Monthly Homeownership Costs at a Glance
- Monthly costs go well beyond your mortgage payment.
- Include property taxes, insurance, utilities, maintenance, and any fees.
- Older homes and larger properties often cost more to maintain.
- A realistic budget protects you long after possession day.
Your Monthly Cost Checklist
- Mortgage principal and interest
- Property taxes, paid monthly through TIPP or your lender
- Home insurance
- Natural gas, electricity, water, sewer, and waste
- Internet and phone
- Condo fees or homeowners association fees
- Maintenance and repair savings
Budgeting for Maintenance
A common guideline is to set aside about 1% to 3% of your home's value each year for maintenance and repairs. Roofs, furnaces, hot water tanks, and appliances all have limited lifespans, and Calgary's hail and freeze-thaw cycles can add wear.
Utility Costs in Calgary
Winter heating costs can vary widely depending on the size, age, and efficiency of the home. Asking the seller for average utility bills can help you estimate.
Mortgage Default Insurance
If your down payment is under 20%, the insurance premium is usually added to your mortgage, increasing your monthly payment slightly.
A Simple Example
If your mortgage payment is $2,500, property taxes are $300 a month, insurance is $150, utilities are $350, and you set aside $300 for maintenance, your true monthly cost is about $3,600, not $2,500. Add condo or HOA fees if they apply. Running these numbers before you shop helps you set a price range you'll stay comfortable with.
Know Your Numbers Before You Buy
For any home we consider, I can help you gather the property taxes, condo fees, and other details so you can estimate your monthly costs before making an offer.
