What are the Living Expenses in Ontario, Canada?

Understanding the living expenses in Ontario, Canada, is crucial for everyone, whether you’re a long-term resident or a newcomer. The cost of living can vary significantly depending on your location within the province. For instance, life in major urban centers like Toronto or Ottawa is typically more expensive compared to smaller towns or rural areas. This disparity is most evident in housing costs, but it also affects food, transportation, and leisure activities.

For newcomers, obtaining a clear understanding of these expenses is particularly important. It aids in budget planning, ensures a smoother transition to your new home, and helps avoid unexpected financial strains.

Likewise, for current residents, staying informed about the cost of living is essential for effective financial planning and making the most of what this vibrant province has to offer.

Toronto, Canada’s largest city with a population exceeding 2.7 million, is renowned for being one of the most expensive and bustling cities. The high costs of housing and entertainment in Toronto reflect its status as a global economic and cultural hub.

In contrast, Ottawa, the nation’s capital, with over 1 million residents, also features higher living expenses, particularly in the central neighborhoods.

Conversely, smaller cities and towns such as London, Windsor, or Sudbury present a more affordable cost of living, with significantly lower housing costs.

For those considering a move or relocation within Ontario, it is crucial to weigh factors such as employment opportunities and lifestyle preferences against these cost implications.

Ontario’s cost of living is almost four times higher for residents than the nation’s cheapest province, Newfoundland and Labrador.

Houses: Renting a house is generally more expensive, with prices depending on the size and location. A three-bedroom house can cost anywhere from $1,800 to $3,500 per month, with higher prices in the Greater Toronto Area.

Smaller cities and towns in Ontario, such as London, Windsor, and Kingston, offered more affordable housing, with average prices ranging between $400,000 and $600,000. Rural areas and smaller communities generally presented the lowest prices, appealing to those seeking quieter and more spacious living options.

In Windsor, Ontario, the average price of homes sold in November 2023 was $515,964.

In Toronto, Ontario, the average price of homes sold in the third-quarter of 2023 was $1,250,000.

In Ontario, the average cost of groceries can vary depending on dietary preferences, shopping habits, and whether one is shopping in major cities or smaller towns.

As of early 2023, a single person’s monthly grocery bill in Ontario is generally estimated to be around $200 to $400, with families and larger households naturally incurring higher costs.

When comparing the expenses of eating out versus cooking at home, home-cooked meals typically prove to be more economical. Regular dining out in Ontario, especially in urban centers like Toronto or Ottawa, can quickly add up, often costing significantly more than preparing meals at home.

To manage grocery expenses more effectively, many Ontarians turn to local markets and affordable grocery stores. These local markets often offer fresh produce at competitive prices and are a great way to support local farmers and businesses.

Additionally, chain stores like No Frills, FreshCo, and Food Basics are known for their lower prices compared to other major grocery retailers like Zehrs and Sobeys, making them popular choices for budget-conscious shoppers. These strategies help residents balance their food budgets while enjoying a diverse range of culinary options available across the province.

Buying groceries in Ontario can be quite costly, and this has led my family and me to seek out more budget-friendly options.

While many families opt for cheaper stores like Walmart or Food Basics and make use of coupons, we have a different approach. We prioritize quality and tend to shop mostly at Costco, and for organic food, we mostly get our supplies from Zehrs.

At Costco, you can buy in bulk, which often results in lower prices compared to other stores, though it requires a membership ranging from $60 to $120, depending on the type. Despite the membership fee, we’ve found that the quality-to-price ratio of almost everything is exceptionally favorable.

Additionally, at the end of the year, depending on our spending, we usually receive a substantial reward check. This not only covers our membership fee but also provides some extra savings. Beyond the cost savings, we’re consistently impressed with the quality of products at Costco, and their excellent return policy only adds to the appeal of shopping there.

Public transportation in major cities like Toronto and Ottawa is well-developed, with extensive networks of buses, subways, and trams. The cost of using public transit can range from $3 for a single fare to around $150 for a monthly pass, offering a budget-friendly alternative to personal vehicles.

