy its money is. First time buyers often feel pressure to waive this step, and I always urge them not to.
I once worked with a first time buyer who loved a unit and wanted to waive every condition. We kept the review condition, and the lawyer found a repair plan the seller had never mentioned. She renegotiated before closing and felt relieved.
What a Status Certificate Includes
A status certificate is prepared by the condo corporation. According to Mann Lawyers, it includes the declaration, by-laws and rules, the current budget and the latest audited financial statements.
It also includes the most recent reserve fund study, the reserve fund balance, the unit’s common expenses and proof of insurance. Each piece tells you something about the building.
Due diligence takes time, so ask your lawyer to explain every section in plain language. A good lawyer will flag anything unusual.
Ask your agent to request the certificate early, so you are not rushing through it in the last hours of your condition period.
Why the Reserve Fund Matters
The reserve fund is a savings account for big repairs, such as roofs, elevators and parking garages. A healthy reserve fund means the building is saving for those costs, which points to strong financial stability.
Mann Lawyers notes a lawyer should confirm a reserve fund study was completed within the past three years. An old study is a warning sign.
A weak fund often leads to higher fees or special assessments later. Ask how the building plans to close any gap.
Special Assessments and Surprise Costs
A special assessment is a one-time charge to owners for a major repair. It arrives on top of your monthly fees.
Buildings with underfunded reserves face this risk most. Ask your lawyer to look for hints of planned work in the certificate and its attachments.
Also read the board’s meeting minutes if you are able to get them. They show what repairs the board is discussing.
Mistake 2: Ignoring Condo Fees and Ongoing Costs
Your mortgage is only part of your monthly bill. Condo fees, property taxes, insurance and utilities all add up.
Many buyers focus on the purchase price and forget the monthly picture. Build a full budget before you make an offer, so you know what you are able to carry.
Condo Maintenance Fees Explained
Condo maintenance fees pay for shared costs, such as cleaning, security, repairs and the reserve fund. Maintenance fees depend on the size of the unit and the services in the building.
Condo fees are not the same in every building. A building with a pool, gym and concierge costs more to run than a simple one.
Ask for the history of fee changes. Review the reasons for any past increases, since steady fees usually point to good planning.
Property Taxes, Insurance and Utilities
Property taxes are billed to each owner by the city. Ask your agent for the current figure for any unit you like, since amounts differ by building.
You also need your own condo insurance. It is separate from the building’s policy, and your lender will likely ask for proof.
Check whether heat, water and hydro are in the fees or billed to you. This changes your monthly budget more than most people expect.
Mistake 3: Forgetting Land Transfer Tax and Closing Costs
Closing costs surprise more first time buyers than any other item. Plan for them early, and set the money aside before you shop.
Your down payment is separate from closing costs, so save for both. Closing costs include land transfer tax, legal fees, title insurance and adjustments. The biggest single piece for most Toronto buyers is land transfer tax.
Ontario and Toronto Land Transfer Tax
Toronto buyers pay both provincial and municipal land transfer taxes. The provincial rates, also called the Ontario land transfer tax, are 0.5% up to $55,000, 1% to $250,000, 1.5% to $400,000, 2% to $2 million, and 2.5% on any amount over $2 million.
The municipal land transfer tax uses a matching schedule for properties in Toronto. On a $700,000 condo, each tax works out to $10,475, so the two together total $20,950.
First time buyers might qualify for rebates, up to $4,000 from Ontario and up to $4,475 from Toronto. Your lawyer confirms what you qualify for.
Legal Fees, Title Insurance and Other Closing Costs
You also pay legal fees to a real estate lawyer. The lawyer reviews the status certificate, handles the closing and registers the transfer.
Title insurance protects you from certain problems with the ownership record. Most lawyers include it in your closing plan.
Ask your lawyer for a written estimate before closing. You also need a small cushion for moving costs, utility set-up and any adjustments.
A couple I worked with had saved well for the purchase but forgot closing costs. We caught the gap early, and they adjusted their budget before they wrote an offer.
Mistake 4: Skipping Mortgage Pre-Approval and a Down Payment Plan
Shopping without a budget wastes time and hurts your offers. Get your numbers first, and then start touring. The buying process moves quickly once you find the right property.
Most buyers I meet underestimate how much cash they need upfront. Sellers take offers with clear financing more seriously. A strong plan also keeps you from falling in love with a unit you are unable to afford.
Down Payment Rules for Condos
The Financial Consumer Agency of Canada explains the rules. You need 5% of the first $500,000 of the purchase price and 10% of the portion above $500,000, up to $1.5 million.
At $1.5 million or more, the down payment is 20%. On a $700,000 condo, your minimum down payment is $45,000.
Check the Home Buyers’ Plan too. The Canada Revenue Agency explains how first time buyers use RRSP savings toward a home.
Mortgage Pre-Approval and Working With a Mortgage Broker
A mortgage pre approval tells you how much a lender is willing to lend. A mortgage broker compares options from several lenders for you.
According to CMHC, lenders look at your housing costs and total debt compared with income. For insured mortgages, the limits are 39% for housing costs and 44% for total debt.
Condo fees count toward your housing costs, so share them with your lender. Ask how your mortgage payment changes if the interest rate rises, and compare fixed and variable rates. Plan to cover housing costs with room to spare, not at the limit.
Mistake 5: Overpaying on the Purchase Price
Overpaying is a common mistake in competitive markets, and it is equally easy in a slow one. The purchase price should match the unit, the building and recent sales. Prices across Toronto condos vary a great deal from one building to the next.
