Why Condos May Be Easier to Buy (and Sell) Again

Neel Midha • April 14, 2026

For the past few years, condos have been one of the more challenging parts of the market. Not because people didn’t want them, but because financing became harder.

A big part of that came down to insurance requirements at the building level. Many condos didn’t qualify for standard financing, which made it harder (and sometimes impossible) for buyers to get a conventional mortgage.

That led to:

Deals falling apart
Buyers walking away
Listings sitting longer than expected

What’s Changed

There have been a few key updates recently that are starting to shift this—and they’re meaningful.

1. Higher Deductibles Are Now Allowed

Previously, if a building’s insurance deductible was too high, it could make the entire property ineligible for financing.

👉 That threshold has now changed.

Buildings can now have per-unit deductibles up to $50,000, as long as the buyer’s personal insurance (HO-6 policy) covers the difference.

What this means:

Some buildings that didn’t qualify before may now be financeable again.

2. Roof Coverage Just Got Easier

This was one of the biggest “deal-killers.”

Before, buildings were often required to carry full replacement cost coverage for roofs, which in many cases became too expensive or simply unavailable. That requirement has been relaxed.

Buildings can now use actual cash value (ACV) coverage, which is more common and more affordable.

What this means:

This creates greater flexibility in how buildings are insured, removing one of the bigger hurdles that was preventing some condos from qualifying.

3. Less Red Tape on Insurance Requirements

There was also a requirement called “inflation guard,” which automatically increased insurance coverage over time. That’s no longer required.

What this means:

Lower costs and fewer administrative hurdles for HOAs—and fewer reasons for a deal to fall apart.

What This Means in Practice

These changes don’t fix everything overnight.

But they do open the door.

Some condos that were previously difficult to finance may now be back in play
Some deals that didn’t work before might work today
Buyers may have more options than they did just a few months ago

Why This Matters Right Now

At the same time:

mortgage rates remain elevated
buyers are more selective
some listings are sitting longer

That combination creates opportunity.

If financing becomes easier in parts of the condo market while competition remains lower, buyers who are prepared may find better options—and more room to negotiate.