The 3 % rule: how much to set aside every year to maintain your house

Buying · Maintenance budget

A house costs more than its mortgage. Here is the benchmark we give every buyer so that year three brings no surprise.

The 3 % rule is a budgeting benchmark: set aside each year between 1 % and 3 % of the property's value for maintenance and repairs, 1 % for a recent, well-kept house, up to 3 % for an older house or one with known work ahead. For the median single-family home on Montreal's South Shore ($648,500 in Q2 2026 according to the APCIQ), that is $6,500 to $19,500 a year. It is not a certain expense every year; it is a reserve. Quiet years fund the year the roof or the furnace reaches the end of its life.

What the rule says, and what it does not

The 3 % rule is neither a law nor an official standard: it is an order of magnitude used by financial planners and inspectors so that maintaining a house does not become a string of bad surprises. The idea: put aside each year a share of the property's value, between 1 % and 3 %, according to its age and condition. A house under ten years old sits near 1 %. A 1970s house with a roof at the end of its life and original windows sits closer to 3 %.

What the rule does not say is that you will spend that amount every year. It says that, over ten years, this is what the house will cost you on average, and that quiet years must fund expensive ones.

What it means on the South Shore, in dollars

These amounts come on top of the mortgage, municipal and school taxes, insurance and, in a condo, the condo fees. Our guide costs after buying a house in Quebec covers the full picture.

Where the money goes

Without pricing each item (costs vary with the house and the contractor), here is what eventually comes due in every property: the roof, windows and doors, the heating system and water heater, the French drain and foundation waterproofing, plumbing and electrical in older houses, exterior cladding, the driveway, and routine yearly upkeep (gutters, caulking, filters, chimney). The inspection report is the best starting point to know which items are close to their deadline: read pre-purchase inspection in Quebec.

How to use it before making an offer

1. Read the inspection report as a shopping list, not a verdict. Sort items into three columns: within a year, within five years, someday.
2. Price the first column with real quotes when amounts are significant (roof, foundation). That is a documented negotiating argument, not an impression.
3. Pick your percentage between 1 and 3 % according to what the other two columns reveal.
4. Check that the whole budget fits: payment + taxes + insurance + maintenance reserve. If the reserve does not fit, the house is too expensive, not the rule too cautious.

And for a condo?

The logic is the same, but part of the reserve is collective: the contingency fund, which Bill 16 now requires to be based on a study. Check the fund study and past special assessments before buying: an underfunded fund is a 3 % rule the syndicate will hand you later as an invoice.

The link with latent defects

The maintenance reserve covers normal, predictable wear. It does not replace the legal warranty against latent defects, which targets a serious defect, unknown and not apparent at the time of purchase. The two complement each other: the more serious the inspection, the less you depend on a claim afterwards. See latent defects in Quebec.

Frequently asked questions

Does the 3 % rule apply to a new house?

Closer to 1 % than 3 % in the first years, while the builder's warranties apply. But routine maintenance starts in year one, and some items (appliances, exterior finishes) come due faster than expected.

Do I really need to set the money aside?

A dedicated account is the simplest method. The other option is a home equity line of credit reserved for work, provided it is not used for anything else.

Must the seller pay for the work found at inspection?

Nothing obliges them to. The inspection is a negotiating tool: a price reduction, a repair before closing, or withdrawing the offer if the problem is major. It depends on the balance of power in the sector, which we document on every city page.

Also available in French: version française de ce guide.

Published September 1, 2026 by the Loaa & Manseur team, the number 1 team at RE/MAX Platine in 2024 and 2025, 6th RE/MAX team in Quebec, 15th in Canada and in the global top 50 according to the official RE/MAX ranking. Tell us about your project.