Living expenses in Canada

Household Expenses in Canada
More than half of a person's take-home salary will go to household expenses.
The household expenses include:

1. Housing (Apartments etc) See the rates of Apartments in Canada on
different websites which are offering apartments in Canada.
2. Heating and utilities
3. Food
4. Clothing
5. Health Insurance
6. Transportation
7. Car Insurance
8. Housing, Heating and Utilities

Housing:
In Canada, you can be expecting to spend 35% to 50% of your income on
housing. This is supposed to be including the cost of fare of apartment,
electricity, heating, telephone service, and water.
Many newcomers in Canada choose to rent an apartment on a monthly basis.
Rent of Apartments in Canada costs vary across cities and across Canada.
You can expect to pay between $375 a month to rent a room and up to $2,500
a month to rent a luxury apartment or a large house in Canada. Housing or
Apartments may cost less outside large cities.
If you want to purchase a house in Canada, you will probably need to get a
long-term loan called a mortgage. Banks and other financial institutions
in Canada provide mortgage loans. They make a decision whether the
borrower has enough income, more assets than debts, and a good recognition
rating. Most of the banks or financial institutions in Canada will ask you
to pay at least 10% of the cost of the house or apartment from your own
money. Besides your mortgage payments, you will also have to pay for
property tax and household insurance.

Food Expenses
Food costs make up approximately one-eighth of your take-home pay. This
can twofold if you often eat in restaurants, buy costly treats, or include
cigarettes and alcohol as part of your food budget. Alcohol and cigarettes
are very expensive in Canada for the reason that they are heavily taxed.

Clothing Expenses
Clothing is also an essential expense for human beings. Clothing expenses
may be below 10% of your take-home pay. Some people purchase from re-sale
shops. These shops put up for sale used clothing and furniture at very low
cost.

Health Insurance
Some provincial and territorial health programs may not cover some
beginners for their first three months in Canada. Make sure with the
province or territory to see if you will need to acquire an additional
health program.

Transportation Expenses
Many Canadian families possess one or more cars. Canadians often buy their
cars new or used or they lease them. Make sure all of the costs before you
make a decision to buy or lease a car.
When you have possession of a car you will have to pay for the car's gas,
maintenance, monthly loan payments, registration, and insurance.
When you lease a car in Canada, you will sign a contract to have the car
for a set period of time. You will pay the similar costs as you do in
owning a car.

Car Insurance
It is the law in Canada that all cars must be insured and registered with
the provincial or territorial motor vehicle licensing agency where you
reside. Car insurance can be costly, but it protects you and other drivers
of your car in case of a mishap. In most provinces, you can get more
information by calling the Insurance Bureau of Canada.
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Sales Taxes in Canada
In Canada it is widespread to add sales taxes to the price of goods and
services. General goods and services taxes include:

1. Goods and Services Tax (GST)
GST is a tax for Government of Canada which is added to the price of goods
and services. It is 5% of the value of goods or services.

2. Provincial Sales Tax (PST)
PST is added in most provinces of Canada and will range from an extra 7%
to 10%. Nunavut, Alberta, Northwest Territories, and the Yukon do not have
provincial or territorial sales taxes.

3. Harmonized Sales Tax (HST)
In some provinces of Canada, the GST is combined with the PST, and is
called the HST.