Three Ownership Types, Three Fundamentally Different Homes

Ask a Markham buyer what kind of home they are looking for and you will hear detailed answers about neighbourhood, square footage, bedroom count, and finishes. Ask them what type of ownership they are pursuing and you will often hear vague answers or confused ones. This is a problem, because ownership type is one of the most consequential dimensions of any real estate purchase. Freehold, condo, and leasehold represent fundamentally different legal relationships between owner and property, with different monthly costs, different resale profiles, and different long-term financial trajectories.

Successful Markham buyers understand ownership type before they start viewing homes, not after they have fallen in love with a particular unit. The buyer who tours 20 condos and finally finds the perfect one, only to discover it is leasehold and their entire mortgage strategy is going to change, is a common story in Markham real estate. This article is written to make that story less common.

Freehold — What You Actually Own

Freehold ownership is what most Markham buyers assume they want. Full ownership of the land and the structure on it, with no ongoing fees to a corporation or landlord, and complete control over the property subject only to municipal bylaws and provincial law. Detached homes in Angus Glen, Unionville, Berczy Village, Wismer, and most established Markham neighbourhoods are freehold. Freehold townhomes exist in Markham as well, though many townhome complexes are actually structured as freehold with a Parcel of Tied Land arrangement or as common element condominiums that add a management fee to what looks like a freehold home.

The advantages of freehold ownership include maximum control, no monthly condo fees, and traditionally the strongest resale profile in Markham. The disadvantages include full responsibility for all maintenance, no shared amenities included in monthly costs, and typically higher upfront pricing than condo alternatives at similar unit sizes. For families and long-term owners, freehold usually delivers the strongest total value over a 10-to-20-year horizon.

Condo — Ownership With a Corporation Attached

Condominium ownership means owning a specific unit within a larger building or complex, with shared ownership of common elements including hallways, exterior structure, landscaping, and amenities. The condo corporation manages the shared elements, funded by monthly condo fees paid by all owners. Markham has extensive condo inventory ranging from high-rise buildings in Downtown Markham through mid-rise developments along Highway 7 through townhome complexes in Cornell and elsewhere.

Monthly condo fees in Markham vary widely. Basic townhome complexes may run $250 to $500 per month. Mid-market condo apartments typically range $500 to $900 per month depending on unit size and amenities. Luxury buildings with concierge, pool, gym, and premium services can exceed $1,200 per month. Understanding what the fee actually covers is essential. Some fees include water, hydro, cable, and internet. Others cover only the shared exterior and amenities. Reserve fund studies, recent special assessments, and the corporation's financial health should all be reviewed before making an offer on any condo unit.

Leasehold — Ownership With a Ticking Clock

Leasehold ownership is where the buyer owns the building or unit but not the land underneath it. Instead, the land is leased from a third party, typically for a defined term ranging from 50 to 99 years. Monthly land lease payments are made to the landowner in addition to any mortgage payments and condo fees. Markham has limited leasehold inventory compared to freehold and condo, but it does exist, and buyers occasionally encounter these properties without recognizing what they are looking at.

The advantages of leasehold can include lower purchase prices relative to comparable freehold and condo units, and sometimes attractive amenity packages tied to master-planned communities. The disadvantages are significant. Mortgage financing is often more difficult, resale value tends to erode as the lease term shortens, and the eventual expiry of the lease creates a real long-term risk that freehold owners never face. Many Canadian lenders will not finance leasehold properties with fewer than 25 to 30 years remaining on the lease, which can create a ticking clock as the property ages.

How to Actually Choose Between the Three

The right ownership type is the one that matches your household priorities, financial trajectory, and expected ownership horizon. For families expecting to hold a home 10 or more years and prioritizing control, freehold typically delivers the strongest overall value. For buyers prioritizing amenities, lock-and-leave lifestyle, or affordability at a specific location, condo often makes sense. For very specific situations where the leasehold discount is meaningful and the household does not anticipate holding the property to lease expiry, leasehold can occasionally fit.

Michael John Lau, top real estate agent in Markham Ontario, walks buyers through this decision as part of pre-viewing consultation rather than treating it as an afterthought discovered during a specific unit's paperwork. The strongest buyer positioning comes from clarity about ownership type before starting the search, matched to a shortlist of neighbourhoods and property types that actually fit.