Freehold vs Condo Ownership in Newmarket

Choosing between a freehold home and a condo in Newmarket can feel like two very different paths to the same goal. You want the right space, a manageable budget, and a location that works for your life. This guide breaks down the real differences in costs, maintenance, rules, and resale so you can move forward with confidence. Let’s dive in.

Freehold vs condo basics

What you own

A freehold owner holds title to both the land and the building. You control your property and the space around it. A condo owner holds title to a specific unit plus a percentage of the common elements that a condo corporation manages.

Who maintains what

With a freehold, you handle everything on your lot. That includes the roof, exterior, lawn, driveway, and repairs. In a condo, the corporation maintains shared areas like hallways, exterior elements, amenities, and certain building systems. Those services are funded by monthly condo fees.

Governance and rules

Freeholds do not have a condo corporation. You are mainly guided by local bylaws and any private agreements that may exist in a community. Condos are governed by a board under the Condominium Act, 1998. Owners follow the declaration, bylaws, and rules that can cover pets, parking, noise, renovations, and rentals.

What costs to expect

Upfront price and financing

Condos are often the more affordable entry point for first-time buyers, while freeholds typically command higher prices per property. Both property types follow the same basic mortgage rules, but lenders may place extra conditions on certain condo buildings. Lenders look at the building’s financial health, owner-occupancy levels, and legal status, which makes the status certificate an important part of underwriting.

Monthly and annual costs

• Freehold costs: property taxes, homeowner insurance, utilities, and all maintenance and repairs. You budget for big items like roof replacement and exterior work.
• Condo costs: property taxes, condo unit owner insurance for your interior and belongings, and monthly condo fees. Fees fund common element operations, building insurance for shared areas, management, and reserve fund contributions. Some utilities may be included in fees, but not always.

Condo fees do not replace property taxes. You pay both. Condo fees can increase over time as buildings age or as services expand.

Assessments, reserve funds, and fees

Ontario law requires condo corporations to maintain a reserve fund and conduct periodic studies to plan for major repairs. If the fund is short, owners can face special assessments. When you consider a Newmarket condo, always look at recent reserve fund studies, planned capital projects, and fee trends before you commit.

Legal differences in Ontario

Condominium Act and your rights

In Ontario, condo ownership is governed by the Condominium Act, 1998. Owners elect a board, vote on major changes when required, and have rights to review records like financial statements, budgets, and meeting minutes. This framework sets the rules for how the building is managed and how costs are shared.

Status certificate checklist

A status certificate is essential for condo buyers. It outlines the corporation’s financials, reserve fund balance, budget, rules, bylaws, parking and locker details, and any ongoing legal matters. Ask your lawyer to review it and watch for:

• Reserve fund study timing and balance
• Planned or recent special assessments and major projects
• Litigation details and insurance deductibles
• Unit entitlements, parking and locker rights, and any restrictions

Bylaws and municipal rules

Condo rules often cover pets, parking, renovations, and rental limits. Some buildings restrict short-term rentals, and local municipal rules can also apply. Freeholds are still subject to local bylaws, and certain areas may have heritage or planning constraints.

Lifestyle and fit in Newmarket

What condo living offers

Condos can deliver a lower-maintenance lifestyle with shared amenities like gyms or party rooms. Snow removal, landscaping, and exterior upkeep are typically handled for you. This can be appealing if you want convenience, community spaces, or a lock-and-leave setup.

What freehold living offers

Freeholds give you more privacy and control, plus outdoor space and flexibility for renovations. If you want a backyard, room to grow, or more autonomy, freehold ownership often fits better. Keep in mind you carry full responsibility for upkeep and major repairs.

Transit and location factors

Newmarket’s growth is shaped by regional transit and planning. Intensification has focused along Yonge Street and Davis Drive, and near transit nodes. Access to GO Transit on the Barrie line, York Region Transit and VIVA routes, and Highway 404 can influence demand for both condos and freeholds. If you commute, weigh your daily travel against where you buy. Proximity to transit, commercial corridors, and services can support resale demand over time.

