Immigration Canada: Canadian dollar

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Expenses in Canada

Scotiabank at Queen Street West and McCaul Str...

When you move to Canada, your expenses may be different from those you are used to. Canada is a very large country, and costs can vary significantly depending on where you live. When you move to Canada, it's helpful to know a little about the money that you'll be using when you get there.

Coins come in six denominations. Each is a distinct size, shape and color for easy identification.

penny = 1¢
nickel = 5¢
dime = 10¢
quarter = 25¢
dollar = $1.00 (known as the "loonie")
two dollar = $2.00 (known as the "toonie")

Paper money is all the same size, but each bill is different in color.

$5 - blue
$10 - purple
$20 - green
$50 - red
$100 - brown

It's a good idea to exchange some of your money into Canadian currency before you leave your home country, so that you have cash on hand for small purchases as soon as you arrive. Once you're here, there are several ways to exchange your money for Canadian currency.

Financial institutions - Scotiabank offers competitive exchange rates. By visiting a branch, you can exchange money from just about anywhere in the world.

Foreign exchange outlets - you can find foreign exchange outlets in select locations across Canada, including airports and tourist attractions.

Housing

You've arrived in Canada. One of the most important tasks ahead of you is finding a place to live. This is likely to be one of your biggest expenses.

Many people rent their home for their first few years in Canada, which usually costs less than buying a home.

Did you know that you can own your first home with a hassle-free mortgage designed specifically for Newcomers to Canada? Find out more

Generally speaking, housing is less expensive outside of cities, whether you rent or buy.

Glossary: Canada Mortgage and Housing Corporation (CMHC)
Housing for Newcomers
Home Ownership

Provincial and Territorial Fact Sheet

Average Cost of a house in Canada and Renting in Canada
	Avg. Cost of House*	Avg. Monthly Rent for 2 Bedroom**
British Columbia	$ 461,931	$ 1,045
Alberta	$ 346,955	$ 884
Saskatchewan	$ 234,655	$ 613
Manitoba	$ 204,465	$ 709
Ontario	$ 325,364	$ 931
Quebec	$ 228,184	$ 738
New Brunswick	$ 160,400	$ 637
Prince Edward Island	$ 148,885	$ 642
Nova Scotia	$ 203,725	$ 799
Newfoundland and Labrador	$ 211,844	$ 651
Yukon	$ 281,420	$ 556
Northwest Territories	$ 331,696	$ 1,365
* Source: June 2009 The Canadian Real Estate Association ** Source: Study in Canada

Utilities

You will need to set aside money in your budget to cover these essential services.

Heat - most homes in Canada are heated by natural gas, oil or electricity.
Electricity - your home will also require electricity to power lights, electronic equipment, appliances and air conditioning units.
Water - if you live in or near a city, the municipality will charge a fee for providing water and sewage services.

Average Cost of Living in Canada
Utilities (Monthly)	$20 - $100
Phone (Monthly)	$20 - $40
Cell Phone (Monthly)	$40
Cable (Monthly)	$25 - $50
Internet (Monthly)	$40
Groceries(1-2 Person Monthly)	$200-$300
Transportation (One way)	$2.75
Fast Food Meal (1 Person)	$4 - $6
Average Restaurant Meal (1 Person)	$10 - $25
Gas	$1.15 - $1.50 / Liter
Entertainment (Movie)	$11.50 - $13
*** Source: Study in Canada

Canada undergoing temporary growth spurt: BoC

Due to its soaring value against the American ...

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The Canadian economy likely expanded by a surprisingly strong 4.2 per cent in the first three months of the year, but it was a temporary burst of activity that is already over, the Bank of Canada says in its new outlook.

Topics :: Canada , United States , Middle East

The central bank's new quarterly outlook paints a picture of an economy that is settling down to a protracted period of slow growth, being held back by a high loonie, a tapped-out consumer and government spending restraint.

The bank says the current second quarter will see growth brake to two per cent, less than half what it was in the first, in part because of supply disruptions to Canada's auto sector caused by the Japanese earthquake and tsunami. The disruption will lessen going forward, however.

