Ask a Wahi REALTOR®: How Can Buyers Compare Property Taxes, Local Fees, and Other Area-specific Costs Across Different Neighbourhoods?

Comparing property taxes, local fees, and other area-specific costs will require homebuyers to do their own research, but helpful resources exist.

By Josh Sherman | 2 minute read

Deciding where to purchase a home depends on a buyer’s budget and priorities. 

Some value a short commute to work or local amenities. Others may prioritize home price above all else. There are also local zoning by-laws or other restrictions to be aware of. If a buyer wants to put their personal touch on their next home, they’ll likely steer clear of heritage districts, which have strict regulations concerning alterations to properties.

Yet another consideration — particularly for budget-conscious buyers — are property taxes, local fees, and other area-specific costs.

“Homebuyers now have easy access to more information and data than ever before,” says Wahi Broker of Record Anne Alkok. However, she adds, it’s sometimes difficult to know exactly where to look for this information.

In the latest instalment of our ongoing Ask a Wahi Realtor series, we show homebuyers how to compare local property taxes, condo fees, and more.

1. Property Taxes

Property taxes are set annually by municipalities. They cover local services and infrastructure and are calculated by multiplying a home’s assessed value by the total residential tax rate for the municipality.

The total rate typically includes more than one tax. Every municipality in Ontario collects an education tax in addition to the municipal tax rate. In some cases, there are additional taxes. For instance, in the City of Hamilton, there are specific rates for rural and urban properties within the municipality, depending on service levels.

Check your municipality’s website for specific details regarding the current rates, as well as fees for building permits, snow removal, and other potential expenses. Many will have a property-tax calculator. Wahi also tracks annual property taxes across Ontario’s 30 largest cities, and when browsing listings on the Wahi app and website, users can see each property’s tax history.

2. Maintenance Fees

Each individual condo corporation sets its own maintenance fees. A building’s maintenance fees are meant to take care of the upkeep of shared common spaces, such as amenities and elevators, and structural elements. The monthly fees also contribute to the community’s reserve fund, which is set aside for major repairs over time. Maintenance fees are calculated on a per-square-foot basis, meaning the larger the unit, the higher the fees.

Note that these fees don’t just apply to condo buildings. Many townhouse communities adopt a condo-ownership model, and even some subdivisions with detached or semi-detached homes do as well. Low-rise developments typically have lower per-square-foot fees as they have fewer amenities and lower engineering demands than mid- or high-rise buildings. Conversely, communities with many amenities, such as pools, gyms, tennis courts, golf simulators, and more generally have higher maintenance costs.

As with property taxes, Wahi listings include maintenance fees for each unit available for sale. The Canadian digital real estate platform has also analyzed data from more than 1,500 developments to identify the GTA condos with the highest and lowest monthly maintenance fees. 

3. Home Insurance 

Home insurance premiums can add up, particularly outside of major cities. A recent report from Rates.ca found that residents of northern Ontario pay up to 80% more for home insurance than the rest of the province. The report includes a complete ranking of every Ontario city based on the average home insurance premium.