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Inflation in Canada and What it Means for Newcomers

Inflation in Canada and What it Means for Newcomers

by | Oct 28, 2024 | Banking & Financial First Steps in Canada

BANKING & FINANCE

Inflation in Canada and what it means for newcomers

by  | Oct 10, 2024

Canadian money showing proof of funds

For newcomers and international students arriving in Canada, the current rate of inflation affects how much you pay for housing, groceries, transportation, and other expenses. Staying informed about inflation changes can help you budget and manage your finances. Stay up-to-date with recent changes so you can manage the cost of living in Canada.

The most recent Statistics Canada data (June 2024) shows the annual inflation rate fell from 2.9 percent in May to 2.7 percent in June. This rate drop is welcome news for immigrants who have recently arrived or will soon arrive.

Lower gasoline prices were the driving force behind the rate drop.

What is contributing to the current rate of inflation?

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Durable goods (cars, home appliances, consumer electronics, furniture, sports gear, toys, etc.) fell by 1.8 percent, which also helped lower the rate.

More good news for newcomers is that cell phone services were down 12.8 percent in June compared with 19.4 percent in May. Canada has some of the highest mobile phone rates in the world.

Clothing and footwear prices also edged lower in June. Service prices rose 4.8 percent annually in June, compared with a 4.6 increase in May.

Some costs and services that led to the June inflation drop:

COST OR SERVICE
CHANGE
Durable Goods (furniture, appliances)
Down 1.8% year over year
Used vehicles
Down -4.5% amid improved inventory levels compared with a year ago
Travel tours
Down 11.1 compared to a year ago
Recreation/Leisure
Down 0.5% in June after a 0.4% gain in May
Cell phone services
Down 12.8% in June compared to May 2024
Gas prices
Rose just 0.4% in June compared to 5.6% in May
Price for fresh fruit
Down -5.2% in June compared with May (-2.8%)

Newcomers can monitor inflation in Canada to help budget for costs.

Housing inflation is a concern for immigrants

“Shelter inflation,” or the costs involved in homebuying and renting, was still more than double the primary rate of inflation in June. Shelter prices in Canada increased by 6.2 percent over the last year and continue to be the primary cause of higher inflation.

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While rent growth has slowed in recent months in Canada’s largest cities, Toronto and Vancouver, some popular rental markets, such as Alberta, continue to have rental price growth. Rent prices in Canada rose 9 percent in June compared to June 2023.

So, will the drop be enough to convince the Bank of Canada (BOC) to cut its key overnight lending rate gain?

Will an interest rate cut follow the inflation report?

The BOC lowered interest rates from 5 percent to 4.75 percent in June 2024. That cut was the first in four years, and the first time the rate fell below five percent since July 2023.

The Bank will meet on July 24 to discuss whether current economic conditions warrant further cuts.

Derek Holt, Vice President and Head of Capital Markets Economics for Scotiabank believes that “the BOC is still likely to cut” in July, which would be good news for immigrants.

    Canada's inflation rate target remains 2%

    The BOC has set a target of two percent inflation. Inflation hit a high of 8.1 percent in June 2022, just as the Canadian economy was recovering from the pandemic. The BOC hiked interest rates 10 times between March 2022 and the summer of 2023 to control inflation.

    The BOC believes that making it more expensive for Canadians to borrow money forces consumers and businesses to spend less, thus lowering prices and slowing the economy.

    The most recent employment report for June revealed that the Canadian economy lost 1,400 jobs. The unemployment rate increased to 6.4 percent, meaning 1.4 million people were unemployed in June, an increase of 42,000 from May.

    According to the latest report from the IRCC, monthly immigration to Canada rose by 22 percent in April. It increased again by 9.3 percent in May, with 46,550 newcomers that month,

    That puts the total number of new permanent residents arriving in the first five months of 2024 at 210,865.

    The details of the report are consistent with the backdrop of consumers becoming increasingly cautious with discretionary spending.

