Freehold vs. Leasehold
Compare freehold and leasehold ownership in Canadian real estate, and learn how each affects control, cost, and long-term property value.
May 22, 2025
What is Freehold vs. Leasehold?
Freehold and leasehold are two types of property ownership structures in Canadian real estate, differing in rights, responsibilities, and ownership duration.
Why Freehold vs. Leasehold Matters in Real Estate
Understanding the difference between freehold and leasehold is critical for buyers evaluating long-term property value and control.
Freehold: The owner has full ownership of the property and the land it sits on. They can make most decisions without third-party approval, subject to local zoning and laws.
Leasehold: The buyer owns the home but leases the land from another party (such as a government, developer, or First Nations band) for a set term, typically 50–99 years.
Freehold Pros:
- Complete control over property
- No ground rent or renewal issues
- Often lower purchase price
- Can access land in premium areas
Leasehold properties may have restrictions on modifications, resale conditions, or escalating lease payments. They can also be harder to finance or resell, especially near the end of a lease term.
Knowing the ownership structure helps buyers assess risk, financing, and long-term suitability — especially in cities with government-owned land.
Example of Freehold vs. Leasehold
A buyer purchases a condo on leasehold land in Vancouver. They own the unit but must renew the land lease in 40 years or risk losing residency rights.
Key Takeaways
- Freehold = full land and property ownership.
- Leasehold = ownership of building, not land.
- Leasehold may involve fees and renewal risks.
- Freehold provides long-term control.
- Affects financing, resale, and legal rights.
Related Terms
- Ownership Title
- Condo
- Land Lease
- Property Rights
- Zoning
An overview of Hedge Road Landing. (Alliance Homes)
6525 Mississauga Road and its surrounding context. (RBC Capital Markets & CBRE)
Property details for 6525 Mississauga Road. (RBC Capital Markets & CBRE)
National average resale-price growth and housing-starts growth, smoothed over three months. The comparison illustrates the cycle; it does not establish how much a price change causes construction to change.
Trailing 12-month starts in centres of 50,000 or more remove the usual monthly seasonality. Ownership combines the homeowner and condominium categories; rental is shown separately.
Six-month averages of provincial starts, expressed at annual rates. The smoothing reduces the influence of individual apartment projects.
The same August benchmark compared with two different starting points. Three-month changes are not annualized.
Average sale prices show the difference in purchase costs across markets. They do not measure affordability relative to local incomes or construction costs.
Newfoundland and Labrador remains above its pre-pandemic sales pattern, but August activity was below last year. Historical lines retain their original release vintages.
Average and median describe different aspects of the same month’s transactions. Both are affected by the mix of homes sold.
Category averages compare different homes and locations; the gaps are not estimates of the cost to upgrade an otherwise identical property.
The five categories shown account for 5,000 of the board’s 5,057 sales. The remaining 57 transactions were in other housing categories.
Monthly observations are not seasonally adjusted. Active listings count properties available at month-end; they are not construction inventory.
Average and median prices share one dollar axis. These unadjusted transaction measures do not control for changes in the homes sold.
TRREB’s 416/905 categories compare the apartments sold in each area. The difference does not isolate a location premium for equivalent units.
Highlights from the Delta Golf & Country Club listing brochure. (Colliers)