Buying a home is an exciting milestone—but beyond the purchase price and mortgage payments, many first-time buyers are surprised by the hidden costs of homeownership. Planning for these expenses in advance can help you stay on track financially and avoid stress down the road.
Below, we break down the key costs you’ll want to budget for—from property taxes to everyday living essentials.
Property Taxes
Property taxes are one of the more predictable ongoing costs of owning a home. While rates can increase from year to year, you’ll generally have a clear estimate based on your home’s assessed value. This makes property taxes easier to plan for compared to variable expenses.
💡 Pro Tip: Ask your real estate agent or mortgage professional for the annual property tax amount on a home before you buy—it’s typically included on listings.
Home Insurance
Home insurance is essential to protect your investment. It covers damage caused by fire, theft, weather, and more. The cost varies based on location, home value, and coverage level, but expect to pay anywhere from $800 to $2,000+ annually.
You may also want to bundle your home and auto insurance policies—this can lead to significant discounts.
Utility Bills (Hydro, Water, Gas, and Internet)
Once you move in, utilities become part of your monthly budget. These include:
Hydro (Electricity): Costs depend on the season and usage. Budget more during hot summers or cold winters.
Water and Sewer: Billed monthly or bi-monthly by your municipality.
Gas/Heating: If your home uses natural gas, expect seasonal fluctuations.
Internet/Wi-Fi: Set up your plan right after closing—reliable Wi-Fi is a must in any home.
💡 Set up pre-authorized payments for your utilities to stay organized and avoid missed bills.
Maintenance and Repairs
Unlike renting, when you own a home, you’re responsible for all repairs and upkeep. Common maintenance costs include:
Lawn care and snow removal
HVAC servicing
Roof or window repairs
Appliance maintenance or replacement
A good rule of thumb: Budget 1% of your home’s value annually for maintenance and repairs.
Closing Costs
Many buyers focus on their down payment but forget to factor in closing costs—these can add up quickly. Budget at least 1% of the purchase price to cover:
Legal fees
Land transfer tax
Title insurance
Adjustments (prepaid utilities, property taxes, etc.)
🔍 Don’t forget moving expenses! Hiring movers, renting a truck, or taking time off work are additional costs not typically included in your closing budget.
Everyday Living Costs
The cost of daily life often increases when you move into a new home, especially a larger space. Common items to budget for:
Groceries and food: Stocking up a new kitchen adds up. Plan ahead and buy in bulk to save.
Cleaning supplies: Mops, vacuums, sprays, and laundry products can easily be overlooked.
Toiletries and household goods: Toilet paper, soap, garbage bags, etc.
Furnishings and décor: Whether it’s curtains, a new couch, or light fixtures, many homes need a few upgrades after moving in.
💡 Search for deals and coupons, and take advantage of local bulk stores or membership warehouses to lower these ongoing costs.
Final Thoughts
Homeownership brings freedom and stability—but it also comes with a wide range of expenses that can sneak up if you’re not prepared. By understanding and budgeting for these hidden costs, you’ll be better equipped to enjoy your new home without financial surprises.
👉 Need help creating a budget before you buy? We’re here to guide you every step of the way.