    Benjamin Reitzes, BMO economist

    Inflation is a major concern for immigrants and international students who have arrived in Canada or are arriving soon. The cost of living in Canada affects many basic items and services essential to newcomers’ daily lives.

    A June 2024 Abacus Data poll showed that the cost of living is the number one issue for Canadians.

    Arrive in Canada Financially Prepared

    Building a strong financial foundation is vital to your success. Join this webinar to start your banking journey in Canada on the right foot!

    Sign up for a FREE webinar

    Inflation in Canada summary

    • Inflation affects immigrants and international students who buy essential items such as food, cell phone services, and rent housing.
    • Inflation in Canada fell from 2.9 percent in May to 2.7 percent in June.
    • Lower prices for gas and durable goods fuelled the drop in inflation while rent and mortgage interest costs continue to drive inflation in Canada.
    • The June decrease in inflation may lead the BOC cut interest rates further.
    • Inflation is the number one concern of Canadians.

    Action plan for newcomers

    • Continue to monitor the current inflation rate in Canada and the affects on rent prices.
    • Be a smart shopper and research the best prices at Canadian companies and stores.
    • Consider major purchases carefully.

    SOURCES:

    Scotiabank Economic Publications, Statistics Canada, IRCC

    Steve Tustin is the Editor for Rentals for Newcomers and a contributing editor for Prepare for Canada. He is also the former managing editor of Storeys.com and a former senior editor at the Globe and Mail and the Toronto Star.

    © Prepare for  2024

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      Bank of Canada Interest Rate Cut and Newcomers

      Bank of Canada Interest Rate Cut and Newcomers

      by | Sep 6, 2024 | Banking & Financial First Steps in Canada

      BANKING & FINANCE

      Bank of Canada interest rate cut and newcomers

      by  | Oct 10, 2024

      A young couple stands outside of a home they want to buy when interest rates in Canada move lower.

      The good news for newcomers and international students is that the Bank of Canada’s interest rates are falling. Experts predict they will continue to fall throughout 2024. The cuts will lift some of the financial pressures affecting all Canadians – including newcomers – from increasing mortgage costs, borrowing costs, and the rising cost of many consumer items.

      On July 24, the Bank of Canada cut its benchmark interest rate by 0.25 percent to 4.5 percent. The second 0.25 percent cut followed a similar one in June. Before June 5, the rate stood at 5 percent, down from a high of 8.1 percent in June 2022.

      A young woman stands in front of a row of TVs in an electronics store.

      Interest rate cuts will boost the economy

      The most recent Bank of Canada interest rate cut came as inflation in Canada fell from 2.9 percent to 2.7. The Bank’s target rate for inflation is 2 percent.

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      Meanwhile, unemployment in Canada increased to 6.4 percent in June, up from 6.2 percent in May.

      The interest rate cuts directly affect homeowners, businesses, consumers, and borrowers.

      So, what can newcomers who have already arrived in Canada or arriving soon expect going forward?

      Bank of Canada Governor Tiff Macklem said it is “reasonable to expect” more cuts in 2024. The Bank is “increasingly confident that the ingredients to bring inflation back to target are in place.”

      A young woman stands in front of a row of TVs in an electronics store.

      Larger interest rate cuts are needed

      “I take a lot of comfort from that. And I think Canadians need to just take a lot of comfort from that too.”

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      As for the impact of the Bank of Canada interest rate cuts on housing, Perrault said that the rate cut (an indication of more to come) “should be a great comfort to people with mortgages and people in the housing market.”

      You should expect those interest rates to come down as you think about your financial plan, as you think about holidays, as you think about renewing your mortgage or buying a car.

      Jean-François Perrault, Scotiabank

      “The challenge is that the housing market is going to be a little bit slower to respond” to the cuts.

      However, some experts say that despite the recent cuts, interest rates are still too high for newcomers looking to buy a home.

