Pros And Cons Of Moving to TORONTO In 2022

Do you wanna know the Pros and Cons of MOVING to TORONTO? Read further in detail to know about it.

Are you planning on moving to Toronto? Check Custom Home Builders Toronto.

Here is a first-hand account of my experience of living in Toronto.

Toronto – home to about 6 million people – is one of the largest cities in Ontario, Canada. Life in Toronto is as interesting as it can be. Check the recently sold homes in Burlington Ontario. With the incredible food, diverse culture, and breathtaking sights, this city can offer a fun life. But living in Toronto has its challenges. We bring you the pros and cons of living in Toronto to help you decide if moving to Toronto is right for you.

Accommodation

First, we shall be discussing the biggest expense that all of us have – accommodation. There are 2 types – rentals and ownership. Let’s talk about renting first.

Renting

If you are looking at renting a place in Toronto you are likely to pay between $1000 – 2200 depending on the location and type of property.

Toronto has a lot of buildings that are rent-controlled and you can potentially find a 1 Bed apartment for just under a thousand dollars. However, these buildings are not in the best condition and may be in sub-prime neighborhoods.

If you are looking at renting a luxury 1 bedroom condo you can pay upwards of $1500 per month plus utilities.

There are a lot of options for shared accommodations and you can typically find these by Joining specific Facebook or WhatsApp groups looking for roommates. Your average cost per room typically starts at around $400/month plus utilities.

These prices greatly vary based on location.

For example, if you are looking at living at Yonge and Bloor, you would probably be paying close to $2,000 but if you decide to move just 30 mins by Kennedy Subway station, you would probably be paying in the ballpark of $1000.

[A map of Toronto showing the Rent based on radius from the main city]

Rentals

TIP: Here is a pro tip for you: Hire professional realtors to help you out with hunting rental properties since Tenants don’t pay for the realtor’s commissions. It’s a free service for you.

Home Ownership

Now if you are looking at joining the homeownership club in Toronto, it is a pricey affair. Let me break it down for you.

Location

Space – 1 bedroom or 2 bedrooms, house or a condo

Deposits

Parking Costs

TIP: You can use LowestRates to compare prices. Simulator

Utilities

• Internet/phone –  You can use PlanHub to compare the cell phone plans. Simulator

• Hydro

• Water

• Gas

• Renters insurance

• Homeowners insurance

Groceries

According to the City of Toronto’s Nutritious Food Basket Calculator, a single male between the ages of 19 and 30 now spends $340.23 a month on groceries, and a single woman between the same ages spends $264.48, giving us on average $302.35.

In Canada, you have a lot of retailers that own luxury and no-name brands that sell the same food items at very different prices based on user experiences.

TIP: Use apps like Flipp to find deals Simulator

[Show a comparison of prices of Onions, Apples, Tomatoes, and rice from Flipp screenshots]

Also, use the Stocard app to store your reward cards and get rid of carrying a thousand cards around in your wallet. Simulator [Throw a wallet in the air]

Cost of coffee – Tim Horton’s cup of coffee cost $1.79

And a cup of coffee at Starbucks costs $3.05

Commuting

Transit

TTC – monthly pass $156

• There is a GO train if you travel long distances.

• Taxi Ride Share

• Uber/Lyft

• POPARIDE

• Zip

• Blueline Taxi

[Logos of these apps will appear on the screen]

Car Expenses [play with the toy car]

• Typical Used Cars starting from $3000. A decent used car can be purchased for $7-10k. Typical New cars start from $15k.

• There are quite a lot of Hidden charges on Car purchases from Car dealerships.

Taxes: 13% HST on the Purchase price of the car

• Air Tax ($100)

• Tire taxes are $20-30.

• Freight Delivery & Pre-Delivery Inspection: Delivery of car from the manufacturer to the dealership and Detailed Inspection upon Delivery.

• Fuel Charge to fill up the gas tank.

• Title and Plate Registration Fees ($200-300)

• Admin Fees $200-300

• Additional Upsells that dealerships will offer after they have finalized your sale will be Extended Warranties, Rust Protection, Paint Protection, etc. (Please note sometimes these are hard sells and may not be worth the money except extended warranties.)

• Buying a car (Auto trader, Kijiji) vs Dealers

• Long-term vs short-term expenses: Japanese Cars are a bit more expensive in the used market as they hold value, and American and German used cars are cheaper as they depreciate a bit faster but are more expensive to maintain.

