Barrie Condos: Condo Fees & Mortgages

When it comes time to consider a condo in Barrie for sale or condo townhome, there’s one thing many people overlook or may not be aware of if they’ve been homeowners for a while, and that’s how condo fees are factored into your mortgage calculation.

Lenders add half of your condo fees into the debt calculation when you apply for a mortgage, in addition to other monthly carrying expenses such as heat, hydro, property taxes, and interest to determine what is referred to as your Total Debt Service.

Lisa Cuff, AMP (Accredited Mortgage Professional) fromDominion Lending Centres in Barrie, states that the most important finance factor when looking at purchasing a condo vs. a freehold home is your monthly condo payment. For example, for every $50 of monthly condo fees, then that would be equivalent to approx. $10,000 in a mortgage.  So a $300 monthly condo fee works out to be a $60,000 mortgage, so if your condo purchase is $60,000 less than what your freehold home purchase would have been, then your monthly expenses for principal, interest and condo fees will be approximately the same in either scenario.

While this may play a factor in your condo suite or Barrie condo townhome choices, knowing what your fixed monthly maintenance expenses are makes it much easier for you to budget, taking away any surprises out of the equation.

Remember that your monthly condo fees cover a variety of different items like the building’s operating costs, service and maintenance of common areas, amenities, parking garage, landscaping, snow removal, plus a reserved portion for longer-term capital expenses.

In an article I wrote earlier in the year, I covered how condo fees are determined.  To view more articles on Barrie condos and townhomes, please visit our Facebook page by searching for Barrie Condo Team.