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When you move to Canada, there are many things to consider, and the process can be quite long. One of the biggest things to consider is how to transfer your money and belongings to Canada quickly and cost-effectively. Fortunately, you have many options to transfer money and belongings to your new home in Canada.
Before you move to Canada, you must find a safe and easy way to transfer your money. Fortunately, there are many ways you can transfer money from your home country before you move to Canada.
When moving to Canada, you will have to make an important decision; should I open a Canadian bank account before I move or after I move to Canada? This decision will determine how effectively you can handle your finances once you move to Canada.
Opening a bank account with a Canadian bank before you move is possible, though you need to know how to do it. However, it is usually better to open an account with a Canadian bank before you arrive than waiting until after you land. Opening a Canadian bank account before you move to Canada will make it easier to:
Some people prefer to open a Canadian bank account after they arrive. However, opening a Canadian bank account from outside Canada requires more documents and can be a little stressful. Some people prefer to open an account when they can talk to a professional face to face rather than completing the process online. If this sounds like you, then you can wait until after you arrive to open your Canadian bank account. Just remember that it’s possible to open a Canadian bank account before you move and many newcomers have done it.
Now let’s look at some common ways to transfer your money to Canada.
Wire transfer is one of the easiest and simplest ways to transfer your money to Canada. However, you can only do this if you have already opened a bank account in Canada before you move to Canada. And with a Canadian bank account, you can send a wire transfer from your current bank account to your Canadian bank account.
Opening a bank account with one of Canada’s larger banks is a good idea because they have branches across Canada and are easily accessible. The larger banks also usually offer better customer service.
Some of Canada’s larger banks are:
After you open a Canadian bank account, you can send a wire transfer to your Canadian account. Once you arrive in Canada, you can easily access your funds from your Canadian bank account.
Ready to take control of your financial journey in Canada? Join our expert-led online webinar! Learn essential banking tips to build a strong financial foundation. Hear from David Frattini, Managing Partner at Prepare for Canada, and Neil Dhanani, Financial Advisor at Scotiabank, as they guide you through everything you need to know.
REGISTER FOR THE WEBINARAn international money order is one of the most common ways to transfer your money from your country of origin to Canada. It is a good option if you decide to open a Canadian bank account after you move to Canada. You will need to get an international money order from your current bank in your country of origin before you move to Canada.
When you arrive in Canada, you will need to open a bank account and deposit the money order to your Canadian bank. Most international money orders have a maximum limit of $1,000 per order. This means that you will have to buy multiple orders to deposit all your money in a Canadian bank.
This method of transferring your money is usually safer than carrying cash. This is because money orders are paper documents and only a few can be worth a lot of money.
It is important to note that you will not be able to use your money right away. Once you have deposited the money order into your Canadian bank, you will have to wait for some time before you can access your money. The wait time will vary depending on the bank, so ask your bank when you can access your money.
Cash is another option, though it may not be the safest way to transfer money to Canada. It might be a little hard to travel with all of your life savings. However, if you feel comfortable with carrying all your money as you move, Canada will allow you to do this.
You must declare the amount of money you carry to the Canadian Border Services Agency (CBSA). You will only need to declare it if that money is valued at more than $10,000 in Canadian dollars. This money could already be in CAD or it could be foreign currency. This step ensures that you do not transfer illegal money into Canada.
If you carry more than CAD $10,000 and do not declare it, the CBSA can seize your money. You may have to pay a penalty of anywhere from CAD $250 to $5,000 to retrieve your money from the CBSA.
If you’re bringing a large amount of money, cash is not the best way to bring money into Canada. Cash can be hard to handle when there is a lot of it and there is always a chance of the money getting stolen.
Most of the jewelry and valuables you bring to Canada when you are moving are duty-free. This means you will not have to pay any taxes on those items. There are some items that you might have to pay duty on. For example, you will have to pay duty on new items or items that still have tags on them.
Generally, you do not have to pay duty on any goods you bring when you move to Canada. However, once you have moved to Canada and are bringing back any valuables from abroad, those goods may be subject to duty. You will also need jewelry appraisal reports from a recognized Canadian jeweller.