      “It’s not a surprise that the Bank of Canada lowered its rate, but I’m disappointed it wasn’t a 0.5 percentage-point drop,” said  John Lusink, president of Right at Home Realty.

      “That would have really stimulated the market. Will this recent rate cut have a dramatic effect on sales? No, I don’t think so. It’s still wait and see for a lot of people.”

      “So we’re not expecting a dramatic turn on the housing market in the short run.”

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      Immigration increases the demand for housing

      For newcomers to Canada wanting to buy a home, the lower rates will reduce the cost of borrowing.

      Immigration continues to increase the demand for rental housing and home buying.

      An Ipsos Research survey showed that newcomers buy homes quicker than ever and focus more on homebuying than those born in Canada. 

      Factor the impact of the cuts on your financial planning

      Canada is on target to welcome 485,000 permanent residents in 2024 and will welcome 500,000 in 2025. Between 2021 and 2026, Canada will have welcomed 2.4 million additional permanent residents.

      For Perrault, a key takeaway from the Bank of Canada interest rate cuts is that it is “very clear that interest rates are going to come down and that you should expect those interest rates to come down as you think about your financial plan, as you think about holidays, as you think about renewing your mortgage or buying a car.”

      “I would encourage people to not be overly worried about the economy, not necessarily rebounding right away as rates come down because they’re expecting it to.”

      “But it’s just a matter of time before things turn around,” said Perrault, “as those rate cuts kick in and people feel like they are in the right position to go out and try and buy a (home). We know it’s going to happen. It’s just a matter of when that’s going to happen.”

        Action plan for newcomers

        • Follow the next Bank of Canada interest rate cut (Sept.4) and see how it affects prices in Canada.

        SOURCES: Bank of Canada, Globe and Mail, Scotiabank Perspectives, Toronto Star, Statistics Canada, Ipsos.

        Steve Tustin is the Editor for Rentals for Newcomers and a contributing editor for Prepare for Canada and he is also the former managing editor of Storeys.com and a former senior editor at the Globe and Mail and the Toronto Star.

        © Prepare for Canada 2024

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        How to Find Accommodation in Canada

        How to Find Accommodation in Canada

        by | Jul 17, 2024 | Accommodation in Canada & Options for Newcomers

        A young woman is looking at her mobile phone to learn how to find accommodation in Canada with Rentals for Newcomers.

        Finding accommodation in Canada can be challenging for newcomers and international students amid a rental housing crisis. While finding a short-term rental before you arrive is an important first step, the hard work is finding your first long-term rental.

        Of course, researching the rental market before you arrive will help you compete in Canada’s tight, low-vacancy rental markets. Get a helpful overview of Canada’s rental market and tips to prepare for a successful housing search!

        Contents

        Rental Prices in Canada

        A recent 2024 National Rent Report from Rentals.ca showed that asking rents in Canada increased 9.3 percent year-over-year to an average of $2,188 in April. 

        Slower but steady rent increases are predicted throughout 2024 due to high demand and low supply. The demand stems from an influx of newcomers, and people who cannot enter the homeownership market despite falling prices and sales. 

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        The competition for rental units will get tighter as newcomers continue to arrive.

        A smiling woman is sitting on a sofa with a laptop to search for rentals in Canada.
        Rentals for Newcomers helps people avoid the headaches of searching for rentals in Canada.

        How to Find Accommodation in Canada with Rental for Newcomers

        For help finding accommodation in Canada, many newcomers turn to Rentals for Newcomers (RFN).

        Why has this site become so popular with newcomers seeking their first rental home in Canada?

        Rentals for Newcomers help people avoid the headaches, heartaches, and expenses of their rental search by promoting landlords who value newcomers.

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        Registration is Free

        For immigrants arriving in Canada’s competitive rental market, sites like Rentals for Newcomers are invaluable. Plus, it’s FREE, but you must create an account!

