by Prepare For Canada | Oct 10, 2024

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 is also helpful in understanding 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:

• The bank’s contact information
• Your name
• Outstanding debts such as credit card debts and loans
• Account number, the date the account was opened, current balance, and average balance for the last six months for each bank and current investment account.

Before 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.

You must show proof of funds if you are applying using the:

• Federal Skilled Worker Program
• Federal Skilled Trades Program

However, you do NOT have to show proof of funds if you:

• Have a valid job offer in Canada
• Are currently working or authorized to work in Canada, OR
• Have been invied to apply for the Canadian Experience Class.

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

• Update your Express Entry Profile if there is a change in your settlement funds. You need to update your profile to maintain your eligibility.
• Avoid unnecessary spending to ensure you have the minimum amount of settlement funds available and can access the funds.
• Maintain a financial buffer to meet any unexpected expenses or fluctuations in the exchange rate.

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:

• Cash
• Stocks, bonds, debentures, treasury bills, etc., or
• Bankers’ drafts, cheques, travellers’ cheques, or money orders.

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:

• Location and city where choose to live, and
• Family size.

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):

• One adult moving alone: $25,000 CDN
• One couple moving together: $30,000 CDN
• A couple with one child under 10 years: $33,000
• A couple with a child over 10: $35,000
• For each additional child under 10: add $1,000
• For each child additional child over 10: add $2,000

These guidelines will provide you with breathing room to settle in Canada with financial ease. Depending on your budget, this should cover basic living expenses for four to six months while searching for a job.

Canada is a large country with regional, cultural, and economic differences. So, be sure to research and compare the cost of living in cities and factor in inflation in Canada. It may take some time to find a job that matches your skills and experience once you arrive.

Settlement and employment experts suggest it can take up to six months to find employment. In that case, having enough money to cover living expenses for several months can reduce financial stress.

To give you an idea of living costs, here are the average costs for rental housing, utilities, and some basic goods and commodities in Toronto, Vancouver, and Calgary (all prices are in Canadian dollars and are current as of May 2024: Source: Numbeo.

For current rental prices in cities across Canada visit Rentals for Newcomers.

Showing proof of funds for PR in Canada is vital to the immigration process. Ensure you know how much money you will need to move to Canada to make your application process easier and reduce financial pressures.

Learn more about financial first steps in Canada by visiting our Banking in Canada resource page. Get essential information to manage your finances in Canada before and after you arrive!

Read more about your financial first steps in Canada.

A lesson many newcomers learn when they arrive in Canada is that you need credit to pay for large expenses, buy a car, or purchase a home. However, it’s difficult to borrow without a credit history in Canada. 

Opening a bank account before you arrive in Canada offers many benefits including transferring funds before you travel to Canada. 

For newcomers and international students arriving in record numbers, it’s helpful to understand how the currect inflation rate in Canada can affect how much you pay for housing, groceries, transportation, and other expenses.

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.

If you became a permanent resident and lived in Canada, even for a short period, filing your first income tax return with the Canada Revenue Agency (CRA) can provide financial benefits.

For newcomers, carefully managing your finances is vitally important, especially if you have not yet landed your ideal job. And, settlement agencies suggest that it can take up to six months to land a job that matches your skills and experiences. In the meantime, managing your finances and spending can serve to reduce stress and financial pressure. In addition, managing your finances well will help you build your Canadian credit history and influence your credit score. Here, we’ll explore how you can create a budget for some of the main expenses you will have to cover 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.

One of the most important factors in your financial situation is not how much you earn, but rather how much you spend. But, many Canadians get caught in too much debt, trying to “keep up with the neighbours” — in other words, buying everything you want, from cars to electronics, even if you can’t afford it. Overspending can get you caught in a trap that you want to avoid.

