The True Cost of Homeownership: What You Pay Beyond the Mortgage
When many new Canadian homebuyers calculate whether they can afford a new home, they focus almost exclusively on one number: the monthly mortgage payment. It’s the figure lenders use for the mortgage stress test, the number real estate agents discuss during showings, and the benchmark buyers use to determine their budget.
However, the mortgage is only the starting line. Homeowners also pay for property taxes, insurance, utilities, strata special levies, surprise repairs, and ongoing maintenance. According to housing cost breakdowns from Ratehub, these non-mortgage expenses can easily add $1,500 or more per month on top of the mortgage, depending on the home and location. When you factor in these costs, a $3,000 monthly mortgage can quickly push total housing expenses well beyond $4,500 per month.1
So while qualifying for a mortgage answers one question, “Can a bank trust you with this loan?”, it doesn’t answer the more important one: “Can you comfortably maintain this lifestyle?”
In today’s market, about one in four Canadian homebuyers report experiencing at least some post-purchase regret.2 While most homeowners remain satisfied, research shows that regret often emerges when the true cost of ownership—such as maintenance, repairs, and ongoing living expenses—was higher than expected. To reduce the risk of buyer’s remorse, it’s critical for homebuyers to plan not just for the mortgage payment, but for the full cost of living in the home.
The Predictable Ongoing Costs
Property Taxes
Property tax bills have been rising in many Canadian cities as municipalities work to fund infrastructure and services. In 2024, the median year-over-year change in property tax rates among 24 major Canadian cities was about 4.9 percent, with some regions experiencing even greater increases.3
Property taxes aren’t fixed. Reassessments and rate changes happen regularly, and as neighbourhood values rise, so do tax bills even when the rate stays the same.
Home Insurance
As of 2026, home insurance premiums in Canada have entered a “new normal.” Record weather-related losses in 2024, combined with higher rebuilding and replacement costs, continue to push insurers to raise rates and reassess risk across many regions.4
In provinces like Alberta, home insurance premiums have increased by nearly 90% over the past decade, with similar upward pressure emerging nationwide.5 As insurers recalibrate risk at the postal-code level, homeowners can see their premiums rise $100–$200 per month in a single year—even without making a claim or changing coverage.
Condo and Strata Fees
For buyers entering the condo market, monthly fees typically range from $0.60 to $1.00 per square foot, depending on the building and amenities.6 These fees are mandatory and are used to fund day-to-day operations as well as long-term reserve funds for major repairs.
Unlike the US where HOA fees are often optional community amenities, Canadian condo fees are mandatory contributions that prevent catastrophic special assessments later.
Utilities
Homeowners should budget between $250 to $600 monthly for utilities including electricity, heating, water, internet, and phone services, with costs varying based on your home’s size and location.1
These expenses often come as a surprise to first-time buyers, particularly those transitioning from apartment living where some utilities may have been included in rent. Larger homes naturally require more energy for heating and cooling, while properties with outdoor spaces may see higher water usage during warmer months.
The “Commuter Tax”
There’s also what might be called “the commuter tax.” Moving to suburban markets for a cheaper house can increase gas and transit costs that often negate the mortgage savings. That $300,000 price difference disappears quickly if you’re spending an extra $400 monthly on GO Transit or gas.
Routine Maintenance
Beyond emergencies, Canadian homes require ongoing care: lawn service, gutter cleaning, pest control, HVAC servicing, snow removal, and seasonal tasks. These aren’t luxuries for many households—they’re practical solutions to time constraints and property upkeep in Canada’s demanding climate. Collectively, these services can add $200-400 monthly to ownership costs.
The Irregular—but Inevitable—Expenses
Major System Replacements
This is where many Canadian homeowners get caught off guard. Maintenance and repairs aren’t a matter of if but when—and rising labour and material costs have made these repairs significantly more expensive in recent years.
