Many people arrive in Canada filled with excitement, but they quickly discover that living costs can be high. In bustling cities, daily expenses can be overwhelming. You have rent and groceries to consider. Plus, you’re navigating new cultural norms, local transport, and searching for familiar foods.
At Remitly, we understand the unique challenges immigrants face. You want to establish yourself professionally, send money back home if needed, and still enjoy a decent quality of life.
Budgeting Tips for Immigrants Living in Canada’s Most Expensive Cities
Toronto and Vancouver are two of the country’s top economic hubs, but they also carry higher-than-average rents and bills. Newcomers come for jobs, cultural diversity, and local communities from their home countries.
Importance of budget management for newcomers
Moving to Canada often involves tasks like finding a place to live, applying for healthcare, and setting up bank accounts. Good budgeting helps you plan important expenses like rent and travel. It also allows space for savings or emergencies. This is especially significant for immigrants who often send money home to support their families.
Smart financial planning reduces stress. This helps you focus on your career, learn languages, or support your kids in school. By tracking expenses early and creating a realistic budget, you can avoid worrying when the first big rent payment hits.
Challenges faced by immigrants in high-cost urban areas
Toronto, Vancouver, and areas like the Greater Toronto Area and Metro Vancouver are high on national cost-of-living lists. Many immigrants move to these cities for jobs or cultural communities. But they have to face higher bills.
Language barriers can make service contracts or discount programs confusing. Also, not having a local credit history can mean it’s more difficult to rent property or get a bank loan.
Not knowing local norms, such as how to compare electricity providers or find cheaper produce at markets, can drain your funds. Some families also underestimate car insurance costs or monthly transit passes.
Overview of this guide
In this guide, we’ll look at living costs in Canadian cities, establishing yourself in Canada, and money-saving strategies. We’ll cover opening bank accounts, handling insurance, and using local resources to reduce fees. Lastly, we’ll address frequently asked questions
The Cost of Living in Canada: Everything You Need to Know
Many newcomers arrive excited about Canada’s multicultural cities, but soon face steep real estate prices or grocery bills. Before diving into regional comparisons, it’s wise to understand the general landscape of living expenses, including differences between urban and rural areas, plus how salaries vary across regions.
Overview of living expenses in major cities
Living in a central one-bedroom apartment can cost over 2500 CAD a month in Toronto and 2800 CAD per month in Vancouver. In other major cities including Montreal, Calgary, and Ottawa you’ll find slightly more affordable options with averages around 1500 to 1800 CAD per month. Key costs generally include rent, utilities, groceries, internet, and transportation.
Immigration status can affect job prospects. If you have a temporary work permit, some sectors, like service or manual labour, might take you on quickly. However, the wages may not match the city’s rent costs. Meanwhile, permanent residents might access broader career pathways, yet still face stiff competition. No matter your status, you should expect to spend a good part of your monthly income on housing and travel.
Comparison of living costs: Urban vs rural
Canada’s big cities have multicultural amenities, job diversity, and strong transport systems, whereas rural and suburban towns usually provide cheaper housing and a quieter lifestyle. However, a disadvantage is that suburban and out-of-city areas often have infrequent public transport.
If you live in an out-of-city area you’ll probably need a car, which brings an extra expense. Groceries, dining, or recreational options can vary drastically too. In cities, you’ll have access to large supermarkets or specialist stores, compared to smaller shops in rural areas.
Choosing between city life and a small town means weighing job options against costs such as car expenses. Skilled immigrants may find better job matches in big cities. However, if your job allows remote work, living in a smaller community can lower your monthly expenses.
Salary expectations and job market insights
Tech, finance, and healthcare roles in Toronto or Vancouver often pay more. Jobs in hospitality, retail, or junior office roles often don’t meet local rent prices. This pushes many people to share apartments or rent in outer areas. If you’re planning to move here using Express Entry or other immigration routes, check the industry salaries in your chosen province.
A job offer in Vancouver may look good at first. But high taxes, rent, and commuting costs can cut into your disposable income. Newcomers often juggle side gigs or gig economy opportunities to patch income gaps. Ultimately, thorough research and a realistic budget help you select the best path.
Check out our guide on average salary in Canada. This helps you understand differences in regions and industries.
How to Budget for Your Life in Canada: The Necessities
Every newcomer has unique circumstances, but they all share some basic costs: housing, food, and transportation. Knowing average rates in your city and using smart spending habits can help you manage your finances better.
Housing and accommodation tips
Housing usually takes up the biggest part of monthly expenses, especially in downtown Toronto, Vancouver, and other busy areas. New immigrants usually rent before buying a home. However, finding an affordable place can be hard without local references or rental history.
Strategies include:
- Compare neighbourhoods: Sometimes living slightly farther from the city centre cuts rent significantly.
- Considering house shares or subletting: This can significantly reduce upfront move-in costs.
- Checking government resources or nonprofits: Many resources support immigrants in finding subsidized housing. If you have a large family, check local zoning rules. Some condominium associations limit how many people can live there.
Check out our tips for proving residency without bills. Sometimes this can be your first barrier when finding housing in a new country.
Food and grocery budgeting
Canadian grocery prices vary across provinces, partly due to distribution costs. In Vancouver or Toronto, you can find diverse ethnic supermarkets. They offer familiar ingredients at good prices. Big stores like Walmart and Costco sell many essentials at low prices, but the quality of produce can vary. Farmers’ markets in big cities provide fresh foods but can be pricier.
Bulk buying or using loyalty programs reduces your monthly food bill. Cooking in bulk helps too; preparing large meals for multiple days saves time and money. Many newcomers find community gardens or local Facebook groups for food swaps and coupon exchanges.
