The ‘Hidden’ Costs of Moving to Canada: Immigration, Settlement, Work, Study – and How to Avoid Surprises in 2026
January 26, 2026
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Canada remains one of the most desirable destinations for immigrants, students, and skilled workers. However, many newcomers underestimate the real financial commitment required to settle successfully. Beyond the well-known visa fees and airfare, there are a host of ‘hidden’ costs that can affect your budget in 2026. Understanding these expenses -and planning ahead - can make your move to Canada far smoother and more affordable.
1. Immigration and Visa Fees: The First Step
Every immigration pathway comes with processing fees, document costs, and medical examinations. For example, Express Entry applicants pay fees for language tests (IELTS or CELPIP), Educational Credential Assessments (ECA), and permanent residence applications. Family sponsorship and study permits also include biometric and processing charges. These add up quickly - so it’s important to include them in your pre-arrival budget.
- Language Testing: CAD 300–400 per attempt
- ECA Report: CAD 200–300
- Permanent Residency Fee: CAD 1,365 (as of 2026)
- Biometrics & Medical Exam: CAD 200–400 combined
2. Settlement and Housing Expenses
Housing costs vary widely depending on your province. In cities like Toronto or Vancouver, expect to pay a deposit plus the first month’s rent upfront—often totaling CAD 3,000 or more. You’ll also face expenses for furniture, utilities setup, and renter’s insurance. For students, residence halls and shared rentals may seem affordable, but deposits and meal plans add to the total cost.
Hidden expenses to watch for include:
- High winter utility bills (heating and electricity)
- Moving truck or storage costs
- Wi-Fi and mobile phone setup fees
3. Work-related and Credential Costs
Before you can work in your field, you might need credential recognition, licensing, or bridging courses - especially in healthcare, engineering, or education. These can cost anywhere from CAD 500 to CAD 5,000, depending on your profession. Job seekers should also plan for unpaid waiting periods, public transport fares, and professional memberships that help them network.
Many provinces now offer foreign credential recognition programs and bridging bursaries for newcomers to help offset these costs in 2026.
4. Education and Study Permit Costs
International students often underestimate the total cost of studying in Canada. Besides tuition - which averages 25,000 CAD per year - you’ll pay for textbooks, lab fees, student services, and health insurance. Add transportation, housing, and food, and the true cost can exceed 40,000 CAD annually.
To stay ahead, apply early for scholarships and check whether your institution offers on-campus work opportunities or co-op programs to offset expenses.
5. Everyday Living Expenses
Once settled, daily life in Canada brings its own surprises. Groceries, transportation, and personal care are often pricier than in many newcomers’ home countries. Even with careful planning, unexpected costs - like healthcare waiting periods or car insurance - can strain your budget.
Average monthly newcomer expenses in 2026:
- Rent: CAD 1,800–2,800
- Groceries: CAD 400–600
- Public Transport: CAD 120–180
- Internet and Phone: CAD 120
6. How to Avoid Financial Surprises
Here are smart strategies to stay financially prepared in 2026:
- Build an emergency fund before arrival - ideally covering 3 to 6 months of expenses.
- Compare provinces for affordability. Smaller cities like Halifax or Winnipeg offer lower living costs and easier housing access.
- Use newcomer banking offers that waive monthly fees or include credit-building tools.
- Budget for the unexpected - set aside funds for medical costs, job gaps, and relocation within Canada.
Moving to Canada is a rewarding journey, but it comes with financial realities that go beyond the surface. In 2026, immigration and settlement success depends not only on your visa application but on how you prepare financially. By understanding the hidden costs - from study to work - you can avoid surprises, build stability, and make the most of your new life in Canada.
Frequently Asked Questions
What Are the Main Hidden Costs of Immigrating to Canada?
Hidden costs include credential assessments, housing deposits, winter utility bills, and transportation setup. These are often overlooked during the immigration planning process.
How Much Should I Budget as a Newcomer to Canada in 2026?
A realistic newcomer budget should cover at least CAD 20,000 - 30,000 for the first year, depending on your location, housing, and family size.
Can I Work While Studying to Offset Costs?
Yes. Most international students can work up to 20 hours per week during academic sessions and full-time during breaks, helping reduce living and study expenses.