In smaller towns and rural areas, public transit options are more limited, making car ownership more of a necessity. If you’re considering buying a vehicle, such as one of the popular SUVs, expect to pay over $50,000. Sedans and economy cars typically range from $25,000 to $35,000.

The cost of owning a car in Ontario includes not only the purchase price but also ongoing expenses like insurance, which can average around $1,200 to $1,600 annually, and maintenance, which varies depending on the vehicle’s age and condition. Fuel costs also add up, with prices fluctuating based on market conditions. In 2023, the price of fuel was around $1.50 per liter.

As of early 2023, the average monthly cost for infant childcare in a major city like Toronto can range from $1,500 to $2,000, while for preschool-aged children, the cost might be slightly lower, around $1,000 to $1,500 per month. That is why many immigrant families choose to bring their parents over for at least the first few years, before their children start Junior Kindergarten (JK) or Senior Kindergarten (SK).

The provincial government has been working on initiatives to reduce these costs to an average of $10 a day, by September 2025, but for many families, childcare remains a substantial portion of their monthly budget.

Private schools, on the other hand, can be quite costly, with tuition ranging from $10,000 to over $30,000 annually, depending on the institution.

As of early 2023, university tuition fees for domestic students in Ontario averaged around $6,000 to $15,000 per year, with higher fees for international students (5 times higher) and certain specialized programs.

Textbook and supply costs can add an additional $1,000 to $2,000 annually.

Financial aid is available in various forms, including government student loans, grants, and bursaries. Additionally, numerous scholarships are offered based on academic merit, financial need, community involvement, or specific criteria set by the awarding bodies. These financial supports can significantly offset the cost of higher education, making it more accessible for students across different economic backgrounds.

However, there are out-of-pocket expenses for services not covered by OHIP, such as certain prescription medications, dental care, and vision care. These costs can vary greatly depending on individual needs and circumstances.

Dental procedures in Ontario, such as teeth repair, vary significantly in cost. From my experience, a routine tooth cleaning is approximately $150, while more complex treatments like a root canal can be around $600, and a dental crown may cost about $1,000. These prices depend largely on the complexity of the treatment.

For vision care, an eye exam can cost between $75 and $150, and the price of eyeglasses varies widely, often starting from $100 and increasing based on the frames and lenses chosen.

Similarly, the initial visit for physiotherapy, as well as for services like massage and acupuncture, is typically around $80.

Additionally, when it comes to prescription drugs, there’s not only the cost of the medication to consider but also a dispensing fee, which ranges from $4 to $15 per prescription.

Fortunately, many companies in Ontario offer private health insurance plans, which can significantly help mitigate the costs of healthcare services not covered by OHIP. These plans are especially beneficial for immigrants and temporary residents who may not have immediate access to the province’s public healthcare system.

Electricity bills tend to be higher in the winter and summer months due to increased heating and cooling needs.

Water bills are relatively stable, while the cost of internet depends on the chosen speed and package, typically ranging from $60 to $100 per month.

Additionally, other common expenses include cell phone plans, which can vary widely, usually falling between $50 and $100 per month, depending on the data plan and provider.

Seasonal expenses, especially for heating during the winter, can significantly impact utility bills, with many households spending an additional $50 to $100 monthly during the colder months.

Also, note that Ontario boasts a plethora of free or low-cost entertainment options. Public parks, hiking trails, and beaches provide ample opportunities for outdoor enjoyment at little to no cost. The province is rich in cultural activities too, with numerous museums and galleries offering free admission days or pay-what-you-can options.

Seasonal festivals, street fairs, and community events are also common and usually free, allowing residents and visitors to experience Ontario’s diverse cultures and traditions without a hefty price tag.

Groceries, utilities, transportation, and personal expenses add to the monthly costs. Groceries may cost around $200 to $400 monthly, while utilities can be between $100 and $250. Transportation costs, including public transit or car expenses, can range widely, especially if owning a car.

Additional expenses like internet, cell phone plans, and leisure activities will vary based on personal choices and usage.

According to numbeo.com, the estimated monthly expenses for a family of four in one of Ontario’s most expensive cities, Toronto, excluding rent, are approximately CAD 5,568.