At Remitly, we know how hard settling in abroad can be. And if you’ve just moved to Canada or are planning a relocation, one of your biggest concerns is likely the cost of living in 2025.
Understanding how much your day-to-day expenses might be will help you feel more prepared and in control of your finances. In this post, we’ll demystify living costs in Canada by providing a clear and straightforward overview of what experts predict for key bills like housing, groceries, and transportation.
Housing costs: a look ahead
Like most people building a budget, a large portion of your finances will be dedicated to housing costs, whether you’re renting or buying a home. Read on to understand the housing trends in Canada and what steps you can take to make your move smoother.
Expert forecast
The Office of the Parliamentary Budget Officer (PBO) recently released an updated housing report on the Canadian market. While housing costs across the country are lower than their all-time high in 2022, mortgages and rent are generally expected to remain high in bigger cities like Toronto.
Data and examples
The report also analyzes average housing prices in various Canadian cities and compares the averages to what a typical family can afford. In many cases, the difference between these two figures is closing. Since 2023, the national gap has shrunk from 80% to 34%, indicating that housing is becoming more accessible to more people.
Two cities where the affordability gap has seen major improvements are Toronto and Hamilton. However, Calgary, Montreal, and Quebec remain some of the least affordable cities for housing.
What this means for you
If you’re looking to find more cost-effective housing options, you may want to explore areas outside of Canada’s major cities. Avoid Toronto, Vancouver, and Victoria if you want to buy your own home, as mortgage–income ratios are among the highest in Canada.
- Explore what housing opportunities are available in your target locations using online resources like REALTOR.ca, Zolo, or HouseSigma.
- Are you planning to rent? Keep in mind that official real estate agencies charge a fee equivalent to one month’s rent. Although the landlord pays this, the cost is often passed on to renters through higher monthly rent costs.
- To avoid additional costs, get housing recommendations directly from landlords or previous owners via word of mouth or social media platforms like Facebook.
At the grocery store: food price predictions
After accounting for the cost of putting a roof over your head, the next pressing expense is food and housing supplies. The prices of groceries, especially fresh ones, are affected by the climate, supply chain, and global demand.
Expert forecast
According to recent data, Canadian households paid an average of $1,065 CAD per month for groceries in 2022. But by 2023, that figure had jumped to $1,357 CAD. With an almost $300 CAD increase in monthly food costs, Canadians were left with no choice but to shell out almost $3,600 CAD more on food every year.
Food prices haven’t increased that drastically since then. However, inflation at the grocery store continues to rise at a rate of 5–7% year-on-year, which is higher than typical.
Data and examples
Information from Statistics Canada reveals the real cost of food in the country. Here are a few everyday products and what you’ll pay for them as of August 2025:
| Item | Quantity | Price (CAD) |
| Ground beef | 1 kg | $15.06 |
| Chicken breast | 1 kg | $14.97 |
| Fresh salmon | 1 kg | $24.26 |
| Milk | 1 litre | $3.10 |
| Eggs | 12 (a dozen) | $4.18 |
| Apples | 1 kg | $6.17 |
| Potatoes | 1 kg | $4.92 |
| White Bread | 1 loaf | $3.43 |
What this means for you
With the rising cost of groceries, you might have to assign more of your budget to this category once you move to Canada. Food prices may also influence your menu choices. For example, eggs and dairy products like milk and cheese tend to be more expensive, so you may opt for plant-based meals to cut costs.
Canada’s Food Price Report 2025 predicts that a family of four should expect to spend a total of $16,833.67 CAD on food for the year. This amounts to approximately $1,402 CAD per month. See the official report for more in-depth data.
Transportation and gas: the cost of getting around
Whether you own a car or use public transport instead, getting around comes at a cost. Here is all you need to know about gas prices, transit fares, and vehicle maintenance costs.
Expert forecast
Average gasoline prices continued to decrease nationwide as of late 2025. This drop typically happens every fall as the demand for fuel wanes after the summer tourist season, when people are more likely to take road trips through Canada. But generally, the cost of fuel has been steadily increasing due to ongoing global trends.
Meanwhile, public transit fares fluctuate regularly based on location, fare type, and how far you’re traveling.
