Expenses in Canada

Image via Wikipedia

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.

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

Renting Resources:
• 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

Related articles

• CMHC Survey Shows Homebuyers Taking the Time to Plan (jessagill.wordpress.com)
• Rental apartments harder to come by: CMHC (cbc.ca)
• CMHC ups Toronto market forecast (moneyville.ca)
• Split thinking on possible bank rate hike (cbc.ca)
• GTA housing market hotter than forecast (moneyville.ca)

G20: Why we all want to be Canadian now

Image via Wikipedia

Even on a rainy weekday at Ottawa's By Ward market, Canadian shoppers are cheery.

As Americans and Europeans face deficits and drastic government cuts, Canada's economy is recovering from only a mild recession.
Sheltering near the maple syrup stall, local restaurant promoter Melissa Grecco says Canada escaped the fate of the US.
"We felt the effects on corporate bookings, companies not spending money on staff or booking on a limited budget. But we didn't feel it as much as the US. And within the last couple of months our business has exploded."
Painful reforms

Pierrre de Varennes Real estate broker, Ottawa

So Canada is now one of the top performing industrialised economies. How did they manage it?
For a start, painful reforms in the 1980s and early 1990s.
Canada's government, based in the stone neo-gothic Parliament building in Ottawa, along with individual provinces, were able to afford an economic stimulus package.
Whilst other nations borrowed, Canada had a budget surplus for over a decade.
According to James Flaherty, Canada's jaunty finance minister, it was also down to a more cautious approach.
"The Canadian character is relatively fiscally conservative. Canadians themselves are relatively prudent, I think, in terms of how much they are prepared to borrow and the risks they are prepared to take."
Safe as houses Certainly, fewer risks are allowed in the housing market.

Julie Dickson Banking superintendent Europe told to 'focus on growth'

Canadian home values have held fairly steady according to Pierre de Varennes, a real estate broker in Ottawa, with 350 employees.
He says stricter standards for homebuyers meant no housing boom and bust in Canada:
"In Canada, you cannot over-mortgage your property. In fact if you are financing more than 75% of the value, you have to get insurance. Not for you but for the bank."
With that protection, Canadian banks have done well from mortgages. And with less exposure to toxic sub-prime mortgages in the US, Canada's six biggest financial institutions, headquartered on Bay Street in Toronto, survived the financial crisis disaster free.
'Big stick' The Toronto skyline that Gordon Nixon, the President of Royal Bank of Canada, can see from his office on Bay Street not only looks very different to Manhattan. It is run differently, too.
"The structure of our marketplace in Canada is very different," he says.
"Most mortgages are held on the balance sheet of banks. The terms are more conservative and there is not as aggressive a marketplace.

"Sub-prime lending is very limited in the Canadian marketplace. What was the weakest asset class in the US and spread to the balance sheets of many banks was one of the strongest in Canada."
But Canada has also been happy to wield a bigger stick when it comes to financial regulation.
Banking superintendent Julie Dickson credits Canadian firms with better risk management.
But banks must also adhere to more stringent standards. What's more, her office is within walking distance.
"We spent a lot of time looking at what they are doing on a day-to-day basis. We also had good rules when it comes to capital and leverage. And the industry is of a size that it is easier for the regulator to get their arms around it."
Canada's financial sector is smaller and perhaps more insulated than in the US.
Critics add that Canadian banks are less innovative, with higher costs for consumers. Talking to Canadians, they seem to shrug off those arguments, happy with the results of a more prudent and, some argue, less greedy economic philosophy.
Puzzle solved  John Criswick says being in Canada has helped his business The G8 and G20 is a crucial opportunity for Canadian policy makers, eager to vaunt their successes to leaders gathered in Toronto.
And Canada need only point to growing businesses like Magmic. The Canadian IT firm makes games for the Blackberry, Apple's iPhone and iPad.
John Criswick, who founded in the firm in 2002, says the recession was painful but the odds have been tipped in his favour because he is in Canada.
"The recession definitely had an impact on us. We are half the size we used to be. But we are growing out of that and being in Canada has aided us in that recovery. It is pushing us beyond what our competition are doing in the US."
John's most profitable game? The iconic US brand the New York Times Crossword - currently the top selling gaming app on the iPhone.
The Canadians, it seems, have answers for even the toughest puzzles and they are keen to share their strategies with the rest of the world. Why in this economy, we all want to be Canadian.

Related articles by Zemanta

• Canada's turn on the world stage is worth the cost, business leaders say (theglobeandmail.com)
• The difference between Canadian and US housing markets? (hotair.com)
• G8, G20 important to Canadians: poll (cbc.ca)
• Breaking from the U.S. orbit - slowly (theglobeandmail.com)
• Copying Canada (news.bbc.co.uk)
• Personal Finance: Canadian Common Sense (mint.com)
• The world would love to be Canadian (theglobeandmail.com)
• "Canada's economy is suddenly the envy of the world" (slog.thestranger.com)
• The dollar's strong (but not the one you think) (money.cnn.com)