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How much should I budget for annual home repairs?
Jun 24, 2026 654 views
AI Answer
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The 1% Rule
A widely-used guideline is to budget 1-2% of your home's value annually for maintenance and repairs.
Example
- $500,000 home: Budget $5,000-$10,000/year
- $800,000 home: Budget $8,000-$16,000/year
Factors That Affect Your Budget
Age of Home
- Under 10 years: 0.5-1% (newer systems, warranty coverage)
- 10-25 years: 1-1.5% (appliances starting to fail)
- 25+ years: 1.5-2%+ (major systems needing replacement)
Climate
Canadian homes face harsh winters, which increases maintenance costs:
- Snow removal: $500-$2,000/year
- Salt/ice damage repairs
- Furnace maintenance is critical
Major Replacement Costs (Estimates in CAD)
| Item | Lifespan | Cost |
|---|---|---|
| Roof (asphalt) | 20-25 years | $8,000-$15,000 |
| Furnace | 15-20 years | $4,000-$8,000 |
| A/C Unit | 15-20 years | $3,000-$6,000 |
| Water Heater | 10-15 years | $1,500-$3,000 |
| Windows | 20-30 years | $10,000-$25,000 |
Tips
- Start a dedicated home maintenance savings account
- Get a home inspection to understand your property's condition
- Address small issues before they become expensive problems
- Build relationships with reliable contractors
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