Townhouses are where a lot of first-time buyers in London and St. Thomas start. In LSTAR's September 2026 figures, the townhouse benchmark across its region, which covers more than London and St. Thomas, was $421,500, well below the single-family benchmark of $600,700. But two townhouses on the same street can be owned in completely different ways, and the difference shows up in your monthly costs, your repair bills and your mortgage approval.
Comparing Townhouses?
I will pull the fees, the status certificate details and the real monthly cost for each one you're considering
548 490 4577Freehold townhouse
You own the land and the structure. There's no condo fee, no board, no condo rules and no status certificate. Applicable laws and anything registered on title still apply, such as restrictive covenants, easements for a neighbour's access or utilities, and shared-property agreements for a common driveway or wall. Your lawyer's title search shows them. You also handle every repair: the roof, which may need coordinating with neighbours along the row, windows, the driveway, snow and the yard.
Condo townhouse
You own your unit, and the owners share ownership of the common elements. The condominium corporation, run by an elected board, manages and maintains them. Which exterior parts the corporation looks after depends on the declaration: it often includes roofs, windows and siding, plus snow removal, landscaping, the corporation's insurance and contributions to the reserve fund. You may do less exterior work, in exchange for the fee and rules on pets, rentals and renovations. Costs aren't fixed: the board can raise fees in the annual budget, and even a healthy reserve fund doesn't rule out a special assessment.
Insurance is split too. The corporation's policy generally covers the common elements and the standard-unit components set out in its documents. You need your own policy for the gaps: improvements and upgrades, your belongings, your liability, and in some buildings the corporation's deductible. Check the declaration, the by-laws and the corporation's policy before you firm up.
What is a POTL townhouse?
A parcel of tied land (POTL) is freehold ownership of your house and lot, tied to a common elements condominium. That condominium has no units, only shared features such as a private road, visitor parking, a mailbox area or landscaping, and each POTL owner holds a common interest in them that goes with the house. You own and maintain your house and lot yourself. The monthly fee depends on the shared infrastructure, the services included and how the reserve fund is funded: a private road with lighting, snow clearing and underground services costs more to run than a few landscaped strips. Many newer townhouse communities use this structure. A POTL purchase still needs a status certificate for the common elements corporation.
| Freehold | POTL | Condo townhouse | |
|---|---|---|---|
| You own the land | Yes | Yes, plus a common interest in the shared elements | Your unit plus a shared interest in the common elements |
| Monthly fee | None | Depends on the shared infrastructure, services and reserve funding | Depends on what the declaration covers, services and reserve funding; can increase |
| Who fixes the roof | You | You | Depends on the declaration; often the condo corporation |
| Status certificate | No | Yes, for the common elements | Yes |
| Rules on pets, rentals, renovations | No condo rules; applicable laws and title restrictions still apply | Some, for the shared elements | Yes, in the declaration, by-laws and rules |
How should I compare the cost?
Compare total monthly cost, not price. For each home, add up the mortgage payment on the actual purchase price, property taxes, insurance, any condo or POTL fee, utilities and a maintenance reserve for the repairs you'll pay for yourself. A condo fee isn't simply extra money on top of a freehold's costs; depending on the declaration, part of it replaces the roof, window and snow bills a freehold owner pays directly.
For a condo or POTL, have your lawyer review the status certificate package, including the reserve fund summary and the plan for future funding, to see whether fees are likely to rise. The package carries a summary of the reserve fund study, not the full study, so ask for the full study when the summary raises questions.
Which suits a first-time buyer?
Neither is automatically cheaper. A freehold has no condo fee, but it can carry a higher price, and every repair is yours. It suits buyers who want control and will budget for maintenance. A well-run condo townhouse suits buyers who want less exterior work, as long as they check what the declaration actually covers and plan for fees that can rise. Run the full monthly numbers on the specific homes you're considering.
For mortgage qualification, CMHC's debt-service calculations include 50% of condominium fees; confirm your lender's requirements. You still pay the full fee every month, so budget for all of it, and a higher fee lowers what you qualify for.
Sources
Frequently asked questions
Does a freehold townhouse need a status certificate?
No, unless it's a POTL tied to a common elements condominium. Your lawyer will confirm from the title search, which also shows any covenants, easements or shared-property agreements.
Can a condo corporation raise my fees?
Yes. Fees are set in the annual budget, and the reserve fund study and funding plan drive a large part of them. The status certificate shows known increases and any special assessments, but a healthy reserve fund doesn't rule out future ones.
Is a stacked townhouse a condo?
Stacked townhouses, with one home above another, are commonly condominiums. Back-to-back describes the layout, homes sharing a rear wall, and doesn't determine ownership: a back-to-back can be freehold, POTL or condominium. For either type, have your lawyer confirm the title and the registered documents.
