Run the true monthly comparison
A house has a mortgage, taxes, insurance, utilities, and an unpredictable repair line. A condo replaces most of that with a fee that covers building maintenance, often heat and water, and a reserve contribution. Compare full monthly cost rather than the fee in isolation.
Decide the order: buy first or sell first
Selling first gives you a known budget and no carrying risk, but you may need interim housing. Buying first secures the unit you want and needs bridge financing to cover the gap between closings.
- Bridge financing is short term and priced accordingly
- It requires a firm sale on your current home
- Matching closing dates removes the need entirely
Know what the status certificate tells you
The status certificate shows the reserve fund, any special assessments, litigation, and rules that affect rentals or pets. A thin reserve fund means future assessments, and that is a budgeting question as much as a legal one.
Where the equity goes
Many downsizers pay cash and leave themselves with no mortgage but also no liquidity. Keeping a small readvanceable mortgage or line of credit on the condo can be cheaper than borrowing later, and it keeps options open for helping family or funding renovations.
Frequently asked questions
- Can I get a mortgage on a condo if I am retired?
- Yes. Lenders qualify pension, investment, RRIF, and other retirement income. The documentation is different from employment income, not harder.
- Do condo fees affect how much I can borrow?
- Yes. Lenders include a portion of the monthly fee in your debt service calculation, so a high fee reduces the mortgage you qualify for.