What to Expect Your First Year

Truth: It’s Different When It’s Yours

Before we get into the specifics, here’s something that applies to every new homeowner: the mindset shift is real. That first moment when something breaks and you realize there’s no landlord to call? That’s when it truly hits home – this place is all yours, for better or worse. While this responsibility can feel overwhelming at first, it also comes with the freedom to make your space truly yours – and, of course, the sweet financial benefits that come with owning instead of renting.

For New Condo Owners:

The Financial Reality Check

Your mortgage payment is just the beginning. Here’s what you need to budget for:

• Monthly condo maintenance fees – typically increase by 2-5% annually; if your condo is less than 2 years old, expect bigger increases in the first few years. 
• Property taxes – your annual property taxes might be included in your mortgage, or you may have to pay them yourself (annually or 3 times a year in Toronto). You can set up automatic withdrawals online here. 
• Utilities that weren’t included in your rental – heating or cooling, electricity
• Contents insurance – your condo corporation insures the building, but it’s on you to insure your unit and belongings, including appliances, floors, counters and toilets. 
• Unit maintenance, repairs and renos – from fixing the leaky sink in the bathroom to replacing a broken washer/dryer, it’s on you now.

The Condo Corporation Dynamic

Welcome to the world of shared ownership. Your condo corporation plays a huge role in your homeownership experience. You’ll want to:

• Read the annual report and board meeting minutes (yes, really – they contain valuable info about upcoming projects and potential fee increases)
• Attend the Annual General Meeting (AGM), where important discussions and decisions take place
• Understand what’s your responsibility vs. the corporation’s when it comes to repairs
• Get familiar with your condo’s rules and regulations (those renos you’re planning might need approval)

The Reserve Fund Reality

That reserve fund study you glossed over during your purchase? It matters now. 

Part of every owner’s condo fees goes towards building a reserve fund to pay for the condominium corporation’s planned and emergency expenses.. A healthy reserve fund is crucial for handling major repairs (like a roof replacement or lobby renovation) without special assessments. If yours is underfunded, start budgeting for potential special assessments.

Related: Understanding the Condominium Status Certificate

For New House Owners:

The True Cost of Ownership

Houses come with their own financial considerations:

• Property taxes – your annual taxes might be included in your mortgage, or you may have to pay them yourself (annually or 3 times a year). You can set up automatic withdrawals online here. 
• City utilities – as a tenant, you weren’t likely paying for water, garbage or recycling. Find out more about paying for water and waste. 
• All utilities – water, gas, electricity, etc. 
• Home insurance – expect this cost to go up, as you’re now insuring a lot more than just your personal belongings
• Annual maintenance budget (plan for 1-3% of your home’s value)

The Maintenance Learning Curve

That funny noise your furnace is making? That slight water stain on the ceiling? These are now your problems to solve. Start building your emergency fund and your contractor contact list immediately. 

Dealing with Buyer’s Remorse

Let’s be real – almost every first-time buyer has moments of “Did I make the right choice?” Maybe you compromised on location to get more space, or chose nicer finishes instead of parking. Maybe you’re questioning if you should have waited to save more money. This is completely normal.

Remember:

• Your first home probably won’t be your forever home
• Those compromises you made? Everybody has to make them in a market as expensive as Toronto’s. 
• Focus on what you can change about your space rather than dwelling on what you can’t

Related: Get Ready for Buyer’s Remorse

Related: Why Your First Home (Probably) Isn’t Your Forever Home

Love Thy Neighbour

Whether you’re in a condo or house, your neighbours matter more than ever now. You’re no longer just passing through – you’re part of a community. Take time to:

• Introduce yourself to immediate neighbours
• Learn the unofficial “rules” of your building or street
• Join your local community or building’s Facebook group 
• Handle any issues diplomatically – you might be living next to these people for years

You’re Committed

The shift from renter to owner comes with a psychological adjustment. That nagging feeling that you’re “trapped” is common, especially among first-time buyers used to the flexibility of renting. Combat this by:

• Remembering that you can always rent out your property if your life circumstances change
• Focusing on building equity rather than feeling tied down
• Making small improvements that help your space feel more like home
• Keeping perspective on the long-term benefits of homeownership

Moving Forward

Your first year of homeownership is a steep learning curve, but it gets easier. Keep detailed records of all your home-related documents, maintain a healthy emergency fund, and don’t be afraid to ask for help when you need it. Your REALTOR can (and should) continue to be a resource for you long after the close. 

Remember, every homeowner started where you are now.

Most importantly, don’t let the responsibilities of homeownership overshadow your achievement. You’ve made it onto the property ladder in one of Canada’s most competitive markets – that’s something to be proud of, even on the days when your home feels more like a challenge than a victory.

Related: 40 Questions to Ask Your REALTOR After You’ve Moved In