Create a Budget to Manage Your Personal Finances

To manage your personal finances, you can prepare a budget. with the following costs in mind. But the cost of living in Canada depends greatly on the city in which you choose to settle and on the size of your family. Large cities attract the bulk of new immigrants and offer the most job opportunities, however, living costs are also higher. Here are some of the basic expenses that you can keep in mind to help you manage your finances:

Rent Payments

Newcomers often rent an apartment as their first means of accommodation. Typically, rent prices for a small one-bedroom apartment begin at $700 and can be as high as $2,500 per month depending on the city you choose to settle in.

When renting, make sure that you conduct thorough research on the apartment building and its surroundings and then outline the positives and negatives to see if it is the right place for you. Perhaps the property is close to amenities like shops, swimming pools, libraries, and public transport which depending on your requirements may make it an attractive option for you.

Our Rentals for Newcomers site is a practical and easy-to-navigate site that can help you find housing that meets your unique needs! And 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 some helpful articles related to housing in Canada.

Utility Bills

You will need to budget for the cost of utilities such as electricity (hydro), heating, telephone, cable, and internet.

Many rentals include heating and some include even hydro in the cost of 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.

When it comes to 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 $60 – $100 per month. Or, check out streaming services that can be 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.

Insurance

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. Auto insurance is $1,000 or more a year.

Depending on your province, you may also have to pay health insurance premiums, which vary from province to 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

Public transit is probably the most affordable means of travel within your city. And, 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 of time. 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.

Food and Other Groceries

The cost of your food bill will depend largely on your dietary limitations and personal standards, but also on the area in which 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.

In terms of personal care items and other supplies, costs can start at $2 at dollar stores, but you will often have to compromise on quality. Supermarkets have store brands that are usually cheaper than name brands and, in many cases, of comparable quality.

Clothing

Again, your personal standards will have the final say when it comes to clothing. You should bring with you quality items that will last you for a while because clothes shopping is best kept until after you find employment. You can pay anywhere from a few dollars for an item of clothing at a cheap retailer or a thrift (second-hand) store to hundreds and even thousands at high-end designer stores. Read more about the types of clothing you’ll need in Canada.

Entertainment

Movie tickets can cost from $7 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.

Other Personal Finance Expenses

Big cities can be very tempting with their variety of cultures and cuisines, so you will probably want to treat yourself and your family to occasional restaurant outings. The costs can be anywhere from a few dollars per person at fast-food restaurants, to more than $50 per person at an average restaurant. Never forget to factor in the tip, which should be at least 15 to 20 percent of the bill.

Staying fit and healthy should always be a priority. Some rental buildings come with their own gyms and the price may be very low or included in the rent. If you plan to subscribe to 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 $40 to $60 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.

by Zain Usmani | Oct 15, 2024

When you move to Canada, there are many things to consider, and the process can be quite long. One of the biggest things you need to consider is how to transfer your money and belongings to Canada quickly and cost-effectively. Fortunately, you have many options when it comes to transferring 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:

• Transfer your money to Canada before you move

• Show proof of funds when you arrive in Canada, and

• Focus your attention on other important activities, such as getting a job.

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 in the past.

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 simply send a wire transfer from your current bank account to your Canadian bank account.

It’s a good idea to open a bank account with one of the larger Canadian banks. This is simply because larger Canadian banks have branches all across Canada so they are easily accessible and efficient. The larger banks also usually offer better customer service. Here is a list of some of the larger banks in Canada:

• Bank of Nova Scotia (ScotiaBank)

• Toronto-Dominion Bank (TD)

• Canadian Imperial Bank of Commerce (CIBC)

• Royal Bank of Canada (RBC

• Bank of Montreal (BMO)

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.

An 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 of them can be worth a lot of money. You will not have to carry a lot of these documents and unlike cash, they will fit into a small space.

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.

Keep in mind that you will have to declare the amount of money you are carrying 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 is important to ensure that no illegal money is transferred into Canada. 

If you are carrying more than CAD $10,000 and do not declare it, the CBSA has the authority to 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 with you, 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.

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

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 for any jewelry you are carrying. 