On an annual basis, the economy is forecast to slow from 2.9 per cent this year, to 2.6 per cent next year and 2.1 per cent in 2013.

The overall take from the document is that the bank appears in no hurry to start raising interest rates to slow the economy because other factors are doing the job.

The bank doesn't appear to be overly worried that high oil and food prices might trigger inflation. It briefly notes that inflation may hit three per cent, at the upper end of the bank's acceptable range, in the next few months, but appears unconcerned.

"The combination of modest growth in labour compensation (wages) and higher productivity is expected to continue to dampen inflationary pressures, with the higher assumed value of the Canadian dollar providing further restraint," the bank said.

Economists had been pointing to either May or July as the most likely dates for the bank to start raising its policy rate from the current one per cent, which would have the effect of also raising short-term interest rates for such things as variable mortgages.

But the dovish tone of the latest outlook suggests interest rates could remain low longer, especially amid fears that moving aggressively in advance of the United States likely would have the undesired effect of lifting the loonie even higher.

The bank does concede that it has been taken by surprise by the 3.3 per cent expansion in the fourth quarter of 2010, and the likely even stronger 4.2 per cent spurt in the first three months of this year.

That means Canada's economy will likely return to full capacity by the middle of next year, earlier than previously expected.

But it stresses temporary factors were responsible, including stronger exports and domestic consumption, and that there is still plenty of slack in the economy.

The exports surge is already over, the bank says, and the persistently strong dollar averaging $1.03 US will continue to restrain exports going forward.

"The bank continues to project ... that the recovery in exports will be subdued relative to earlier global recoveries, with the higher level of the Canadian dollar assumed in this projection adding to long-standing competitive challenges," it said.

Consumption may remain moderately stronger than would be assumed, the bank says, in part because high commodity prices are increasing household purchasing power through gains in the terms of trade, the difference between export and import prices. It estimates the country's gross domestic income will rise by 4.7 this year.

Still, it believes the housing market will continue to cool and that government spending restraint will be a net drag on the economy this year.

The biggest engine of growth remains business investment, it says, in part because the higher Canadian dollar makes investment in foreign-made machinery and equipment less expensive.

Globally, the bank sees little change in the economic outlook, although it continues to stress risk factors such as high debt both among households and governments in the advanced economies, the Japanese crisis, turmoil in the Middle East and high commodity prices, especially oil.

Despite the risks, it says the global recovery is becoming more rooted and that even growth in troubled Europe is strengthening.

"The global economic recovery is projected to proceed at a steady pace over 2011-13," the bank says, projecting growth of 4.1 per cent this year and 3.9 per cent next.

The bank has slightly lowered its forecast for U.S. growth this year to three per cent, from its previous 3.3 per cent call four months ago.

Peter Schiff puts his money on Canadian resource sector

Peter Schiff, who failed to gain 15% of Republ...

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Iconoclastic U.S. investor, author and commentator Peter Schiff has long been fairly bullish on Canada, its resources and its prospects. The chief executive officer of Euro Pacific Capital Inc. of Westport, Conn., came to Toronto this week to publicize the launch of his first Canadian venture, Euro Pacific Canada, in which he holds a 20-per-cent stake, and to expound on his philosophy, which underpins the firm’s investment choices.

Q. What makes Canada so attractive to you?

A. I’m already investing in Canada. I personally have more money invested in Canada than I do in the U.S. Part of that is my interest in owning resources. There are a lot of resource names up here. Pretty much all the stocks I own in Canada are resource stocks.

Q. Precious metals?

A. Energy as well, and agriculture.

Q. Your outlook on the U.S. economy is rather dark. What about the Canadian economy?

A. I’m not nearly as pessimistic about Canada. … I like Canada for the resources. [Canadians] are certainly going to be impacted by the problems in the U.S., maybe more so than other countries. So that’s a negative. A lot of it depends on how Canada reacts.

