Want To Move To Canada? Here's What It Will Cost. | Money Under 30 (2024)

Is Canada on your mind these days?

Americans have a long history of moving to Canada for political reasons, as The Economist’s graph of American permanent resident admissionsdemonstrates.

Whatever your reasons, Canada is a practical choice for Americans seeking the expat experience. English is one of the official languages, the economy is one of the world’s strongest, and there are a variety of urban and rural areas to choose from. Toronto, Vancouver, and Montreal routinely rank higher than all US cities in quality of life surveys.

Despite its proximity, emigrating from the United States to Canada can be quite difficult. In particular, Canada limits immigration to those who possess a work-related skill that is in high demand. This could include professions such as engineers, someIT functions, and certain medical professions.

Assuming you get into Canada and have a job, is it really cheaper to live in Canada? What about taxes? Are Canadian cities such as Toronto as expensive as their counterparts in the United States such as New York and Seattle?

Before you assume everything will be rosier across the border, let’s examine how a move to Canada would affect your wallet.

Canada vs. Europe vs. the United States

If the United States is generally believed to have the lowest level of social safety net spending, and the democracies of Western Europe invest more in this area, then Canada is somewhere in the middle.

One example of this is with paid maternity or paternity leave. The United States is the only country of its economic stature that does not guarantee any paid leave for new parents. Conversely, in some countries in Europe paid maternity leave can last years.

In Canada, most employers offer between 17 weeks and one full year of leave. Parents can share up to 35 weeks of employment insurance, which covers 55% of wages up to a maximum of $543 per week. In the United States, some states have similar arrangements but there is no mandate from the federal government to provide this benefit.

So starting a family would probably be cheaper in Canada, but what about things that Canadianspay more for?

Food, gas, and consumer goods are all more expensive in Canada

Consumer goods and foodtend to be considerably more expensive in Canada, with price increases of 25% to 50% over that in the United States. While some items are less expensive, you can generally count on paying more for staple goods.

Gasolinealso costs a lot more in Canada. In 2015, the price of gasoline in America dropped by 90 cents per gallon compared to 41 cents in Canada. This is dueto the relative weakness of the Canadian dollar compared to the American dollar.

To put these differences in perspective, a person spending $80 a month on gas and $150 a week on food in the US could expect to spend closer to $100-$120 and $200 a week on these items (that’s a totaldifference of roughly $680 versus $900). For a family of four, the difference widens: $1,050 over four weeks versus $1,350. When your post-tax income is an average entry-level salary of $3,000 or $4,000 a month, this is a considerable difference.

However, you can always save money by ditching your car for a bike, and these increased costs might have some offsets. Let’s check them out.

What’s less expensive in Canada?

Medical care

The cost of Canada’s universal healthcare is somewhat hidden from consumers. While Canada does in fact spend a great deal of money on healthcare—about $4,500 per capita in 2015, ranking sixthin the world for most expensive healthcare—the United States ranks first with a system that spent about $8,200 per capita.

When one considers that the US dollar is about 20% stronger than the Canadian dollar in terms of valuation, the difference in expense becomes even greater.

Americansbasically pay this cost out of their pockets (after taxes), with insurance premiums that vary greatly in price both on the private market and through employer-subsidized plans. An employee who buys insurance through an employer for a family (spouse and one child) can easily spend more than $1,000 a month in the US—or roughly $500+ more than the tax burden Canadians are levied for universal care.

College education

Canadian universities cost about halfwhat American universities do, reducing the potential burden of student loans and extensive family saving to pay for it. However, it should be noted that international students in Canada do not benefit from this.

University (city, state)Cost per year
Ryerson University (Toronto, Ontario, CA)$6,213
McGill University (Montreal, Quebec, CA)$4,855-$6,441
University of Ottawa (Ottawa, Ontario, CA)$6,376 (undergraduate arts degree)
University of Virginia (Charlottesville, Virginia, US)$15,714 (in Virginia), $45,058 (non-Virginia)
University of Pennsylvania* (Philadelphia, PA, US)$51,464
Princeton University*$45,320

* Indicates private school (i.e., no funding assistance from the state). Costs are for domestic students (international student costs not shown, but are considerably more expensive; for example, for McGill University these are $19,000-$44,000 annually).

Utilities

Canada has basically nationalized its utilities, leading to slightly lower costs than in the United States, even though electricity itself is more expensive than in the United States, as is natural gas. However, by and large the difference in cost between the two countries is negligible.

Some costs depend onwhere you live or the lifestyle choices you make

Tax structure

In general, Canada has somewhat higher taxes than the United States. However, this isn’t solely due to the overall income tax, which actually has price brackets similar to that of the United States.

Canada has something called a harmonized sales tax that is considerably higher than any sales tax one might expect to see in the United States.

The harmonized sales tax is a type of consumption tax that combines the federal goods and services tax and the provincial sales tax. The harmonized sales tax in Ontario (the most-populated province in Canada) is 13%. By point of comparison, the combined sales tax for some of the most expensive cities in the United States is:

  • 9.6% in Seattle
  • 9% in Los Angeles
  • 8.88% in New York
  • 8.75% in San Francisco

Cities versus suburbs/rural areas

The biggest differences in cost between cities, suburbs, and more rural areas are in housing costs. Toronto, Vancouver, Calgary (Alberta), Montreal, and Halifax (Nova Scotia) are expensive, but cities such as New York and San Francisco (with median rents of $3,000 to $4,000 USD for one bedroom apartments in their downtown areas) are considerably more expensive than their Canadian counterparts, both with respect to rent and purchasing property.

One should also note that, in spite of recent rate hikes, the interest rates Canada charges on mortgages (25-year amortization period vs the typical 30-year in the United States) are slightly lower than in the US, though they are clearly comparable.

