Canada is a land of opportunity, attracting immigrants from around the world with its high quality of life, diverse culture, and economic stability. However, as newcomers settle in their new home, one challenge that often arises is the rising cost of living. From housing to daily expenses, understanding how to navigate these challenges is crucial for a successful transition. In this article, we’ll provide practical tips to help immigrants adapt to and manage their cost of living in Canada.
In the 2022 Consumer Price Index (CPI), a measurement tool utilized by the Canadian government to gauge the cost of a fixed basket of goods and services, Statistics Canada reported the most substantial CPI surge since 1982, reflecting an escalation in the prices of goods and services.
Another recent report from Statistics Canada highlighted that almost one in four Canadians lacked the means to cover a surprise expense of $500 CAD. Furthermore, rising concerns about elevated prices for food and fuel were raised by 44% of Canadians.
In response to economic pressures and following the 2022 Fall Economic Statement, the Canadian government has introduced a series of measures aimed at supporting residents in addressing their financial obligations. These measures are part of the Affordability Plan, a federal investment of $12.1 billion CAD designed to alleviate financial burdens.
Among the programs is the Goods and Services (GST) Tax Credit, which will see a doubling of its benefits for a six-month period starting November 4, 2022. This change will impact approximately 11 million Canadians with modest incomes. Depending on their circumstances, single individuals without children could receive an additional payment of up to $234 CAD, while couples with two children may receive over $467 CAD. Seniors aged 65 and above may see an increase of $225 CAD.
The Canada Workers Benefit (CWB) is another vital initiative to bolster the income of low-income workers, many of whom play crucial roles in the economy. The 2022 Fall Economic Statement has allocated $4 billion CAD over six years to provide biannual advance payments to eligible individuals starting in July 2023. The CWB could offer up to $1,428 CAD for single workers and up to $2,461 CAD for families through the existing tax return system.
To alleviate the financial strain of pursuing higher education, the federal government has permanently eliminated interest on the federal portion of all Canada Student Loans and Canada Apprentice Loans, including those currently being repaid. Addressing the need for affordable dental care, the Canada Dental Benefit was introduced in September 2022. Eligible parents or guardians with an annual family income below $90,000 CAD can receive tax-free payments of up to $650 CAD per year for dental expenses for children under 12, over the next two years.
Prior to the 2022 Fall Economic Statement, additional measures were already in place under the Affordability Plan. These measures encompassed reducing childcare fees by an average of 50% in Ontario, enhancing the Old Age Security (OAS) pension by 10% for seniors aged 75 and above, and indexing various benefits to inflation.
It is important to note that eligibility for these programs can vary based on individual circumstances and the chosen program.
Provincial governments play a significant role in assisting residents with the rising cost of living, offering specific programs tailored to their respective populations. These programs encompass various aspects such as medical expenses, skills development, employment aid, childcare, worker benefits, and more. The scope of these programs largely depends on the province in which you reside.
To explore the detailed services and programs offered by each provincial government, please refer to the respective links provided for Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland and Labrador, Northwest Territories, Nova Scotia, Ontario, Prince Edward Island, Quebec, Saskatchewan, and Yukon.
In addition to Canada’s Federal as well as provincial governments’ support and initiatives, a range of tools and resources are available to help individuals and families manage their living costs in a planned and effective way. Some of them worth mention would be:
Adjusting to the rising cost of living in Canada requires careful planning, budgeting, and making strategic choices. While it may seem daunting at first, remember that many newcomers have successfully navigated these challenges. By adopting these practical tips and seeking advice from local resources, you’ll be better equipped to build a strong financial foundation and make the most of your Canadian experience.
Contact us to know if you qualify to migrate to Canada. Check out Owlspriority Immigration’s Canada Settlement Resources to learn about finding employment in Canada, making your initial days stress-free, etc.
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