• New Car vs Used Cars (Interest Rate Angle) 0% Interest Rate vs 7-8% Interest Rate

Demo Model

Deals: Trade-in or Lease transfers or Buybacks

TIP: Buying tires – You can get tires for cheap at Costco but you can get them cheaper from Simply Tires & Buy Tires in Packages, They are cheaper! Costco offers free tire rotations and flat repairs for the life of tires.

Gas/Fuel Expense

• Also known as petrol in other parts of the world, yea we call it Gas!

• The typical Gas Budget for commuting in Toronto is around $250/month

• Petro Canada – Petro Points

• Shell – Air miles

• Costco Gas is typically 5-7 cents cheaper

• Ultra Mar – Thursday Savings – yearly calculations

• GasBuddy – mobile app Shop around for cheaper rates Simulator

• Car Insurance

The average auto insurance cost in Ontario is $1,634 per year. Most drivers pay in the range of $1,300 to $1,800 annually. Insurance is greatly dependent on many factors such as

• Age

• Gender

• Type of the car

• Price

• Color of the car

• Canadian Driving History

• Where you live etc.

TIP: Some insurance companies will offer you discounts of upto 10% to have your driving habits tracked. Some people are okay with it, I say NO Thank you!

Also, you could get an additional 5-10% for a multi-car discount and bundling your car and home insurance.

You can compare prices on RateHub Simulator

Entertainment

• Typical Entertainment expenses vary from person to person. If you are eating out, a typical meal can cost you $20 per person so a family of 4 can pay anywhere from $80-100 per meal.

• Dinners/Movies/Dates (costs of popcorn and drinks at the theaters) A movie night out can cost $20 per person including popcorn and drinks.

• During COVID most people choose to stay indoors and use Streaming platforms instead. These range from 5.99-$25 per month.

• Netflix CAD$9.99 monthly

• Prime Video (Amazon) – CAD$7.99 monthly

• Disney CAD$11.99 monthly

• AppleTV CAD$5.99 monthly

• YouTube CAD$11.99 monthly

• Crave/ HBO $20/month

A lot of people don’t account for Gifts. A minimum budget of $500 per year should be considered.

Toronto is a major hub for events and concerts, and typical tickets can cost you anywhere from $20 per person to well over $100/per person. Look for last-minute tickets online, many people can’t go to an event and would consider letting the tickets go for cents on the dollar.

I would budget $300-500/month for Meals and Entertainment.

Education

Basic Education

• Education for children till the age of 18 years when they are with their parents. Parents may have come to Canada temporarily, on a work permit, or a study permit.

• University Fees

• Tuition

• Residence

• Permits

• Health insurance

Fitness

Gym memberships

Your Gym Membership could cost you as little as $10 per month for a no-frills gym with no change rooms or personal trainers or upto $200/month for a high-end fitness club with all bells and whistles.

Tip: Almost all gyms have promotions a couple of times a year, wait around for a good deal to come before signing up.

Taxes

Canada has a lot of Taxes and it takes a bit of getting used to it.

1. almost anything you buy, you have to add tax on top of the price marked on it. So if you see a top for $20, you will pay $22.60. Here is the list of some of the most common taxes. This tax is called the Harmonized Sales Tax and is 13%

2. In Canada, you pay taxes on your income and the brackets range from 0-53.5%.

3. Land Transfer Tax: If you are purchasing a property in Canada you can expect to pay .5%-2.5% for the Ontario portion of it and if the property you are purchasing is in Toronto you pay an additional  .5%-2.5% of the purchase price.

4. Also if you are a non-resident of Ontario, you will be subject to Non-Resident Speculation Tax if you purchase a property that has less than 4 units.

5. Property Tax: You have to pay a property tax of 61% of the assessed value each year on any property you own.

Also here is a small list of all the other taxes you may pay.

• Tobacco Tax

• Beer and Wine Tax

• Corporations Tax

• Capital Tax

• Corporate Income Tax

• Corporate Minimum Tax

• Insurance Premium Tax

• Debt Retirement Charge

• Disputing Assessments or Disallowances

• Employer Health Tax

• Estate Administration Tax (formerly known as probate fees)

• Fuel Tax

• Gasoline Tax

• Goods and Services Tax (Canada Revenue Agency)

• Gross Revenue Charge

• International Fuel Tax Agreement

• International Registration Plan

• Mining Tax

• Ontario Health Premium

• Payments instead of Additional Municipal and School Taxes

• Payments instead of Federal and Provincial Corporate Tax (Hydro PILs)

• Provincial Land Tax

• Provincial Sales Tax

• Race Tracks Tax

• Retail Sales Tax

• Spirits Tax

• Transfer Tax

Healthcare

Healthcare is free in Canada which is such a relief after talking about so many other expenses.

