Statistics show that after paying taxes, which is the most significant expense item for a family budget, Canadians spend the most money on rent and housing maintenance. Next in descending order are expenses on food, transportation, personal and pension insurance, recreation, education, and the purchase of furniture together with household appliances. The most insignificant expense items in Canada – again according to statistics – are considered to be spending on gambling, printed literature, and personal hygiene.
Overall, according to last year's data, life is most expensive in Ottawa, where a family of 2-3 people has to spend more than 61,000 Canadian dollars per year. Next, with a slight lag, are Toronto (about 60,000 Canadian dollars) and Calgary (just over 59,000 Canadian dollars). But Quebec's Montreal is, surprisingly, one of the cheapest cities in the country: according to last year's data, the average Canadian family spent no more than 46,000 Canadian dollars per year here.
THE HOUSING ISSUE HAS NOT SPOILED CANADIANS
Although Canadians are already one of the most 'home-owning' nations in the world, every fifth resident of the country – mainly young people aged 18 to 34 – intends to buy another cottage or apartment on credit in the next two years.
Seven out of ten Canadians can boast that the house they live in is their private property. Although housing prices rose significantly during the past year, and mortgage banks, following their American counterparts, raised lending rates for real estate purchases, Canada's construction industry is currently on the rise. After all, when building or renovating real estate, it is necessary to purchase materials such as brick, cement, steel and plastic pipes, and other consumables. So it is not surprising that nearly 50 billion Canadian dollars circulate annually in the sphere of construction, material production, and the finished housing market.
Canadian cities are considered much more oriented towards the needs of the 'common man' than American metropolises. At international architects' conferences, the opinion has been expressed more than once that in the USA, the common good is sacrificed to individualism. There is no charm and coziness in the appearance of their settlements, unlike in Canadian ones, where urban planning rules are much stricter, the layout of streets and infrastructure are carefully planned, and national 'ghettos' are practically non-existent.
Judging by the amount of housing sold, among all Canadian provinces, the best conditions for living in a new country are Quebec, Ontario, and Alberta. However, prices in the administrative centers of these regions are affordable only for people with good incomes. For example, to buy an average house on credit in the most expensive city in the country, VANCOUVER (priced at approximately 370,000 Canadian dollars), you need to have a salary of at least 100,000 Canadian dollars (all prices are in Canadian dollars). If you choose a prestigious area, a single-family cottage in the Quebec capital will cost no less than 500,000.
The situation is slightly easier in TORONTO. Prices here have risen by more than 10 percent over the past year, and the average house is valued at approximately 350,000. For a down payment on such a purchase, an immigrant who has already found a job would need to have at least 85,000 on hand. In Calgary, Ottawa, and even the small town of London with a population of 350,000, the conditions for an immigrant's start are more lenient. Given that housing costs about 205,000-220,000, it would be enough to have 45,000-50,000 on hand and find a job with an income of 5,000 Canadian dollars per month.
Among large cities, MONTREAL is the most welcoming to newcomers: the average private cottage here costs just over 170,000. To immediately start looking for housing on credit, it is enough to sell your two-room new building on the outskirts of the capital.
For a more visual comparison of prices in relation to salary, Canada and the US use the so-called 'affordability index'. It indicates what portion of your 'gross' (pre-tax) income will be consumed by loan payments, property taxes, and utility costs. The higher the index, the worse the situation.
A value of 35 percent is considered acceptable. If the index in a given area is between 35 and 40 percent, you will have to limit yourself on clothing and entertainment. If payments exceed reasonable values, the bank may not give a loan at all. With a loan cost of 8.5 percent per annum, the total expenses of the average Canadian on housing are currently 33.3 percent, in Montreal – almost 40 percent, in Vancouver – 52.8 percent.
To help the average person understand all these intricacies, Canadian financial institutions distribute a lot of educational literature and software titled 'What house can I afford?' Specifically for immigrants, the Federal Housing Agency 'Canada Mortgage & Housing Corp.' also issues a special brochure 'The Newcomer's Guide to Canadian Housing', which can be downloaded completely free of charge from the organization's website at www.cmhc-schl.gc.ca.
However, Canadians engage in independent calculations only at the stage of estimates and dreams: a professional – a mortgage broker – usually helps them conduct the actual conversation with the bank. For his services, the specialist typically takes 2 percent of the loan amount. In economically developed countries, it is customary to insure debts, especially if your down payment is not too large. Insurance, depending on the type of lending, will cost from 0.5 to 3.5 percent of the amount covered by the bank. In order to insure against undervaluation of the purchase in the documents, all parties to the transaction recognize only the figure certified by a licensed appraiser. A professional assessment of the purchase will cost approximately 200-440 Canadian dollars.
The tax paid when purchasing a home in Canada ranges from 1 to 4 percent of the market value of the house. The amount that must be paid annually to the authorities for the happiness of owning a home varies from province to province and from municipality to municipality.
For example, in Toronto tax rates are significantly higher than in Vancouver. Utility prices also vary from region to region. In provincial capitals, heating and lighting are generally cheaper than in neat dwarf cities. If residents of prestigious Vancouver spend about 735 Canadian dollars per year on heating their mansion, then in some Sherbrooke, where housing prices are exactly half as low, the family budget may shrink by 2,200 over the same period.
Of course, immigrants will face many other issues in their new place of residence. But if all the necessary documents are completed, housing is purchased or rented, and a job is found, consider that you have successfully solved the most important problems. And you will deal with the rest as you go along. And the sooner you do this, the sooner you will feel at home in Canada.