Q. In fact, you argue that Canada needs higher interest rates right now.

A. Canada’s interest rates are still much too low. But they [authorities] feel that they can’t raise them, because they don’t want to see their currency rise too rapidly against the dollar. That’s a mistake. The longer they follow our lead, the more problems they’ll create for their own economy. We’re going to take a lot of countries down that have tethered their currency to the [U.S.] dollar.

Q. But we fear that a stronger loonie will cripple our already weakened manufacturers. Why is that not a legitimate concern?

A. Ultimately, they won’t get creamed, because if the Canadian dollar is strong, then that means capital costs for Canadian businesses will be lower. There will be confidence in the future purchasing power of the Canadian dollar. Higher interest rates will mean more Canadians are saving, which will bring down the cost of capital for businesses to invest in labour-saving devices to make them more competitive. Also, when your currency goes up, the cost of raw materials goes down. … In general, manufacturers are helped by a strong currency.

The policies that produce a strong currency are sound. The policies that produce a weak currency are bad. If you’re running up big deficits on social spending and cranking out money, that’s destroying your economy.

Q. How does this figure into your bond strategy?

A. As an investor, the most important thing for me is the strength of the currency where my yields are coming from. We have Canadian bonds in my bond fund. If I’m a bond investor, it’s the only thing that matters really. I’m not worried about Canada defaulting. But I would be worried about Canada inflating. When you’re a bond investor, you want purchasing power. … I have to make sure the currency that I own [for clients] is going to deliver that purchasing power in the future. So the currency value is paramount.

Q. Obviously, you’re no fan of the U.S. currency.

A. The dollar is losing value. Right now it’s losing value more slowly than the euro. If two people jump off of a building, and one is falling at 40 miles an hour and the other is falling at 30, the one that’s falling at 30 isn’t flying. He’s still going to hit the pavement.

Q. Yet money is still pouring into U.S. Treasuries.

A. Not my money. You’re seeing the Federal Reserve buy Treasuries. But none of my clients are buying. I can’t imagine the person dumb enough. I want to find that person.

Q. I guess you’re not rushing into European sovereign debt either.

A. The maturity on my bond fund … is two-point-something years. I don’t want long-term bonds, because the rates are too low. But a lot of people are being suckered into making that tradeoff, because you can’t get any yield on the short-term bonds. So some people are buying 10- and 20-year bonds, because they need the income. They don’t realize how much risk they’re taking. As an investment adviser, I’d rather tell my client: “Look, if you really want bonds, then just buy the short-term bonds and spend some of your principal now. Because you’ll lose a lot less of it that way.”

Q. What’s your own recommendation?

A. I still try to get my clients to go away from the fixed income [sector]. If you need income, buy stocks. There are stocks that are paying 5, 6, 7, 8, 9 per cent. So you can get all the income you need.

Canadian dollar reaches three-year high

The Canadian dollar was at a fresh three-and-a-half-year high above 104 cents US Wednesday amid record high gold prices while oil approached the US$109 mark.

Topics :: Canadian FIC Strategy , RBC Dominion Securities , Nymex , U.S. , Cushing, Oklahoma ,Libya

The currency was off early lows, but still up 0.5 of a cent to 104.25 cents US. It earlier surged as high as 104.5 cents US, its highest level since November, 2007.

"To be fair, a large part of it is U.S. dollar-driven," said Mark Chandler, head of Canadian FIC Strategy at RBC Dominion Securities, who noted that most of the major currencies were up significantly against the U.S. greenback.

Investors looking for a safe haven sent the June bullion contract on the Nymex up $6.60 from Tuesday's record close to US$1,459.10 an ounce after going as high as US$1,462.10 earlier in the morning.

The May crude contract on the New York Mercantile Exchange gained 41 cents to a two-and-a-half-year high of US$108.75 a barrel despite a report from the American Petroleum Institute showing that crude inventories fell a greater than expected 2.8 million barrels last week. Analysts had forecast an increase of 1.3 million barrels.

However, inventories of gasoline rose unexpectedly by 568,000 barrels and crude supplies at the key U.S. storage facility in Cushing, Oklahoma rose 120,000 barrels, the API said.