According to Statistics Canada and industry cost reports, home repair and maintenance costs have increased materially since 2018, driven by construction inflation and labour shortages.7 As a result, homeowners are commonly advised to budget 1%–2% of their home’s value annually for maintenance and long-term repairs.8
Major system replacements can add up quickly:
- Roof replacement: $8,000–$15,000+9
- HVAC (furnace or heat pump): $5,000–$12,00010
- Water heater: $1,200–$2,50011
- Foundation repairs: $4,000–$15,000+12
These aren’t hypothetical expenses—they’re inevitable over time, with uncertain timing and rising costs.
Use the inspection as a planning tool. A 15-year-old furnace or aging roof signals $8,000-15,000 in likely expenses within the first few years. That’s not a deal-breaker—it’s a budget roadmap. Buyers who understand these timelines can plan strategically instead of scrambling when systems fail.
Canada’s climate makes this worse. The “freeze-thaw” cycle destroys Canadian roofs, driveways, and foundations faster than most international climates. A roof that might last 25 years in Arizona needs replacement after 15-18 years in Winnipeg.
Newer isn’t maintenance-free. Newer builds offer a temporary reprieve, but systems still age, warranties expire, and eventually every home requires major capital improvements.
Emergency repairs happen at the worst times. An HVAC failure during a prairie cold snap, a burst pipe in winter, or ice dam damage to the roof—these scenarios happen when it’s least convenient and most expensive. Without liquid reserves, a single emergency can derail finances entirely.
Ownership Costs That Creep Up Over Time
Here’s what surprises many first-time Canadian buyers: the so-called “fixed costs” of homeownership aren’t actually fixed.
While a locked-rate mortgage provides payment stability for your term (typically 5 years in Canada), the other components—taxes, insurance, and condo fees—can climb significantly year over year due to inflation, climate risk, and local policy changes. A mortgage payment that felt comfortable at closing can feel tight three years later, even without lifestyle changes.
The “2026 Renewal Wall” presents a significant challenge for Canadian homeowners. Approximately 60% of all outstanding mortgages in Canada are expected to renew in 2025 or 2026, with many owners facing substantial payment increases.13 Unexpected costs go beyond just maintenance and repairs. Many homeowners will experience sticker shock when their mortgage payments reset at higher rates upon renewal.
The same gradual creep affects utilities, maintenance services, and every other aspect of homeownership.
Planning Smarter: How Canadian Homeowners Can Stay Ahead
The encouraging news: buyer’s remorse is largely preventable. The issue isn’t buying the wrong house—it’s buying without adequate financial preparation for what homeownership entails.
Create a Dedicated House Repair Fund
Separate from emergency savings, this fund exists solely for home maintenance and repairs. Treat it like a non-negotiable monthly bill—set up automatic transfers so it happens without thinking about it.
The old rule of saving 1% of your home’s value annually for repairs? It’s proving insufficient for some homeowners, particularly those with older properties or homes experiencing extreme weather. Aim for 2% if possible. For a newer home with recent updates, less might suffice. For an older property or one with systems nearing end-of-life, you’ll likely need to plan for greater costs.
Don’t Drain Your Savings at Closing
Cash reserves protect against surprises and prevent forced debt when repairs arise. If possible, keep a liquid emergency repair fund after closing rather than putting every available dollar into the down payment or immediate renovations. That breathing room matters more than most buyers realize.
Invest in Preventative Maintenance
Annual furnace servicing, gutter cleaning, and seasonal inspections catch small problems before they become expensive emergencies. A modest service call that prevents a major system failure is always worthwhile.
Create a seasonal maintenance calendar: HVAC checkups in spring and fall, gutter cleaning before winter, roof inspections after major storms. Consistency prevents costly surprises.
Leverage Canadian Tax Advantages
Consider leveraging Canadian tax advantages to build these reserves. First-time buyers should keep their FHSA (First Home Savings Account) open after purchase, or use the tax refund generated by it to seed their repair fund. The tax benefits you received while saving for the down payment can continue working for you as a homeowner.
Know Your Home’s Systems and Timelines
Understanding when major systems were last replaced helps predict future expenses. A 15-year-old water heater isn’t an emergency today, but it signals a likely expense within the first few years of ownership. Planning beats scrambling.