Canada will allow you to bring almost all your personal belongings and items duty-free. Things such as silverware, pots and pans, and any other household items are duty-free. However, any new items that still have a tag on them are subject to duty so keep that in mind. Alcohol and tobacco are also subject to duty if you bring them in large amounts.
There are some goods that you are restricted to bring into Canada. These goods include weapons and firearms, fireworks, ammunition, and explosives. You are not allowed to bring any of these goods into Canada.
You can check out this comprehensive article by the Government of Canada to learn more about what you can bring to Canada and if it is subject to duty.
Ideally, you don’t want to ship more than you have to since shipping costs are based on volume. You may decide that it’s less expensive to buy what you need when you arrive in Canada. You can always check out the cost of furniture and other items you may need in Canada online and compare it to the cost of shipping. If replacement costs are higher, then shipping makes sense. You’ll also avoid the stress of shopping when you arrive. Another benefit of shipping your goods is having your familiar belongings from home.
If you have more goods than you can carry with you while travelling, you can ship your goods before you move to Canada. There are many options to ship your goods to Canada, some are considerably more expensive than others.
Two ways you can ship your goods to Canada are by sea and air. Shipping by sea is cheaper than air but it is less convenient. Firstly, shipping by sea can take a lot of time. You will have to ship all your goods a good while before your move to Canada so you can access them when you arrive. You may not want to do that if you need those goods until you move. Once your goods arrive in Canada, you pick them up from a warehouse. The goods will not be delivered to your house.
Your other option is to ship by air. Shipping by air is more expensive, but it’s fast. You will have the comfort of waiting until your move and then shipping the goods to Canada. But just like shipping your goods by sea, you have to pick up your goods at a warehouse or further pay a moving company to deliver the goods to your home in Canada.
So to summarize, shipping by sea is a good choice if you want to save money or ship a large amount of belongings. However, you’ll have to wait longer for your goods to arrive. Shipping by air might be a better option if you’re shipping a few items to Canada. In the end, make sure to carry any essential items with you when you travel so you can access them when you arrive. Ensure you do not exceed the weight and size restrictions your airline will allow.
Hiring a professional moving company for your move to Canada can help you understand what to ship, its costs, and most importantly the shipping and customs regulations. However, it’s vital to carefully evaluate the company that you select to move your valuable belongings. To assess potential movers, be sure to ask these important questions:
2. Can you provide references?
3. What licensing and insurance can you provide?
4. What type of estimates do you require?
5. How do you charge for moves?
6. How will you protect my home?
7. How will you protect my belongings?
8. Do you have workers’ compensation insurance?
9. What is your claim process?
10. When will my shipment arrive?
There is a cheaper alternative to storing your goods in a warehouse for pickup. If you have a friend or relative in the Canadian city you are moving to, they might be able to help you. If you do not have too many goods you are shipping, you can ship the goods to their home in Canada. Once you arrive in Canada, you can pick up your goods from their home. This will help you save money you would have had to pay to store your goods in Canada.
When shipping your household belongings to Canada, you want them to arrive safely and without damage. Unfortunately, contents can be damaged during shipping. But if your goods are not insured, you cannot claim damages. It is understood that if you’re paying to ship bulky items to Canada, then their value must be high. Therefore it’s crucial to pay for insurance to ensure the safety of your belongings and give you peace of mind.
Usually, it is better to consider the cost of insurance as part of the shipping costs. This leaves you with no option but to pay for the insurance as well, which is a good choice by all means. To determine and prioritize your budget for the insurance, always make a comprehensive list of what you are shipping and how much it would cost if you have to replace it all in Canada.
How much money will I need to move to Canada? The answer depends on the size of your family. Applying to become a permanent resident (PR) in Canada can be a long process, including showing proof of funds to the Canadian visa office in your home country. Proof of funds shows that you have the minimum amount of settlement funds to move to Canada and support your family when you arrive. It’s also helpful to research the cost of living in the city where you plan to settle to understand living costs. Discover how you can meet proof of funds requirements for Express Entry, minimum amounts, and documents (i.e. proof of funds letter) you’ll need.
Researching the cost of living in the city where you plan to settle will help you understand the average costs of renting or buying housing, transportation, food, childcare, etc. This will help you budget for expenses after your arrival.