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        Registering will allow you to interact with landlords behind the rental listings.

        Watch the video and discover how Rentals for Newcomers can help you find accommodation in Canada.

        Accommodation in Canada & Options for Newcomers

        Why Tenant Insurance for International Students is Vital

        What are the Best Cities in Canada for Immigrants?

        A mother and her young children are going through security at an airport.
        Canada expects to welcome 485,000 newcomers in 2024 and 500,000 in 2025.

        More Immigrants Arriving Each Year

        Canada’s ambitious immigration targets impact demand and competition for available rental accommodation. 

        Canada will welcome at least 485,000 permanent residents this year and 500,000 in 2025, mainly from India, the Philippines and China. The country hopes to land 485,000 newcomers in 2024 and 500,000 in 2025. Canada has also welcomed a record number of international students. However, it has recently imposed new restrictions.

        Rental apartment building in Edmonton, Alberta

        Rental Demand Makes Finding Accommodation in Canada Difficult

        “We have unprecedented levels of demand that are met by low vacancy,” says Jesse Greenwell, Head of Communications Culture and Inclusivity at Mainstreet Equity Corp., a leading real estate company for mid-market rentals in Western Canada.

        “Everything is outpaced by the demand,” he said.

        “Rentals For Newcomers is a great example of a partner agency,” said Mainstreet’s Greenwell, which can help prepare newcomers for Canada’s rental market.

        A young couple is using a tablet to search for housing.

        Researching Canada’s Rental Housing Market

        Newcomers looking to find accommodation in Canada need to research before and after arriving. Canadian landlords won’t rent to you before you land, but knowing the rental landscape can help you find your first home more quickly.

        Rentals for Newcomers is a great place to research and find that rental.

        A person is looking at a rental application form on a tablet. It's important to know how to find accommodation in Canada and prepare.

        How Rentals for Newcomers Can Help You Find Accommodation in Canada

        In addition to hosting rental listings from across Canada, Rentals for Newcomers provides:

        • Current rental prices in Canada’s major rental markets (for example, a Toronto one-bedroom apartment rented for $2,459 in April 2024, while a one-bedroom in Saskatoon costs $1,215 monthly – a difference of $1,244).
        • Tips to impress Canadian landlords, avoid rental scams, rent without a credit history, and much more!

        Dave Frattini, managing partner of Prepare for Canada and Rentals for Newcomers, says RFN is an invaluable tool to give you a head start to find a rental.

        Newcomers must prepare to “sell themselves” as suitable tenants to landlords.

        Prepare to Find Accommodation in Canada

        “Vacancy rates in most cities across Canada are now hovering around 1.5 percent,” said Frattini, “meaning landlords have all the power in choosing the tenant they want. Searching for accommodation in Canada is more difficult than ever for newcomers.”

        Frattini advises newcomers to prepare to find accommodation in Canada and:

        • Understand rental prices in the city where they plan to settle.
        • Gather important documents to provide to potential landlords.

        Frattini emphasizes that when newcomers meet landlords “they need to prepare because landlords have the pick of the crop”.

        Protect Yourself from Rental Scammers that Target Newcomers

        Rentals for Newcomers also ensures that scam listings are not on its site to protect newcomers. The RFN site is part of the Rentsync rental technology software network, that verifies landlords.

        Sites like Craigslist and Kijiji are vulnerable to rental scam artists targeting newcomers and students.

        Get Verified Rental Listings 

        “Importantly, our listings are well managed,” said Frattini. “It’s both technologically and manually driven. Rentsync knows the landlords that are listing on Rentals for Newcomers.”

        Frattini added, “We educate our audience about scam alerts. Through Rentals for Newcomers’ blog posts, we update our audience about scams in the rental market.”

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        Summary

        Finding accommodation in Canada remains challenging for newcomers searching for their first long-term rental. Renters face fierce rental demand and competition. Using Rentals for Newcomers can help you overcome hurdles with resources and tools to make your search easier and faster!

