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Cost of living in Canada
Canada lies to the North of the USA and, behind Russia, is the world's second largest country. It is one of the best countries in the world to live, learn and work. Canada ranks first among the G7 countries in providing equal opportunities for individuals, whether native-born or a new arrival.Cost of living expenses in rural areas can be significantly low.
However, living in major cities like Toronto and Vancouver can be very expensive. Space and living conditions in Canada are excellent although getting private land will still be expensive. Only 12% of the land is inhabited and almost 18% of the overall population is comprised of immigrants from Europe and Asia.
Here are some typical costs for living in Canada: |
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- Bus Fare One Way (local) $3.00
- Utilities (one month) $20 - $30
- Phone (one month not including long distance) $20 - $40
- Cell Phone Package (one month) $40
- Cable Television (one month) $25 - $50
- Average Restaurant Meal $10.00 - $25.00 per person
- Movie $8.50 - $12.00
- Letter within Canada $0.50
- International Postage (letter) $1.45
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Taxes
Some provinces apply a provincial tax levy to goods and services. All provinces must apply the federal Goods & Services Tax (GST) of seven per cent to most purchases. As a visitor, a portion of the GST may be refunded to you upon your departure from Canada. There are restrictions that apply and you must provide original receipts. Contact Revenue Canada or your school for further information. GST refund forms can be obtained at the information counters at airports and at most shopping malls.
Canadian Tax Rates
Personal Income
| C$ 0-40,726 |
15% |
| C$ 40,726-81,542 |
22% |
| C$ 81,452-126, 264 |
26% |
| Over C$ 126,264 |
29% |
Food and Drink Costs in Canada
The Canadian food processing industry (NAICS 311) is one of the third largest companies and its biggest food industry. 3.7% of per capita GDP is attributed to the food processing industry and together with farming and agriculture makes up 6.3% of the country’s total GDP. The farming industry has also helped a lot in contributing sales of frozen or canned vegetables and fruits like olives, pickles, corn, cherries and licorice.
As for drinks, Canada has a number of large breweries and wineries. Canadian beer and wine are popular among local residents and Americans. Food and drinks in Canada are priced fairly but not altogether cheap. There are also baked goods and pastries available but these are also quite expensive especially in the big cities. Some people are able to acquire very affordable products like rice, corn, fruits and vegetables from farmers’ markets.
Services Costs in Canada
The Canadian government is very generous in giving social assistance to all citizens. There are benefits that help support payment for commodities, food, house repairs, medications, health care car repair and fuel as well as on education. Workers also receive insurance and benefits during medical and financial situations. Some older individuals who did not finish their college degrees are also given the opportunity to study for free.
Canada also has equalization rights wherein the government provides income redistribution for those earning less than what is required for the whole family to cope and survive comfortably. Taxation rates can be adjusted by the government provided that citizens request and provide sufficient evidence of low affordability status. Canada is one of the leading nations in the world when it comes to social groups and programs.
Main Banks in Canada
- Bank of Montreal (BMO)
- Bank of Nova Scotia (Scotiabank)
- Canadian Imperial Bank of Commerce (CIBC)
- National Bank of Canada
- Royal Bank of Canada (RBC)
- TD CanadaTrust
In general, banking in Canada costs money, either in monthly fees, or in lost interest through having to maintain a sufficiently large balance in a low interest daily account to have the fees waived. A regular day to day transaction "current" account is referred to in Canada as a chequeing (checking) account. Interest in a chequeing account will be very low, so most people operate savings accounts in parallel. You can also buy guaranteed investment certificates (GICs) from your bank. These offer higher rates of interest than savings accounts but your money is tied up for the term of the certificate.
Currency and Banking
Money and Measurements
Canada uses the metric system of measurement. The unit of currency is the Canadian dollar, which equals 100 cents. The most common paper currency in Canada comes in $5, $10, $20, $50 and $100 denominations. Coins appear in 1 cent (pennies), 5 cents (nickels), 10 cents (dimes), 25 cents (quarters), $1 (loonies) and $2 (twoonies) denominations. The $1 and $2 coins have been introduced over the last 10 years, and there are still Canadian $1 and $2 bills in circulation that are considered legal tender (they have also become collector's items). Canadian bills are clearly marked and each denomination has a distinctive colour.
Banks & Currency Exchange
Although banks often offer the best currency exchange rate, some do charge a small fee to change money or traveller's cheques, and prices listed often do not include taxes. It is best to change a small amount of currency into Canadian money before coming to Canada, as banks are usually open only Monday to Friday, daytime hours (9 a.m. to 5 p.m.). Other means of exchanging your currency can be somewhat more costly. Exchange services offered by hotels, shops, and exchange booths almost always offer the highest rates or charge large commission fees. Wherever you go, always ask about hidden charges before changing money.
All shops and businesses will accept Canadian currency, and some will accept United States currency in tourist areas. All other currency must be converted.
Banks and Automated Teller Machines (ATMs)
Students can easily access the many banks and affiliated ATMs in Canada. They are especially easy to find in large cities, and are more convenient than credit cards and traveller's cheques. You can usually use a regular bank card or a major credit card at ATMs to withdraw cash. It might also be possible to open a local account which would come with an ATM card. ATM cards can also be used at many stores in Canada to pay for items such as groceries and clothing.
Banks offer a variety of services to their customers including currency exchange, safety deposit boxes for storage of passports, and savings accounts. Many Canadians use personal cheques issued by banks as an efficient means to pay for services.
Traveller's Cheques and Credit Cards
Traveller's cheques are a recommended form of currency when travelling (for safety reasons) and can be purchased at major Canadian banks. They are easily replaced if stolen or lost. Most shops, hotels, restaurants and attractions accept traveller's cheques as well as major credit cards.
The rate of exchange in effect on the day of a credit card transaction will be automatically updated on your credit card bill. Students can also apply for credit cards when they arrive in Canada; however, the expenses are due at the end of every month with interest charged on unpaid expenses.
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Living & Education in Canada
