How to Prepare Financially Before Moving to Canada: A Step-by-Step Guide

Relocating to Canada is a dream for many, but without careful financial planning, it can quickly become overwhelming.

From immigration fees to living costs, this article will help you budget effectively and avoid financial pitfalls before and while settling into your new home.

Preparing financially for your move is a key step in settling into your new life. For a complete guide on settling in Canada, check out our How to Settle in Canada resource.

Steps to Prepare Financially Before Moving to Canada

1. Understand the Cost of Living in Canada

The cost of living in Canada varies depending on the city and lifestyle. Major cities like Toronto and Vancouver are among the most expensive, while smaller cities like Edmonton or Halifax are more affordable.

Housing Costs by City

• Toronto: $2,000–$3,000 CAD for a 1–2 bedroom apartment.
• Vancouver: $2,200–$3,000 CAD for a similar unit.
• Calgary: $1,200–$1,800 CAD.
• Montreal: $1,200–$1,700 CAD.
• Smaller towns: $800–$1,200 CAD for housing (e.g., Northern BC).

Monthly Expenses Breakdown

• Groceries: $300–$600 CAD per person.
• Transportation: $90–$150 CAD/month for public transit; $800–$1,200 CAD for a car (loan, insurance, fuel).
• Utilities (electricity, internet, etc.): $150–$300 CAD.
• Healthcare: Public healthcare is free, but private insurance may be needed during the first 3 months.

Tip: Use cost-of-living calculators like Numbeo to estimate your monthly expenses in your chosen city.

2. Save for the Immigration Process

Immigration to Canada involves several mandatory fees and tests. Here’s what you’ll need to budget for:

Immigration Costs

• Express Entry (PR Application): $1,365 CAD per adult.
• Provincial Nominee Program (PNP): $250–$1,500 CAD (varies by province).
• Language Tests: IELTS or CELPIP costs $300 CAD.
• Credential Assessment: $200–$400 CAD (e.g., WES evaluation).
• Medical Examination: $200–$500 CAD per person.
• Police Clearance Certificates: $0–$100 CAD depending on your country.

Pro Tip: Keep at least $5,000–$7,000 CAD aside to cover these upfront costs.

3. Meet the Proof of Funds Requirement

The Canadian government requires proof that you have sufficient funds to support yourself and your family after moving.

These funds must be in liquid form (e.g., savings account) and easily accessible.

Proof of Funds (2024)

• 1 person: $13,757 CAD.
• Family of 2: $17,127 CAD.
• Family of 4: $25,733 CAD.

Tip: Maintain these funds in your account for at least 6 months before submitting your application to avoid delays.

4. Build a 6-Month Emergency Fund

Finding a job in Canada may take longer than expected.

Having a financial safety net is crucial to cover your expenses during the initial months.

Emergency Fund Goals

• Single person: $10,000–$15,000 CAD.
• Family of four: $25,000–$30,000 CAD.

Tip: Use budgeting apps like Mint or YNAB to monitor your savings progress.

5. Plan for Currency Exchange Rates

Currency fluctuations can significantly impact your budget, especially if your home country’s currency is weaker than the Canadian dollar (CAD).

Money-Saving Tips

• Track exchange rates and transfer funds when the CAD is weaker.
• Use low-cost money transfer services like Wise, Revolut, or OFX to save on fees.
• Open a Canadian bank account before moving (if possible) to avoid ongoing conversion fees.

6. Budget for Initial Settlement Costs

The first few weeks in Canada come with a lot of upfront expenses. Here’s what to include in your initial budget:

• Temporary Housing (1st month): $1,000–$2,500 CAD.
• Furniture and Essentials: $1,000–$3,000 CAD.
• Transportation: $500–$1,000 CAD for a used car deposit or public transit.
• Winter Clothing: $300–$1,000 CAD (if moving to a cold province).

Additionally, understanding social benefits for new Canadian residents can help you identify government programs or assistance available to ease some of these initial costs.

Pro Tip: Use online marketplaces like Facebook Marketplace or thrift stores like Value Village for affordable furniture and household items.

7. Explore Employment Options Before Moving

Finding a job before you land in Canada can reduce financial stress. However, it’s important to be realistic about timelines and job availability.

Tips for Job Hunting

• Research in-demand jobs in your field using Canada Job Bank or LinkedIn.
• Tailor your resume to Canadian standards (clear, concise, and focused on achievements).
• Join immigrant bridging programs or access free courses for newcomers to Canada to gain Canadian certifications and upgrade your skills.

Note: Be open to survival jobs (e.g., retail, hospitality) while working toward your long-term career goals.

8. Get Private Health Insurance

Most provinces (e.g., Ontario, BC) require a waiting period of up to 3 months before newcomers are eligible for public healthcare.

Private Insurance Costs

• Short-term private health insurance: $50–$200 CAD/month depending on coverage.

Pro Tip: Compare insurance plans from providers like Manulife or Blue Cross.

9. Avoid Common Financial Pitfalls

Common Mistakes Newcomers Make:

1. Overestimating Income: Jobs in your field may take 6–12 months to secure.
2. Overspending on Arrival: Stick to your budget for housing, groceries, and transportation.
3. Ignoring Credit History: Build your credit score early by applying for a secured credit card.
4. Skipping Financial Education: Take advantage of No-Cost Financial Literacy Courses in Canada to better understand budgeting, credit, and managing expenses as a newcomer.

10. Final Checklist Before Moving

✅ Save proof of funds in a liquid account.

✅ Budget for 6 months of living expenses.

✅ Arrange temporary accommodation for the first few weeks.

✅ Purchase private health insurance.

✅ Research job opportunities and tailor your resume.

Infographic: Cost Breakdown for Moving to Canada

Below is a simple table you can use to summarize key costs:

Expense	Estimated Cost (CAD)
Immigration Fees	$5,000–$7,000
Proof of Funds (1 Person)	$13,757
Housing (1st Month)	$1,200–$3,000
Groceries (Monthly)	$300–$600 per person
Transportation (Monthly)	$90–$1,200
Emergency Fund (6 Months)	$10,000–$30,000

Frequently Asked Questions