Housing Costs
Understand housing costs in Canadian real estate, what’s included, how they affect mortgage approval, and why they matter for budgeting.
May 22, 2025
What are Housing Costs?
Housing costs refer to the monthly expenses directly related to owning or renting a home, including payments, taxes, utilities, and maintenance.
Why Do Housing Costs Matter in Real Estate?
In Canadian real estate, housing costs are a critical part of affordability calculations. Lenders use these figures to determine mortgage eligibility through the Gross Debt Service (GDS) ratio.Housing costs typically include:
- Mortgage principal and interest payments
- Property taxes
- Heating expenses
- 50% of monthly condo fees (if applicable)
Understanding housing costs is essential for evaluating financial readiness, comparing properties, and passing lender affordability tests.
Example of Housing Costs in Action
A condo buyer’s housing costs include $1,600 in mortgage payments, $200 in taxes, $100 in heating, and $150 in condo fees — totaling $2,075 per month.
Key Takeaways
- Recurring monthly expenses tied to housing.
- Used in mortgage affordability calculations.
- Includes mortgage, taxes, heat, and condo fees.
- Helps define budget and lender limits.
- Must be accurately estimated before buying.
Related Terms
- Debt Service Ratios
- Mortgage Qualification
- GDS
- TDS
- Housing Affordability
