Join the Scotiabank StartRight® Program designed for Newcomers‡ and get up to $2,300* in value in the first year.
Written By
Corinna Frattini
Oct 15, 2025
•Financial First Steps
Moving to Canada is exciting, but one of the biggest questions newcomers ask is: How much will it cost to live? Understanding the cost of living in Canada helps you plan your finances, avoid surprises, and make confident decisions about where to live. Whether you’re coming alone, with a partner, or as a family, this guide breaks down what you can expect to spend and how to manage your money wisely during your first year in Canada.
Settling in Canada means mastering housing and overall living costs. This post breaks down the numbers to help you build a realistic budget.
A recent MoneySense / Leger Marketing survey found that:
In 2024, average household disposable income was $100,702, a 5.5% increase from 2023.
While the average income aligns with comfort benchmarks, living costs vary depending on location, household type, and whether you rent or own your house.
Since 2020, the “basket” of goods/services costs rose by about 15%, while disposable income grew by 21%, resulting in a net gain for most households. However, lower-income groups still lag.
Comfortable income ranges from about $58k in affordable cities to over $106k in expensive suburbs near Toronto and Vancouver.
Now that we’ve seen how income compares to inflation, let’s look at what that means for your biggest expense: housing.
Canada Mortgage and Housing Corporation (CMHC), Canada’s national housing agency, recommends that housing costs stay below 30% of your gross (total) household income. Spending more than that can create financial stress and reduce your ability to save.
Housing is the biggest expense for most newcomers. Prices are highest in cities such as Toronto and Vancouver, and lower in smaller or mid-sized cities like London, Winnipeg, and Fredericton.
Read next: How to Save Money on Rent in Canada.
TIP: Your first few months may feel tight financially. Budget for setup costs like furniture, transit passes, and winter clothing.
Costs vary by city and lifestyle, but here’s a general breakdown of average expenses to help you plan your first budget.
| EXPENSE | SINGLE PERSON (Monthly) | Family of 4 (Monthly) |
|---|---|---|
| Rent | $1,500 – $2,200 (1-bedroom apt) | $2,500 – $3,500 (2+ bedroom apt) |
| Utilities & Internet | $200 – $350 | $300 – $450 |
| Groceries | $400 – $600 | $1,000 – $1,300 |
| Public Transportation | $100 – $160 | $200 – $400 |
| Childcare | – | $800 – $1,400 |
| Healthcare extras (e.g., dental, prescriptions, etc.) | $50 – $100 | $150 – $250 |
The cost of living varies across Canada. Major cities tend to have higher housing costs, while smaller cities and towns are more affordable.
| CITY | AFFORDABILITY LEVEL | NOTES |
|---|---|---|
| Vancouver, British Columbia | $$$ | Beautiful scenery, mild climate, and strong newcomer communities; however, housing prices are among the highest in Canada. |
| Toronto, Ontario | $$$ | Canada’s largest city offers diverse job opportunities and vibrant cultural communities, but high rent and living costs. |
| Calgary, Alberta | $$ | Reasonable housing, no provincial sales tax, and a strong job market in energy, tech, and finance sectors. |
| Edmonton, Alberta | $$ | Family-oriented city with reasonable rent, large parks, and no provincial sales tax. |
| Ottawa, Ontario | $$ | Stable government employment, bilingual opportunities, and excellent public services. |
| Fredericton, New Brunswick | $ | Affordable housing, excellent quality of life, and a welcoming community for international students and professionals. |
| Winnipeg, Manitoba | $ | Affordable housing and family-friendly environment; active settlement programs and strong community networks. |
| London, Ontario | $ | Smaller city near Toronto with lower rent and access to education and healthcare services. |
Smaller and mid-sized cities such as Fredericton, London, and Winnipeg offer a great balance between affordability, safety, and access to newcomer support.
Read more:
Discover Fredericton, New Brunswick: The Heart of the Capital Region
Living in London, Ontario: Everything You Need to Know
If you’d like expert help creating your newcomer budget, join our free financial webinar.
Join us for an eye-opening session on how to build your financial future in Canada with confidence. This free webinar is hosted in partnership with Scotiabank, a trusted leader in newcomer banking. Together, we’ll guide you through how the Canadian banking system works and share free tools and strategies to help you plan, save, and invest wisely as a newcomer.
REGISTER FOR THE WEBINARArriving in Canada often means starting fresh with a new home, new job, and new systems. A clear first-year budget helps you manage your savings while settling.
| CATEGORY | ESTIMATED ANNUAL COST |
|---|---|
| Housing & utilities | $21,000 |
| Food & groceries | $ 6,000 |
| Transportation | $ 2,000 |
| Phone & internet | $ 1,000 |
| Miscellaneous & clothing | $ 2,000 |
| TOTAL | $32,000 |
About to move? Read more about Canadian Financial Tips Before You Move to Canada
Already in Canada? There are plenty of ways to stretch your dollar, especially during your first year. Discover more cost-saving ideas: 22 practical tips for newcomers.
Discover more cost-saving ideas: 22 practical tips for newcomers.
It depends. Comfortable income ranges from $58K to $106K, depending on the city where you choose to live and household type.
Housing costs should ideally be below 30 – 35% of gross (total) income. If your housing costs exceed this amount, you can reduce your budget in other areas (i.e., clothing, entertainment, etc.) to manage your expenses.
Smaller cities such as Winnipeg, Halifax, and Fredericton tend to be more affordable. They offer lower rent and a slower pace of life, making them ideal for families and newcomers.
Immigration, Refugees and Citizenship Canada (IRCC) recommends proof of funds ranging from $15,263 for a single applicant to $28,362 for a family of four. Having extra savings for your first few months can make settling in smoother. Read more about How Much Money Will I Need to Move to Canada?
Settling into life in Canada takes time, but you don’t have to do it alone. Many organizations offer free or low-cost support.
Learn more about Essential Services to Help Newcomers Settle in Canada
Adjusting to the cost of living in Canada can feel overwhelming at first, but with planning, budgeting, and community support, most newcomers find financial stability within their first year.
Be patient with yourself, stay informed, and use newcomer resources to help you build the life you’ve imagined in Canada!
For more money-saving guidance, explore our Managing Money section.
WRITTEN BY
Corinna Frattini
Senior Editor and Content Director, Prepare for Canada
Corinna researches and writes content to help newcomers make informed decisions about housing, employment, banking, and aspects of settling in Canada. With a background in human resources and leadership development, her articles focus on how newcomers can continue their careers in Canada. Her writing combines research, practical guidance, and clear language to support newcomers on their journey.
© Prepare for Canada 2026
How to Manage Your Personal Finances When You’re New to Canada
Financial Literacy Month in Canada: Money Tips for Newcomers
How Much Money Will I Need to Move to Canada?
What is the GIC Amount for Canada for International Students?