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For newcomers to Canada, financial uncertainty is common in the first few years. Unexpected costs such as medical bills, urgent home repairs, or job loss can quickly strain your budget. An emergency fund ensures you can handle these surprises without harming your financial health. This guide covers:
According to Statistics Canada (2023), one in four Canadians reports difficulty covering a $500 unexpected expense. Having an emergency fund significantly reduces this risk.
Health emergencies can happen anytime, and medical costs can be high before provincial coverage applies. If you’re new to Canada, it’s vital to understand your healthcare options; learn how newcomers can access free healthcare in Canada.
While traditional emergencies include medical bills and home repairs, newcomers may also encounter immigration, housing, employment, and banking emergencies. Preparing for these emergencies can make your transition to Canada smoother and less stressful.
Tip: Start small and gradually increase your fund. Even $50 – $100 per month can add up over time.
Tip: Only keep a small amount at home. Keep your main fund in a bank account for security.
Read next: How to Save Money on Rent in Canada.
Extra income streams can act as a safety net during a financial setback.
According to Statistics Canada Household Income Survey shows that households with multiple income streams are 30% more likely to maintain financial stability during job loss.
Tracking your monthly spending is key to building an emergency fund. Use our Cost of Living in Canada guide to see typical expenses newcomers face and find areas where you can save.
Your saving habits can protect you from the unexpected, and it’s important since nearly 40% of Canadians say they couldn’t cover a $500 expense without borrowing.
As you set up your emergency savings, it’s also a great time to start building your credit in Canada. Responsible use of credit helps you qualify for better banking products and boosts your financial confidence as a newcomer. Learn more about Building Credit as a Newcomer.
Watch the video to discover common mistakes newcomers make with credit cards that can harm their credit rating in Canada:
Aim for at least 3 months of living expenses initially. Gradually work toward 6 months. You may also want to have a small stash of cash ($500–$1,500).
Yes, especially if you keep a small amount in a hidden or secure location. Keep larger funds in a bank account.
No. An emergency fund is only for unexpected or urgent costs. Using it for regular spending defeats its purpose.
Automate savings, cut non-essential expenses, and consider earning passive income through freelancing, selling items, or digital products.
No, but financial advisors highly recommend them, especially for newcomers facing uncertain employment or living costs.
Start building your emergency fund today by:
Tip: Explore our Financial Literacy Month guide to learn how to manage finances, set goals, and grow your emergency fund.
Start building your emergency fund today, even with small monthly savings, a cash stash, or passive income. Combined with good credit habits, you’ll have financial security and peace of mind.
Remember: saving for emergencies and building credit go hand-in-hand; together, they form the foundation of a strong, stable financial life in Canada. Take the first step today and start planning for both your short-term and long-term financial security.
For more money-saving guidance, explore our Managing Money section.
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.