Buying a Townhouse in Guelph - A Comprehensive Guide

Guelph's location adds to its attraction as one of Canada’s fastest-growing mid-sized cities. Centrally located in the southwest portion of Ontario, Guelph offers a vibrant downtown core, easy access to Toronto and the GTA, Hamilton, Niagara Falls, Kitchener-Waterloo, London, the United States, and other great towns and cities using major highways like 401, 402, 3, and more as well as Via Rail and GO Transit.



The population of Guelph currently sits at approximately 150,000, with expectations to grow to over 200,000 by 2050. This continuous growth rate will maintain a steady future and current demand for real estate, especially townhouses, for years to come.

Read our complete guide for everything you need to know about buying a townhouse in Guel

What is a Freehold Townhouse in Ontario?

A freehold townhouse in Ontario is a multilevel home in a row-house setting that shares at least one wall with a neighbour if you’re in the end unit of a townhouse or two walls if you’re not. You own a freehold townhouse outright, just like if it was a detached home.

Freehold Townhouse Pros:

• No townhouse maintenance fees: With no extra townhouse fees, you and your lender won't have to include them in the mortgage pre-approval.
• Total control: You have complete control over your property — you can upgrade, decorate, and maintain your home according to personal preference, lifestyle, and budget.
• Higher property appreciation: Freehold townhomes have higher appreciation than properties with maintenance fees. The Condo Boards determine those fees; if they mismanage the funds, the costs can get out of control, driving the demand for freehold townhomes. The more demand, the higher the price.

Freehold Townhouse Cons:

• You’re 100% responsible: You must cut the grass, clear the snow, and do your own landscaping. If you don’t enjoy that part of home ownership, we recommend hiring an outside company to take care of it.
• Your attached neighbours have control over what they do with their homes: Your neighbour is also free to decorate, landscape, and upgrade, which can be potentially offensive or an eyesore to you.
• Higher appreciation: If you already own a freehold townhouse, then higher appreciation is a pro, but if you’re looking to buy a freehold townhouse, faster appreciation means the buying price may be out of your budget.

What is a Condo Townhouse in Canada?

The significant difference between a condo townhouse and a freehold townhouse is that condo townhouses have monthly fees on top of mortgage payments.

Condo Townhouse Pros:

• Cheaper: You’ll pay close to 20% less for a condo townhouse than a freehold townhouse. Buyers consider the extra fees when bidding on condo townhomes, and they know that their lending institution will also account for the costs when giving mortgage pre-approval.
• Lower maintenance costs: The extra monthly fees pay for exterior maintenance of common elements, such as lawn care and snow removal, and common area upkeep. The fees also go toward a Reserve Fund (if appropriately managed) for major repairs like the roof, doors, or windows.
• Amenities: A portion of your monthly fees go toward preserving and upkeeping shared amenities such as gyms, pools, courts, and entertainment rooms

Condo Townhouse Cons:

• Special assessments: This means that the condo board either isn’t allocating enough money to the Reserve Fund for expenses, there were unexpected costs, or they lost a lawsuit, and now the Condo Corp requires a special assessment to make up the difference or take out a loan to make the necessary repairs. The special assessment is a fee above and beyond the usual monthly expenses like mortgage, property taxes, and maintenance fees, and doesn’t require permission from condo owners. Special assessments may not happen but it’s important to understand the potential risk.

Understanding the Townhouse Market in Guelph

According to the Canadian Real Estate Association, the Guelph real estate market on a year-to-date basis is at 2,333 units for the first seven months, a decline of 13.9% from a year ago. Although the five and 10-year averages are over 20% lower for the July months, this July alone was up 17.3% over last with 318 units.

July 2023 may be the start of a recovery trend for new real estate listings stepping into the market. Buyers waiting on the sidelines will now have more of a selection with benchmark prices below last year's levels:



• The single-family home average sits at $957,900 as of July 2023, down by 1.1% from July 2022
• Townhouses were at $684,900, a 3.7% average price drop from last July
• Apartment prices were at $548,400, a 7.9% average price drop from July 2022

The growth estimate for Guelph shows a steady increase to 169,000 residents by 2031, with an increase in townhouse popularity. The continued construction of affordable housing will help meet the rising demand for those interested in owning or renting a townhouse.

