Homeownership is a major financial milestone, but it’s not without its challenges. While it’s often seen as a cornerstone of building stability, it comes with costs and realities that many first-time buyers overlook. Here are a few things your parents may not have told you about owning a home.

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Consider property taxes

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In Toronto, for instance, a residential property assessed at $700,000 can cost approximately $4,277 annually in property taxes. These funds support important city services such as infrastructure, public transportation, emergency services, and community programs. Property taxes are a significant factor to keep in mind when budgeting for homeownership.

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Home insurance is more expensive than tenant insurance

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If you’re used to paying low tenant insurance premiums, be prepared for an increase. On average, home insurance in Ontario costs around $1,250 annually, or just over $100 a month. In comparison, tenant insurance costs about $20 monthly. These costs vary based on the home’s value, location, and other risk factors.

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Repairs and maintenance add up

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Homeownership comes with ongoing responsibilities, including repairs and maintenance. Appliances break, pipes leak, and roofs need replacing—all of which can come with hefty price tags. Over time, these expenses add up, so it’s essential to plan for unexpected home repairs and routine upkeep.

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A mortgage isn’t easy to qualify for

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Mortgage approval isn’t automatic. Banks and lenders consider your credit score, existing debt, employment history, and the size of your down payment. If you’re approved, the mortgage will typically span a 25 to 30-year amortization period. It’s a long-term commitment that requires careful financial planning.

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Homeownership is a big decision

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Traditional homeownership can feel intimidating, but many aspire to build roots, start families, and benefit from rising home values within their communities. With Key, you can move into a home with as little as 2.5-5% down and work toward full ownership over a five-year term. During this time, you benefit from potential increases in home value while preparing for the responsibility of securing a mortgage at the end of the program. This model provides the structure and support to help you plan for a smooth transition into full homeownership. Learn more about how Key's program works here.

This article may include AI-assisted content. While we aim for accuracy, please double-check details or consult a professional if needed.

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