Once you have the keys, the spending doesn't stop. Your first year as a homeowner packs in a long list of one-time costs: moving, utility hookups, small repairs, furniture, and a few bills that arrive weeks after closing. Nothing dramatic if you've planned for it — but enough to strain a tight budget.
The list of items to plan for
Amounts vary too much from one situation to another to give reliable figures: the size of the home, the moving distance and the condition of the property change everything. Use this list instead to request quotes and build your own budget.
| Item | When | What to plan for |
|---|---|---|
| Moving | Around the possession date | Movers or a rental truck, boxes; book early, especially around July 1 |
| Home insurance | In effect from closing | Required by the lender; the notary usually asks for proof of insurance before signing |
| Utility hookups | Before or when you move in | Opening your electricity account (Hydro-Québec), internet, phone; installation fees possible |
| Locks | In the first few days | Change or rekey the locks: you don't know who has copies of the keys |
| Small repairs | First few weeks | Paint, smoke detectors, fixes flagged in the inspection report |
| Furniture and equipment | Over the months | Appliances if not included, curtains, tools, a lawn mower or snow shovel as needed |
| Welcome tax | A few weeks after closing | Bill from the municipality, usually payable within 30 days |
| First municipal and school tax bills | On the municipality's schedule | Bills in your name; check whether your lender pays the taxes for you through your mortgage payments |
| Condo fees | Every month from possession | Common expenses; watch for any special assessment announced by the syndicate of co-owners |
| Maintenance and the unexpected | All year | Water heater, roof, plumbing, appliances: see the 1% rule below |
The welcome tax: the bill people forget
It isn't paid at the notary: the municipality sends the bill for the property transfer duties after closing, and it's usually payable within 30 days. Since it lands just after you've emptied your accounts for the down payment, it's often the expense that hurts most. Calculate it ahead of time and set the money aside before you even sign. Calculate your welcome tax →
A first-time buyer may qualify for Quebec's refundable access-to-property tax credit, but only after paying the tax in full. The credit is a reimbursement after the fact, not an exemption.
Home insurance: sort it out before closing
The lender requires the property to be insured, and the notary usually asks for proof of insurance before closing. Shop around a few weeks ahead: the age of the roof, the type of heating, the plumbing or having a basement can affect the premium or the terms. In a condo, the syndicate of co-owners insures the building, but you need to insure your belongings, your improvements and your civil liability.
Maintenance: the 1% rule of thumb
A common rule of thumb is to budget about 1% of the property's value per year for maintenance and repairs. It's not an official standard, just a benchmark: a new house may need less in year one, while an older house may need more.
For a $500,000 property, that's about $5,000 per year, or roughly $417 a month to set aside. The spending doesn't come monthly: nothing for six months, then a water heater or a roof repair all at once. That's why it helps to transfer this amount to a separate account, just like a bill.
In a condo, part of the building's upkeep is paid through the syndicate's contingency fund, but the inside of your unit remains your responsibility.
Keep a cushion for the unexpected
The best protection against a rough first year is not putting all your money into the purchase. A reserve fund, separate from your maintenance budget, lets you absorb a loss of income or a major repair without relying on credit. How much to keep in your reserve fund →
For the costs due at the time of purchase itself, see also the total closing costs calculator.
Frequently asked questions
How much should you budget for home maintenance per year?
A common rule of thumb is about 1% of the property's value per year, or about $5,000 for a $500,000 property. It's a benchmark, not a standard: the age and condition of the building change the amount.
When do you have to pay the welcome tax?
The municipality sends the bill a few weeks after you sign at the notary, and it is usually payable within 30 days. So you need to keep that money set aside after the purchase.
Is home insurance mandatory to buy a house?
If you're buying with a mortgage, yes: the lender requires the property to be insured, and the notary usually asks for proof of insurance before closing.