You must show that you have enough money to settle in Canada and to cover living expenses such as housing, food, transit, and other costs. Living in Canada can be expensive depending on which city you settle in. For example, Vancouver is Canada’s most expensive city and Toronto is the fifth most expensive.
When calculating how much money you will need to move to Canada, remember to include Canada Permanent Resident Immigration Fees. To reduce financial pressure, ideally, you should have enough money to cover expenses until you land a job in Canada.
Once you know the minimum settlement funds required, assess your financial situation. Consider how much money you have in savings, investments, cash, etc. You may discover that you need to improve your financial situation to show that you meet the minimum requirements. Or, you may find that you have a suitable amount of settlement funds for your new start in Canada!
If you are invited to apply for permanent residence, you must show you have the minimum funds available. These funds must be money that you can readily access. Your bank will provide a proof of funds letter that is written on the bank’s letterhead and includes the following:
Ready to take control of your financial journey in Canada? Join our expert-led online webinar! Learn essential banking tips to build a strong financial foundation. Hear from David Frattini, Managing Partner at Prepare for Canada, and Neil Dhanani, Financial Advisor at Scotiabank, as they guide you through everything you need to know.
REGISTER FOR THE WEBINARBefore you move to Canada, you need to show that you have the minimum amount of settlement funds set by IRCC. Known as proof of funds, this shows the Canadian government that you have enough money to settle in Canada and cover living expenses. If you have more than the minimum amount, list the amount in your Express Entry profile.
Immigration, Refugees and Citizenship Canada (IRCC) updates how much you require each year based on family size. These figures are current as of May 2024.
| Number of Family Members | Funds Required (Canadian Dollars) |
|---|---|
| 1 | $14,690 |
| 2 | $18,288 |
| 3 | $22,483 |
| 4 | $27,297 |
| 5 | $30,690 |
| 6 | $34,917 |
| 7 | $38,875 |
| For each additional family member, add | $3,958 |
The amount of settlement funds you require depends on the size of your family. Source: IRCC May, 2024
You must show proof of funds if you are applying using the:
You do NOT have to show proof of funds if you:
While you must meet the minimum amount of proof of funds, you can bring as much money as you wish to make it easier to move to Canada and find a home.
When you cross the border and enter Canada, Canadian customs regulations require you to declare if you bring more than C$10,000 into Canada. You may be fined or imprisoned if you do not tell them. To avoid this, declare how much money you are bringing and expect to pay duty (a fee) on the amount greater than $10,000 Canadian. These funds could be in the form of:
Beyond the minimum funds you require, exceeding the minimum is helpful. Additional money will help you to settle in Canada easily and reduce financial pressure. It’s smart to research the cost of living in the city where you plan to settle. The additional amount of funds that you require will vary based on:
Consider any additional financial needs that you and your family may have. Each family will have different financial needs. Also, it’s a good idea to research how much things cost in the city where you plan to live. Here are some guidelines to help you assess how much you may need (costs do not include airfare or moving expenses):
Living costs vary across Canada so it’s important to research average housing, utility, transportation, childcare, food, and other essential costs. According to Numbeo, among Canada’s most expensive cities are Toronto, Vancouver, Markham, Calgary, and Brampton.
Housing costs will be your largest expense whether you rent or buy a home so research average housing costs and salaries for your profession in Canada. Choosing cities that offer affordable housing and lucrative jobs is your best option. Toronto and Vancouver, Canada’s largest and most sought-after cities, are major job hubs, however, housing costs are the highest. If you dream of homeownership, you’ll likely be able to buy a larger home in a suburb or smaller city.
For newcomers, carefully managing your finances is vital especially if you have not yet landed your ideal job. Settlement agencies suggest it can take up to six months to land a job that matches your skills and experiences. In the meantime, carefully managing your budget can reduce stress and financial pressure. Managing your finances will also help you build your Canadian credit history and influence your credit score.
Here, we’ll explore how to create a budget for some of your main expenses in Canada.
So where to start, which is essential to achieving future loans! You need to establish your Canadian credit history because it will be important for many reasons including buying your first home.
An important guiding principle is not how much you earn, but how much you spend. Many Canadians carry too much debt, trying to “keep up with the neighbours”, in other words, buying everything from cars to electronics, even if they can’t afford it. Overspending can catch you in a trap that you want to avoid.