However, you do Pay for:

• Medication

• Eyecare

• Physio

• Chiro etc.

Seasonal Expenses

There are some seasonal expenses. These would be once-in-a-year costs.

Must-haves:

● Jackets

● shoes

● Winter tires, if you own a car 

● Heating in the house

● Heating in car

● Running cost of the car

● Salt

● Time to shovel 

Rest of the year

● Lawn mowing services or the mower – you get a ticket if the grass is higher than 15 cm from the ground

● Gardening

Other Expenses

• Driving license

• License plate

• Study or Work permits

• State card, if you can’t get a driving license – you can get an Ontario State Card (also called the purple card) which is valid as a photo ID

• Parking permits/Tolls/Tickets

• Guys, here are some interesting parking offenses that do not require signs.

• Parking on City streets is prohibited between the hours of 3:00 a.m. and 6:00 a.m., from December 1 to April 1.

• Park longer than 3 hours

• Park more than 30 cm from a curb

• Park vehicle for sale

• Park on a boulevard

You can see the list of more such rules here. Also, you can find the links for this information in the description. You can also post a comment below if you want me to talk about anything particular.

• Park obstruct driveway/laneway

• Park within 3 meters of a fire hydrant

• Park within 9 meters of an intersecting highway

• Park between 2:00 a.m. – 6:00 a.m. Dec 1 to Mar 31 each year

• Stop on/over sidewalk/footpath

• Stop roadside (parked/stopped) vehicle

• Park left wheels to curb

• Stop within intersection

• Stop within 9 meters of the crosswalk

• Stop on a bridge.

• Stop on the center strip

Clothing

• On average, you can get clothes for an entire year for $200 if you are a smart shopper. I am going to share some amazing tips about shopping at the end.

Cost Savings Tips

• Most major retailers offer loyalty programs and rewards. Do sign up for them as they add up to a lot of savings.

• A lot of retailers offer Interest-free credit if you sign up for their credit cards. If you are doing a home reno, you can get your supplies from Home Depot and apply for their credit card and get interest-free payment for 12-18 months

• Most stores in Canada offer price matching upto 90 days after your purchase along with great return policies in case you change your mind.

• Banking – top 5: Scotia, CIBC, TD, BMO, and RBC – Infographic

• Many Settlement services in Canada offer free basic furniture for upto 3 years post landing if you have a PR.

• Second-Hand Market: “Nearly 85 percent of Canadians have participated in some form of second-hand transactions … in the last year,” Kijiji’s strategic marketing director Marc-André Hade said in a release.

• Canadians bought 1.8 billion second-hand items last year

Student Discounts

● UNI days

● SPC – Student Price Cards

● Student discounts on streaming platforms

Sales season and days

● Black Friday

● Boxing Day

● Thanksgiving       

TIP: Red flag deals is a forum where some very nice people post updates about deals around the city.

There is also another app Honey rewards which can be handy. – Simulator

Summary

As per The cost of living in Toronto in 2022 report by lowestrates.ca

Accommodation

• If you are a renter you need $1900 for Housing

• If you are a homeOwner you need $3800 / Month

Commute

• Transit: $265

• Car: $580

• Food $535

• Phone and Internet: $172.63/month

• Entertainment: $60.94/month

• Health and Fitness: $63.32/month

• This is what it costs to live in Toronto in 2022

• Total: $3,008.74 monthly, or $36,104.88 annually (for renters who take the transit)

• Total: $3,323.73 monthly, or $39,884.76 annually (for renters who drive)

• Total: $4,886.57 monthly, or $58,638.84 annually (for homeowners who transit)

• Total: $5,201.56 monthly, or $62,418.72 annually (for homeowners who drive)

• Based on the current tax rate in Canada and Ontario,

• Renters who commute will need to be making at least $45,500 before tax ($36,280 after-tax) to make ends meet in Toronto.

• Renters who drive will need to be making $51,500 before tax ($40,199 after tax.)

• Homeowners who commute will need to make $78,500 before tax ($58,709 after tax.)

• And homeowners who drive will need to make $84,000 before tax ($62,522 after tax.)

[An infographic showing Average income required | Average Expenses | Average Savings]

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