Is It Expensive to Live in Canada?

Yes, Canada is generally considered expensive, especially in big cities like Toronto and Vancouver—but your actual cost of living depends a lot on where you live, your housing situation, and lifestyle.

Housing, groceries, and transportation tend to take up the biggest chunk of most people’s budgets, and those costs have risen noticeably in recent years.

KOHO Essential Can Help With Day-to-Day Costs

While KOHO can’t change rent prices, it can help you stretch your everyday dollars a bit further.

With KOHO Essential, you get:

• A no fee account experience when you set up direct deposit or add $1,000/month

• 2% interest on your entire balance

• 1% cash back on groceries, eating & drinking, and transportation

• No minimum balance required

• Unlimited transactions & e-transfers

It’s built to help you track, budget, and avoid unnecessary bank fees, which matters more when the cost of living is high.

Why Living in Canada Feels Expensive

1. Housing Costs Are a Big Driver

Housing is usually the largest expense. Bigger cities and some mid-sized ones have seen high rents and home prices, especially in Ontario and British Columbia. Smaller cities and rural areas tend to be more affordable, but often come with fewer jobs or services.

2. Groceries and Everyday Essentials

Food, utilities, and phone/internet plans in Canada can feel pricey compared to some other countries. Even if prices vary by region, most households notice that groceries and essentials eat a big chunk of the monthly budget.

3. Transportation

Depending on where you live, you may need:

• A car (with insurance, gas, maintenance, and parking), or

• To rely on public transit passes in bigger cities

Either way, transportation usually becomes another major line item.

What You Can Do to Manage the Cost of Living

Even if you can’t control housing or food prices, you can still:

• Budget by category (rent, food, transit, fun, debt payments)

• Use a no-fee account so you’re not losing money to monthly bank charges

• Keep an emergency fund in a high interest savings account

Living in Canada can be expensive—but having the right setup for day-to-day banking, saving, and credit building can make it feel more manageable.