        Steve Tustin is the Editor for Rentals for Newcomers and a contributing editor for Prepare for Canada. He is also the former managing editor of Storeys.com and a former senior editor at the Globe and Mail and the Toronto Star.

        © Prepare for Canada 2024

        How Can I Find Short-Term Rentals in Canada?

        How Can I Find Short-Term Rentals in Canada?

        by | Jul 9, 2024 | Accommodation in Canada & Options for Newcomers

        International students are entering the front entrance to a short-term rental apartment in Canada.

        Finding a short-term rental is a vital first step in the housing journey of immigrants and international students arriving in Canada.

        Before finding their first long-term home in Canada, newcomers need temporary accommodation while they search for a job and get settled.

        However, finding an affordable, suitable long-term rental in many parts of Canada can now take up to two months.

        According to a recent Rentals.ca report, that’s due to fierce competition and historic low vacancy rates amid a rental housing crisis.

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        Short-term rentals are the most popular solution, and here’s what to know about how to find them:

        Do Your Online Research Before You Arrive

        Short-term rental operators rent their homes or rooms via companies such as Airbnb.

        The bylaws that govern short-term rentals vary across Canada. For example, in Toronto, the initial short-term rental period is less than 28 consecutive days. So, check with the operator about the city’s bylaws and rules.

        According to Statistics Canada, the short-term rental industry is thriving in British Columbia, Nova Scotia, Quebec, and Ontario.

        Montreal, Halifax, Toronto, Ottawa, Victoria, and Vancouver are the most popular Canadian cities for short-term rentals.

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        Accommodation in Canada & Options for Newcomers

        How to Find Accommodation in Canada with Rentals for Newcomers

        Edmonton skyline during winter at dusk.
        Arriving in Canada during the winter makes it easier to find a short-term rental when demand is lower.

        When You Arrive Matters

        There are busy and slower seasons for short-term rentals.

        Generally, spring and summer (March to August) are busiest, and winter is the slowest.

        However, many rentals are also event-driven, so be aware of large events in the city where you intend to land.

        Prices and available rentals change based on demand (and supply). Booking well before you arrive will help you secure a rental and get the best deal.

        A downtown location gives you access to public transit and other services while searching for a long-term rental.

        Location Matters

        If you know where you want to settle long-term within a specific city, it can be a strategic move to get a short-term rental in that area. That way, you can explore the neighbourhood and determine whether it is right for you and your family.

        If you know where you will be working, a rental near your work can help you judge commuting times and costs.

        A rental in or near a city’s downtown core allows you to look for your first long-term rental home in Canada and offers many benefits (though rental fees may be higher) such as access to:

        • Government services
        • Settlement agencies
        • Shopping
        • Healthcare
        • Employers
        • Public transit
        • Adjoining neighbourhoods.

        Be sure to do plenty of research before you arrive. There are webinars, websites, and videos about neighbourhoods in most major Canadian cities. Pre-arrival settlement agencies can also offer guidance before you arrive in Canada.

        Prices for short-term rentals vary across Canada so research pre-arrival is important
        A recent survey shows it can take renters two months to find a long-term rental.

        Short-Term Rental Costs Vary

        Short-term rental costs in major cities such as Toronto, Vancouver, and Calgary are higher than in mid-sized cities such as Hamilton, Regina, or Fredericton. That’s a fact. So, research many short-term rental websites (see below) to find the rental that fits your budget.

        Consider this: a recent survey by Rentals.ca showed that it can take renters in Canada as long as two months to find a suitable, affordable rental.

        Hopefully, that won’t be your experience.

        Still, it’s vital to know that the Canadian long-term rental market is competitive, and vacancy rates are at historic lows in many cities popular with immigrants and students.

        So, budget accordingly for your short-term rental. You could be there longer than you anticipated.

        It’s also a smart strategy to follow rental housing trends and solutions in Canada before you arrive.