Resale and holding period

Your ownership horizon matters. Condos can suit downsizers, young professionals, and commuters who value convenience. Freeholds often appeal to households that want more interior space and yards. Resale depends on the neighbourhood or building, reputation, maintenance history, amenities, and market cycles. In Newmarket, proximity to transit, schools, and retail nodes is one factor that can support liquidity and demand.

New-build vs resale condos

Pre-construction purchases come with unique steps. Consider deposit structures, assignment clauses, interim occupancy, and HST treatment. Resale condo buyers should focus on the building’s financial health, reserve fund studies, and any recent capital projects or litigation. For either path, reputation and documents matter as much as finishes.

Insurance and protection

Freehold owners insure the entire property and structure. Condo corporations insure the building and common elements, while you carry a unit owner policy for interior finishes, personal property, and liability. Check deductibles and any building-wide insurance changes noted in the status certificate.

Taxes and closing costs

When you buy in Newmarket, Ontario’s provincial land transfer tax applies. There is no separate municipal land transfer tax as in Toronto. Resale homes are generally HST-exempt. New condominium purchases from a builder typically include HST with potential rebates in specific cases. For exact calculations, speak with a lawyer or tax professional.

Due diligence checklists

For condo buyers

• Review the status certificate with your lawyer
• Examine financial statements, budget, AGM minutes, and the reserve fund study
• Ask about planned capital projects, special assessments, and insurance deductibles
• Confirm parking and locker rights, and any visitor or guest rules
• Check rental and short-term rental restrictions
• Look into owner-occupancy rates, litigation, and property management
• Ask about building history, recent upgrades, or recurring maintenance issues

For freehold buyers

• Schedule a home inspection and review permits for past work
• Confirm sewer connections, grading, and any flooding risk history
• Evaluate roof, foundation, and exterior condition
• Review zoning and local planning files for nearby development proposals
• Confirm utilities, property taxes, waste collection, and snow responsibilities

For everyone

• Verify property tax assessments and current rates
• Check commuting times and transit options that fit your routine
• Speak with your mortgage professional about lending requirements
• Retain an Ontario real estate lawyer familiar with condo and freehold transactions
• Request recent comparable sales for the area or building

Quick decision guide

Choose a condo if you want

• Lower day-to-day maintenance and shared amenities
• A potentially lower entry price than comparable freeholds
• Building security features and a lock-and-leave lifestyle

Choose a freehold if you want

• More space and control over renovations
• A yard, private driveway, and outdoor living
• Full autonomy without condo bylaws or monthly condo fees

The right choice comes down to how you plan to live, your budget for ongoing costs, and how long you expect to own. Align those factors with Newmarket’s transit, growth corridors, and neighbourhood dynamics, and you will land on a clear path.

Ready to compare actual listings and numbers side by side? Reach out to Sam Galloway for responsive, one-on-one guidance that puts your goals first.

FAQs

Do condo fees replace property taxes in Newmarket?

• No. Condo fees fund building operations and common elements, while property taxes are separate and still payable by each unit owner.

How important is a status certificate for a Newmarket condo purchase?

• Essential. It reveals the condo corporation’s finances, reserve fund health, rules, and any legal issues that can impact your costs and risk.

Can a condo corporation in Ontario levy a special assessment?

• Yes. If the reserve fund is short for major repairs or projects, the corporation can levy a special assessment according to its procedures.

Is HST charged on Newmarket condo purchases?

• Resale units are generally HST-exempt. New-build condos typically include HST, with potential rebates in specific owner-occupancy cases.

Are condos easier to finance than freeholds in Newmarket?

• Not necessarily. Lenders review building health, owner-occupancy, and legal factors, so some condos may face stricter underwriting.

What affects resale value in Newmarket for both options?

• Proximity to transit and key corridors, building or property condition, amenities, reputation, and broader market cycles can all shape demand.

What ongoing costs should I budget for with each type?

• Freeholds: taxes, full insurance, utilities, and all maintenance. Condos: taxes, unit owner insurance, and monthly condo fees that may include some utilities.