To manage your personal finances, start by preparing a budget with basic expenses like rent and utilities in mind. The cost of living in Canadian cities can vary. Large cities like Toronto and Vancouver are sought-after because they offer the most job opportunities, however, they are also more expensive.
Here are some of the basic expenses to consider when creating your budget:
Housing costs will be the largest monthly expense. Newcomers often rent an apartment when they first arrive in Canada and prices vary depending on the city. Typically, prices for a one-bedroom apartment can range from $700 to $2,500 per month depending on the city.
Before you rent an apartment, visit the building to ensure it’s the right place for you. Determine if it meets your needs and is close to shops, work, and public transit.
Rentals for Newcomers site is a practical and easy-to-navigate site that can help you find housing that meets your unique needs! You can even determine the average costs of rentals in cities across Canada. This is helpful since rental prices change often. You’ll also find helpful articles to help you with your housing search.
Ready to take control of your financial journey in Canada? Join our expert-led online webinar! Learn essential banking tips to build a strong financial foundation. Hear from David Frattini, Managing Partner at Prepare for Canada, and Neil Dhanani, Financial Advisor at Scotiabank, as they guide you through everything you need to know.
REGISTER FOR THE WEBINARYou will need to budget for the cost of utilities such as electricity (hydro), heating, telephone, cable, and internet. Some apartments include heating and hydro costs in the rent. If you have to pay for electricity, you can ask the landlord what you expect to pay every month. But, your bill will also depend on usage and time of day.
For utilities like internet, cable, and telephone, the best option is to shop for bundles (combined service plans) from different telecom providers in your area. A bundle can cost anywhere between $100 – $150 per month. Or, check out streaming services that are less expensive than cable television.
Cell phone plans range from $15 per month to more than $150, depending on the number of free minutes and text messages and the data usage limits. Voicemail activation usually costs extra. You can start with a basic plan and upgrade according to your needs.
While not a bill per se, the cost of doing laundry will be similar from one month to the next. Apartment buildings come with laundry rooms with coin or card-operated washing machines. A washing cycle costs between $2.25 and $3.50 depending on the length, and a dryer cycle is similar.
Even if you are renting, it’s a good idea to purchase renter’s insurance to protect you against damage and theft. The insurance can cost up to a few hundred dollars a year.
Depending on your province, you may also have to pay health insurance premiums, which vary by province and according to the size of your family. You will also need to factor in the premiums for any private health insurance you may buy.
Public transit is probably the most affordable means of travel. All cities offer affordable travel options such as buses, trains, subways, light-rail trains, and streetcars. A monthly transit pass can cost anywhere between $70 to more than $150 depending on the city and the number of travel routes. In large cities, such as Toronto, the public transit system covers the Greater Toronto Area, and you can easily transfer from one mode of transit to another.
To use public transit, you can purchase individual tickets starting at $3.50, but you can use a transfer at the start of your destination to transfer to different transit modes. In other words, you only have to pay once at the start of your destination. You can also buy transit passes that allow unlimited transit use for a period. Some cities offer an electric fare payment system that allows you to load money onto a card to make travelling easier and at a discounted fare.
You can find specific fare information about public transit in your city by visiting the website of your city government, or the public transit system.
The cost of your food bill will depend largely on your diet, personal standards, and where you live. The stores and supermarkets in popular posh areas are more expensive and will offer more high-quality gourmet and organic products, while cheaper areas will have more low-cost options. Food can set you back anywhere from $100 per week for a single person to several hundred. Cooking at home and planning your meals will balance cost and nutrition.
Personal care items and other supplies can start at $2 at dollar stores, but you may have to compromise on quality. Supermarkets have store brands that are usually cheaper than name brands and, in many cases, of comparable quality.
Again, your personal preferences will determine your clothing budget. You should bring quality items that will last you because clothes shopping is best kept until you find employment. You can pay anywhere from a few dollars for clothing at a cheap retailer or a thrift (second-hand) store to hundreds and even thousands at high-end designer stores.