A vacation could help you make up your mind

Reading the abstract numbers is one thing. But going to different neighborhoods in a place you are thinking of relocating to is vital.

Plana week or two of travelto more than one destination in Canada before you apply for permanent residency. You may see that not only do you really love (or not love) Canada more than you thought you would, you might be surprised by the everyday cost of living.

Summary

Canada is cheaper than the US in some aspects, but not others. You’ll be paying less for health insurance and rent, but what you’ll pay in utilities, gas, and consumer goods will increase. You’ll have to decidewhat you’re willing to pay more for and what you aren’t. And that’s if you can manage to get the visas required to work and live in Canada.

Want To Move To Canada? Here's What It Will Cost. | Money Under 30 (2024)

FAQs

How much money is enough to move to Canada? ›

Here are the updated settlement funds requirements effective May 28, 2024: For a single applicant, the required amount is CAD 14,690 (previously CAD 13,757). For a family of two, the requirement is CAD 18,288 (previously CAD 17,127). For a family of three, the new amount is CAD 22,483 (previously CAD 21,055).

How can I move to Canada under 30? ›

Canada has negotiated bilateral youth mobility agreements with more than 30 countries and territories. Under the International Experience Canada (IEC) program, foreign youth aged 18 to 35 can get a temporary work permit, allowing them to travel and work in Canada.

How much would it cost to move to Canada? ›

Generally speaking, as an individual applicant, you would need approximately $15,500 CAD to immigrate to Canada. Couples would need around $21,000 CAD while families with children will require between $25,000 to $30,000 CAD.

Can I move to Canada at 30? ›

Age Limit: There is no specific age limit for Canadian immigration programs. Express Entry: This system awards points based on age, with those under 30 receiving the maximum points. Language Proficiency: Proficiency in French and English can help recover lost points.

How much bank balance is required for a Canada visa? ›

You must have about CAN$6,500 (INR 4,00,000) in your bank account to be approved for a Canada visitor visa. The visitor visa applicant can show this amount through their bank account statement and submit the bank statement with their Canada visitor visa application.

How much is needed for Canada proof of funds? ›

What is the settlement funds requirement for Canadian immigration?
Number of family membersSettlement funds required (in CAD)
1 (Yourself)$13,757
2$17,127
3$21,055
4$25,564
4 more rows
Mar 12, 2024

What are the minimum requirements to move to Canada? ›

Immigrate through Express Entry: Documents
  • a passport or travel document. ...
  • language test results.
  • proof of Canadian education or an educational credential assessment report for immigration purposes if. ...
  • provincial nomination (if you have one)
  • written job offer from an employer in Canada (if you have one)

How much is a 2 year work permit in Canada? ›

Fees for open work permits

If you're applying for an open work permit, make sure you pay all applicable fees: work permit fee ($155) open work permit holder fee ($100)

What is the visa for Canada under 35? ›

The working Holiday Visa is a visa that allows foreigners to visit and work in Canada. It's a residence permit allowing citizens of certain countries to move to Canada to work and travel around the country for up to 12 or 24 months. Typically, this visa targets immigrants between 18 and 35 years.

How much money is required for a Canada visa? ›

At a federal level, the Immigration, Refugee and Citizenship Canada (IRCC) has specified the following minimum fund requirements: Single person – $13,310 CAD. A family of two – $16,570 CAD. A family of three – $20,371 CAD.

What is the fastest way to move to Canada? ›

Find a Suitable Immigration Pathway

The express entry program is the quickest way to get permanent residency in Canada. However, you must be a highly skilled individual to get into this program. The pathway is points-based, and you will be scored on your experience, qualifications, education, and skills.

How to move to Canada in the cheapest way? ›

There are four easiest provinces to immigrate to Canada in 2022: Saskatchewan, Alberta, Ontario, and Nova Scotia. The cheapest way to immigrate to Canada would probably be through applying directly to a Provincial Nominee Program. Absolutely. Yes, you can apply to both at the same time.

How much money do you need to immigrate to Canada? ›

Minimum amount of money you need to immigrate to Canada based on the size of your family
Number of family membersFunds you need (in Canadian dollars)
1$14,690
2$18,288
3$22,483
4$27,297
4 more rows
Jun 3, 2024

What is the age limit to move to Canada? ›

There is no specific age limit requirement for any Canadian immigration program.

Can a 50 year old get a job in Canada? ›

Once you gain 1+ years of experience, apply for permanent residency in Canada. Job in Canada at 50+ is a lot challenging but you have to be determined, dedicated, and have a well-planned approach to enter the Canadian job market. The competition is also very high.

How much money should I have saved before moving to Canada? ›

At a federal level, the Immigration, Refugee and Citizenship Canada (IRCC) has specified the following minimum fund requirements: Single person – $13,310 CAD. A family of two – $16,570 CAD. A family of three – $20,371 CAD.

How much money is needed to live comfortably in Canada? ›

A single person needs a yearly salary of $45,000 and up (after taxes) to live comfortably in Canada, while a family of four needs roughly $90,000 to $100,000. Factors will affect this, such as the lifestyle and region you live in.

How much money do you need to move out Canada? ›

Savings: Aim to have at least three months' worth of living expenses in an emergency fund. This means if your monthly expenses are $1,500, you should have $4,500 saved before moving. Credit Score Check: Regularly monitor your credit history score.

How much can I use to relocate to Canada? ›

If you're relocating to Canada alone, your proof of funds should be about N10,500,000 or more. Although you're not necessarily “spending” your proof of funds to relocate to Canada, you simply need to show it as proof that you have enough to cover your cost of living for at least 6 months when you arrive in Canada.

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