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Summary
- Canada offers high standards of living
- Vancouver and Toronto are the most expensive cities to live
- Majority of your expenses will be spent on housing/accommodation
As a land that welcomes immigrants from all over the world, Canada has been the hot destination after the US for many job seekers and students across the world.
On one hand, Canada provides promising career opportunities for job seekers and on the other, its world-class educational institutes have been a beloved destination for students from different Asian countries especially India and China.
The question of the cost of living does arise in this case because it varies on the following:
- The city or province, you choose to conduct your business from.
- Your lifestyle and family size.
As a developed country, Canada offers a high standard of living to everybody, which is of course available at a premium value. But it does not mean that people with modest income cannot avail a dignified living for themselves.
Vancouver and Toronto top the list of most expensive cities of Canada, with Toronto having the highest cost of living in some indexes as it is the financial capital of Canada.
Some affordable regions are Quebec, Winnipeg and Montreal.
Cost of Living:
1) For the benefits of an immigrant coming to Canada, the official Canadian website has got things charted out regarding the elements that will form the majority of your expenses. These are as follows:
- Home
- Heating and other utilities
- Food
- Clothing
- Health insurance
- Transportation
2) Your home will be heavy on the pocket.
Most Canadians spend a heavy chunk of their monthly income on housing and utilities. It forms at least 35 to 50 per cent of your income.
This includes the cost of a mortgage (a long-term housing loan). Other utilities such as electricity telephone service and water are also included.
(Source: Pixabay)
Cost of Rent
Depending upon the city and whether you choose to live within or outside the city, you will end up paying somewhere between C$350 to C$500 to rent a room. A larger home or apartment is likely to cost you C$2000 a month.
An immigrant-serving organization or a real estate agency can help you find a home-based upon your budget.
What About Mortgages In Canada?
Owning a home in Canada can be a costly affair. Banks and lending organizations offer mortgages, the amount of which will depend upon your current assets, income, and credit rating.
Normally banks will ask you to pay 10 per cent of the cost of the house from your income and they can take care of the remaining 90 per cent.
Basic Expenses in Canada
Once you have sorted the housing and utilities budget, the next basic expense will be food and groceries. Much of it will depend on the size of your family and it will only increase in doubling ratio if you habitually eat out.
Alcoholic Beverages and Smoking
As an individual living and working in Canada spending on alcoholic beverages and cigarettes are part of your budget unless you have vowed to stay away from them.
Care and caution are advised when consuming alcohol and cigarettes because these are expensive in Canada as they are heavily taxed.
Transportation
Yes, this is one head of expenses that needs serious consideration by an average Canadian irrespective of a native or an immigrant.
You can use public transportation and have a monthly pass that could cost you somewhere between C$77 to C$125 based upon routes. A taxi ride for one hour will cost C$27 to C$45.
Most Canadians either buy a new car or a used one or lease them. In case you own the car, you must pay fixed expenses to keep it working such as gas, monthly loan installments, registration, and insurance. More detailed information can be sought from the Insurance Bureau of Canada.
