Saving money in Canada as an expat

The costs of living globally have been rising in the past few years. Canadian government statistics show that back in 2024 45% of Canadians were reporting financial stresses, including 4 in 10 people reporting that they were struggling to meet rising housing costs.

The Canadian government has taken measures to alleviate pressures, including to increase affordable housing – but the situation may still be challenging for many. If you’re an expat in Canada you’ll need smart financial planning ideas to make your money go further.

This guide walks through ideas for Canadian expats to save money, from government support, to smart shopping, and ways to manage your international finances for less, with providers like Wise.

Understanding the cost of living in Canada

The cost of living in Canada does vary depending on factors like where in Canada you’re based, and whether or not you’re living in a major city, town or rural area. Here are a few things to consider when you’re planning your Canadian finances:

Housing: Housing costs in Canadian cities can be very high, with large regional differences. Generally Canadians spend 35% to 50% of their income on housing and utilities. This may be significantly more than you’re used to spending. While housing costs vary a lot depending on the type, size and location of your property, overall it is likely to be one of your biggest expenses.

Healthcare: Canadian healthcare is run on a provincial basis, which means you’ll need to look into the insurance rules in the place you intend to live. Generally eligible residents can get medically necessary basic health services, but this is unlikely to include everything you may need like basic dental and vision care. Newcomers may not be able to access provincial healthcare for several months after arriving, so you could find getting private health insurance is necessary.

Childcare and schooling: Canada’s provincial governments offer some low cost and affordable childcare, but this varies a lot depending on the location and age of the child. Eligibility criteria also apply. Schooling is free up to the end of high school, but there are still costs such as uniforms to consider.

Food: Canada has a very broad range of grocery retail chains which allows you to choose between services based on price and preference. Most stores offer basic ranges which are quite economical, through to luxury items. Overall, food costs are rising at the time of research, which can increase pressure on household budgets.

Transportation: Transport costs in Canada can be high, and while public transport is reasonably good in major cities it may be sparse or non-existent in smaller towns and villages. Check if you’ll need a car of your own to make life practical, as this can push up costs a lot. Canadian government statistics show that over 13% of the average household’s income is spent on transport costs – making this something to budget for early.

Entertainment: Entertainment costs in Canada depend entirely on your interests and preferences – there are lots of free parks and community based activities in many cities, as well as more costly options. Museums often have free or discounted ticket options, particularly over the holiday periods.

This guide covers some places to look if you’re planning your Canadian budget, including resources for financial planning for newcomers from the Canadian government and practical steps you can take to reduce your day to day bills.

We’ll also touch on another common problem for expats in Canada – the costs of managing your money across different currencies. Using a provider like Wise which uses mid-market exchange rates and allows for flexible ways to hold, send, receive, spend and exchange CAD and other major currencies can help you save both time and money. More on that later.

Saving on housing and accommodation costs

In Canada, your housing and accommodation costs are likely to be the biggest outgoing you have. Here the key is shopping around, including looking at different locations if you’re able to.

Regional cost variations are huge, so being flexible with the area you choose to settle in can save a lot of money.

Finding affordable housing

If you’re planning to rent in Canada, you’ll want to take some time to get to know the rental market in the city or town you’re going to be living in. Bear in mind that housing costs have been rising steeply in Canada over recent years, so you may need to compromise on some features to get a place that’s in your budget.

The costs of renting in the center of a large city can be very high in Canada. However, in most cities, you’ll be able to look at a variety of different suburbs to find an option which balances convenience and cost for your specific needs.

You’ll usually be able to find house-sharing and co-living options in cities, with specific student accommodation options in cities with large universities.

Private landlords may be open to negotiating rent and lease terms, depending on the situation. You may find a landlord will offer a discount on rent if you pay several months up front for example. You can also consider buying a property in Canada.

Reducing utility costs

Canada’s climate means you’ll spend more on heating your home through the winter, with lower summer costs in most cases. Electricity costs vary a lot with the cheapest prices in places where hydroelectric power is commonly used.

Utilities in Canada are regulated differently in different locations. This means you’ll need to look at your local provincial energy regulator’s website to learn more about the average costs where you plan to live. There are also comparison websites for Canada, such as Energy Rates which lets you compare the costs of different utility providers.

When you’re looking at the costs of energy, you can also compare the costs of phone plans and internet which are also often featured on comparison websites to let you get the best deal for your needs.