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        An Example of Short-Term Rental Costs

        Short-term rental prices vary in cities and provinces.

        However, a recent Ontario government short-term rental report showed that from January to April 2024, the average DAILY rental rate in the Greater Toronto Area was $114.32. That’s up 9.2 percent from the same months in 2023.

        The average daily rate in the famous tourist region of Niagara was $194.44 for the same period.

        According to the Ontario report, the average rental daily rate in Canada for that period was $159.88. That’s up 11.8 percent from 2023.

        Remember, January to April is a slow season for demand for short-term rentals.

        Keep track of your rental payments to build your credit history.

        Maintain Rental Records in Canada

        Once you arrive in Canada, most financial transactions, such as your short-term rental, can help to build your credit history. So, keep track of your rental payments, AND the addresses of your rental(s).

        A positive recommendation from the rental owner is also useful when looking for long-term accommodation and impressing Canadian landlords.

        Understand the Cancellation Policy

        All legitimate short-term rental operators advertise and define their cancellation policy. Look for it and study it before you book your rental.

        If the rental does not provide a policy, be suspicious and ask questions. For example, many operators have a 30-day cancellation policy with a full refund.

        How Can You Find Short-Term Rentals in Canada?

        Airbnb is a well-known and popular short-term rental site with a major presence in the rental market.

        However, many others operate in Canada, and researching them is a smart strategy for newcomers.

        Other popular sites include Sublet.com, VRBO, HomeAway, Booking.com, Hotels.com, Expedia, FB Groups, HostelWorld, and many others you can search online.

        When securing a short-term rental from Kijiji and Craigslist, immigrants to Canada and international students must remember that these are classified ad websites and historically home to rental scammers.

        Do your homework before renting through either Kijiji or Craigslist and be careful when considering a listing on these sites.

        Scam Alert is written on a yellow traffic sign.
        Beware of rental scammers that are active on classified listing sites.

        Beware of Short-Term Rental Scams

        Unfortunately, newcomers and international students are the primary targets of short-term rental scammers.

        Generally, scammers post their rental offers on well-known sites such as Facebook, Kijiji, and Craigslist. Classified sites are difficult to regulate, so they are popular with scam artists.

        How to Protect Yourself from Scams

        1. If the price sounds too good to be true, it’s probably a scam. Walk away.

        2. You’re asked to wire cash. Any request for cash is a scam warning. Walk away.

        3. You are unable to verify the address. Walk away.

        4. The pictures of the rental don’t seem right or don’t match the price (meaning the property and the amenities are too impressive). Walk away.

        5. You’re unable to reconnect with the rental host. Walk away.

        6. You’re asked for too much personal information regarding banking and credit cards. Walk away.

        If you get scammed, contact your Canadian bank (if you have opened an account) and credit card provider to see if you can stop payment. You can also report the scam to the local police.

        Pre-arrival newcomers to Canada need to do their rental research.

        Action Plan for Newcomers:

        • Use short-term rentals as a first step in your Canadian housing journey.
        • Remember that rental prices vary across Canada, and cities like Toronto and Vancouver have higher rates.
        • Research short-term rentals before you arrive and understand local bylaws.
        • Be on the lookout for rental scams.
        • Keep records of your rental payments to build credit history in Canada.
        • Work with pre-arrival settlement agencies before you book.

        SOURCES: Statistics Canada, Ontario Government, Rentals.ca

        Steve Tustin is the Editor for Rentals for Newcomers and a contributing editor for Prepare for Canada. He is also the former managing editor of Storeys.com and a former senior editor at the Globe and Mail and the Toronto Star.

        *Prepare for Canada used no AI-generated content in the writing of this story, and all sources are cited and credited where possible.

