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Expenses in Canada: Taxes and other expenses.
Expenses in Canada: Comunications, Education and Healthcare.
Image via WikipediaCommunications
- Telephones - You can buy your own telephone, or rent one from the telephone company. Major home phone companies are: Rogers, Bell and Primus
- Average Cost of Telephone (Monthly): $20 - $40 plus long distance charges.
- Cellular phones - Many Canadians have a cellular (cell), or mobile, phone instead of or in addition to a land-line. You will need to purchase a phone and pay for the monthly phone service. Major cell phone retailers are: Rogers, Bell, Fido, Telus, Virgin Mobile, Solo and Koodo.
- Average Cost of Cell Phone (Monthly): $40 + Cost Initial Cost of Phone
- Cable or satellite television - you may need to purchase cable or satellite service. There is a monthly fee for such service, and it usually varies depending on the provider, the scope of the package and the options you choose.
- Average Cost of Cable (Monthly): $25 - $50
- Internet - Many Canadians subscribe to an Internet service, which allows them to surf the web or send emails from their home computer. You can purchase Internet service from most cable or telephone companies.
- Average Cost of Internet (Monthly): $20 - $60
To keep in touch with your relatives abroad, get a free $5 calling card when you sign up for the Scotiabank StartRight Program
Education
Education is important to Canadians, and attendance is mandatory for children between the ages of six and 16. In Canada, children are eligible to receive free elementary and high school education through the government-funded public education system. Budget for additional expenses such as school supplies, some books, sports equipment and musical instruments.
A Scotia® RESP (Registered Education Savings Plan) will help you to provide for your child's post-secondary education, especially when you invest early and regularly. Find out more.
| Average costs for Undergraduate or post-secondary education | |
| Province | 2008-2009 Undergraduate tuition fees (avg. per academic year)* |
| Newfoundland and Labrador | $2,632 |
| Prince Edward Island | $4,530 |
| Nova Scotia | $5,932 |
| New Brunswick | $5,590 |
| Quebec | $2,167 |
| Ontario | $5,643 |
| Manitoba | $3,276 |
| Saskatchewan | $5,015 |
| Alberta | $5,361 |
| British Columbia) | $5,040 |
| * Source: Statistics Canada as of March 26th, 2009 | |
About Canada's Health Care
One of the most important things you need to do as soon as you arrive in Canada is to apply for a health insurance card. All members of your family, even newborn babies, must have their own card. You can get an application form from the provincial ministry of health office, any doctor's office, a hospital or a pharmacy.
To apply for a health card, you will need your birth certificate or Confirmation of immigration status in Canada (IMM 5292) and passport. Your Permanent Resident card may also be presented. In most provinces, you will receive coverage as soon as you apply.
Health-care services covered by medicare include:
- examination and treatment by family doctors;
- many types of surgery;
- most treatment by specialists;
- hospital care;
- X-rays;
- many laboratory tests; and
- most immunizations.
Health-care services not covered by medicare, and for which you will have to pay, include:
- ambulance services;
- prescription drugs;
- dental care; and
- glasses and contact lenses.
ScotiaLife Financial™1 can help protect you and your family from life's unexpected events. Find out more.
Medical Expenses
Canadian residents enjoy a healthcare system that is publicly funded. Many health services are paid for from taxes and are free to all residents of Canada who hold a provincial health card.
However, not all medical expenses are covered. Depending on the province in which you live, you may have to pay for services such as:
- Dental care
- Eye examinations and prescription eye wear
- Treatment provided by psychologists, chiropractors, physiotherapists, massage therapists, acupuncturists, dietitians and naturopaths
- Cosmetic or elective surgery
Expenses in Canada
Image via WikipediaWhen 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 | ||
New Immigrants and taxes in Canada.
Image via WikipediaThe following information applies only for the first tax year that you are a new resident of Canada for tax purposes. After your first tax year in Canada, you are no longer considered a newcomer for tax purposes.
If you immigrate to Canada, we consider you to have acquired (deemed acquisition) almost all your properties at fair market value on the day you immigrated. If you are re-establishing Canadian residency and you had a deemed disposition when you left Canada, see Dispositions of property.
Residency status
You become a resident of Canada for income tax purposes when you establish significant residential ties in Canada, usually on the date you arrive in Canada.
Newcomers to Canada who have established residential ties with Canada may be:
- persons in need of protection;
- people who have applied for or received permanent resident status from Citizenship and Immigration Canada; or
- people who have received approval-in-principle from Citizenship and Immigration Canada, to stay in Canada.
If you were a resident of Canada in an earlier year, and you are now a non-resident, you will be considered a Canadian resident when you move back to Canada and re-establish your residential ties.
Residential ties include:
- a home in Canada;
- a spouse or common-law partner (see the definition in the General Income Tax and Benefit Guide) and dependants who move to Canada to live with you;
- personal property, such as a car or furniture; and
- social ties in Canada.
Other ties that may be relevant include:
- a Canadian driver's licence;
- Canadian bank accounts or credit cards;
- health insurance with a Canadian province or territory.
For more information, please see IT-221, Determination of an Individual's Residence Status.