Researching and Selecting the Right Townhouse

A crucial step in finding and selecting the right townhouse is hiring a knowledgeable and experienced real estate agent. Here’s what to look for:

• Experience: Find a real estate agent who addresses your concerns, answers your questions, provides advice, and knows Guelph neighbourhoods and its proximity to amenities and essential services.
• Well-connected: An agent with good connections works with other agents to find your perfect townhouse with all your specified features.
• Real estate market familiarity: The real estate market in Guelph is constantly changing, so your agent must be current, as it’ll affect many decisions you make.
• Negotiation expert: Negotiation is key to a successful outcome. Experts familiar with all negotiating strategies will ensure you get the best deal possible.

Financing and Budgeting for a Townhouse Purchase

Buying a townhouse requires preparation. Knowing what to save for and how to do it will help you get started. Here are some financial aspects of buying a townhouse, including down payments, mortgages, and closing costs

Down Payment

Determine the amount you need to save using 5% of a typical townhouse’s value or 20% if you want to avoid paying mortgage insurance. Your realtor can help you navigate your downpayment terms.

Mortgages

Understanding the options and features of a mortgage is crucial to finding one that best suits your needs. Your realtor can guide you through the process, connect you with an experienced mortgage broker who can explain terms such as:

• Amortization
• Principal amount and monthly payments
• Payment frequency

Closing Costs

When buying a townhouse, besides your down payment, you must pay closing costs to complete the transaction, including appraisal fees, home inspection, and legal fees. Depending on your situation, you may also need to pay a land transfer tax, survey fee, and moving fees, so at the very least, expect to pay 1.5% of the purchase price in closing costs. If you're also selling your home, aim for 4% -5%.

There are many ways to save for your dream home, starting with sorting your finances:

• Create and stick to a budget
• Get pre-approved for a mortgage
• Pay down credit card debt
• Prioritize your spending
• Research Government programs

Inspections and Maintenance of Townhouses

A thorough home inspection helps you determine the actual value and condition of a townhouse, including structural soundness, condition of mechanical systems, and more. With a home inspection, you will know if the house has any problems before closing the sale.

Here are some things a home inspector checks for:

• Proper ventilation
• Sufficient insulation
• Signs of water leakage or damage
• Solid foundation
• Functioning toilets, sinks, bathtubs, and showers
• Stains or cracks in ceilings
• No cracks, rot, or decay in door frames or wood trim
• Functional appliances
• Circuit breakers and grounding
• Working HVAC systems
• Working light fixtures, smoke detectors, and outlets
• Outside structural damage
• Chimney damage, functional gutters, roof condition
• Damaged windows
• And more

Community and Lifestyle in Guelph Townhouse Living

Townhouse living in Guelph features a strong sense of community with its shared walls and facilities and a relaxed lifestyle due to security, maintenance, and affordability. It's hard not to know your neighbour's names when you’re this tight-knit.

With ample green spaces, trails, restaurants, rec centres, and schools, there’s no shortage of things to do in Guelph, including:

• Centennial Park Arena
• Evergreen Seniors Community Centre
• David E. Hastings Stadium
• Exhibition Park Arena
• Guelph Farmers’ Market
• Market Square
• Guelph Civic Museum
• River Run Centre
• Sleeman Centre
• Silvercreek Skatepark
• West End Community Centre
• Victoria Road Recreation Centre
• Margaret Green Park
• Guelph Public Library
• Strom's Farm & Bakery
• Guelph Lake
• Guelph AirPark
• University of Guelph
• Various public, Catholic, and private schools, like Gateway Drive PS, John McCrae PS, ÉÉ L'Odyssée PS, ÉÉC Saint-René-Goupil CS, St. Francis of Assisi CS, Our Lady of Lourdes CHS, Royal City Baptist Academy (private), Trillium Waldorf School (private), and more

Thinking About Buying a Townhouse in Guelph?

Andra Arnold & Associates can help bring you home.

With its small-town feel, some of the safest neighbourhoods, strong sense of community, and 27% lower cost of living (compared to places like Toronto), Guelph has everything you need for that home-grown feel.

Explore the townhouse market in Guelph and make informed decisions by partnering with a real estate team who knows Guelph communities and has years of proven experience in the local market. Guelph is a city of neighbourhoods, each with its own unique personality, charm, and benefits.

Let’s chat