How To Prepare Yourself Financially For Settling In Canada?
Are you planning to settle in Canada? Then you need to do some preparation beforehand so that your life in the new country is happy and without any hassles. Settling in Canada also means you will have to wrap up all your estate and property-related transactions in your native country and also withdraw most of the money from the local bank.
How Much Money You Can Withdraw?
That is one question that should be tackled foremost once you have narrowed down the decision to settle abroad. You can get this information from your lawyer, bank officials, or financial advisor. Also, try to find out how much it will cost you to live in a particular province or area in Canada where you intend to settle. Depending on the development and technological advancements in various provinces, the cost of living will vary.
Find out how much money you can bring to Canada as well as items that can be imported duty-free or tax-free. Another important thing that you need to consider is Proof of Funds. You must be able to convince the immigration authorities that you carry enough wealth to support your family after settling in Canada. If you are entering Canada as a self-employed person then you will have to provide them with your bank details that ascertain your financial capacity.
Similarly, a person entering Canada under Express Entry such as the Skilled Worker Program will have to provide an appointment letter to the Canadian Visa office.
Would You Be Buying a Home or Taking It On Rent?
On average, every Canadian spends 30 to 50% of his income on the house loan or rent and utilities. These spending also include the amount required for maintaining your homes such as heating your home, electricity and water bills, and telephone service. More often new settlers first rent homes. After a couple of years, they get a clear idea of whether they want to continue living in that particular area or want to shift to another province.
Rents vary from one province to the other. Outside the cities, the rent is quite less. You will most probably have to pay a minimum of $350 per month as the rent for a room. In the case, you are bringing your family and require a larger house or an apartment you will have to shell out at least $2000 per month.
Only those with good income and enough assets can think of approaching a bank or financial institution for a loan to buy a house. Apart from assets and income proof, you will also need a good credit rating. Since you will be new in Canada it will take time for you to reach those credit ratings. Hence for a new person settling in Canada, renting a house can be the best option. Moreover, you will also have to pay around 10% of the overall cost of the house to the bank before getting the loan. Other additional expenses that are a part of the property buying process in Canada include household insurance and property tax.
Of course, if you carry enough cash to buy a house outright then you need not worry about a mortgage and can own a house simply by paying the required amount and essential taxes.
Adding Food, Clothing, and Other Essential Spendings to Your Budget
You will also be spending on food, clothing, transportation, health, and other insurances after settling in Canada. Hence your budget list should also include these expenses. From buying a car to paying for medical bills, school supplies, and entertaining friends a lot many other things will take up a significant part of your earnings.