Crude prices are still up more than 27 per cent from mid-February because of fears the fighting in Libya could spread and interrupt supplies from the big producers in the Persian Gulf, such as Saudi Arabia. Higher demand resulting from an improving global economy has also pushed prices higher.

Copper prices also advanced with the May contract in New York ahead 11 cents to US$4.37 a pound.

The U.S. dollar also weakened against the euro a day before the European Central Bank is expected to make its first rate hike in nearly three years to deal with inflation. A quarter percentage point increase in the main rate to 1.25 per cent is fully priced in by the markets so investors will be more interested in what the central bank's president Jean-Claude Trichet says in his press conference.

Traders are also looking ahead to a solid Canadian employment report at the end of the week. Statistics Canada is expected to report Friday that the economy added about 30,000 jobs in March and that data could further strengthen the currency.

"The story for (the Canadian dollar) is quite supportive," said Chandler.

"The reason Canada does well in the risk appetite movement is it's a small, open economy, very leveraged on trade. We've been having good news generally in growth."

Canadian Salary Survey

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If you had moved to Canada a few years ago from the UK, Europe or USA, you were likely to have found Canadian wages a bit lower than you were used to; not so now.

The average salary in Canadian dollars has risen by 10 to 15 percent since 2007.

This rise, in combination with the strengthening Canadian dollar, has pushed the average salary in Canada higher than in the UK, the USA and most of Europe. (Between January 2007 and January 2011, the US dollar fell 15 percent, the British pound fell 32 percent and the euro fell 11 percent against the Canadian dollar.)

Average wages for men and women working in different employment sectors are as follows

Canadian Average Hourly Earnings 2011

Earnings Classification	Average Hourly Earnings 2011	Average Hourly Earnings 2008
Males	$24.81	$23.44
Females	$21.33	$19.83
Full Time Employees	$24.81	$21.66
Part Time Employees	$16.24	-

Average Weekly Wages in Canada in 2010

Profession	Average Weekly Wage Aug 2010	Average Weekly Wage Aug 2008
Forestry, logging and support	$971	$812
Mining and quarrying, and oil and gas extraction	$1,801	$1,524
Utilities	$1,516	$1,422
Construction	$1,071	$1,023
Manufacturing	$977	$943
Wholesale trade	$1,024	$960
Retail trade	$501	$486
Transportation and warehousing	$900	$873
Information and cultural industries	$1,100	$992
Finance and insurance	$1,050	$1,014
Real estate and rental and leasing	$784	$783
Professional, scientific and technical services	$1,170	$1,065
Management of companies and enterprises	$1,105	$1,038
Administrative and support, waste management and remediation services	$727	$677
Educational services	$946	$865
Health care and social assistance	$792	$752
Arts, entertainment and recreation	$562	$502
Accommodation and food services	$361	$335
Other services (excluding public administration)	$670	$667
Public administration	$1,085	$1,092

Looking at jobs throughout Canada, typical wages are as follows:

Average Hourly Wages in Canada in 2007

Profession	Average Hourly Wage
Retail Sales / Sales Clerk	$11
Data Entry Clerk	$15
Bookkeeper	$16
Accounting Clerk	$17
Truck Driver	$19
Plumber	$22
Carpenter	$22
Executive Assistant	$22
Electrician	$25
Architect	$27
Social Worker	$28
Registered Nurse	$32
Computer Engineer (not software)	$33
Physiotherapist	$34
Lawyer	$36
Computer and Info Systems Manager	$37
Engineering Manager	$45
Dentist	$60

BMO Named One of Canada's Best Employers for New Canadians for Third Consecutive Year

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Partnership with ACCES Employment to roll out a national Speed Mentoring program: Example of important initiatives that enhance employment and career opportunities for immigrants.

