Before the move
Find out how much it will cost you to live in the province or territory of Canada where you plan to move. Expenses will depend on where you will reside, although some of them will be the same across Canada.
Find out if there are any restrictions in your country regarding the amount of funds you can withdraw or transfer by speaking with your:
• lawyer
• banker
• financial advisor
Learn more on the Canada Border Services Agency about:
•bringing money into Canada
•tax-exempt items you can bring with you
Proof of funds
You need to prove that you have sufficient funds to support yourself and your family upon arriving in Canada if you are immigrating as a:
• skilled worker (Express Entry)
• entrepreneur
In this case, you will need to provide proof of required funds at the Canadian visa center in your country when applying for immigration.
Your living expenses may differ from what you're used to
Your life in Canada will not be like it was in your home country.
You may have to accept lower-paying work initially while you are enhancing your skills or gaining work experience in Canada. This means your financial situation may change.
Even if you earn more in Canada than in your home country, the cost of living here may also be higher.
Household expenses can take up to half of your salary in Canada. These expenses include:
• housing
• heating and other utilities
• food
• clothing
• health insurance
• transportation
Your housing is your main expense
Most Canadians spend between 35% and 50% of their income on housing and utilities. This includes rent or mortgage payments, and often significant expenses for heating, electricity, phone services, and water.
If you are renting a home
Many newcomers rent on a monthly basis. Rent varies by city. Generally, it tends to be lower outside of major cities.
You can expect to pay at least $350 per month for a room. For a larger apartment or house, you will pay at least $2,000 per month. A local immigrant service organization can help you find housing that you can afford.
Additionally, many Canadians are opening their doors to Ukrainian refugees. If you need shelter, visit the site Ukraine Take Shelter.
The portal is an independent platform that helps Ukrainian refugees connect with people who are willing to host them for a certain period (homeowners indicate how long they are opening their doors for users of the site).
If you are buying a home
If you want to purchase property, you will need to obtain a mortgage. Banks and other financial institutions offer such loans. They will assess whether your income is sufficient, if you have enough assets, and if your credit rating. Most banks require you to provide a down payment of at least 10% of the total price of the property you are buying.
In addition to mortgage payments, you will need to pay property tax and home insurance. If you're buying a condominium (condo), there will be additional expenses.
You can compare real estate prices in various regions of Canada in the cities section on the Canada Mortgage and Housing Corporation (CMHC).
Learn more about mortgages in Canada.
Health insurance
Some provincial and territorial health programs may not cover medical expenses for newcomers during the first three months of residence in Canada.
As soon as possible, check with the ministry of health in your province or territory if you need to purchase additional health insurance.
You can find general information about how the health system works in Canada here.
Basic expenses
Food will be your next largest expense after housing. The amount will depend on the size of your family. If you often eat out or prefer to buy any rare and expensive products, expenses in this category may double.
Clothing expenses can take up less than 10% of your income. This amount will significantly increase if you shop at designer stores. Meanwhile, second-hand clothing and furniture stores sell items at quite low prices.
Another useful platform for Ukrainian refugees is HelpShare.
This resource allows caring Canadians to share items that may be more useful to someone else. This can include clothing, furniture, toys, kitchenware, strollers, and much more.
Alcohol and cigarettes
Some people include alcohol and cigarettes in their budget. These items are very expensive in Canada due to high taxes.
Transportation
Many Canadian families own one or more cars. Canadians buy new or used vehicles and also lease them, which is a form of rental.
Before purchasing or leasing a vehicle, make sure you take all expenses into account. For instance, if you own a car, you need to pay for its maintenance, fuel, registration, and insurance, as well as make monthly loan payments. When leasing a vehicle, you sign a contract to use the vehicle for a specified period. You will cover the same expenses as if you owned the car.
Many Canadians use public transport, walk, or bike.
Learn more about car loans in Canada.
Car insurance
Canadian law requires insurance for all vehicles, as well as registration by provincial or territorial government. Car insurance can be expensive, but it protects you and other drivers in case of an accident. In most provinces, you can find more information about car insurance at the Insurance Bureau of Canada.
Be prepared for unexpected expenses
Living in Canada, you may find that you occasionally have unexpected expenses that need to be covered. These may include:
• purchasing prescribed medications (not covered by your insurance)
• school supplies
• international calls to friends or relatives (it is advisable to replace them with calls via messaging apps, such as WhatsApp, Viber, Telegram, which require an internet connection)
Deductions from salary
In most jobs in Canada, your employer will deduct certain amounts from your salary. Such deductions can reduce your income by 25-35%. Typically, the deducted amount goes to cover the following items:
• Income tax
• Canadian pension plan or Quebec pension plan
• Employee insurance
• Union dues (if you are a member of a union)
• Contributions to your pension plan (if you have such a plan or prefer to contribute through your employer)
• Any other deductions that you have agreed upon in writing with your employer
Your pay stub will indicate how much has been deducted for each item. The total amount before these deductions is your gross income. The amount you actually receive is your net income.
Sales tax
Like many other countries, Canada adds a sales tax to many goods and services.
Goods and Services Tax (GST)
GST is a tax from the government of Canada that adds 5% to the price of most goods and services.
Provincial Sales Tax (PST)
In most provinces, PST is added to GST. It can vary from 7% to 10%. Alberta, Nunavut, the Northwest Territories, and Yukon do not have a provincial or territorial sales tax.
Harmonized Sales Tax (HST)
Newfoundland and Labrador, New Brunswick, Nova Scotia, Prince Edward Island, and Ontario combine GST with PST and refer to it as HST.
In Quebec, GST/HST and Quebec Sales Tax exist.