Food and grocery savings

Food costs in Canada may feel quite high, depending on where you’ve lived previously. However, there’s huge competition for customers across grocery retailers which does help drive down the costs of core products.

Smart grocery shopping

Here are a few local tips to help your grocery budget go further in Canada:

• Triangle Rewards and similar programs can help you earn points as you spend, to convert to gifts and perks later
• Store loyalty programs like the PC Optimum program from Loblaws can be an excellent way to get discounts and earn rewards with your preferred stores
• Apps like Too Good to Go offer discounted short dated food which can be a great bargain if you’re lucky
• Local markets (outside of tourist towns) can be a great place for low cost seasonal produce
• Bulk buying pantry goods, particularly when preparing for winter, can help save money – and using meal planning strategies goes a long way to avoid food waste

Eating out and entertainment on a budget

Your entertainment budget in Canada will depend a lot on what you like to do for fun. Here are some ideas to help stretch your cash a little further:

• If you like to eat and drink out, look for happy hour deals and lunch specials which are very common in pubs and restaurants
• If you love your coffee Tim Horton’s rewards club can be a good way to get freebies as you spend
• Many Canadian museums offer free or discounted entry for visitors on select dates or through school vacation periods
• Canada has some excellent national parks which can be used for walking, jogging, picnics and other leisure activities – buying an annual park pass can be an economical way to make the most of the outdoors
• In winter places like Toronto’s Nathan Phillips Square offer free ice skating
• For low cost shopping, look out for thrift stores and second-hand markets for some excellent deals

Transportation costs

Public transport in Canada is relatively extensive in cities, but can be patchy in smaller towns and very hard to find in rural areas. Disruptions can happen, so even if you’re familiar with the networks, you’ll need to keep on top of the latest news to learn about delays or closures.

Public transport in Canada is quite varied depending on where you happen to be. You’ll usually find a mix of options including buses and trams, but you might need to buy a ticket or pass in advance of travel, so you’ll need to be organised before you ride.

You can also sometimes get discounted – or even free – tickets for railways and other transport networks, like the Canada Strong Pass from Via Rail. Other rail discounts can include low cost online tickets on certain days of the week, discounts for frequent travellers and for specific groups such as veterans,

Car ownership in Canada is another option, although again you’ll need to consider the costs of parking, fuel and maintenance. Most roads are toll free, but some tolls do apply – check the details for the area you plan to live in. It may be mandatory for you to have winter tires in Canada, depending on where you live. This can be a significant expense of 800 CAD or more, depending on the type of vehicle.

Alternative options include walking and cycling. Here the practicality depends on the type of travel you need to do. Some Canadian cities are extremely walkable, and cycling is becoming more common, but it’s not always a practical year round option.

Banking and financial costs

As an expat in Canada banking costs could be a concern. Chequing accounts for day to day use normally have a monthly fee, but there are often ways to have this waived by holding a minimum balance. You’ll also find that there are other costs to consider when you transact. Here are some things to think about:

• Canadian banks offer good account products which often have ways to waive monthly fees – check out the service fees before you sign up though, as there are often per transaction costs which can mount up
• Digital banks like Tangerine offer very cheap accounts but have limitations, which can include limits on making payments overseas
• You can usually open CAD and USD accounts in Canada, with some account supporting other currencies for saving and investments
• Some international services can be particularly costly, such as sending an overseas payment in a branch – this may set you back as much as 50 CAD plus conversion costs
• You may be able to open a Tax-free Savings Account (TFSA) to save or invest – different types of accounts are available to meet different customer needs
• If you’re seating in Canada for the long term, a Registered Retirement Savings Plan (RRSP) can help you save for retirement with tax benefits

For managing your money flexibly across currencies, the Wise Account and linked Wise debit card are especially handy for spending at home and abroad, with no monthly fees, and the mid-market rate. You can receive CAD and other currencies to your Wise Account, making it easy to keep on top of your finances day to day.

Choosing the right account

Canadian bank accounts are generally split into chequing accounts for day to day use, and savings accounts for interest earning opportunities. Having a local CAD account is pretty essential in Canada, to pay rent and access services like a mobile phone contract.

