The true cost of homeownership includes your mortgage payment plus property taxes, insurance, utilities, maintenance, repairs, and long-term upgrades.

1. Your mortgage payment is just the starting point

Your mortgage is usually the biggest monthly cost, but it’s not the only one. To understand the real cost of owning a home, it helps to look at both predictable expenses and the less obvious ones.

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2. The predictable monthly costs

  • Property taxes: often $200–$500 per month, depending on location
  • Home insurance: typically $60–$120 per month
  • Utilities: heating, electricity, water, and internet
  • Mortgage insurance (if applicable): CMHC premiums for low down payments

These costs are easy to overlook when calculating affordability. Adding them together gives a more realistic monthly baseline.

3. The hidden yearly costs every homeowner faces

Homes naturally wear down over time. A common planning guideline is the 1%–3% rule: set aside 1%–3% of your home’s value each year for maintenance and repairs.

  • $400,000 home → roughly $4,000–$12,000 per year

You won’t spend this every year — but when something big happens, you’ll be glad you planned ahead.

4. Common repair costs (to set expectations)

  • Roof replacement: $6,000–$12,000+
  • Windows: $300–$1,000 each
  • Water heater: $1,200–$2,000
  • Heat pump: $3,500–$7,500+ (after rebates)
  • Plumbing fixes: $150–$600
  • Appliances: $800–$2,500 each

Knowing the rough ranges helps avoid panic when repairs come up.

5. Renovations: the “optional but likely” costs

Even if a home is move-in ready, most families eventually spend money on:

  • Painting and cosmetic updates
  • Flooring replacements
  • Basement improvements
  • Decks, fencing, and landscaping
  • Kitchen or bathroom upgrades

These aren’t emergencies — but they’re common, and often arrive sooner than expected.

6. The opportunity cost of owning a home

When more of your cash flow goes toward home expenses, you may have less available for TFSA, RRSP, or RESP contributions. This doesn’t make homeownership a bad choice — it simply means planning matters.

Paying down your mortgage vs investing

7. How to budget realistically (without stress)

  • Set aside 1%–3% annually for maintenance and repairs
  • Keep a separate emergency fund for non-home surprises
  • Review major components (roof, windows, heating) and timelines
  • Use windfalls wisely — refunds, bonuses, or surplus income

Quick reminder: Homeownership includes both predictable costs and occasional surprises. This guide offers general education, not personalized advice. For major decisions, consider speaking with a qualified professional.

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