        © Prepare for Canada 2024

        Insurance in Canada: What Newcomers Need to Know

        Insurance in Canada: What Newcomers Need to Know

        by | Jun 27, 2024 | Banking & Financial First Steps in Canada, Manage Your Finances

        BANKING & FINANCE

        Insurance in Canada: What newcomers need to know

        by  | Oct 10, 2024

        Insurance in Canada protects your property. Interior of a home with several feet of water.

        Protecting yourself and your family against unexpected danger and risk is what insurance in Canada is all about for newcomers to Canada and international students.

        Knowing about the different kinds of insurance in Canada available to you is important even before you arrive.  

        Insurance is part of your personal finance portfolio. Knowing how it works is smart financial planning that can save you money and build security.

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        We’re here to help you find the right insurance for your new life in Canada. 

        For example, the first type of insurance most newcomers need to understand is renters insurance. Most landlords require it (we explain below). And then there’s health insurance plans. And for those who purchase a car for work or travel auto insurance is a must. 

        Why do newcomers need insurance?

        Insurance is one of the key ways that newcomers to Canada can manage risks. Things can go wrong. Accidents happen. Floods happen. And you don’t want to start over financially from scratch. So, when you purchase insurance, you transfer the cost of a potential loss to the insurance company in exchange for a fee (known as the premium). Insurance companies invest the funds securely, grow, and pay out when there’s a claim.

        Broker vs agent

        An insurance broker is not the same thing as an insurance agent. Brokers know how insurance policies work and can access more options than an agent. This lets them pick the best rates for the coverage you need from many insurance companies.

        What are insurance premiums?

        An insurance premium is the amount you or your business pays for an insurance policy. Insurance premiums pay for policies that cover things like healthcare, auto, rental, home, and life insurance.

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        Why do I need risk insurance?

        Risk insurance protects your home and property from “risks and perils.” It covers property damage or loss from accidents or unforeseeable incidents (flood, sewer backup, frozen pipes, etc.)

          Damaged property contents require home insurance

          Renters insurance

          Most renters in Canada get renter’s insurance and many landlords and buildings require it so it is highly recommended for newcomers and international students as it protects and reimburses you in the event of an emergency. When you rent your first home as a newcomer to Canada or as an international student, remember that while you DO NOT own the property, you most likely DO own the contents (furniture, electronics, personal possessions, valuables, etc.). 

          Renters insurance is a must-have because most landlords in Canada require and here are five reasons why you need it.

          But the landlord has insurance

          This is true but that only covers the building you’re living in. It does not cover your family’s belongings. The landlord’s insurance can’t always protect you from everything that could wrong in your new home in Canada. Renters’ insurance does. Learn more about why you need renters’ insurance.

          Travel medical health insurance

          Canada is renowned for its healthcare system, and quality healthcare is one of the reasons newcomers seek to build a life here. Government health insurance programs like OHIP in Ontario and AHCIP in Alberta let you apply for coverage once you arrive in Canada and establish your permanent residency 

          But, it’s smart to buy travel medical health insurance to cover unexpected medical expenses before you and your family can join a government health insurance program. Without it, you could end up paying significant out-of-pocket costs. 

            What's the difference between provincial health plans and medical insurance?

            Once you arrive in Canada and establish your permanent residency government health insurance programs allow you to apply for coverage. But, in some provinces, there is a wait period before you are eligible for government health insurance. That’s where private insurance coverage is a good idea for both temporary visitors to Canada and people on the path to becoming permanent residents and Canadian citizens.

            Read here.

            Who is eligible for visitor to Canada insurance?

            Buying travel medical health insurance can be challenging for newcomers and international students and requires navigating the process with risk factors related to age and pre-existing health conditions. Finding the right coverage is important. It’s vital to know the basic requirements you or a loved one need before you buy a travel medical health policy.

            What's the difference between provincial health plans and medical insurance?

            When purchasing travel insurance, there’s no one-size-fits-all solution. As a newcomer to Canada, you need to understand your options and then select the right coverage based on key factors like age, dependants, health status, and deductible preference.