Do not rely on the asking price. Ask your agent for recent comparable sales in the same building and on the same floor.
Also be careful about waiving conditions to win. In bidding wars, protect yourself with a status certificate condition and a financing condition, because a rushed offer adds risk you do not need.
Plan your offer strategy with your agent before you tour, and think about your time horizon, meaning how long you plan to stay. A condo is a good investment only when the numbers hold up.
Compare Price per Square Foot
Price per square foot is a handy tool. Divide the price by the unit’s size and compare similar units.
It is not the full story. A smaller unit with a smart layout often beats a larger unit with wasted space.
Also compare resale units with new units. The Canadian Mortgage Professional article reports resale buildings priced at $859 per square foot in the first quarter of 2026, so ask your agent how today’s numbers compare.
Mistake 6: Choosing the Wrong Unit, Floor or Floor Plan
Condo living works best when the unit fits your daily routine. Many buyers pick a floor plan on looks alone and regret it.
Visit more than once. Check the layout, the storage and the natural light. A condo unit is a small space, so every wall and window counts.
What Floor of Condo Is Most Desirable?
Many buyers prefer higher floors for views, light and less street noise. Lower floors are often closer to amenities and easier to exit.
The most desirable floor depends on your needs. A client of mine bought on a high floor, then found the elevator wait long at rush hour, so test it at busy times.
Think about your own priorities. Views, quiet, balcony space and easy access all matter in different ways.
Floor Plan, Layout and Usable Space
Look past the staging and inspect the unit for usability. Measure your furniture, and check where a desk or a bed will go.
A good floor plan has clear walkways, useful closets and a kitchen you will enjoy. A den is only useful if it fits a real workspace.
Check the parking spot and locker too. Confirm whether they are owned with the unit or rented separately. Some buyers also book a home inspection of the unit before they commit.
Mistake 7: Overlooking Location and Building Quality
Location shapes condo value more than almost anything else.
Toronto condos near transit often keep stronger demand over time. Visit the building at different times of day, and notice the noise, the light, the elevators and the lobby.
First time buyers should tour at least three buildings before choosing one. Comparing is the fastest way to learn what a good building feels like.
Neighbourhood, Transit and Future Supply
Emerging areas offer lower prices, but they also bring more risk. Ask how many new buildings are planned nearby, since extra supply affects resale.
Compare two buildings side by side, and compare the area with others. My guide on the best Toronto neighbourhoods for first-time condo buyers is a good place to start.
Building Age, Amenities and Management
Older buildings have character, but they often need more repairs. Newer buildings have modern systems, but fees depend on the amenities.
Look at the hallways, garage and common rooms. Well-kept spaces point to a board which cares about the property.
Mistake 8: Not Reading the Rules on Pets and Short Term Rentals
Every condo has rules. They are found in the declaration, by-laws and rules, which are part of the status certificate.
Rules restrict pets, renovations, smoking and rentals. Read them before you make an offer.
If you plan to renovate, ask what the rules allow and what approvals you need. Some work needs the board’s permission, and flooring changes often have sound rules.
Short term rentals deserve extra care. Many buildings and city rules limit them, so ask before you plan one.
What Are Some Important Questions to Ask When Buying a Condo in Ontario?
Good questions protect you. Ask them early, and ask them in writing.
Questions About the Building
Ask how old the building is and when the last reserve fund study was done. Ask about planned repairs and any special assessments.
Ask how many units are rented, and whether the board has been in a legal dispute. The Condominium Authority of Ontario offers a buyers’ guide and more detail on how condos work.
Questions About Your Costs
Ask what the monthly fees cover and what they have done over time. Ask about parking, lockers and utilities.
Ask your lawyer about any condition you want in your offer. Ask your agent about recent sales in the building.
What Are the Biggest Red Flags to Avoid When Buying a House?
Red flags in a house are different, but the habit is the same: inspect first, and decide second. Cracks in the foundation, water stains, old wiring and a worn roof are common warning signs.
Condos have their own versions. Leaks in a unit, a low reserve fund and unexplained fee jumps all deserve attention.
If you are weighing a house against a condo, read my step-by-step process in how to buy a condo in Toronto. It walks through each stage from offer to closing.
First Time Condo Buyers: Pre Construction Condo vs Resale
First time condo buyers often compare a pre construction condo with a resale unit. Each has trade-offs.
A resale unit lets you see the building, the finishes and the fees today. A new unit lets you choose finishes and wait for completion.
Pre Construction Condo Basics
A pre construction condo is bought before it is built. The closing date is in the future, so your finances need to hold up over the wait.
Review the agreement carefully with your lawyer. Ask about deposits, timelines and what happens if the schedule changes.
Condo Ownership and Freehold Property
Condo ownership is different from owning a freehold property, such as a house. With a freehold home you own the building and the land, and you pay for all the upkeep.
With a condo, you share costs and rules. Neither is better for everyone, so choose the one which fits your goals.
Final Thoughts
The best way to avoid condo mistakes is to slow down and do the homework. Review the status certificate, build a full budget, plan for closing costs and read the rules before you offer.
Whether you’re buying your first condo in Toronto or moving up to a new one, you deserve a guide who knows how each building truly works.
I’m Marco Pedri, and I focus specifically on helping buyers in Toronto find the right condo, from budget planning and building tours through to closing day and move-in. I’m committed to honest advice, real local market insight, and guiding you through the entire process with confidence.
If you want to review a building or compare a few units before you offer, reach out for a no-obligation conversation. You are also welcome to read my take on mistakes to avoid when selling a condo in Toronto or visit my Toronto real estate agent homepage.
