What is an interim occupancy fee?
For an applicable Ontario new-condominium purchase, the buyer may take occupancy before title transfers at final closing. The monthly occupancy fee is distinct from a mortgage payment. Confirm the applicable statement and arrangements with the lawyer handling the purchase.
CAO’s Ontario guide identifies three components: monthly interest on the unpaid purchase-price balance at the prescribed rate, estimated municipal taxes and projected common expenses. This article provides an estimate from entered figures, not a determination of the currently prescribed rate or the amount legally payable.
The calculation: unpaid balance × annual rate ÷ 12
PLANNING FORMULA
Monthly interest estimate = unpaid purchase-price balance × entered annual rate ÷ 12.
Monthly occupancy estimate = interest estimate + monthly taxes + monthly common expenses.
Keep the time units consistent. A 5% annual rate is entered as 5% for this calculation, while the taxes and common expenses must be monthly figures. If your source gives an annual amount, convert and identify that assumption rather than silently mixing it into a monthly total.
The builder’s occupancy-fee statement governs. Use its applicable figures and ask the lawyer to reconcile any difference from a planning estimate. Do not use a quoted mortgage contract rate as a substitute for the required occupancy-rate input.
Fictional example: $3,083.33 per month
| Item | Entered amount or calculation |
|---|---|
| Unpaid balance | $560,000 |
| Annual interest rate | 5% — fictional test input |
| Monthly interest | $560,000 × 0.05 ÷ 12 = $2,333.33 |
| Monthly taxes | $300.00 |
| Monthly common expenses | $450.00 |
| Monthly estimate | $3,083.33 |
If these same fictional costs applied for four months, the planning total would be approximately $12,333.33 using unrounded monthly arithmetic. The four-month duration is another assumption, not a forecast of registration or closing. Reconcile actual statements and avoid multiplying a rough duration into a promise.
Try a different planning scenario
FREE ESTIMATOR / FICTIONAL STARTING VALUES
Change the four assumptions below. No name, address or account details are requested. This estimator does not look up rates or save your figures.
General information only — not legal or tax advice. Confirm with your lawyer. Sources checked October 19, 2026; verify current rules and the actual agreement before use.
Three questions to keep beside the estimate
- Where did each figure come from? Record the statement date and who confirmed it.
- How long are you budgeting for? Keep any assumed duration clearly separate from a confirmed closing date.
- What other cash is needed? Review moving, overlapping housing costs and additional closing costs without counting an amount twice.
An occupancy estimate does not assess affordability or replace financing advice. If figures change, update the working copy and explain which assumption changed. That makes the conversation more useful than simply replacing one total with another.
The Pre-Construction Buyer Kit includes an editable single-tab occupancy calculator plus a buyer guide, builder checklist, assignment explainer and deposit, closing-cost and upgrade planners. The files are designed for free Google Docs and Sheets; desktop Office was not independently tested.