Common Costs of Homeownership | Toronto Real Estate
10 Common Costs of Homeownership in Toronto
Understanding the common costs of homeownership in Toronto helps you avoid surprises and plan for long-term financial stability.
Key Takeaways:
- Toronto’s property taxes are low, but home values make annual costs significant.
- Utility bills, insurance, and internet quickly add up for new homeowners.
- Unexpected repairs and regular maintenance are often overlooked in budgets.
- Condo or road fees can range widely depending on the property type.
Before You Buy
Homeownership in Ontario requires more than a down payment. Be ready for closing costs, ongoing expenses, and maintenance. In Toronto, the minimum down payment is 5% (insured) or 20% (uninsured). Government programs like the Home Buyers' Plan (HBP) allow you to withdraw up to $35,000 from your RRSP for your first home. Speak to a real estate professional to explore these options.
Top 10 Common Costs of Homeownership
1. Property Tax
Toronto’s residential property tax rate sits around 0.66%—one of the lowest in Ontario—but high property values can still lead to annual bills in the thousands. You can pay in installments or through your lender.
2. Energy Costs
Expect monthly electricity and heating bills to fluctuate with the season. For a Toronto home, Hydro costs typically range between $125–$250/month. Ask sellers for past utility bills before you buy.
3. Internet, Phone & Cable
In Toronto, bundled services from providers like Rogers or Bell can average $150–$250/month depending on your usage. Consider streamlining plans to cut costs.
4. Home Insurance
Protect your property from theft, fire, and liability. In Toronto, home insurance can cost around $900–$1,500/year depending on your location and coverage level.
5. Condo or Private Road Fees
Condos in Toronto come with monthly fees from $400 to over $1,000, covering maintenance, security, and amenities. Freehold townhomes on private roads may also charge road maintenance fees.
6. Transportation Costs
Whether you're driving or taking the TTC, commuting in Toronto adds up. A monthly TTC pass is $156, while fuel and parking downtown can easily top $300/month.
7. Security Monitoring
Basic home alarm monitoring starts at $25/month, while smart security systems with video surveillance and app controls can cost up to $80/month.
8. Routine Maintenance
Even small upkeep adds up. Budget at least $100/month for regular tasks like furnace filter changes, gutter cleaning, and seasonal tune-ups.
9. Landscaping & Snow Removal
Toronto homeowners often outsource lawn care and snow clearing. Expect $40–$100 per visit, or save by DIY—just factor in equipment and time.
10. Major Repairs
Set aside 1% of your home’s value annually for long-term fixes like roof replacement or HVAC repairs. For a $900K home in Toronto, that’s $9,000/year on average.
Bottom Line
Understanding the common costs of homeownership is key to making a smooth transition from renter to homeowner. By planning ahead, you can protect your investment and enjoy life in your new home with confidence.
Thinking of buying in Toronto or the GTA? Call Ken now or contact him here!
Ken Matsumoto
Sale Representative
A highly successful and experienced real estate agent, Ken has been serving clients in the Greater Toronto Area for almost two decades. Born and raised in Toronto, Ken’s passion for helping people find their dream homes and investment properties has been the driving force behind his success. He has a deep understanding of the local real estate market, and his extensive knowledge and experience have earned him a reputation amongst his clients as a trusted and reliable partner when dealing with their real estate needs.
