Mortgage Guide For Gen Z: The true costs of home ownership for young Canadians

Moving costs: Depending if you hire professional movers or take a DIY approach, moving costs can vary. Hiring movers can cost from $300 to $2,500, depending on where you live as well as the distance and complexity of your move. If you opt for a rental truck, you might pay anywhere from $100 to $300 for the day, plus gas. And don’t forget about packing materials—boxes, tape and bubble wrap can add another $100 to $200.

Utilities and setting up: The setup fees for essential services—such as electricity, gas, water and internet—can cost between $300 and $500. Ongoing utility bills vary widely, with an average monthly range of $200 to $400. Expect seasonal heating and air conditioning costs to spike during peak winter and summer months.

Home repairs and immediate upgrades: It’s not uncommon to run into immediate and sometimes urgent repairs when moving in, such as fixing a leaky faucet or servicing or even replacing appliances. Immediate home repairs can cost anywhere from $100 to $1,000 and upward, depending on the issue, and new appliances can cost in the thousands. If you plan to make home upgrades, such as fresh paint or new furniture, this can add significant costs, ranging from $500 to $5,000, depending on the scale.

Home owners’ association fees: If your home is part of a community with a home owners’ association (HOA)—think condo and townhouse living—fees can range from $100 to $1,000 per month to cover landscaping, snow removal, and upkeep of common areas and amenities such as pools, gyms and shared spaces like party rooms and terraces.

Regular maintenance and lawn care: Finally, routine maintenance, such as lawn care, gutter cleaning and seasonal upkeep, should also be budgeted for. (Use MoneySense’s free Excel template for your monthly budget to plan ahead for housing costs.)

Can you afford a mortgage?

Knowing how much you can borrow (and likely be approved for) is a good idea. You can use the MoneySense mortgage affordability calculator. You can also check this table to compare mortgage rates in Canada right now.

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How to prepare to buy your first home

Parubets suggests setting up a savings account before diving headfirst into home ownership. Save the equivalent of these new costs as part of a trial period. Then, he says to calculate the mortgage monthly payment and factor in additional expenses, like property taxes, utilities and other costs from homeownership.

Let’s say your mortgage comes to $5,000 per month. If you live with your parents, your housing costs are essentially $0. If you’re renting, perhaps you’re paying $2,000 a month. That means the jump to home ownership would add an extra $3,000 per month to your budget. 

The best way to prepare: Start setting aside $3,000 a month now to see if you can comfortably handle the financial commitment before making the leap. “Because—if you can’t afford it or if it’s crippling your lifestyle and you’re like, ‘I don’t want this,’—then what are you doing buying a home? This will be your life for the next 25 to 30 years,” Parubets says. Of course, with experience and promotions, your income will increase, but that doesn’t happen overnight. And the cost of having kids is another cost to factor. “That’s a whole other MoneySense article,” he jokes. (And it is: “How much does it cost to raise a child in Canada?”).