Cost of Living in Canada: Basic Expenses for Newcomers -

Canada is a popular destination for immigrants thanks to its strong economy, high standard of living, and welcoming culture. But let’s be honest—the cost of living in Canada can feel like a bit of a shock, especially if you’re moving from a country with a much lower cost of living.

Drawing from our experience planning our move from Chile to Canada and living here for almost four years, we’ll share what it’s really like to spend money in Canada as a two-adult household with no kids.

These are the basic monthly expenses you’ll need to cover, along with insights to help you plan for your new life. Let’s dive in!

What is the Cost of Living in Canada?

That depends on several factors like housing, food, transportation, utilities, healthcare, etc. In this post, I’ll break down these categories to give you a clearer picture.

Remember, these are just the basic monthly expenses you’ll need to cover while living in Canada. Don’t forget to account for additional costs like entertainment, arrival expenses (flights, college tuition, etc.), and retail purchases as you settle in.

Image of a person with a calculator and a pencil inside post abut Cost of Living in Canada

1. Housing Costs in Canada

One of the biggest expenses you’ll face when considering the cost of living in Canada is housing. If you’re new to the country and unsure about renting, check out my guide: How to Rent Your First Home as a Newcomer to Canada.

Housing costs in Canada vary widely depending on the city and type of accommodation. For example, in Toronto and Vancouver—two of Canada’s largest and most expensive cities—the average cost of a one-bedroom apartment is between $2,000 and $2,500 per month.

Image of Vancouver Harbour inside post abut Cost of Living in Canada — Vancouver, Canada.

Smaller cities like Quebec City or Halifax are more affordable, with average rents for a one-bedroom apartment ranging from $1,200 to $2,000 per month. I recommend using resources like Numbeo.com to explore the cost of living in Canada for specific cities and get updated details.

Over the past years, housing prices have significantly increased. When we moved to Mississauga, Ontario, in early 2021, we rented a fully furnished one-bedroom apartment for $1,750 CAD per month. Today, similar apartments—often unfurnished—are renting for around $2,500 CAD.

2. Food Costs in Canada

Food is another significant part of the cost of living in Canada. How much you spend will largely depend on the size of your family and your eating habits.

If you’re looking to save on food costs, cooking at home is usually the most budget-friendly option. For more tips on how to cut down your grocery bill, check out my post: 16 Tips for Buying Groceries on a Budget in Canada.

Image of two bags with groceries inside post about Cost of Living in Canada — Food is another part of the cost of living in Canada.

In our case, we spend around 400-500 CAD per month trying to cook at home most of the time, trying to use apps to save on food and also, taking into account that we follow a plant-based diet, we don’t consume dairy, eggs or meat, which sometimes have higher prices, compared to legumes or vegetables.

3. Transportation Costs in Canada

Transportation is another key factor in understanding the cost of living in Canada. How much you spend will depend on the city you live in and your preferred mode of transportation.

In cities like Toronto and Vancouver, where public transit is well-developed, a monthly transit pass costs between $150 and $200 CAD. In smaller cities, where public transportation options are limited, owning a car may be the most practical choice.

Image of a hand with 3 cards (2 of color blue and one black) associated to public transportation in Canada inside post about Cost of Living in Canada — Public Transportation cards from Vancouver, Montreal, and Toronto and GTA.

When we first arrived in Mississauga, we relied on public transit for about a year and a half. Using a Presto Card, we spent around $50 CAD per month, as we didn’t have to commute daily. For those commuting regularly, this expense can quickly increase. For context, the fare on MiWay (Mississauga’s transit system) is $3.40 CAD per ride.

After a year and a half, we decided to buy a used car for $5,300 CAD, which has been a time-saver. A trip that used to take an hour by bus now only takes 15–20 minutes. However, owning a car comes with additional costs. For example, we pay $178 CAD per month for car insurance, gasoline costs around $1.40 CAD per litre, and there are regular maintenance expenses to consider.

If you’re curious about how we navigated the process of buying a car, check out my guide: How to Buy a Car as a Newcomer in Ontario, Canada.

Image of a yellow car with the words "How to buy a car as a newcomer in Onario, Canada" post about Cost of Living in Canada

4. Utilities Costs in Canada

Utilities are an essential part of the cost of living in Canada and should be factored into your monthly budget. These include electricity, gas (if applicable), tenant’s insurance, and Internet.

For our one-bedroom apartment, we pay about $50 CAD per month for electricity. To save on costs, we take advantage of off-peak times when rates are lower, such as weekends or between 7 PM and 7 AM.

Internet is another key expense, and our monthly payment is approximately $96 CAD.

Image of two credit cards inside post about Cost of Living in Canada — Consider utility costs in your budget.

If you’re renting, tenant’s insurance is often required and helps protect your belongings in case of unexpected issues with the property. We pay $25.16 CAD per month for this.

For those renting houses, be aware of potential extra costs, like snow removal or lawn care. In our case, these additional fees don’t apply, but it’s worth checking with your landlord to avoid surprises.

5. Healthcare Costs in Canada

Healthcare is an important aspect of the cost of living in Canada. The country’s publicly funded healthcare system allows all residents to access basic medical services at no direct cost.

However, as a newcomer to Ontario with a study or work permit, you won’t have immediate access to this system. You’ll need to stay in the province for a few months before applying. For more details on this process, check out my post: Health Card for Work Permit Holders in Ontario.

Image of a pinterest pin mentioning "Health Card for work permit holders in Ontario Canada" inside post about Cost of Living in Canada

It’s also important to note that some services—like dental care, eye care, and prescription drugs—are not covered by the public healthcare system and can be quite expensive. Many people opt for private insurance to cover these additional costs.

Private insurance plans typically range from $100 to $200 or more per month, but some employers include this as part of their benefits package.

Conclusion

Understanding the cost of living in Canada is essential for newcomers planning their move. From housing and food to transportation, utilities, and healthcare, the monthly expenses can vary greatly depending on your lifestyle, location, and individual needs.

While these are the primary costs you’ll need to budget for, don’t forget to account for other expenses like entertainment, arrival costs, and retail purchases as you settle into your new life in Canada.

If you want to learn more about how to prepare your finances for moving to Canada, check out my post: How to Prepare Your Finances for Moving to Canada.