If you want an opinion about your residency status, complete and submit Form NR74, Determination of Residency Status (Entering Canada).
Your tax obligations
As a resident of Canada, you:
- must report "world income" (income from all sources both inside and outside Canada) on your Canadian income tax return;
- must ensure that you pay the correct amount of taxes according to the law;
- have the right and responsibility to verify your income tax status each year;
- can claim all deductions, non-refundable tax credits, and refundable federal, provincial, or territorial credits that apply to you.
As a newcomer to Canada, you should be aware that most individuals who reside in Canada file only one income tax return for the tax year, because the Canadian government collects taxes on behalf of all provinces and territories except the Province of Quebec.
Note
If you live in the province of Quebec, you may need to file a separate provincial income tax return. For information about your provincial tax liability, contact theRevenu Québec.
If you live in the province of Quebec, you may need to file a separate provincial income tax return. For information about your provincial tax liability, contact theRevenu Québec.
As a resident of Canada for part or all of a tax year (January 1 to December 31), you must file a tax return if you:
- owe tax; or
- want to receive a refund.
Even if you have no income to report or tax to pay, you may be eligible for certain payments or credits. In order to receive the following payments or credits, you must file an income tax return.
- the GST/HST credit (goods and services tax/harmonized sales tax);
- Canada Child Tax Benefit payments;
- provincial or territorial tax credits.
For more information, please see "Do you have to file a return?" in the General Income Tax and Benefit Guide.
For the tax year that you are a newcomer to Canada and for each tax year that you continue to be a resident of Canada for tax purposes, use the General Income Tax and Benefit Guide and the forms book for the province or territory where you live on December 31 of the tax year.
- It is important to use the forms book for your province or territory because tax rates and tax credits are different in each province and territory.
- If you live in the province of Quebec, you may need to file a separate provincial income tax return. For information about your provincial tax liability, contactRevenu Québec.
Your income tax return has to be filed on or before:
- April 30 of the year after the tax year; or
- if you or your spouse or common-law partner carried on a business in Canada (other than a business whose expenditures are mainly in connection with a tax shelter), the return has to be filed on or before June 15 of the year after the tax year.
NoteA balance of tax owing has to be paid on or before April 30 of the year after the tax year, regardless of the due date of the tax return.
Entitlement to benefits and credits
As a newcomer to Canada, you may be eligible for the goods and services/harmonized sales tax (GST/HST) credit, the Canada Child Tax Benefit (CCTB), and/or the Universal Child Care Benefit (UCCB) payments in the year you became a resident of Canada.
- To apply for the GST/HST credit, complete Form RC151, GST/HST Credit Application for Individuals Who Become Residents of Canada.
- To apply for the CCTB and/or the UCCB payments, complete Form RC66, Canada Child Benefits Application. Depending upon your immigration and residency status, you may also have to complete the schedule Status in Canada/Statement of Income.
Building your credit history in Canada.
Image via WikipediaWhat is a credit history?
Your credit history or credit rating starts from day one - the first time you get a credit card in your name, a loan or line of credit from a bank.
A credit history is a collective report about how you have handled and managed debt historically.
Your credit file is like a financial report card. It tracks how much money you borrow, and how quickly you pay it back. Every month when you borrow money, use your credit card or pay bills, information about your financial transactions is sent to a credit-reporting agency. The agency uses this information to come up with your credit rating and your credit score.
Your credit rating contains a number and a letter. The number - between 0 and 9 - shows how fast you pay your bills. "1" means you pay your bills within 30 days of billing date and you've had no more than one late payment, while "9" means a bad debt, a debt been placed with a collection agency, having moved without providing a new address, or Bankruptcy.
Establishing Credit History
As a newcomer you will have to build a new credit history in Canada. Credit cards are one of the most effective ways to build a Canadian credit history. Credit cards can be used as a form of identification when renting an apartment or a car or signing up for a new cell phone. A good credit history and score will also help you when you’re making a significant purchase, such as a car, home or setting up/purchasing a new business.
Build a Strong Credit History
Using and making regular payments on time will help you establish a good credit history. Some helpful tips include:
- Pay your bills in full and on time. Or at least pay the minimum amount shown on your statement.
- Don't go over the limit on your credit card. The higher your balance, the more it affects your credit score.
- Don't apply for credit too often.
- Use a credit card wisely.
- Pay off your debts as quickly as possible.
Credit Reporting Agencies
There are two main credit reporting agencies, also known as Credit Bureaus, in Canada:
- Equifax Canada Inc. (For all provinces except Quebec)
- TransUnion of Canada (For Quebec residents)
These private agencies collect information about borrowers from other credit grantors.
International Credit Reports
Canadian credit-reporting agencies such as Equifax or TransUnion, only collect information from creditors about consumers' financial experiences in Canada. Despite this, financial institutions may be willing to recognize your earlier credit history outside of Canada. This may involve, for example, requesting a copy of your credit report from the credit-reporting agency in the other country. You may want to consider bringing in a copy of your credit report form your home country (if available) and present it with your credit and loan application.
Source: Scotiabank.com
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