If my last column’s overview felt like a buffet of acronyms and ownership styles, today I’m carving into the simplest - and most common - property ownership option in British Columbia: freehold (fee simple).
In simple terms, you own the land and anything permanently attached to it. That control is powerful but also means you’re on the hook, financially and practically, for everything within your property’s lot lines.
What “owning it all” really means
At its core, freehold ownership grants the buyer absolute title to both the land and any structures on it, for an indefinite period. Under B.C.’s Property Law Act and Land Title Act, that means you own the property "in fee simple," subject only to government regulations like zoning bylaws, building codes and any registered covenants or easements. (In Canada, there is no explicit constitutional right to own property but that may be a topic for a future column.)
This form of ownership traces its roots to English common law, adapted to Canadian contexts and remains the gold standard for long-term stability.
Unlike strata properties there are no strata councils or monthly fees for shared amenities. The trade-off is there’s no shared budget for roofs, paving or insurance. Instead, you have the freedom to renovate, landscape or even subdivide, as long as it complies with local rules.
Mortgage payments
Your largest fixed cost is typically the mortgage. Lenders qualify you, and your monthly payment combines:
• Principal (what you owe)
• Interest (cost of borrowing)
• Potential mortgage insurance
Tip: Model interest rate scenarios, not just today’s rate. A one-point increase can add hundreds per month.
If you can, and want to, pay cash then ignore all the mortgage stuff.Property taxes and utilities
Municipal (or regional) property taxes are due annually, often with options for instalments or a tax deferment program (eligibility varies). Budget also for utilities. Add $200 to $400 per month for electricity, gas, water and internet, depending on home size and efficiency. Also budget for water, sewer and garbage pick-up (a flat fee or metered) and, in some rural areas, services such as septic pumping, well testing, road maintenance).
Tip: Ask your real estate agent for the current year’s tax notice and utility averages. They’re great reality checks for your monthly budget.
Insurance and closing costs
Insurance should be non-negotiable. Homeowners' policies average $2,709 yearly in B.C. but can top $3,500. Flood or earthquake add-ons push costs up another $500 to $1,000. Closing costs, paid at purchase, total between 3% and 4% of the price—$28,500 to $38,000 for an average home, including legal fees, appraisals and B.C.’s Property Transfer Tax (1% on the first $200,000, 2% on $200,000-$2 million and 3% on the amount over $2 million).
With freehold, you insure the entire building and liability, not just the contents. Premiums depend on replacement cost, age of systems (roof, electrical, plumbing), proximity to wildfire interface and water-related risks. Higher deductibles can lower premiums but increase your out-of-pocket if something goes wrong.
Tip: If the home has older plumbing (e.g., polybutylene/“Poly-B”), aluminum wiring or a wood stove, talk to your insurer early as coverage and cost can change based on upgrades or inspections.
Repairs and maintenance
A common planning rule is between 1% and 2% of the home’s value per year, adjusted for age and complexity or about $9,500 to $19,000 for a $951,000 property. Regular maintenance is key. Neglect can lead to costly surprises, such as a $10,000 to $20,000 roof replacement or a $5,000 foundation fix.
Typical freehold expenses include:
• Roofing and gutters (cleaning, eventual replacement)
• Heating and cooling (furnace or heat pump service or replacement)
• Plumbing and electrical (repairs, safety upgrades)
• Exterior (paint, siding, decks, fence, driveway)
• Yard (tree work, irrigation)
Renovations and additions
Freehold gives you freedom to change the home but permits and codes still apply. Expect costs for plans, permit fees, engineering (for structural or hillside sites) and potential development permit requirements near creeks or steep slopes.
Due diligence before you buy
A clear title and a pretty lawn aren’t enough. Ask for:
• Title search and plan. Note covenants, easements, rights-of-way (e.g., building scheme, height and colour rules, shared driveways, utility corridors).
• Property disclosure and inspection reports (roof age, moisture, foundation).
• Utility information. Water source (municipal or well), sewer or septic (pump-out history, permits).
• Insurance conversation. Get a preliminary quote based on age and systems.
• Zoning and bylaw check. Are suites allowed? How about short-term rentals? Are there parking requirements? What, where and how big you can build? Riparian rules. Hillside requirements. Heritage designations and rules. There is a lot to look for.
• Wildfire and flood interface. Defensible space, insurer requirements, local risk mapping.
Pros and cons of freehold ownership
Advantages:
• Maximum control over your property’s use and improvements
• No strata rules or monthly strata fee
• Long-term stability and typically strong resale demand for detached homes
Trade-offs:
• You carry 100% of maintenance, repair, and replacement costs
• Larger cash-flow swings (a roof or retaining wall can be a five-figure surprise)
• Compliance with zoning, permits, and title restrictions remains essential
How to budget smartly
• Build a sinking fund. Automate monthly transfers for maintenance.
• Price in insurance and taxes alongside mortgage pre-approval.
• Prioritize system upgrades that reduce risk and premiums (electrical panel, plumbing replacements, monitored alarms).
• Keep a one-page roadmap for the next five years—roof timeline, HVAC lifecycle, exterior paint, driveway, tree work.
Freehold is freedom. It’s your land and your call - balanced by full responsibility. For many B.C. buyers, that autonomy is worth the work. If you plan ahead for taxes, insurance, and a steady diet of maintenance, you’ll enjoy the best of what freehold offers. Long-term security, flexibility to improve and the satisfaction of truly owning your home.
