Is Living in Canada Expensive?

Canada is known for its high quality of life, excellent healthcare system, and welcoming culture, which makes it an attractive destination for immigrants, tourists, and students. However, one of the common questions potential newcomers often ask is whether living in Canada is expensive. The answer depends on various factors, including where you live, your lifestyle, and your specific needs.

We will break down the cost of living in Canada, providing insights into the essential expenses to give you a comprehensive understanding of whether living in Canada is expensive.

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Housing Costs in Canada

Housing is one of the most significant expenses for residents in Canada, and the cost varies considerably depending on the city, neighborhood, and type of accommodation. Large cities like Toronto, Vancouver, and Montreal tend to have the highest housing costs, while smaller cities and rural areas are more affordable.

Renting

In Canada, the average monthly rent for a one-bedroom apartment in the city center is 1,864.64 according to Numbeo. For example, the average monthly rent for a one-bedroom apartment in Toronto’s downtown core is 2,517.67 CAD. In Vancouver, the same expense is 2,779.63 CAD.

Buying a Home

Homeownership in Canada is expensive, especially in sought-after markets like Toronto and Vancouver. According to the Canadian Real Estate Association (CREA), the average home price in Toronto is approximately 1,520,529.58 CAD, while in Vancouver, the average is around 1,678,480.91 CAD million as of 2024.

Smaller cities like Calgary and Edmonton offer more affordable housing options, with average home prices of 823,790.09 CAD and 565,882.64 CAD, respectively, according to CREA. This price range makes it easier for families to purchase a home, especially if they are open to living outside major metropolitan areas.

Utilities and Additional Housing Costs

Beyond rent or mortgage payments, utility costs for electricity, heating, water, and garbage collection can add up to 204.56 CAD per month, according to Numbeo. Internet costs are estimated to be 84.71 CAD per month, depending on the provider and plan.

Grocery and Food Costs in Canada

The cost of groceries in Canada has been steadily rising, and it is important to budget accordingly, especially for families or individuals who cook at home regularly.

Supermarket Prices

Basic food items such as bread, milk, eggs, and vegetables are priced reasonably, but costs vary based on the region and store. On average, a loaf of bread (500 g) costs around 3.69 CAD, a liter of milk costs 3.05 CAD, and a dozen eggs are 4.82 CAD.

Dining Out

Dining at restaurants and cafes also adds to the cost of living in Canada. A meal at a mid-range restaurant can cost 100.00 CAD per person, according to Numbeo, excluding beverages. Fast food or takeout options are generally cheaper, estimated at 25.00 per person, according to Numbeo. Many Canadians also prefer cooking at home to save on dining costs, but the increase in food prices has led some to budget more carefully.

Eating Habits

The cost of food also depends on your dietary choices. For example, purchasing organic or specialty food items will significantly raise grocery bills. The growing trend of plant-based eating makes some items like meat substitutes more expensive than regular meat.

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Transportation Costs in Canada

Canada's transportation costs can vary depending on whether you rely on public transit or drive a car. Here’s a breakdown of the most common transportation options.

Public Transit

Public transportation is widely available in large cities such as Toronto, Montreal, Vancouver, and Ottawa, and it offers a cost-effective alternative to driving. The price for a single public transit ride is typically between 3.50 CAD, according to Numbeo, and monthly passes can cost 104.90 CAD per month. Cities like Toronto and Montreal offer discounts to students, seniors, and low-income residents.

Driving a Car

Many Canadians, particularly in suburban and rural areas, rely on cars for daily commuting. Car ownership costs include gasoline, insurance, maintenance, and parking. Gasoline prices fluctuate but generally average around 1.61 per liter.

Taxis and Ride-Sharing

Taxis or ride-sharing services like Uber are available occasionally but can be added up quickly. A taxi ride within the city can cost anywhere between 4.50 and 39.00 CAD, depending on the distance, according to Numbeo. Ride-sharing services are cheaper but remain an expensive option for daily commuting.

Healthcare Costs in Canada

One of the major draws for many people considering moving to Canada is the universal healthcare system, which provides residents free access to most medical services. However, there are costs involved that individuals should be aware of.

Healthcare Coverage

Each Canadian province and territory administers its healthcare plan, and residents are generally covered for hospital visits, medical appointments, and certain surgeries. However, most provinces require residents to apply for provincial health insurance, such as the Ontario Health Insurance Plan (OHIP) in Ontario or Medical Services Plan (MSP) in British Columbia, and coverage typically begins after a waiting period of three months.

Private Health Insurance

While basic healthcare is covered by provincial health plans, services such as:

• Dental care,
• Prescription medications,
• Vision care, and
• Chiropractic treatments are not universally included.

Many residents purchase private health insurance to cover these additional healthcare needs. The cost of private insurance varies widely, with premiums ranging from 50 CAD to 200 CAD per month, according to the Canadian government, depending on the level of coverage and the individual’s health needs.

Out-of-Pocket Costs

For those without private insurance or those needing services outside of what is covered by the provincial health plans, medical costs can add up. Prescription medications, for example, can range from CAD 10 to CAD 100 per month, according to the Canadian government, depending on the type of medication.

Childcare and Education Costs in Canada

Childcare and education costs in Canada can significantly impact family budgets, particularly in major urban centers. Here are the costs associated with public and private education in Canada at all levels, from elementary school to post-secondary institutions.

Childcare

Childcare can be a significant expense for families with young children. Daycare costs in Canada vary by province and type of care, but on average, daycare fees are estimated to be 1,125.94 CAD per month. Larger cities have higher costs, while smaller towns and rural areas are typically more affordable. Subsidies are available for lower-income families in certain provinces, which can help alleviate some of the financial burdens.

Education

Public education in Canada is free for residents and citizens, but there are additional costs for school supplies, extracurricular activities, and field trips. On the other hand, private schooling can be quite expensive, with annual tuition fees ranging from 21 471,51 CAD to 42 933,75 CAD, according to Educanada.

Other Living Expenses in Canada

Other essential expenses, such as entertainment, clothing, and personal care, also contribute to Canada's overall cost of living. Here are some examples.

Entertainment

Movie tickets typically cost 15.00 CAD per person, depending on the city and theater, according to Numbeo. A gym membership can cost 57.85 CAD per month according to Numbeo, depending on the type of facility and location.

Clothing

The cost of clothing can vary widely depending on the brand, quality, and where you shop. A pair of jeans can cost around 77.10 CAD, according to Numbeo, while a summer dress can cost 56.30 CAD, depending on the quality and brand.

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FAQs

What is The Federal Minimum Wage in Canada in 2025?

The federal minimum wage in Canada is currently 17.30 CAD per hour, according to the Canadian government. It is projected to increase to approximately 17.70 CAD per hour on April 1, 2025, as part of annual adjustments based on inflation. This wage applies to employees in federally regulated sectors, ensuring a baseline standard across the country.

Are There Any Affordable Cities in Canada Where You Can Live?

Affordable cities in Canada include Moncton, Saint John, and Winnipeg, known for their low housing costs and overall living expenses. For instance, Moncton offers an average rent of around 1,392.31 CAD for a one-bedroom apartment, according to Numbeo, while Saint John's is even lower at approximately 1,383.33 CAD.

How Can I Budget to Live in Canada?

To budget for living in Canada, start by tracking your income and expenses to identify essential costs such as housing, utilities, and groceries. Use budgeting apps or spreadsheets to categorize your spending and find areas to cut back.