The townhouse buyer's guide
Seven steps from first search to keys in hand, written for Ontario townhouse buyers.
1. Set a monthly budget, not just a price
Get a mortgage pre-approval, then add property tax and any maintenance or POTL fee to see the real monthly number. Lenders count a condo fee when they qualify you, so a home with a low fee or none can raise what you are approved for.
2. Decide between freehold and condo
A freehold townhouse has no monthly condo fee, and the roof, windows, driveway, snow and lawn are yours to look after. A condo townhouse has a monthly fee that covers some or all of that. Two similar homes can be very different purchases, so read freehold vs condo townhouses before you start booking showings.
3. See it in person
Visit at different times of day. Count the stairs, listen for noise through the shared walls, and check the light, the garage, the driveway and the backyard. Look at how the neighbours and the complex keep things up, and where visitors park.
4. Make an offer with the right conditions
Most resale townhouse offers include a financing condition and a home inspection condition, and on a condo townhouse a condition for your lawyer to review the status certificate. In a competitive situation there are ways to stay protected and still be attractive to the seller, and a townhouse specialist will walk you through them.
5. Do your homework on the home
A home inspector checks the roof, furnace, windows, basement and structure. On a condo townhouse your lawyer also reads the corporation's finances, rules and legal position and tells you whether anything should stop you. What the status certificate contains.
6. Budget for closing costs
Plan for land transfer tax, legal fees, title insurance and adjustments for prepaid fees and taxes. In the City of Toronto there is a second, municipal land transfer tax. The calculators estimate both.
7. Close and move in
Your lawyer registers the transfer and you get the keys and the garage door remotes. On a freehold townhouse, set up your hydro, gas and water accounts before moving day, and arrange home insurance to start on closing.
Ready to find your townhouse?
Talk to a townhouse specialist today. Honest answers, no pressure.