Movie tickets can cost $10 to $15 depending on the movie and the time of day. Most theatre tickets usually start at $20, and concerts of popular performers can cost well over $100. You can take advantage of local libraries to borrow DVDs and look for community theatres with free performances or performances by donation. It’s important to budget for entertainment, but this may be a personal finance area that you can cut back on if necessary.
Big cities offer great variety and cultural cuisine, so you may want to treat yourself and your family to occasional restaurant outings. The costs can be anywhere from $10 per person at fast-food restaurants, to more than $50 per person at an average restaurant. People usually tip between 15 – 20% of the bill when eating at a restaurant.
Staying fit and healthy should always be a priority. Some rental buildings come with gyms and the price may be very low or included in the rent. If you plan to join a gym, always read the fine print. The monthly cost is usually $60 to $100, but most gyms charge introductory fees and substantial cancellation fees.
Personal care costs also cover the range from basic to luxury. Expect to pay at least $25 for a simple haircut (plus tip) and anywhere from $50 to $70 for a manicure.
If you’ve recently arrived in Canada, managing your personal finances carefully will help you reduce financial stress until you find your first job. And, the strong personal finance habits you follow during your first year in Canada will help you to achieve many of your long-term financial goals.
While there are many things to do, here are the top 10 financial steps to take before you leave for Canada. And when you take these steps, it will prepare you for better financial footing when you arrive in Canada.
Having a Canadian bank account before departure has many benefits. You can use the statement as proof of funds for the immigration officer at the Canadian airport, you don’t have to carry cash and worry about safety, and you have funds ready to use and don’t have to wait a week before a draft clears. Scotiabank is one of the few banks that allow you to open a bank account online when in your home country.
Pay your debts. Review your insurance policies. Cancel your monthly services and obtain the necessary proof. Sell your property or arrange to manage it from afar. In the stress of moving to another country, it is incredible how easily we overlook details and leave behind loose ends. Never say “I’ll deal with it later,” because settling financial affairs from a distance often turns out costlier and more stressful.
Before you leave, research the basic costs in the city where you plan to settle. While you won’t be able to estimate your monthly expenses down to every detail, it’s helpful if you know the following costs:
Ready to take control of your financial journey in Canada? Join our expert-led online webinar! Learn essential banking tips to build a strong financial foundation. Hear from David Frattini, Managing Partner at Prepare for Canada, and Neil Dhanani, Financial Advisor at Scotiabank, as they guide you through everything you need to know.
REGISTER FOR THE WEBINARBring important documents such as professional licenses, education transcripts, and educational credential evaluation results. If enrolling young children in school, bring their birth certificates, school records, and immunization records.
Other documents include travel and temporary health insurance, medical records, driving license, and marriage certificate.
Check out the Canada Border Services Agency (CBSA) website for restricted and prohibited goods. You want to avoid paying fines or extra taxes or having to dispose of certain goods.
Make a list of everything you need to buy to set up a home, down to forks and spoons. The things we take for granted at home cost money, every single one of them. The list may be long, but you should always have a realistic idea of your needs. This way, you will avoid getting carried away when you shop for your new life in Canada.
The Canadian government requires immigrants to show they have the minimum settlement funds to support themselves and their dependents for six months after arrival. However, it’s better to have more than the minimum.
When you arrive, you need to manage your savings carefully. If you can take on extra work and reduce unnecessary spending. These vital steps financial steps before you leave for Canada will minimize financial stress.
Take advantage of cheaper services while still in your home country. For example, in Canada, like in most advanced countries, dental services are notoriously expensive, as are many other medical or cosmetic procedures. Repairs and restorations of items such as artwork or other valuable possessions will, most likely, be more expensive in Canada.
If you don’t have any friends or family willing to offer temporary accommodation, research the cost of short-term rentals well in advance, and make reservations. Pick a cost-effective and convenient location that will allow you to move around easily while you search for a permanent home.
Know in advance how you will handle your money. Will you carry cash? Will you rely on credit? Many hotels in Canada do not accept cash and require a credit card, and rental buildings require payment by debit card or cheque.
It can be stressful carrying around too much cash, but you can easily lose track of spending solely relying on plastic. So make a point of checking your balance.
Moving to a new country will require a solid financial plan. And when you take these financial steps before you leave for Canada you’ll be better able to manage your finances.