TORONTO, ONTARIO--(Marketwire - March 28, 2011) - BMO Financial Group has been named one of Canada's Best Employers for New Canadians by Mediacorp Inc.
"This award is a reflection of BMO's longstanding commitment to fostering diversity, equity and inclusion in our workforce, and to creating a work environment in which all employees can truly reach their full career potential," said Sonya Kunkel, Director, Diversity and Inclusion, BMO Financial Group.
"Skilled newcomers bring vast knowledge, experience, creativity, and innovation to the Canadian workforce and it is incumbent upon every employer to do everything they can to open their doors to this talented pool of skilled professionals," she added.
Judges took particular note of the seminal work BMO has undertaken with ACCES Employment to introduce a nationwide Speed Mentoring program. The program gives newcomers opportunities to network with established professionals in their fields of expertise. BMO is the exclusive industry sponsor.
Already, more than 1,900 immigrants have benefitted from contacts established through Speed Mentoring sessions. Overall, ACCES has an 80 per cent success rate in helping new Canadians enter the workforce.
"Our first year of Speed Mentoring in partnership with BMO Financial Group has been extremely successful," said Allison Pond, Executive Director, ACCES Employment. "Together, we are helping new Canadians meet professionals and expand their networks. These connections are vital in helping newcomers successfully integrate into their fields. The tremendous response from both mentors and mentees provides us with the opportunity to share Speed Mentoring, with organizations doing similar work across the country, so that more new Canadians can benefit from Speed Mentoring and accelerate their success."
"We do this not just because it is the right thing to do for the bank and for our customers, but because it is also the right thing to do for our communities," said Ms Kunkel.
NOTE: UPCOMING SPEED MENTORING EVENT
BMO is holding its next Speed Mentoring event at the bank's new Customer Contact Centre in Mississauga, Ontario on April 15, 2011, between 2:00-4:00 pm. The event will pair mentees interested in call centre careers with BMO mentors working at the bank's new contact centre. Media are welcome to attend:

	Meadowvale CCC
	2465 Argentia Road,
	Mississauga, L5N 0B4

Average Canadian family debt hits $100,000

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A new report suggests the average family debt in Canada has now hit the $100,000 mark.

In addition, says the Vanier Institute of the Family, the debt-to-income ratio measuring household debt against income, is a record 150 per cent.

This means that for every $1,000 in after-tax income, Canadian families owe $1,500.

The Institute says in 1990, average family debt stood at $56,800, with a debt-to-income ratio of 93 per cent.

Just as the debt ratio has climbed, the savings rate has slid downward.

In 1990, says the Institute, Canadian families managed to put away $8,000 for a savings rate of 13 per cent. Last year, the savings rate had fallen to 4.2 per cent, averaging just $2,500 per household.

Other data compiled by the Institute shows the number of households behind in mortgage payments by three or more months climbed to 17,400 in the fall of 2010, up nearly 50 per cent since the recession began.