            Read More

            Arrive in Canada Financially Prepared

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            Car insurance

            At some point, most newcomers to Canada buy a car, whether to get to work, get things done, or travel. In Canada, you MUST have car insurance if you own a car or other vehicle. This insurance protects you from:

            • Repair bills if your car or another vehicle is damaged or in an accident
            • Liability claims if you’re responsible for an accident that injures people or damages another person’s vehicle.

            Again, car insurance is a must if you own a vehicle. 

            Auto insurance is mandatory

            In Ontario, every vehicle is required to be protected by an insurance policy. The monetary fines for not having insurance are severe. If caught driving without insurance, your driver’s license could be suspended for a year and your vehicle impounded for up to three months. It’s important to understand which car insurance is mandatory to be fully protected.

              What does car insurance cover? An auto insurance policy is an in-depth document that describes in detail what each section protects. Always be sure to consult an insurance professional if you have any specific questions about your coverage. Read Here. 

              Which cities in Ontario have the highest insurance rates? While this might not be a deal breaker when choosing the city where you wish to live and work in Canada, it’s always good to know where and why auto insurance is more expensive. Read Here.

              Can I insure a vehicle that is not in my name? That’s a good question for newcomers – and it’s complicated. There definitely are several different scenarios where someone, perhaps a family member or friend, might ask you to insure a car, not in your name. As always, consult an insurance professional. Read Here. 

              To discover more about Auto Insurance, click here.

                Damaged property contents require home insurance

                Homeowners' insurance

                Did you know that most newcomers to Canada buy a home within 3 to 5 years of arriving? It’s true. And for most of us, it’s the largest purchase we make.  So, it’s smart to become familiar with homeowners’ insurance. It’s an important part of your financial security net and in many cases a requirement if you have a mortgage. Knowing how much you’ll have to pay for your coverage should be factored into where and what you buy.  

                Do home insurance costs vary across Ontario?

                Yes, they do. There is a median value for all of Ontario but this can be misleading as many factors contribute to your homeowner’s premium.

                Home insurance and natural disasters

                Yes, natural disasters – ice storms in February to flooding in April to wildfires in August— happen in Canada and are devastating. Home insurance helps protect you and your family from the potential life-altering effects.

                What is all-risk insurance?

                All risk is one of two types of home insurance; the other is known as a “named perils” policy. The main difference is that a “named perils” policy only covers potential instances that are listed (anything else isn’t covered), whereas an “all-risk” policy covers just about everything except for specifically named exceptions.

                What is mortgage insurance?

                Mortgage insurance (not to be confused with home insurance) sometimes called home buyer’s insurance in Canada, is a way to help you spend less upfront yet still afford your home. Mortgage insurance helps you secure your home sooner rather than later by lowering the down payment you must make.

                Basic living costs for homebuyers

                No matter where you choose to live in Canada as a newcomer, these are essential living expenses for almost ALL first-time homeowners. Read Here.

                Small business owner

                Business insurance

                Why do I need it? For newcomers to Canada who are entrepreneurs, business insurance can sometimes seem like an extra burden. Some business owners don’t consider business insurance a necessity. Your company has financial and legal risks even if you don’t have inventory or a retail location.

                Protection for your pets

                More newcomers to Canada are arriving with pets (we love pets!). Dogs, cats, and whatever. Pet insurance has increasingly become more important, regarding pet health and owner liability. 

                Your dog is legally your “property” which can come with a fair amount of liability exposure if you’re not careful. For that reason, dog bites usually fall under the purview of your personal liability insurance, which is a part of your home insurance policy. Because of this liability exposure, advise your insurance broker (and landlord!) that you have a dog.

                Finding the best pet health insurance depends on your pet’s situation and the coverage.

                Other resources

                 If you would like to know more about insurance in Canada, here are some helpful links:

                 

                • Insurance blogs
                • Insurance Bureau of Canada

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