Is freehold better than leasehold?

For most buyers, yes, because you own the land permanently with no ground rent or expiring lease. Leasehold can still suit certain budgets or locations, but it carries more long-term considerations.

Do freehold owners still have rules to follow?

Yes. Even with freehold you must follow municipal zoning, building codes, and any registered easements. Freehold gives broad rights, but not unlimited freedom to do anything on the land.

Are freehold townhouses fully freehold?

A true freehold townhouse means you own your unit and the land beneath it. Some townhouses are condominium or common-element setups instead, so always confirm the ownership type on title.

Mortgage Glossary

What is Freehold?

Freehold is a form of ownership in which you own both the building and the land it sits on, indefinitely. Often called fee simple, it is the most complete type of property ownership in Canada. As a freehold owner you control the property without an end date and without paying ground rent to a landowner.

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Quick answer

Also known as: fee simple, freehold ownership

Key points

Freehold means you own both the building and the land indefinitely.
It is also called fee simple, the most complete form of ownership.
There is no ground rent and no lease term to expire.
Most detached and semi-detached homes in Canada are freehold.
Freehold is typically the simplest ownership type to finance and resell.

Freehold explained

Freehold ownership means the title to the land and any structures on it belongs to you outright, with no fixed term. You are responsible for the property, including maintenance, property tax, and insurance, but you also enjoy the broadest set of rights an owner can hold, subject only to municipal rules like zoning and any registered easements.

Most detached houses, semi-detached homes, and freehold townhouses in Canada are sold this way. Freehold contrasts with leasehold, where you own a building or unit but lease the land for a set period. Because freehold has no expiry, it tends to be simpler to finance and is the ownership type most lenders are most comfortable with.

What a Freehold is for

Freehold exists to give owners full, lasting control over their land and home. It lets you renovate, rebuild, or sell on your own timeline without seeking a landowner's permission or worrying about a lease running out, making it the foundation of traditional home ownership in Canada.

How it can help you

Freehold ownership simplifies financing because lenders value the certainty of permanent, unencumbered land. There is no lease term shrinking over time to complicate appraisals or resale. Lenderoo shops 40+ lenders for free, so when you buy freehold you can compare straightforward mortgage options without the extra conditions leasehold properties can attract.

When it comes up

Freehold matters when a family compares a detached freehold house against a leasehold condo. The freehold home means they own the land permanently and can extend or rebuild later, which appeals to buyers planning to stay long term and pass the property on.

Example: freehold versus ground rent

You buy a freehold detached home for $700,000. Your ongoing costs are your mortgage, property tax of roughly $5,000 a year, insurance, and upkeep, with no ground rent owed to anyone.

A comparable leasehold home down the street lists for $620,000 but carries $450 a month in ground rent, about $5,400 a year, plus a land lease with 40 years left. Over a decade that ground rent alone adds about $54,000, and the shrinking lease can weigh on resale, which is why the freehold often justifies its higher price.

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Questions & answers

Freehold: frequently asked questions

Common questions Canadians ask about freehold.

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Related mortgage terms

Leasehold

Owning a property or unit while leasing the land it sits on for a set term.

Read definition

Title

The legal record of who owns a property and any claims or charges registered against it.

Read definition

Zoning

Municipal rules governing how a property and its land can be used.

Read definition

Condo Fees (Maintenance Fees)

Monthly fees condo owners pay for shared expenses and reserves.

Read definition

Property Tax

An annual tax on real estate charged by your municipality.

Read definition

Back to full glossary

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Mortgage Glossary

What is Freehold?

Find my best mortgage Back to glossary

Quick answer

Also known as: fee simple, freehold ownership

Key points

Freehold means you own both the building and the land indefinitely.
It is also called fee simple, the most complete form of ownership.
There is no ground rent and no lease term to expire.
Most detached and semi-detached homes in Canada are freehold.
Freehold is typically the simplest ownership type to finance and resell.

Freehold explained

What a Freehold is for

How it can help you

When it comes up

Example: freehold versus ground rent

You buy a freehold detached home for $700,000. Your ongoing costs are your mortgage, property tax of roughly $5,000 a year, insurance, and upkeep, with no ground rent owed to anyone.

Have a question about freehold?

Lenderoo shops 40+ lenders for free and matches you with a mortgage professional who explains every term — and finds your best rate.

Get pre-approved free Talk to an expert

Questions & answers

Freehold: frequently asked questions

Common questions Canadians ask about freehold.

Keep learning

Back to full glossary

Understand your mortgage with confidence

Lenderoo shops 40+ lenders for free and pairs you with a mortgage professional who keeps the jargon simple — and gets you a great rate.

Find my best mortgage Explore the glossary