Preparing before you arrive in Canada can make your transition much easier. It can also help you make informed decisions about your life and career as you begin to settle in. So, in addition to arranging documents and accommodation, and building job search plans, pay careful attention to your finances before your move to Canada.
Here’s a look at key expenses newcomers should consider when planning their move and creating a realistic budget.
You need proof of funds, and then some!
Depending on your immigration pathway, you may need to show proof of funds as part of your application. Meeting that requirement does not necessarily mean you will have enough money to cover housing, transportation, daily expenses, and other costs while you look for work and get settled. That’s why having accessible funds when you arrive is important.
“Understand the costs associated with getting to your desired lifestyle. [Ask yourself] what is the rent cost on the type of apartment [condominium, Airbnb] or home that you want to live in?” says Monica Da Ponte, founder of Shift and Build, which works to spread awareness about financial responsibility in Canada among immigrants.
Researching costs in your intended destination can help you create a realistic budget. Consider where you want to live, the lifestyle you hope to maintain, and how long your savings may need to support you.
Also read: The right mindset for a newcomer to Canada, explained by immigrants themselves
Plan for the time it takes to find a job
Finding employment is one of the biggest challenges many newcomers face. Even with experience, education, and strong qualifications, it can take time—weeks, months… sometimes, a couple of years—to find a job that matches your background. Planning for this period is an important part of your financial preparation.
Some newcomers take temporary jobs a.k.a. survival jobs which normally pay minimum wage, but will keep them afloat until they transition into their career. Others may need to adjust their initial plans while they build Canadian experience and professional networks.
Before moving, learn about employment opportunities in your field, minimum wages, and estimated take-home pay in the province where you plan to settle.
“It’s really important to understand these costs. When you want to know how much money you need to bring, think of it as a runway: how many months can you sustain yourself? If you get a survival job, how does that extend the runway? Understanding these things helps you. They help you make decisions on where you can move to. They help you make decisions on how much money you need,” says Da Ponte.
“Prepare a budget; and integrate all of your costs into it,” she advises.
Housing will likely be your biggest expense
Canada’s larger cities often attract newcomers because of their job opportunities, established communities, public transportation, and services. However, these benefits can also come with higher rental costs. Before choosing a city or community, research housing prices and think about how much you can realistically afford.
Nalini Chariandy, author of The Maple Leaf Effect: An Immigrant’s One-Stop-Guide to Transitioning and Thriving in Canada or Anywhere, says: “You need to consider how much you need to feed your family, to move around on transportation, and where you’re going to live… that’s your biggest cost! I would suggest finding out where you’re gonna work, and live close to where you work.”
Her advice highlights an important point: your housing decision should not only be based on rent. Think about how your choice will affect your overall expenses and daily life.
Ask yourself, ‘Can a smaller community help me save money?’ There are many small and mid-sized towns and cities in Canada that offer it all—affordable housing, a lower cost of living, ideal local job market and work-life balance, as well as ample newcomer services so you can access all the support and connections you may need.
Also read: Housing guide for a newcomer to Canada
Don’t forget to factor in everyday expenses
Rent may be your biggest expense, but there are many other costs to include in your budget. Groceries, transportation, phone plans, clothing, household items, and other daily expenses (depending on where you live, your family size, and your lifestyle) can add up quickly.
Before making your move, research the typical costs in your chosen city or province. Online cost-of-living tools can help you compare expenses such as groceries, transportation, and dining between different locations. Having a clear picture of your expected expenses can help you avoid surprises after you arrive.
Also read: New Canadian citizens reflect on their journeys of hope and overcoming challenges
We hope this article gave you a good understanding of the expenses that come with starting over in Canada. Now, you can plan and build a cushion to focus on finding your footing as you settle in, without the added stress of money worries.
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