Freehold townhouse in Canada gives buyers legal title to both the home and the land it sits on. These types of properties are increasingly sought after, especially in suburban areas where land parcels are more readily available. According to CMHC’s 2024 construction statistics, about one in three new townhouse completions in Ontario were freehold, reflecting a steady trend among families and investors who want autonomy without the price tag of a detached house.

What Is a Freehold Townhouse?

In a freehold townhouse, the homeowner has complete ownership over both the residence and the land beneath it. These properties are typically attached side-by-side, but unlike condos, they are not part of a shared ownership structure or overseen by a condominium board.

There are no ongoing condo fees or mandatory shared services. The buyer takes full responsibility for maintenance, repairs, and external upkeep. Based on 2024 MLS data, nearly 4 in 10 townhouses sold in suburban Toronto (including areas like Vaughan, Pickering, and Milton) were listed as freehold, highlighting strong buyer demand in these markets.

Full Ownership Rights: What Buyers Actually Own

Purchasing a freehold townhouse in Canada means acquiring:

• Ownership of the physical structure (inside and outside)

• The lot or parcel of land where the unit stands

• Responsibility for front and back yard areas, if present

• The ability to modify, upgrade, or landscape the home without needing condo board approval (still subject to local regulations)

A notable example occurred in Burlington, where a homeowner installed an EV charger and redesigned the facade changes that would have required lengthy approval processes in a condo setup.

Key Advantages of Buying a Freehold Townhouse in Canada

1. No Recurring Maintenance Fees – Unlike condo townhouses, there are no association dues or shared utility bills. This can save thousands over time.

2. Control Over Property Decisions – Whether it’s renovating your kitchen or replacing shingles, the decision is fully yours.

3. Stronger Resale Growth – Data from Royal LePage shows that freehold units appreciated faster in 2024 compared to condos in parallel neighborhoods.

4. Fewer Restrictions – Owners aren’t limited by community regulations beyond standard zoning and municipal bylaws.

Drawbacks and Responsibilities

Homeownership comes with full accountability:

• Exterior maintenance (roofing, lawns, exterior walls) is solely your duty

• Insurance rates tend to be higher due to broader coverage needs

• There’s no pooled reserve fund like in condos unexpected repairs require personal financial planning

• Renovation limits are still subject to city zoning and heritage rules

Case in Point: In 2023, a homeowner in Kitchener faced an unexpected $8,000 cost to replace aging retaining walls. Unlike condo owners, they had no collective fund to draw from and had to pay in full.

Legal Aspects and Buyer Rights

Buying a freehold property includes:

• Fee simple title: the most complete form of property ownership

• Land demarcation: confirmed through surveys and municipal mapping

• Disclosure of rights-of-way or shared access

• Ownership protections via title insurance and registration

Legal experts often recommend buyers request a property history report and confirm no municipal liens are attached before closing.

Step-by-Step Guide to Buying a Freehold Townhouse (2025)

1. Budget Planning: Identify affordability based on mortgage rates, property tax ranges, and area-specific prices. For example, in Guelph, freehold townhouses averaged $690K in early 2025.

2. Neighbourhood Selection: Choose based on factors like school zoning, transit projects, and community plans. The GTA’s Line 6 expansion has increased interest in the Finch West corridor.

3. Professional Help: Work with realtors and inspectors who have recent experience handling freehold transactions. Ask for references and local expertise.

4. Home Inspection: Verify structural integrity, plumbing, electrical, roofing, and insulation. According to a 2024 REIC audit, nearly 30% of buyers who skipped inspections faced post-purchase issues.

5. Purchase Offer & Legal Review: Include conditions like financing approval and a clean title. Use a real estate lawyer to verify boundaries and easements.

6. Closing: Final steps include land transfer tax payment, mortgage registration, and home insurance activation.

Popular Markets for Freehold Townhouses in 2025

• Toronto (Suburban Zones) – Demand is highest in Scarborough North, Etobicoke Centre, and Rouge Park. The average freehold unit now sells in under 22 days.

• Ottawa – Barrhaven, Kanata, and Riverside South are seeing inventory shortages. Prices have increased 10% YTD.

• Calgary – Freehold townhouses in Mahogany and Legacy are priced between $580K and $640K, making them accessible for dual-income households.

• Hamilton – Areas near the new Confederation GO Station saw double-digit growth in the past 12 months.

• Edmonton & Winnipeg – Suburban communities like Windermere (Edmonton) and Bridgwater Forest (Winnipeg) have seen more developers opt for fee-simple models.

Freehold Townhouses vs Other Property Types (Comparison Table)

Tips for First-Time Buyers

• Set Aside for Upkeep: Experts suggest budgeting 1%–3% of property value annually for maintenance and improvements.

• Understand Local Tax Burdens: Ontario’s land transfer tax can exceed $10,000 on a $700K home. Use online tools to estimate your costs.

• Read the Parcel Register: Confirms whether the land is encumbered or clean. You can order it from your province’s land registry.

• Check Local Development Plans: Avoid properties near future industrial zones or high-traffic roads.

• Confirm Utility Access: Ensure that power, gas, water, and sewage access is not shared or restricted by neighbouring easements.

• Leverage Government Incentives: First-Time Home Buyer Incentive (FTHBI) can help reduce initial loan burden by 5%–10%.

Final Thoughts

Choosing a freehold townhouse in Canada means prioritizing independence, property control, and long-term ownership benefits. With nearly half of all new townhouse listings in 2025 falling into the freehold category, Canadians are increasingly opting out of condo-style restrictions. For buyers looking for flexibility without moving into a detached house, this remains a practical middle-ground with solid growth potential.