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A recent edition of The Globe and Mail’s popular Finance Facelift feature highlights our fuzzy thinking on how much it costs for household maintenance.

Dennis and Sylvie are a 60-something couple with a house they figure is worth $2.1-million. They currently budget $5,000 per year for home repairs, which drew a comment from the financial planner looking at their situation. He said a good basic rule is to set aside 1 per cent of a home’s value annually for upkeep, repairs and upgrades, which in this case would be $21,000.

Ah, yes. The 1 per cent rule for estimating home maintenance. Is that really the number? A survey of views on this question online suggests a range of 1 to 3 per cent of a home’s value and perhaps as much as 5 per cent. My thought is to junk these percentages and look at home maintenance costs in a different way.

The question to ask is this: If your household had a major repair bill, how would you afford it? Your emergency fund might contain the money you need, or maybe investments in your tax-free savings plan. You might also be able to dip into money put away for other purposes like a vacation.

While it would be ideal to have a savings account set aside for home maintenance costs, this is unrealistic for many households in these inflationary times. The alternative is to have a contingency plan for surprise costs of all types – home maintenance, vehicle repairs, health care and job loss.

It would be helpful for this type of planning to know what major home repairs cost. Help me with some cost guidelines by filling out the form below. Add the kind of repair or maintenance you’ve done, the cost and the size of your home. If I get enough information, I’ll share the results for use as a reference on home maintenance costs.


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Rob’s personal finance reading list

Protect your phone

A look at some credit cards that offer mobile device insurance as part of their package of perks for clients. The usual requirement is that you use these cards to buy your phone.

How not to book a reward flight to Europe

A deep dive into the less than favourable economics of booking economy class tickets to Europe using three popular credit card reward programs. We’re talking here about situations where you redeem a block of points and still have to come up with cash to cover your ticket cost.

EQ Bank vs. Koho

A comparison of two challenger banks – Koho and EQ Bank. Both are worth a look if you’re tired of the fees and features of your big bank account.

The newest name in digital investing

A look at Webull, a U.S. trading app that recently started offering non-registered accounts to Canadians. Registered accounts are coming. Webull is a low-cost broker with a trading platform that has some fans.


Ask Rob

Q: “Would you please write a column about the risks to landlords who rent a suite in their homes. I’m really tired of hearing about bad, money-grubbing landlords! I had one bad tenant who wrecked the place, but always paid her rent. Almost impossible to get her out.”

A: I’ll take a pass on that column suggestion, thanks very much. The saintly tenant-greedy landlord narrative is over-simplified, but let’s remember the overall balance of power favours the landlord.

Do you have a question for me? Send it my way. Sorry I can't answer every one personally. Questions and answers are edited for length and clarity.


Tools and guides

Securities regulators on how online investing platforms are using marketing, engagement and design techniques to lure customers into transactions that may not be in their best interest.


In the social sphere

Social media: A fun exchange on X about the headaches and costs of home maintenance.

Listen: 40 personal finance podcasts for Canadians, including The Globe’s Stress Test.

Money-Free Zone: I recently found this rocking cover of one of my favourite Neil Young songs, Powderfinger – it’s from the Nashville musician David Newbould. Here’s the original, which is one of the most original, sad and brilliant songs in the vast Neil Young repertoire. Hoping to hear it played when I see him at Bluesfest in Ottawa this summer.


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