Get a free, no obligation personal loan quote with rates as low as 6.99%
Get Started You can apply with no effect to your credit score

Beyond the typical closing costs, what are the other expenses associated with home ownership? Are you prepared for them? Do they fit into your monthly budget? What about time, can you devote the time required to maintain your home?

Let’s analyze this further.

Recurring Costs:

Once again, we are analyzing the costs of living in a home, not the closing, moving and legal costs. These costs are made up by:

– Yearly Property Taxes
– Yearly school taxes
– Home insurance
– Energy costs
– Other utility costs (e.g. water)
– Internet, cable, phone etc.
– Condo fees

budgeting for home ownership

The above amounts to hundreds of dollars that you would have to dish out monthly. Are you able to meet those expenses along with the expense of your mortgage?

Your property taxes can cost thousands of dollars a year (usually 1% of the value of your home). It is possible that your insurance costs can hit the 4-digit level as well.

With housing prices on the rise, does your budget account for potential increases in homeownership costs?

Other Potential Expenses:

Beyond your recurring yearly and monthly costs as a homeowner, you will find that there are many maintenance costs that your budget must account for.

You need to be prepared to cover the following costs:

– Roof maintenance
– Furnace break down
– Renovations/repairs
– Appliance replacements and repairs

The moral of the story? Despite all of the many expenses that come with home ownership you will have to set money aside for savings. This will protect you in the event of an unexpected maintenance cost and it will also protect you if ever you find yourself unemployed or at a loss in income.

Also, when budgeting, don’t forget to account for other expenses, these can include…

– Car payments
– Driver’s license renewal
– Winter tires
– Car repairs
– Clothing

Don’t let this scare you!

All of these expenses might seem daunting, but don’t let them scare you! They are the normal set of expenses that come with homeownership. They illustrate why budgeting is so important and why you need to ensure that the home you buy is the home you can afford.

If you are thinking of purchasing a home then speak with a Loans Canada home buying specialist. He or she will be able to help you set the appropriate budget for your home and mortgage so that you can focus on the things that matter most to you.

Caitlin Wood avatar on Loans Canada
Caitlin Wood

Caitlin Wood is the Editor-in-Chief at Loans Canada and specializes in personal finance. She is a graduate of Dawson College and Concordia University and has been working in the personal finance industry for over eight years. Caitlin has covered various subjects such as debt, credit, and loans. Her work has been published on Zoocasa, GoDaddy, and deBanked. She believes that education and knowledge are the two most important factors in the creation of healthy financial habits. She also believes that openly discussing money and credit, and the responsibilities that come with them can lead to better decisions and a greater sense of financial security.

More From This Author

Special Offers

More From Our Experts
Finder Awards Finalists: Personal Loans Customer Satisfaction Awards 2023

By Priyanka Correia
Published on September 25, 2023

Loans Canada is happy to announce it received the finalist award in the Best Personal Loan Search Platform category.
Square One Insurance Services Review

By Caitlin Wood

Looking for home insurance? Square One Insurance offers comprehensive policies that are flexible and can be customized according to your needs.
How To Get Preapproved For A Mortgage

By Chrissy Kapralos

How to get preapproved for a mortgage? Find out everything you need to know about mortgage preapprovals.
When Can I Tap Into My Home Equity?

By Lisa Rennie

Do you have equity built in your home? Wondering when you should leverage your home equity for cash? Find out when to tap into your equity?
What Your Credit Score Range Really Means

By Caitlin Wood

Wondering your credit score range really means? It means a lot to your wallet, your home, and your even your job. We have cracked the code.
What Is A G License Test?

By Lisa Rennie

Are you trying to getting your license in Ontario? Then you should find out what's on the G license test.
Canada Fed Deposit: Payment Dates And Eligibility 2023

By Corrina Murdoch

The Canada Fed Deposit or EFT Credit Canada appears on a bank statement. It happens when the federal government pays the CCB, CWB and
The Best Paying Jobs With The Government: No Degree Required

By Lisa Rennie

Are you looking for a high paying job but don't have a degree? Check out the CBSA salary and other government jobs.

Recognized As One Of Canada's Top Growing Companies

Loans Canada, the country's original loan comparison platform, is proud to be recognized as one of Canada's fastest growing companies by The Globe and Mail!

Read More

Why choose Loans Canada?

Apply Once &
Get Multiple Offers
Save Time
And Money
Get Your Free
Credit Score
Expert Tips
And Advice

Build Credit For Just $10/Month

With KOHO's prepaid card you can build a better credit score for just $10/month.

Koho Prepaid Credit Card