Hidden costs of home ownership that most people forget to budget for

CTV News

21-06-2025

Personal finance contributor Christopher Liew breaks down some of the most commonly forgotten costs of owning a home, so you can budget smarter, plan ahead, and step into homeownership with confidence. (gopixa / Getty Images)
Christopher Liew is a CFP®, CFA Charterholder and former financial advisor. He writes personal finance tips for thousands of daily Canadian readers at Blueprint Financial.
Are you planning to become a homeowner in the near future? One of the biggest mistakes that prospective buyers make is to focus solely on the estimated mortgage payment, while forgetting about the host of additional ownership expenses that can easily mount up to hundreds of extra dollars per month.
Below, I'll break down some of the most commonly forgotten costs of owning a home, so you can budget smarter, plan ahead, and step into homeownership with confidence.
It's not just about the mortgage
A recent report from Equifax Canada showed that an increasing number of homeowners are missing their mortgage payments. This is something that you really want to avoid if you want to keep your credit in good standing.
If you're a first-time buyer who's used to renting where you live, it's easy to start shopping for homes by their estimated mortgage price, the same as you may shop for apartments based on your monthly rental budget.
When you make the jump from being a renter to a homeowner, though, you'll be required to take on the full financial burden of many of the same responsibilities that your landlord used to take care of on their dime.
Overlooking these expenses can quickly stretch your budget and turn homeownership from a dream into a financial strain, trapping you in a living situation that you find difficult to afford.
What is considered a hidden cost in home ownership?
Each house is going to come with various associated expenses based on a number of factors, including:
How old or new the home is
What type of neighbourhood is the house in
The property under and around the home
The type of dwelling (condo vs house)
Some properties are lower maintenance, while others require constant upkeep. With this in mind, here are the potential expenses to watch out for as you begin your home-shopping journey.
1. Home insurance
Home insurance isn't legally mandated in Canada, but if you finance your purchase with a mortgage, your lender will nearly always require it, especially if your down payment is less than 20%. This protects their investment until you fully own the property
On top of that, if your down payment falls below 20%, you'll also need mortgage loan insurance, often called CMHC insurance when provided by the Canada Mortgage and Housing Corporation. It's required by law for high-ratio mortgages (i.e., those with more than 80% loan-to-value) and allows you to borrow up to 95% of the purchase price
2. Property taxes
Another inescapable expense is going to be your annual property tax. Failure to pay your property tax can result in your home being taken away by the government. The amount you'll be taxed is usually determined by the current estimated value of your property, which ca fluctuate significantly from one year to the next.
3. Everyday repairs
If you live in a recently built home, you likely won't have too many repairs to worry about, and much of the building and appliances may be covered by a limited warranty if a hiccup occurs.
However, if you live in an older home, you'll need to budget for maintenance and repairs such as:
Plumbing leaks
Electrical repairs
Roof or window leaks
Locks and door hinges
Railings, banisters, and stairs
If you're a DIY type of person with the tools, time, and knowledge to do your own repairs, you can save a lot of money here. If not, then you could easily find yourself paying $1,000 or more every year in simple household repairs.
4. Increased heating and cooling costs
If you're coming from renting a small, well-insulated apartment, you're going to notice a sizable increase in your monthly heating and cooling costs. Larger homes require more power to heat and cool.
There are a number of ways you can better insulate your home and reduce energy costs (some of which are also tax-deductible), but this is yet another expense you'll foot the bill for.
5. Roof replacement
A classic shingle roof will typically need to be replaced every 10 to 15 years. When purchasing a house, it's a good idea to ask the realtor or seller when the last time the roof was replaced. Depending on how big the roof is, replacement can cost anywhere between $5,000 on the low end to $20,000 or more on the high end.
6. Pest control and prevention
If you want to prevent a costly infestation, you'll want to periodically treat your home and property for pests. Compared to some of the other expenses on this list, pest control is more affordable.
A pest control company will typically visit your home on a monthly or quarterly basis, spray a few pesticides, and be on their way in less than an hour.
7. Appliance upgrades
Again, if you have a newer home, you likely don't need to worry about appliance upgrades. However, if you're purchasing an older home with older appliances, you need to weigh the possibility that appliances will need to be repaired or replaced in the near future.
Most appliances such as refrigerators, dishwashers, stoves, washers, and dryers have an average lifespan of 10 to 15 years when well cared for, but each can cost upwards of $500 or more to replace with a brand-new unit.
Finding the right home within your budget
All in all, between various monthly expenses and building an emergency savings account for major repairs, you could easily end up paying an extra $300 to $500 per month in addition to your mortgage. This means that a home with a $2,500 mortgage could really end up costing you $3,000 or more each month, skewing your annual budget by $6,000 per year.
Unlike renting, where you can easily downgrade and move to a cheaper unit at the end of your lease, you're stuck with your home and all of its expenses unless you want to go through the tedious and lengthy process of selling your home.
To ensure you don't end up with more home than you can afford, create an estimated list of expenses for each home you're considering, and then add that to the estimated mortgage price.
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