The Hidden Costs of Homeownership (and How to Budget for Them)

The Hidden Costs of Homeownership (and How to Budget for Them)

Buying a home is exciting — but if you think your only ongoing expense is the mortgage, think again. Owning a home comes with a handful of “hidden” costs that can surprise new homeowners (and even trip up seasoned ones). The good news? With a little planning, you can budget for them and keep your financial house in order.

1. Property Taxes

Every homeowner pays property taxes, and in British Columbia and Alberta, these can range from a few thousand to well over $10,000 a year depending on your property’s value and location.
Tip: Check your city’s property tax estimator and set aside a monthly amount so you’re not scrambling when the bill arrives.

2. Strata or Condo Fees

If you own a condo or townhouse, strata fees cover building insurance, common-area maintenance, and amenities. But remember: these fees can (and usually do) go up over time.
Tip: Review the building’s depreciation report — it’s a sneak peek at future costs that may be passed along to owners.

3. Home Insurance

Lenders require it, but even if they didn’t, you’d want it. The cost depends on the type of property, location, and coverage level. Don’t forget extra riders if you need earthquake coverage in BC or sewer back-up protection.
Tip: Shop around — bundling with auto insurance can often save you money.

4. Maintenance & Repairs

Think leaky faucets, roof repairs, or replacing your hot water tank. A good rule of thumb is to budget 1–3% of your home’s value each year for upkeep. That $800,000 home? Plan for $8,000–$24,000 annually in maintenance.
Tip: Open a separate “home repair savings account” so the money’s there when something breaks.

5. Utilities & Services

Hydro, gas, water, garbage, internet — it all adds up. Many new homeowners are surprised when these costs exceed their rental utility bills.
Tip: Call local providers before you move in to get an estimate so you can budget realistically.

6. Renovations & Upgrades

Most homeowners eventually want to update their space — whether it’s a new kitchen, backyard deck, or basement suite. These projects can add value, but they can also come with hefty price tags.
Tip: Consider financing options like a refinance or HELOC if you want to spread the cost over time.

Budgeting Smarter

The key to homeownership peace of mind is planning ahead. Instead of treating these costs as “unexpected,” make them part of your regular budget. Break annual expenses down into monthly amounts and tuck them away in savings.

Final Thought

Your mortgage may be your biggest expense, but it’s not your only one. The real winners in homeownership are those who plan ahead for the hidden costs — and come out financially stronger because of it.

✅Not sure how these costs fit into your financial picture? I can help. Reach out for a free mortgage and equity review, and we’ll make sure your budget is working as hard as you are.

Rob Skoko

📞 604.771.4085
📧 rob@skoko.ca
🌐 skokomortgages.ca