Strata Fee

A strata fee is a recurring monthly payment that the owner of a strata lot or condominium unit pays to the strata corporation or condominium corporation to cover the shared costs of the building and common property. The label changes by province — strata fee in British Columbia, condominium maintenance fee or common expenses in Ontario and most other provinces, and frais de copropriété in Quebec — but the concept is the same.

What the fee pays for

Strata fees fund the collective operating budget of the corporation rather than the interior of any one unit. Typical items include:

Cleaning, snow removal, landscaping and elevator service
Insurance on the building and common property
Contributions to the reserve fund (called the contingency reserve fund in some provinces) for future repairs such as roofing or windows
Utilities and services shared by all owners
Property management and accounting
Amenities such as a gym, pool or concierge

The board sets the budget each year and divides it among owners, usually in proportion to unit entitlement or assessed value. Individual fees therefore vary by building, unit size and what is included, and they can change at each annual budget.

How lenders treat strata fees

Because strata fees are a fixed housing cost, lenders normally add them to your housing expenses when they calculate the Total Debt Service Ratio and the Gross Debt Service Ratio used under OSFI Guideline B-20 and the federal mortgage stress test. A high fee reduces the mortgage amount a borrower can qualify for, even when the purchase price is modest. The fee is separate from property tax and is generally paid monthly or, in some buildings, quarterly or annually.

Strata ownership versus a freehold home

Cost item	Strata or condo	Freehold house
Building insurance and exterior repairs	Shared through the strata fee	Paid directly by the owner
Reserve for major repairs	Built up collectively	The owner saves independently
Amenities and management	Usually included	Not applicable

Beyond the monthly fee, a corporation can levy a special assessment when the reserve fund is short of a major repair. Buyers should review the status certificate or equivalent documents, the reserve fund study and recent minutes before firming up an offer. Strata fees form part of the ongoing cost of ownership beyond closing costs, so they belong in any budget alongside the mortgage payment itself.

Frequently asked questions

Are strata fees included in mortgage affordability calculations?

Yes. Lenders treat strata fees as a housing cost and add them to your mortgage payment, property tax and heating when calculating GDS and TDS ratios. A higher stratum fee lowers the mortgage amount you can qualify for, so it is worth confirming the current fee before you make an offer.

What happens if I don't pay my strata or condo fees?

Unpaid fees are a debt owed to the corporation, which can charge interest and, in most provinces, register a lien against the unit and eventually force a sale to recover the money. A lien or arrears can also complicate a sale or refinance, because a buyer's lawyer or lender will require the account to be cleared.

Can strata fees increase or be charged as a lump sum?

Yes. The board sets the annual budget, so fees typically rise with insurance, utilities and reserve contributions. If the reserve fund cannot cover a major repair, the corporation may also levy a special assessment, a one-time charge divided among owners. Reviewing minutes and the reserve fund study helps buyers anticipate this.