• Compare a few different accounts to choose the right one – there are often no-fee banking promotions for new customers which can help
• If you’ll need to deposit cash or prefer to bank in person, look at banks with branches close to your home – banking hours are 9 – 5 in Canada, and so getting to a branch during the working week can be a challenge if it’s not close
• Look for a bank which has no ATM/ABM fee and which is in a global network to allow you to withdraw for free overseas
• Most chequing accounts offer an overdraft – this service can come with fees, so make sure you know what your account conditions are
• Multi-currency accounts like Wise can be beneficial to keep costs low for international people when receiving and sending overseas payments

Credit cards

The Canadian market offers a very good choice of credit cards, including ways to earn rewards, cash back and airmiles as you spend.

Credit cards are offered based on your credit score and personal situation – so as an expat you may need to spend some time building your credit history from scratch when you arrive. Credit building cards can help here, and are available from most major banks.

Credit cards have extremely varied credit limits and interest costs, so shopping around is essential to make sure you don’t end up spending more than you need to on fees.

Managing your finances internationally

Managing your finances internationally can mean dealing with a few specific challenges, such as the costs of currency conversion and foreign transaction fees. Here are a few tips:

• Look carefully at currency conversion fees when you send or receive payments from abroad – your bank may add its fee into the exchange rate used, making this hard to spot
• If you transact internationally, look for a provider which has the mid-market exchange rate, and avoid hidden fees and markups
• Some providers let you set automatic conversion instructions and rate alerts which can be helpful for timing international transfers to get the best available rate

For day to day money management and international payments, check out Wise’s multi-currency account. You get mid-market exchange rates for currency conversion, with ways to receive 20+ currencies with account details, and send money to 140+ countries. There are even automatic fee discounts for large transfers over 35k CAD or the equivalent.

Saving on healthcare and insurance costs

Canada’s healthcare is organised on a provincial basis which means the way the system works depends on where you’re resident. If you’re a newcomer to Canada you might find you can’t get any public healthcare support for several months after arrival.

Even once you qualify, Canadian public healthcare insurance may not cover all the health services you could need. Unless you’re in a vulnerable group, the chances are that your provincial healthcare won’t cover things like dental and vision care, and you will have to pay for prescriptions and other costs yourself too.

Because of this many Canadian citizens, residents and expats also have private health insurance to cover them in part or in full depending on their policy, in the case of urgent medical needs.

Building an emergency fund as an expat

Having an emergency fund as an expat gives peace of mind and can be essential if your situation changes when you’re away from your usual support network. If possible, you’re usually advised to set aside 3-6 months expenses which you can draw on if you lose your job, or run into other sudden financial problems.

If you’re building an emergency fund, make the most of your money by looking for high-yield savings account options – often some of the best deals are from online only accounts.

Remember also to keep your emergency funds accessible across borders in case of emergencies in Canada or your home country. Here Wise can help with 40+ supported currencies and easy ways to withdraw your funds, or send fast payments to 140+ countries if you ever need to.

Long-term financial planning

If you’re planning on being in Canada for a significant period of time, you may be thinking longer term about managing your financial planning there. In this case you’ll probably want to consider your pension options, including employer and private pension availability, as well as investment and saving opportunities.

There’s no single best approach to planning your long term finances – it’ll come down to your goals and your personal preferences. For example, some expats may choose to invest in a Canadian property as a home to live in, and an asset to sell at a later stage. However, this is not without risk – and so as with any financial decision, getting professional advice is a good idea.

While you’re thinking longer term you may also want support with repatriation financial planning, depending on where and when you expect to leave Canada. Moving your finances to a different country can be complex and have tax implications – so knowing what to expect early on is a benefit.

Conclusion

Saving money in Canada as an expat is possible, but the exact steps to take will depend a lot on your personal situation. Here are a few final thoughts:

• If you have flexibility about where you live, choosing lower cost accommodation outside of the city center can help reduce your major costs significantly
• Shop around and compare providers for utilities, phone, wifi and other essential services
• When planning your grocery budget look for the best balance of cost and convenience including looking at supermarkets which reward shoppers with points and perks
• Be creative when planning your leisure time – there are lots of free things to do in Canada, particularly if you like the outdoors

Building financial stability as an expat living in Canada can seem challenging but can be achieved with small, sensible steps.

This guide gives some ideas – and as someone living an international lifestyle it’s also well worth cutting out unnecessary money management costs with a provider like Wise.

Use Wise to hold and exchange 40+ currencies with no monthly fees and the mid-market rate in Canada.

Useful resources

• Transit vs. driving: What are households spending?
• Tax-free Savings Account (TFSA) in Canada
• Registered Retirement Savings Plan (RRSP)
• https://energyrates.ca/ – Compare energy rates in Canada
• Learn about education in Canada