Homeownership Costs

Learn what homeownership costs include in Canada, how to budget for them, and why they matter for sustainable and responsible home buying.

Homeownership Costs

May 22, 2025


What are Homeownership Costs?

Homeownership costs refer to the full range of ongoing expenses a homeowner must budget for after purchasing a property, beyond the mortgage payment.

Why Homeownership Costs Matter in Real Estate

In Canadian real estate, understanding the true cost of homeownership is essential for long-term affordability and financial stability. These costs include both predictable and variable expenses.

Typical homeownership costs include:
  • Mortgage payments (principal and interest)
  • Property taxes
  • Home insurance
  • Utilities (heat, hydro, water)
  • Repairs and maintenance
  • Condo fees (if applicable)
  • Landscaping and snow removal

Many first-time buyers underestimate these ongoing obligations. Over time, costs like appliance replacement, roof repairs, or rising utility bills can strain budgets if not properly planned for.

Lenders evaluate homeownership costs using ratios like Gross Debt Service (GDS) and Total Debt Service (TDS) to determine borrowing eligibility. Homeowners must also set aside emergency savings for unexpected expenses.

Understanding all homeownership costs ensures buyers make informed decisions, avoid financial stress, and protect their investment.

Example of Homeownership Costs

A homeowner budgets $2,400/month for their mortgage, plus $500 in taxes, $150 in insurance, and $300 for utilities and maintenance.

Key Takeaways

  • Goes beyond just mortgage payments.
  • Includes taxes, insurance, repairs, and bills.
  • Must be factored into affordability planning.
  • Impacts lender approval and financial health.
  • Requires consistent budgeting and savings.

Related Terms

  • Mortgage Payment
  • Property Tax
  • Home Insurance
  • Utilities
  • Maintenance Costs

Additional Terms

Public Realm Improvements

Public realm improvements are enhancements to public spaces such as sidewalks, parks, plazas, and streetscapes, often funded or contributed by. more

Mortgagee in Possession

A mortgagee in possession is a lender who takes control of a property after borrower default, but before foreclosure or power of sale. The lender. more

Lease Surrender Agreement

A lease surrender agreement is a negotiated contract between a landlord and tenant that ends a lease before its scheduled expiration. Terms may. more

Green Infrastructure

Green infrastructure refers to natural or engineered systems that manage stormwater, reduce heat, and improve sustainability in developments.. more

Escrow Holdback

An escrow holdback is a portion of funds withheld at closing and held in escrow until specific conditions are met, such as completion of repairs,. more

Underused Housing Tax

The Underused Housing Tax (UHT) is a federal annual 1% tax on the value of vacant or underused residential property owned by non-resident,. more

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