Canada Re-Opens Immigrant Investor Program

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OTTAWA, ONTARIO--(Marketwire - Nov. 10, 2010) - Effective December 1, 2010, Citizenship and Immigration Canada will once again accept applications under the federal Immigrant Investor Program.
Under the new program criteria, investor applicants will need to have a personal net worth of $1.6 million, up from $800,000 under the old criteria, and make an investment of $800,000, up from the previous requirement of $400,000.
"These changes were necessary," said Minister Kenney. "The requirements had not been increased in more than a decade and we need to keep pace with the changing economy."
Canada's old immigrant investor criteria were the lowest when compared to other countries with similar programs. The new criteria now align it more closely with other immigrant-receiving countries.
The investor program was suspended in June, in part because the high volume of applications was leading to wait times that were too long. Raising the requirements will help reduce the flow of applications while ensuring we attract experienced businesspeople who can make a more substantial contribution to the economy. Higher personal net worth criteria mean the program is now better positioned to attract investors with valuable business links and the resources to make secondary investments in the Canadian economy.
"Higher investment amounts mean provinces and territories will receive more investment capital to put toward job creation and economic development projects," added the Minister.
Canada's Immigrant Investor Program offers several benefits to international investors, including permanent resident status up front and guaranteed repayment of the investment.
Under Canada's old criteria, the volume of applications submitted under the Program had grown exponentially and processing times had increased. By stopping applications between June 26, 2010, and December of this year, the government prevented further delays. Applications received on or after December 1 will be subject to the new criteria and will be processed alongside the old ones. In this way, Canada can begin to realize the benefits of the changes as soon as possible.
Follow us on Twitter at www.twitter.com/CitImmCanada.
Backgrounder
New federal Immigrant Investor Program will bring to Canada more resources to fund economic development and job creation initiatives
Canada's Immigrant Investor Program (IIP) attracts experienced businesspeople who bring significant economic benefits to Canada. In order to keep pace with the changing global economy and keep Canada's program competitive, Citizenship and Immigration Canada (CIC) has changed the program so that it makes an even greater contribution to the Canadian economy. The changes were prepublished in the Canada Gazette on June 26, 2010, for a thirty-day public comment period and will take effect December 1, 2010.
Benefits of the IIP
Investments made through the program take the form of a five-year, zero interest loan to the Government of Canada on behalf of participating provinces and territories. These funds are distributed to participating provinces and territories to fund economic development and job creation initiatives in their regions. While investment strategies vary, some examples to date include venture capital investments in clean technology, public sector infrastructure investments (e.g., expansion of broadband Internet access, and construction of post-secondary institutions), and loans to small and medium-sized Canadian businesses. The provinces and territories must guarantee repayment of the investments received.
The provinces and territories are currently managing almost $2 billion of five-year, revolving IIP capital. In 2009 alone, almost $500 million was allocated through the program. British Columbia, Manitoba, Ontario, Nova Scotia, Prince Edward Island, Newfoundland and Labrador, New Brunswick, Saskatchewan and the Northwest Territories participate in the program. Other provinces and territories have expressed interest in joining as well.
Research has shown that the IIP has a positive impact on Canada's economy. While the program is an important source of investment capital that can be used by provinces and territories, immigrant investors also make significant economic contributions by bringing to Canada business acumen, important links to global economies and an understanding of international markets.
Changes to the Program
The Government of Canada has established new eligibility criteria for the IIP. These regulatory changes now require new investors to have a personal net worth of $1.6 million, up from $800,000, and make an investment of $800,000, up from $400,000.
Higher investment amounts mean that provinces and territories will receive a greater amount of capital to put toward economic development within their regions. Higher personal net worth criteria mean that the program is now better positioned to attract investors with valuable global business links and the resources to make secondary investments into the Canadian economy.
How Canada's Program Compares to Other Countries
Canada's old IIP criteria had not changed since 1999 and were the lowest when compared to other countries with similar programs (see the chart below: International Immigrant Investor Programs). The new criteria now align Canada's program more closely with other immigrant-receiving countries, while still offering investors the competitive advantages of up-front permanent resident status and guaranteed repayment of their investment.
International Immigrant Investor Programs

	Minimum Net Worth	Minimum Investment
*Canada/Quebec (old)**	CAD$800,000	CAD$400,000
Canada/Quebec (new)	CAD$1,600,000	CAD$800,000
Australia	CAD$2,157,525	CAD$1,438,350 (CAD$719,175 regional program)
UK	CAD$3,331,400	CAD$1,665,700
New Zealand	CAD$765,500	CAD$1,148,250
USA	Not specified	CAD$1,031,700 (CAD$515,850 regional program)

NOTE: Currency equivalents based on Bank of Canada nominal exchange rates, January 11, 2010.
* Under the Canada-Quebec Accord, Quebec is responsible for the selection of immigrants destined to the province, as well as the design and delivery of its own settlement services. The regulatory changes to the eligibility criteria also apply to Quebec-selected investors.
Managing Application Intake
Under the old IIP, the volume of applications grew exponentially in recent years. This surge in applications resulted in a rising inventory and longer processing times. As a result, the Department temporarily stopped accepting new applications when the changes were first proposed for public comment on June 26, 2010. These measures were put in place to prevent a flood of applications before the new criteria took effect, which would have stretched processing times even further. Once the new criteria take effect December 1, new applications will be processed alongside the old ones. In this way, Canada can begin to benefit from the changes as soon as possible.
Quebec announced its own moratorium on investor applications on October 15, and like the federal moratorium, this suspension will be lifted on December 1 when the regulatory changes to personal net worth and investment criteria take effect.

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