Data and examples
If you’re looking to understand how much it will cost for you to drive in Canada, consider gasoline prices in different provinces. Expect to pay around $1.30–$1.60 CAD per litre, depending on where you’re filling your tank. Anything lower and you’re getting a deal!
But owning a car attracts other costs besides gasoline, including maintenance and insurance. For a more personalized estimate, you can use the CAA Driving Costs Calculator.
What if you use public options? Currently, single adult fares range from $3.35 to $3.85 CAD, depending on the city or zone.
What this means for you
If you drive your own car, experts recommend filling up earlier in the week as gas prices tend to increase from Thursday to Sunday.
And if you’re riding public transportation, consider purchasing a monthly pass, which can often lower the price per ride compared to single fare tickets.
Simple steps to organize your finances
As you look ahead to a new life in Canada, one of the best things you can do before making the move is to create or review your personal budget. By tracking your monthly income and expenses, you can see where your money is currently going and ways to make smarter financial decisions.
Review your budget
For each month, monitor all of your income and your spending, including:
- Recurring expenses like your rent or mortgage payment, Wi-Fi, cellphone service, and health insurance.
- Your discretionary spending, such as groceries and entertainment.
After understanding your budgetary needs, you can easily make small adjustments based on your short- and long-term financial goals. In this case, you might want to compare your spending to the anticipated budget you’ll have in Canada.
Identify savings opportunities
You may be looking to save money before your move or once you arrive. Luckily, there are a few easy-to-implement strategies that, when done consistently, can positively impact your savings account.
- Plan meals to minimize food waste and reduce unnecessary spending on takeout, delivery services, and dining out.
- Sign up for loyalty programs. These exclusive discounts or points systems at grocery stores and other frequently visited places can help you cut costs.
- Set up your recurring payments, especially on utility bills, to reduce banking fees.
- Compare offers for expenses like car payment, Wi-FI services, or health insurance from different companies to get the best deals.
- Also, take advantage of any promotions when they are available.
Build an emergency fund
As you start to save some money, consider setting up an emergency fund as one of your short-term financial goals.
This small pool of liquid cash can help support you in case of an unexpected event, such as sudden sickness or job loss, or a major life change—like an international move. Having an emergency fund can provide you with financial security and peace of mind.
Where to find reliable support
If managing your finances proves challenging, several avenues for help and support are available to you. Consider exploring the following resources:.
Government resources
- Financial assistance
- Benefits Finder tool
- National Income Assistance Program
- Rent assistance (by province)
Non-profit help
Remitly resources
At Remitly, we’re committed to providing a transparent and reliable service for sending money abroad, which helps families manage their finances effectively. Get started with Remitly today, or check out our in-depth resources covering personal finance.
Managing living costs in Canada
The 2025 financial outlook in Canada looks promising. While the high cost of living presents challenges, understanding the trends is the first step toward better money choices. With some simple, practical steps, you can take control of your financial future.
As you prepare yourself emotionally and logistically for an international move, don’t forget about your finances, too. This will set the foundation for your financial well-being in Canada, ultimately benefiting yourself and your family here and abroad.
FAQs
Is Canada’s cost of living in 2025 high compared to other countries?
Yes. Canada is one of the most costly countries to live in, primarily due to its high housing costs. Experts estimate you’ll need at least $2,330 CAD every month while living here. However, it’s more affordable than other developed nations, such as the US, the UK, Japan, and New Zealand, especially in terms of healthcare costs.
Which Canadian city has the highest cost of living?
Cities like Toronto, Vancouver, Calgary, and Victoria are consistently ranked among the most expensive in Canada. These high prices are mainly driven by housing costs.
How much should I save in an emergency fund?
Financial experts suggest saving at least 3–6 months of your essential living expenses in an emergency fund. To determine your target amount, add up your monthly expenses (housing, bills, and groceries) and multiply that number by three to six.
Can I open a credit card in Canada if I’m not a citizen?
Yes. Even if you don’t have a Canadian passport, you can get a credit card as a non-citizen if you’re a permanent resident, international student, or temporary worker, provided you have your immigration documents, a Canadian bank account, and meet other requirements that vary by credit provider. However, temporary visitors, like those on a tourist visa, aren’t eligible for credit cards.