Canada will allow you to bring almost all of 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 the cost of shipping is 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 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, than shipping makes sense. You’ll also avoid the stress of shopping when you arrive. Another benefit of shipping your goods is that your have 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.

There are two ways you can ship your goods to Canada: by sea and by air. Shipping by sea is cheaper than shipping by air but it is not as 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 have arrived in Canada, you will have to pick them up from a warehouse. The goods will not be delivered to your house.

Your other option is to ship by air. As you may have guessed, shipping by air is a lot more expensive than shipping by sea. However, shipping by air is pretty 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 will 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 number of your personal belongings. However, you’ll have to wait longer for your goods to arrive. Shipping by air might be a better option if you’re only 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. Just 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:

1. How long has your company been in the relocation industry?

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 another 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.

For more information about your financial first steps in Canada, visit our banking in Canada resource page. Get the essential information you need to manage your finances in Canada!

Read more about your financial first steps in Canada.

A lesson many newcomers learn when they arrive in Canada is that you need credit to pay for large expenses, buy a car, or purchase a home. However, it’s difficult to borrow without a credit history in Canada. 

Opening a bank account before you arrive in Canada offers many benefits including transferring funds before you travel to Canada. 

For newcomers and international students arriving in record numbers, it’s helpful to understand how the currect inflation rate in Canada can affect how much you pay for housing, groceries, transportation, and other expenses.

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.

If you became a permanent resident and lived in Canada, even for a short period, filing your first income tax return with the Canada Revenue Agency (CRA) can provide financial benefits.

by prepareforcanada.com | Oct 15, 2024

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 to the immigration officer at the Canadian airport, you don’t have to be carrying cash and worrying about safety and lastly, you have funds ready for you 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 while in your home country.

Pay your debts. Review your insurance policies. Cancel your monthly services and obtain the necessary proof. Sell your properties or make arrangements on how to manage them from afar. In the stress of moving to another country, it is incredible how easily we can overlook certain 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 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:

• average monthly rent

• transit

• basic costs for utility bills

• medical insurance,  and

• special services you may need.

While you can curb spending on things like food, entertainment, and clothes, you will find that other expenses are less flexible. You want to ensure you have enough money for the essential living costs. Find out more about the cost of living in Canada.

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

Newcomers to Canada may be eligible for certain tax credits and other benefits. You can file an income tax return even before you have an income history in Canada.

Make sure you and your spouse document your earnings history for the two years before you immigrated to Canada.  Also, gather the originals of all the documents that may help you to show proof of your past insurance and credit history.

On the Canada Border Services Agency (CBSA) website, you can research the permitted and forbidden goods you can bring through customs. You don’t want to find yourself in the unpleasant situation of 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 frighteningly 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 financial funds to support themselves and their dependents for six months after arrival. However, it’s better if you have more than the minimum financial funds. The bigger your city of destination, the sooner your savings will shrink.

If you can take on extra work or cut down on unnecessary spending, do it. These are critical financial steps before you leave for Canada that will help you to minimize financial stress.

Make your life easier when coming here by taking advantage of any useful service that is cheaper in your home country. For example, in Canada, like in most advanced countries, dental services are notoriously expensive, and so 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 here as well.

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 be handling your money. Will you be carrying cash? Will you be relying mostly on plastic? Many hotels here 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.

Read more about banking and financing with Prepare for Canada.

A lesson many newcomers learn when they arrive in Canada is that you need credit to pay for large expenses, buy a car, or purchase a home. However, it’s difficult to borrow without a credit history in Canada. 

Opening a bank account before you arrive in Canada offers many benefits including transferring funds before you travel to Canada. 

For newcomers and international students arriving in record numbers, it’s helpful to understand how the currect inflation rate in Canada can affect how much you pay for housing, groceries, transportation, and other expenses.

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.

If you became a permanent resident and lived in Canada, even for a short period, filing your first income tax return with the Canada Revenue Agency (CRA) can provide financial benefits.