The mortgage payment is the largest monthly cost of owning a home, but not the only one. Property tax, insurance, utilities, maintenance and, in a condo, the monthly fees all come on top, and a lender counts some of them when it decides how much you can borrow. This page walks through each carrying cost and puts them together in a homeowner budget. It’s part of our mortgage payments hub.
The costs on top of the mortgage payment
| Cost | What sets it | Where to find your figure |
|---|---|---|
| Property tax | Your municipality’s residential rate × your home’s assessed value | Your assessment notice and the city’s tax rate; see property tax in Canada |
| Home insurance | Location, rebuild cost, age of the home, claims history, deductible | A quote for the specific home; see average home insurance costs |
| Utilities | Heating fuel, home size and age, local electricity and water rates | The seller’s past bills or the utility’s own estimate |
| Maintenance and repairs | Age and condition of the roof, furnace, windows and other systems | A home inspection report, then a yearly set-aside |
| Condo or strata fees | The building’s budget and reserve fund | The condo’s status certificate or disclosure documents |
| Internet and phone | Your plan | Your current bill |
Property tax
Property tax is the municipal rate times your assessed value, so two homes at the same price can pay very different amounts in different cities. For example, Calgary’s 2026 residential rate is 0.665% of assessed value and Edmonton’s is 1.036%. Rates and how they are applied differ by city; the property tax guide explains the calculation and links each city’s page, such as Toronto, Vancouver, Calgary, Ottawa and Montreal. Some homeowners pay it through the lender with each mortgage payment instead of paying the city directly; paying property tax through your mortgage covers the trade-offs.
Home insurance
No government body publishes an average home insurance premium, so a quote for the specific home is the only reliable figure. Condo owners insure the unit, its improvements and their liability, while the corporation insures the building; the condo insurance guide explains what each policy covers.
Utilities
Statistics Canada’s Survey of Household Spending for 2023 puts average household spending on water, fuel and electricity at $242 a month, and internet at $87. That average includes renters whose rent covers utilities, so a detached house usually costs more. Heating fuel matters most: a home heated with electricity, gas or oil can have very different winter bills. Ways to lower them are in saving on utilities.
Maintenance and repairs
A common rule of thumb is to set aside about 1% of the home’s value each year for maintenance and repairs, and more for an older home whose roof, furnace, windows or plumbing are near the end of their life. Spreading those replacements into a monthly amount keeps a single repair from landing on a credit card. The seasonal home maintenance checklist lists what to inspect and when.
Condo fees and special assessments
Condo fees pay for the building’s insurance, common areas, shared services and the reserve fund, and sometimes heat, water or parking. If the reserve fund can’t cover a major repair, owners can face a one-time special assessment; condo fees explained covers what the fees include and how to read the reserve fund study.
A homeowner budget at two income levels
Two households, each buying with 20% down at a fixed 4.5% over 25 years, in Calgary (property tax at the city’s rate, assuming the assessed value equals the price). Maintenance is set aside at 1% of the price a year. Insurance and utilities are example amounts; use your own quotes.
Household A: $100,000 gross household income, $500,000 home.
Household B: $150,000 gross household income, $700,000 home.
| Monthly cost | Household A | Household B |
|---|---|---|
| Mortgage payment (80% of the price borrowed) | $2,214 | $3,099 |
| Property tax | $277 | $388 |
| Home insurance | $150 | $175 |
| Utilities | $275 | $325 |
| Maintenance set-aside | $417 | $583 |
| Total housing | $3,333 | $4,570 |
| Per year | $39,996 | $54,840 |
| Share of gross income | 40.0% | 36.6% |
The share of gross income here is a budgeting view of everything the home costs. It isn’t the ratio a lender tests. For an insured mortgage, CMHC caps your housing costs at 39% of gross income (GDS) and your housing costs plus other debt payments at 44% (TDS); lenders set their own limits for uninsured mortgages. Those ratios count only some housing costs and are calculated at the qualifying rate, not the contract rate; the guide to GDS and TDS ratios shows what goes in each.
Fitting housing into the rest of the budget
One way to plan is to split take-home pay into categories, with housing (all-in, as in the table above) taking the largest share. The split below is an example, not a rule; the right shares depend on your income, city and other debts.
| Category | Share of take-home pay | On $6,000 a month | On $8,000 a month | On $10,000 a month |
|---|---|---|---|---|
| Housing (all-in) | 30% to 35% | $1,800 to $2,100 | $2,400 to $2,800 | $3,000 to $3,500 |
| Food and groceries | 10% to 15% | $600 to $900 | $800 to $1,200 | $1,000 to $1,500 |
| Transportation | 10% to 15% | $600 to $900 | $800 to $1,200 | $1,000 to $1,500 |
| Debt payments | 5% to 10% | $300 to $600 | $400 to $800 | $500 to $1,000 |
| Other insurance | 3% to 5% | $180 to $300 | $240 to $400 | $300 to $500 |
| Savings and investing | 15% to 20% | $900 to $1,200 | $1,200 to $1,600 | $1,500 to $2,000 |
| Personal and lifestyle | 5% to 10% | $300 to $600 | $400 to $800 | $500 to $1,000 |
| Buffer | 3% to 5% | $180 to $300 | $240 to $400 | $300 to $500 |
In high-cost cities, all-in housing can take a larger share than this, which leaves less for savings. The 50/30/20 budget rule is a simpler split into needs, wants and savings that some homeowners adapt by giving needs a larger share.
Where any money left over should go first, whether cash savings, the mortgage or investments, is covered in emergency fund vs paying down the mortgage and in paying down the mortgage vs investing, which also has the order many people use for extra cash.
First-year costs
The first year in a home usually costs more than later ones. Besides the closing costs paid on the purchase, new owners often pay for:
- moving (movers or a truck, supplies)
- repairs found after moving in
- furniture, appliances and window coverings for a larger space
- tools and outdoor equipment (a lawn mower, snow shovels)
- utility account setup and mail forwarding
Leaving room for these in the first year’s budget keeps them from crowding out the maintenance set-aside.
Signs the budget is under strain
| Sign | What it usually means |
|---|---|
| A credit card balance that grows each month | Spending is higher than income |
| Skipping maintenance to cover bills | Repairs will cost more later |
| No cash savings after the first year | One repair could turn into high-interest debt |
| Using a home equity line of credit for everyday costs | The home is being borrowed against to cover living expenses |
| No room to save for retirement | Housing is taking too large a share of income |
Related guides
- How often you pay and how much an accelerated schedule saves: mortgage payment frequency
- Payments for other loan sizes: mortgage payments by amount
- What a lender lets you borrow: mortgage affordability calculator
Sources
The figures and rules on this page come from these sources, last checked against them between September 24, 2026 and October 2, 2026. How we check facts.
- Bank of Canada: Conventional 5-year mortgage rate (data series)
- Bank of Canada: Conventional 5-year mortgage rate (data series)
- Bank of Canada: Conventional 5-year mortgage rate (data series)
- Bank of Canada: Data table
- City of Calgary: Property tax rates and bill calculation
- City of Edmonton: City of Edmonton - Historical Tax Rates
- CMHC: Calculating GDS / TDS
- CMHC: CMHC Purchase
- Statistics Canada: Household spending, Canada, regions and provinces