Cost of Buying | Ongoing
Strata Fees as an Ongoing Cost
The monthly cost that turns a mortgage you can afford into one you cannot, and the one buyers most often treat as a number to minimise rather than to understand.
The short answer
The strata fee funds operations and the contingency reserve, which pays for major repairs. A low fee is not a saving if the reserve is underfunded, because the cost returns as a special levy. Lenders also count part of the fee when deciding what you can borrow.
| Freehold, no strata | Strata | |
|---|---|---|
| Active listings | 245 | 1,068 |
| Median list price | $1,388,000 | $1,358,444 |
| Median per sq ft | $651 | $844 |
| Median size | 2,085 sq ft | 1,568 sq ft |
| Monthly strata fee | None | $373 |
| Who pays for the roof | You, in full, when it needs doing | The contingency reserve, built from the monthly fee |
What it actually funds
Day to day operations: grounds, management, insurance, waste, and any shared amenities. Then the contingency reserve, which is the money accumulating for the roof, the envelope, and the mechanical systems.
The second part is the one that matters over a decade. A fee set low enough to look attractive on a listing is often a fee that is not funding the reserve.
A low fee can be expensive
If the reserve is inadequate when a major repair falls due, the money comes from owners as a special levy, arriving as a single large bill at a time nobody chooses.
The depreciation report forecasts what is needed and when. Read it against the reserve balance on the Form B. Those two documents together tell you whether the fee is doing its job.
It affects what you can borrow
Lenders include a portion of the strata fee in the debt service calculation, so a high fee reduces the mortgage you qualify for. Two homes at the same price with different fees are not equally affordable in the eyes of a lender.
That is worth knowing when comparing a low-fee half duplex against a higher-fee complex at the same price.
Common questions
What do strata fees cover?
Operations such as grounds, management, insurance, waste, and shared amenities, plus contributions to the contingency reserve that funds major repairs. What is included varies by strata, and some bundle water or hot water.
Is a low strata fee good?
Not on its own. The fee funds the reserve that pays for the roof and the envelope. A fee set too low usually means a special levy later, arriving as one large bill instead of a monthly amount. Read the depreciation report against the reserve balance.
Do strata fees affect my mortgage?
Yes. Lenders include a portion of the fee in the debt service calculation, so a higher fee reduces what you can borrow. Two homes at the same price with different fees are not equally affordable to a lender.
Where these figures come from
- VanPlex active listings, MLS® data
Active townhouses, half duplexes, and row houses built in the last two years across Metro Vancouver and the Fraser Valley.
Checked
Work the numbers on a real home
Every figure here comes from government sources and from listings you can open. Search the market and check the costs against a specific price rather than a hypothetical one.