Condo vs. Freehold: Choosing the Right Property Type

What’s Happening in Guelph’s Housing Market Right Now?

Before you zero in on condo vs. freehold, it helps to get the lay of the land.

As of mid-2025, Guelph remains one of Ontario’s most in-demand cities, attracting buyers who want to balance city life and a strong sense of community.

Condos and freeholds are both holding their ground, but they offer very different paths in. Condos tend to cluster around the downtown core and transit routes. You’ll find freeholds in the suburbs and established neighbourhoods like Kortright Hills, Clairfields, and Old University.

Ownership Structure and Legal Framework

The ownership structure is one of the most significant differences between condos and freeholds. Understanding what’s at stake can help you make a move you won’t second-guess.

Condo

Buy a condo, and you own your unit — that’s it. Everything beyond your front door, like lobbies, elevators, green spaces, and the roof, is shared space. You’re automatically part of the condo corporation, which takes care of maintenance and big-ticket items.

Upside: No shovelling snow, mowing lawns, or worrying about leaky roofs.

Downside: You play by the board’s rules, so you don’t have full freedom.

Freehold

With a freehold, the house and land are yours to run. You don’t have shared walls, condo fees, or anyone telling you how to run your home.

Upside: Total control. Want to build a deck or paint your house black? Go for it.

Downside: You’re also the snow removal crew, the repair team, and the one writing all the cheques.

Who’s In Charge When Something Goes Wrong?

In a condo, the board makes the decisions, and you help fund them through monthly fees. That covers a lot, but if the roof suddenly needs replacing and the reserve fund is low? Say hello to a special assessment.

With a freehold, you call the shots and deal directly with the city, contractors, and utility companies. It’s more responsibility upfront, but no board and fewer surprise group expenses.

Condo vs Freehold Cost Comparison

Both property types have distinct costs; some are visible upfront, while others accumulate over time, month after month.

Upfront Purchase Price

Condominiums tend to have a lower purchase price than freeholds, especially in walkable areas close to transit and amenities, making them attractive to first-time buyers or those downsizing from a larger home. 

Freeholds typically cost more, especially detached homes on larger lots, but you’re also getting more land, space, and resale flexibility.

Ongoing Fees

Condo owners pay monthly maintenance fees, while freehold owners take on repair and upkeep costs as they arise. Either way, you’re budgeting beyond your mortgage.

• Condo fees cover various shared services, including exterior maintenance, building insurance, snow removal, and sometimes even utilities such as heat and water. While fees can feel steep (especially in luxury buildings), they create predictable expenses and reduce your personal to-do list.
• Freehold owners save on condo fees, but may incur higher maintenance bills in the long run. You’ll need to budget for repairs, upgrades, lawn care, and unexpected expenses, such as a burst pipe or a cracked foundation. But you control the timeline and scope of every project.

Land Transfer Tax and Rebates

Both property types are subject to Ontario’s Land Transfer Tax. First-time buyers can receive a $4,000 rebate to help offset closing costs. The rebate applies regardless of property type, so it shouldn’t sway your decision.

What Kind Of Day-To-Day Life Are You Signing Up For?

Beyond square footage and price tags, your property choice can affect how you live, from your morning routine to how you spend your weekends.

Condo Living

Condos are for people who want more time living and less time fixing. You might have elevators, rooftop patios, on-site gyms, or a concierge to sign for your packages. Perfect for busy professionals, downsizers, or anyone who prefers perks without the upkeep.

Walk to coffee shops. Skip the snow shovelling. Lock the door and travel without a second thought.

Freehold Life

With a freehold, your home works around you, not the other way around. Build the garden, add the studio, install the swing set — no board approval needed.

Ideal for families or long-haul homeowners who want room to grow, privacy, and the flexibility to customize as life evolves.

Financing and Affordability

Your financing strategy might look different depending on the path you take.

Down Payment Requirements

Condo or freehold, you’re still on the hook for a minimum down payment, which is 5% for properties under $500,000, and a sliding scale for anything above that. Because condos are often cheaper, a 5% down payment can be more manageable.

RRSP Home Buyers’ Plan

The Federal Home Buyers’ Plan allows you to withdraw up to $60,000 tax-free from your RRSP to put toward your first home. It applies to condos and freeholds, and repayment happens over 15 years. This tool can help you determine what you need versus what you’ve saved.

Mortgage Qualifiers

Regardless of the property type, lenders assess your debt load, income, and credit history to determine your eligibility for a mortgage. But, some lenders may view condo fees as part of your monthly expenses, which can slightly reduce the amount you’re approved to borrow. 

Investment and Resale Considerations

Real estate is usually your biggest asset. Here's how each property type compares from an investment perspective.

Appreciation

Freehold homes tend to appreciate more quickly over time, partly due to the value of the land and partly because there's more control over property upgrades. However, condos in dense, walkable areas can also show strong growth, especially when tied to transit and new development.

Liquidity and Marketability

Condos appeal to various types of buyers, like first-timers, downsizers, and investors, which can make them easier to resell. However, sometimes they compete with other units in the same building, which can lower resale prices during a buyer’s market.

Freeholds are often in higher demand, particularly detached homes in desirable neighbourhoods. Their uniqueness can help them stand out in a crowded market.

Risk Factors

Condos carry the risk of rising fees, unexpected special assessments, and poor-quality building management. 

Freeholds can come with surprise repair costs or declining neighbourhood conditions, which can affect long-term value.

Use Case Snapshot

Real-life scenarios help bring the numbers to life. Here’s how each property type could perform over five years:

• Downtown condo: A first-time buyer purchases a $450,000 condo in downtown Guelph with a 10% down payment. After five years of mortgage payments, 3% annual appreciation, and rising equity, the unit could resell for around $521,000. Even after fees, the homeowner walks away with a healthy profit and valuable market experience.
• University Heights freehold: A young family purchases a $775,000 freehold home in University Heights with a 20% down payment. After five years of steady 3% annual appreciation and principal repayment, their home could be worth over $898,000. They’ve built significant equity and enjoyed a spacious backyard, garage, and freedom to make decisions.

Start Living Your Way

You’ve weighed the pros and cons of condos and freeholds, now it’s time to decide which fits your lifestyle, budget, and goals.

Whether you're looking for low-maintenance convenience or room to grow, Andra Arnold and Associates will help you make it happen. 

Reach out today and take the first step toward your perfect Guelph home.

Let’s Chat!