There are costs to consider when you are preparing a budget and planning how much you want to spend on a home. The following are some costs which will be associated with home ownership and should be taken into account. Any amounts noted are guidelines – ranges as actual costs vary based on a variety of factors from size of the home, age of the home and city where the home is located.

Realty Taxes

Property taxes are an unavoidable fact of life. While paying property tax is required, in some instances you do have choices in how you pay them – lump sum, quarterly or in installments. Some mortgage companies may include your property taxes in the sum of your monthly mortgage payment. Realty taxes range greatly based on the size of the property and where the home is located. Property taxes are listed on each MLS listing so you can factor the cost into your home selection process.


Home heating costs vary greatly depending on a variety of factors. Gas or oil-fired furnaces are more cost effective than electric heat. The size, age, style and amount of insulation in the home can also greatly impact heating costs. An apartment or small townhome will have significantly smaller heating bills than a larger detatched home. Billing can be monthly or every two months and can range from $75 to $250 per month or more. The factors affecting home heating should definitely be considered when arriving at your home choice.


Hydro costs vary based on usage. The larger the home and the more residents using the home, the higher the cost of hydro. Electric bills usually arrive every other month.


Insurance is mandatory when purchasing a home with a mortgage. Proof of insurance must be provided before the mortgage company will release funds to close your purchase. Home insurance is really quite economical, starting at around $500 per year.

Water & Sewage

Most homes in the GTA are now using water meters which precisely track water usage and each home is billed accordingly. Rates vary based on usage.


Every home requires repairs and maintenance from time to time. Plan on keeping a reserve of funds for any unexpected repairs. It happens.

Also, some mortgage lenders offer home warranty programs which warranty things like furnaces, central air, plumbing and electrical. Ask your lender to see if that option is available. 


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