Do you want content like this delivered to your inbox?

What it Really Costs to Own a Home in Canada (2022)

Nick Hazzi

Nick is a Senior Partner with our firm and heads our sales department...

Nick is a Senior Partner with our firm and heads our sales department...

Sep 23 6 minutes read

In 2021-2022, a combination of low mortgage rates and fear of missing out have led to a boom in Canadian home buying and a heavily inflated housing market.

If you’re a first time home owner, or you’ve just purchased a new home, you’ll need to budget some of your income and savings towards the hidden costs of home ownership. This article breaks down the major expenses and shows you the true costs of owning a home in Canada in 2022.

Your Mortgage Payment

As of January 2022, the average price of a detached, single-family home in Kelowna is $830,000. If you pay 20 percent down, your remaining mortgage amount is $664,000. 

With 2.44 percent interest, your monthly mortgage payment (principal and interest) will come to around $2,608 per month ($31,296 per year). Try out our mortgage calculator to see how much mortgage you can afford.

You’ll need to purchase mortgage default insurance if you plan to buy a home with less than 20% down. This is a one-time premium which costs between 0.6% and 4.5% of the purchase price ($4,980 to $37,350).

Mortgage life insurance helps borrowers repay their mortgage principal in the event of the borrower’s death, so loved ones aren’t left inheriting a large debt. Mortgage life insurance starts around $600 per year.

Home Insurance

Home insurance protects your home and belongings from theft, loss, or damage to your home or property. In Canada, the average price of home insurance is $924 per year. Unless your home mortgage is fully paid for, you’ll need home insurance to get approved for a mortgage.

Land Transfer Tax

When you buy a home in Canada, you’re required to pay a one-time land transfer tax which costs 1% for the first $200,000, and 2% for amounts up to $2,000,000. For a $830,000 home, the land transfer tax costs $14,600.

Property Tax

In Canada, if you own or lease a property, you’re liable to pay property taxes to City Hall once a year. They go towards local schools, libraries, roads, parks, police & fire protection, emergency rescue, and hospitals. Property tax rates for 2020 in the City of Kelowna cost 0.52605% of your home’s assessed value. In 2020, the annual property tax amount for an $800,000 home came out to $4,208.40.

British Columbia Speculation & Vacancy Tax

If you’re buying a home as an investment property, you may be required to pay BC’s punitive  Speculation & Vacancy Tax, which costs 0.5 percent of assessed home value for Canadians, and 2 percent for foreign owners. On an $830,000 home, the spec tax will come to $4,150 per year; but there are several ways to avoid paying the spec tax.


Canadians pay some of the highest prices for internet, cable, and mobile phone plans anywhere in the world. 

You should factor in $200 to $300 as a monthly payment for Canadian telecommunications.

  • High speed internet: $80 to $120 / mo
  • Mobile phone: $50 to $100 / mo
  • Home phone: $20 to $30 / mo
  • Cable television: $50 to $100 / mo

Local Utilities

According to BC Hydro, the average utility bill costs $103 per month ($1236 annually).

In British Columbia, utilities include both hydroelectricity & natural gas usage, which gets billed every 60 days.

Maintenance and Repairs

As a rule of thumb, you should budget 1% of your home’s purchase price towards annual maintenance and repairs.

Regular home maintenance includes:

  • Roof repairs

  • Plumbing

  • Furnace maintenance

  • Eavestroughs maintenance

  • Drain repair

  • Tree trimming

  • Landscaping

For a home worth $830,000, 1% of annual repairs comes to $8,300 per year.

Condo / Strata Fees

If you own a high rise condo or a home in a gated community, you’ll be liable to pay monthly strata fees that go towards maintenance of the common areas like parking, lobbies, and amenities.

The average strata fee costs $0.35 to $0.40 per sq ft of condominium space. For a 1,000 sq ft property, expect to pay around $370 per month in strata expenses.

Keep in mind that condo real estate with fancy amenities like pools, gyms, and recreation rooms come with higher strata costs.

The Total Cost of Home Ownership in Canada

Following our $830,000 home example, here’s how much money you’ll need to own a home that costs $830,000 in Canada.

Mortgage payments

$31,296 per year

($2,608 / mo)

Home insurance

$924 per year

Land transfer tax

$14,600 (one-time payment)

Property tax

$4,376 per year


$1,236 per year


$3,000 per year
($250 / mo)

Maintenance & repairs / strata fees

$8,300 per year

Total Costs to Own a Home in Canada

$49,132 per year

As we’ve shown, the cost of buying and owning a home in Canada adds up fast...

Home Budgeting 101

Make sure to take into account your monthly savings goal and basic living expenses like food, entertainment, & healthcare. Homeowners planning to renovate should budget at least $10,000 to $20,000 to hire licensed contractors and pay for building materials.

Next, read about Kelowna's cost of living in 2023.

Find Your Home in Kelowna, BC

Looking to buy or sell real estate in Kelowna, BC, Canada? Contact Vantage West Realty, your Kelowna real estate professionals with 20+ years of experience in the Okanagan Valley.

Vantage West Realty logo

Schedule a Call
We use cookies to enhance your browsing experience and deliver our services. By continuing to visit this site, you agree to our use of cookies. More info

Terms of Use

This website is operated by Vantage West Realty Inc./AJ Hazzi, REALTOR®, a Brokerage who is a member of The Canadian Real Estate Association (CREA). The content on this website is owned or controlled by CREA. By accessing this website, the user agrees to be bound by these terms of use as amended from time to time, and agrees that these terms of use constitute a binding contract between the user, Vantage West Realty Inc./AJ Hazzi, REALTOR®, and CREA.


The content on this website is protected by copyright and other laws, and is intended solely for the private, non-commercial use by individuals. Any other reproduction, distribution or use of the content, in whole or in part, is specifically prohibited. Prohibited uses include commercial use, “screen scraping”, “database scraping”, and any other activity intended to collect, store, reorganize or manipulate the content of this website.


REALTOR®, REALTORS®, and the REALTOR® logo are certification marks that are owned by REALTOR® Canada Inc. and licensed exclusively to The Canadian Real Estate Association (CREA). These certification marks identify real estate professionals who are members of CREA and who must abide by CREA’s By-Laws, Rules, and the REALTOR® Code. The MLS® trademark and the MLS® logo are owned by CREA and identify the professional real estate services provided by members of CREA.

Liability and Warranty Disclaimer

The information contained on this website is based in whole or in part on information that is provided by members of CREA, who are responsible for its accuracy. CREA reproduces and distributes this information as a service for its members, and assumes no responsibility for its completeness or accuracy.


Vantage West Realty Inc./AJ Hazzi, REALTOR® may at any time amend these Terms of Use by updating this posting. All users of this site are bound by these amendments should they wish to continue accessing the website, and should therefore periodically visit this page to review any and all such amendments.