# How do 'Leasehold' condos differ for financing?

> Leasehold condos (common in BC and on university lands) mean you own the unit but lease the land the building sits on.

Category: Purchasing
Last verified: 2026-04-14
Source: https://ratellow.com/faqs/purchasing/how-do-leasehold-condos-differ-for-financing

## Answer
Leasehold condos (common in BC and on university lands) mean you own the unit but lease the land the building sits on. Lenders typically require the land lease to be at least as long as the mortgage amortization, often with a buffer of 5-10 years longer, but not necessarily 15-20 years longer. Interest rates for leasehold properties are typically 0.25-0.5% higher because the resale market is smaller.

## Related guide
- https://ratellow.com/guides/condo-mortgage-nuances

## Sources
- FCAC Condo Buying Guide — https://www.canada.ca/en/financial-consumer-agency/services/mortgages/renew-mortgage.html#toc3
- B-20 Condo Underwriting — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017#2.4.2