Transportation and commuting strategies
In busy cities, traffic jams make car ownership costly. You have to pay for insurance, parking fees, and gas. A monthly public transport pass costs around 100 CAD. But this is typically less than monthly car expenses.
When picking a place to live, balance your rent savings with your commute time or costs. If you’re commuting far daily, the added transportation expense might cancel out cheaper rent. In some major areas like Montreal or parts of Toronto, cycling can be a viable option for three seasons of the year.
If you’re considering driving in Canada, make sure you’re aware of how to get your Canadian driver’s licence.
Getting Established in Canada
As well as your basic living costs, you’ll need to think about opening a bank account, getting healthcare coverage, and learning about local education services. Managing these well can help keep your finances steady and let you settle in with less stress.
Opening your first bank account
Opening a Canadian bank account early is key for handling bills, getting paid, and building a credit history. Many banks have newcomer packages, featuring waived fees for a limited period. Bring your ID, immigration records, and proof of address, like a rental agreement, to make the application easier.
Beware that some banks might upsell premium services you don’t need yet. Sticking to basic checking or savings accounts helps you understand day-to-day finances. Over time, if you require mortgages or business accounts, upgrading might make sense.
If you plan to send money abroad, check the international transfer rates. You can also find answers to common questions about sending money in our help centre.
Affordable healthcare and insurance options
Most permanent residents and some work permit holders can join provincial healthcare systems. If you have a family, each province has rules for covering children. So, check eligibility when you arrive.
Remember that provincial coverage rarely includes prescriptions or dental care. Supplementary insurance might be prudent for those with specific health needs.
Car insurance is mandatory for drivers. It can be costly for immigrants who lack local driving records. Providing prior experience or international driving abstracts might help. If the city’s public transport works for you, not using a car at first can cut down monthly costs a lot.
Education and public service expenses
Parents should plan for school fees. This is important if kids join extracurricular activities or need uniforms. Public schools are free, but older children may need laptops, bus passes, or course materials.
International student fees for post-secondary education are higher than domestic rates. This changes if you get permanent resident status. Some immigrants apply for Express Entry or provincial nominee programmes. This helps them qualify for local tuition rates and pay less.
Libraries, community centres, and language classes often offer free or low-cost programmes. Many libraries host newcomer orientation sessions, provide computers, or teach English conversation groups. Exploring these resources can enhance your skill set without straining your budget.
How to Save on the Cost of Living in Canada
You can still save money and live well, even in expensive cities. This section highlights ways immigrant families can save money. It includes specialist financial products and local discount programs they can use easily. Also, take a look at our article on ways to save money on a tight budget.
Financial products and tools for newcomers
Banks often offer credit-builder loans or starter credit cards to help you develop a Canadian credit score. A good credit rating lowers interest on future car or mortgage loans. Some also allow you to open a Registered Retirement Savings Plan (RRSP) early. This can lower your taxable income and increase your long-term savings.
Look for loyalty cards or store rewards. They can help reduce your grocery and pharmacy expenses. Also, digital budgeting apps are available to track daily spending in Canadian dollars. This helps you see where you might be overspending.
Discounts and money-saving strategies
Major cities frequently offer discount passes or group deals. Look for student or newcomer discounts on transport, cultural venues, or events. Groupon or daily deal websites provide bargains on dining or entertainment.
Looking for clearance grocery racks and end-of-day bakery deals can save you money on your monthly food bill. Thrifting for household items or clothes at second-hand shops helps you skip high retail prices.
Housing cooperatives or community boards may post shared living or caretaker jobs with lower rent. If you have a large family, you might be able to negotiate a bulk discount for childcare or after-school programmes. Canadians value open discussion of money, so feel free to ask for flexible terms.
Community resources and support networks
Nonprofits in big cities offer workshops on budgeting, personal finance, and job readiness for immigrants. Agencies that help immigrants can guide you with provincial benefit applications. This way, you won’t miss any subsidies.
Faith-based communities sometimes run emergency food banks or short-term housing programs. Local Facebook groups and Nextdoor forums let you swap household items or find car shares.
Joining these networks lowers costs and widens your social circle. You get moral support and can share knowledge too. A local expert can share the best days to find deals at produce markets. Together, these resources can cut daily costs, helping you build a strong life in Canada.
FAQs
Which city in Canada do the highest percentage of immigrants move to?
Toronto historically draws the most immigrants, thanks to a broad job market and cultural diversity. Vancouver is a popular spot, especially for people from Asia. Montreal, on the other hand, draws many French-speaking newcomers.
Which city is best for new immigrants in Canada?
This depends on factors like cost of living, job prospects, and language preferences. Toronto and Vancouver feature huge immigrant communities but carry higher housing prices. Montreal is cheaper, though French proficiency matters.
Calgary and Edmonton have strong industries, especially in oil and gas. They often offer lower housing costs too. Every city has its pros and cons. So, think about your work experience, family needs, and budget.
How much money do I need in the bank to move to Canada?
Immigration, Refugees and Citizenship Canada (IRCC) sets settlement fund rules for some visas and Express Entry streams. These usually require a few thousand Canadian dollars. Real living costs in big cities are higher than these amounts. So, it’s smart to have a good financial cushion. Experts suggest saving three to six months’ worth of living expenses and having an emergency fund.
Why are 30% of immigrants leaving Canada?
Some immigrants mention high living costs, limited job growth, or trouble fitting in culturally. When earnings can’t keep up with high rent, or underemployment lasts too long, families might choose to go back home or move away. Some people may miss their extended family networks.
Others might find that their professional credentials face ongoing barriers. Doing careful research and making a realistic budget can help you avoid surprises. This way, you can build a stable life in Canada’s costly cities.