Why Homeownership Still Makes Sense
Despite the expenses, homeownership remains one of the most powerful wealth-building tools available to Canadian families—when approached correctly.
Long-Term Equity Building
Mortgage payments build equity with every payment. Unlike rent, ownership creates a forced savings mechanism that compounds over decades. In most markets, homes appreciate over time, multiplying the wealth-building effect.
Stability and Control
Homeowners control their living environment. Want to renovate the kitchen, paint the walls, landscape the yard, or install solar panels? Ownership provides autonomy that renting never will. That control has both lifestyle and financial value.
Predictability vs. Rent Volatility
While ownership costs rise gradually over time, rent increases can be sudden and dramatic. A fixed-rate mortgage provides a level of predictability that the rental market cannot match.
Yes, taxes and insurance increase, but the principal and interest portion—typically 60-70% of the total payment—remains locked for your term. Renters face volatility on 100% of their housing costs.
Lifestyle Benefits
Beyond finances, homeownership offers intangible benefits: deeper community roots, stability for families, space for hobbies, and the pride of building something that’s truly yours. These benefits have real value, even if they don’t appear on a balance sheet.
The key is ensuring the financial foundation supports the lifestyle, not undermines it.
A Better Way to Think About Affordability
The true measure of affordability isn’t what a lender will approve—it’s what allows you to sleep well at night when the furnace fails or your mortgage comes up for renewal.
The smartest buyers calculate affordability as “mortgage plus carrying costs” from the start. This might narrow the price range slightly, but it creates breathing room and peace of mind that makes a house feel like a home.
Homeownership remains one of the most powerful wealth-building tools available to Canadian families, but only when approached with financial realism rather than maximum leverage. Having an honest conversation about what affordability truly looks like isn’t about limiting dreams—it’s about making sure those dreams don’t become financial nightmares.
Sources:
- Ratehub — Additional Monthly Costs of Homeownership
https://www.ratehub.ca/additional-monthly-costs - Wahi 2024 Homeowner Happiness Survey — Wahi
https://wahi.com/ca/en/learning-centre/real-estate-101/buy/wahi-2024-no-regrets-homebuyer-survey/ - Zoocasa, Canada’s Property Taxes 2024 National Snapshot
https://www.zoocasa.com/blog/canadas-property-taxes-2024/ - Harvard Western Insurance — Weather Damage Drives House Insurance Rates Up in Canada
https://harvardwestern.com/weather-damage-drives-house-insurance-rates-up-in-canada - Pembina Institute — How Governments and Insurers Can Help Lower Soaring Home Insurance Costs
https://www.pembina.org/blog/how-governments-insurers-can-help-lower-soaring-home-insurance-costs - Precondo — Maintenance Fees for Condos in Canada
https://precondo.ca/maintenance-fees-for-condos/ - Statistics Canada — Which households need repairs, and how much more do they cost?
https://www.statcan.gc.ca/o1/en/plus/7347-which-households-need-repairs-and-how-much-more-do-they-cost - Ratehub — How Much Should You Budget for Home Maintenance?
https://www.ratehub.ca/blog/how-much-does-home-maintenance-cost/ - Homestars — Roof Replacement Costs in Canada
https://www.homestars.com/cost-guides/roofing/roof-replacement-cost/ - Custom Contracting — How Much Does HVAC Installation Cost in Ontario?
https://www.custom-contracting.ca/blog/how-much-does-hvac-installation-cost-in-ontario - HomeAdvisor (Canada) — Water Heater Installation Cost
https://www.homeadvisor.com/cost/plumbing/install-a-water-heater/ - Homestars — Foundation Repair Costs
https://www.homestars.com/cost-guides/foundations/foundation-repair-cost/ - Bank of Canada — How Will Mortgage Payments Change at Renewal? (Staff Analytical Note 2025-21)
https://www.bankofcanada.ca/2025/07/staff-analytical-note-2025-21/
