TD Canada Trust recently released a survey of condo buyers in Toronto, Montreal, Calgary and Vancouver, highlighting 38 per cent of participants were not confident they could afford a condo fee increase.

The survey also noted 68 per cent of buyers didn’t realize condo fees may increase at any time and more than one-third (38 per cent) say they don’t have confidence they could afford an increase.

“Purchasing a condo may help you build equity but the financial commitment of owning a condo may be larger and more complex than many buyers may realize,” says Farhaneh Haque, director of mortgage advice for TD Canada Trust. “It’s important to do your research before you hit the open houses to understand the true costs of condo ownership.”

She adds, “Keeping a pulse on the health of your condominium’s finances such as its reserve fund can help you to create a realistic annual budget that anticipates condo fee increases and special assessments.”

Haque notes that although owning a condo may help build future assets, there can also be long-term benefits to waiting and saving a larger down payment, which can mean paying less interest over the life of a mortgage.

“When comparing owning to renting, you have to weigh all the costs, including the purchase price of your condo, the size of your down payment, condo fees, property taxes, immediate repairs or renovations, interest rates and insurance, and compare these with how much you are currently spending on rent,” she says. “Of course, you also have to place a value on the enjoyment and satisfaction that you will derive from owning your own home.”