Jobs & Money Detail
The cost to emigrate to Canada
How much does it cost to emigrate to Canada? Just what are the hidden costs and is there an ideal sum of cash to have sitting in the bank, asks relocation expert Helen Willy
Let me start by saying that if you plan to emigrate to Canada no figure is right for everyone, as we all live differently. The fact of the matter is that 85 per cent or more of the population always live above or at their level of earnings, while the other 15 per cent manage to amass good wealth. In both circumstances, it doesn't matter whether those earnings are six-figure incomes or low five figure incomes.
If you take all the money away from a millionaire, and the last CDN$20 away from someone just making ends meet, then give them both CDN$1,000 each, within five months the millionaire will be well on his way to increasing his wealth back up to a million and the 'making ends meet' person will be back down to the CDN$20 only in his pocket. The same situation can be applied to emigration. Why is it that the majority will do well, by pushing themselves forward and getting into jobs easily, yet, there are those that moan and complain about everything?
Ironically, the complainers tend to have been of a similar nature in their homelands. They were never satisfied at work, in their home lives, or socially. Sad fact is they will always go through life complaining and doing very little to change it. Still to this day it amazes me how so many of us don't or won't accept that we are, for the most part, where we are in life, financially and otherwise, because of the decisions we've personally made. So, how much should you budget for emigrating? Well, some of you will survive within your comfort zones on the base amount the Canadian High Commisison recommends. Others of you will come with a few hundred thousand dollars and still feel you are struggling, due to capital upfront purchase choices you made. So whilst I will write as logically as I can, none of these figures are cast in stone for any one individual's situation.
First and foremost, will you have to budget for new furniture or are you shipping most of your home contents you already possess? Are you the type of person that happily accepts cutting your cloth to suit your pocket? That is accepting a lesser home rather than overstretching yourself on mortgage payments and ongoing bills? A single person or couple without children, emigrating with say CDN$20,000 will likely do okay if they intend to rent for the foreseeable future. You will need first and last months rent up front, and unless on a good transportation route, will need to budget for a vehicle. In addition you will need to allow yourself a 'safety net', say a couple of thousand dollars a month to live on for the first three to four months (allow more in higher rental rate areas). Based on the buoyant economy right now, almost Canada wide, getting work quickly if one applies themselves conscientiously to it, shouldn't be a problem. Admittedly you might have to take something slightly less than you'd initially hoped for, but be persistent and you will get into your chosen field.
A family emigrating with children or a couple intending to purchase a home and furnish it should allow at least 35 per cent of the purchase price to put down (if you have work, 25 per cent or less is possible with written confirmation of a permanent position). rrespective of whether you are able to qualify for a lower downpayment or not, seriously consider on first arrival always trying to put down the 35 per cent, to lower your monthly mortgage costs. Up until less than a year ago, a family emigrating to Calgary with CDN$100,000 or more were able to purchase a nice three-bedroom detached home with double garage for around CDN$220,000 to CDN$260,000, buy the replacement electrical items, and get a nice vehicle, or two in some cases. Now, the same level of home in a good location is likely to cost at least CDN$60,000 more, and continues to rise. When budgeting it is crucial you check within a month of landing of what's happening on the economy in your chosen area. It can blow any budget totally out of the water. Make sure you understand that the bigger the home the higher the running costs: gas, electric, property taxes, insurance and so on. I'm a great believer that people shouldn't get carried away on the initial capital purchases. It's all too easy when you have a couple of hundred thousand dollars in the bank. However, once that's all gone, you've nothing to supplement your income to pay the everyday bills. For most the biggest variable will be what salary you can expect to earn. Someone earning CDN$120,000 a year can likely handle the bills of a CDN$600,000 or more home, but can someone earning CDN$50,000 a year?
So, in a nutshell, what should you budget for when emigrating?
Finalising your UK affairs. For example, house sale, lawyers, debts etcetera;
The 35 per cent downpayment for your home, if applicable, plus CDN$1,500 incidentals;
First and last month's rent (variable; depending on destination and style of home)
Shipping costs – ship all or nothing at all, it is your choice;
Flights to Canada;
Initial temporary furnished accommodation for first arrival;
Travel and three month's health insurance (where not covered immediately);
Cost of living day to day – food, travel and household bills for three months or more;
Purchasing a vehicle and auto insurance;
Replacing furniture and/or electricals;
School fees (variable depending on Grade);
Medications if applicable, such as diabetics;
Childcare expenses or one income earning in the interim; and
Adding provincial sales taxes where applicable as well as GST.
The matter of setting your budget essentially boils down to what you want to achieve out of emigrating to Canada. Personally, I will feel much more comfortable if a family can tell me that they are emigrating with CDN$100,000 or more. Then they can at least get a foot on the property ladder in most areas, have enough for a vehicle, replace household electricals and cover the first few month's living expenses. A single/couple with CDN$20,000, and both intending to work, should also be comfortable and able to enjoy a good lifestyle.
Remember that, no matter how much you budget, for most of us, it'll never be enough. Do make sure you put in a large contingency figure and veer on the higher end of costs, not lower. Also, remember that if you emigrate to Canada that city to city, and province to province, costs vary. I said it before and I'll say it again: It's all about the personal choices you make.
Register for your FREE emigration starter pack
Subscribe to Emigrate magazine. Read more ...