The Price You’ll Pay To Live In The Capital of Canada
Are you considering moving to our beautiful city of Ottawa? Do you need to be reminded why you have chosen to live here? If so, you may want to know more about the living expenses in this picturesque city of Ontario.
Its somewhat a matter of perspective, but different provinces can vary significantly when it comes to the cost of living. Lifestyle and expectations vary between people and depend so there are a variety of factors such as income and personal preferences that affect an individuals cost of living.
Canada is the 25th most expensive country to live in across the globe. British Columbia and Ontario have the highest costs of all the provinces which is largely driven by rent or housing costs.
Ottawa ranks at #8 for the most expensive cities within Canada. This can still be considered an affordable city to live in. Of course estimates of costs based on data may have some inconsistencies, but they do provide some basic understanding. There are several reasons why it might be more expensive to live in Ottawa, Ontario than in other parts of Canada.
- High demand for housing as Ottawa is a popular city to live in being the Capital of Canada.
- High cost of construction. The cost of building new homes and apartments in Ottawa is higher than in some other parts of Canada due to the high cost of labor, materials and permits.
- Provincial taxes are higher than some other provinces within Canada.
- Tourism is a major industry in Ottawa and the influx of visitors during peak seasons can drive up the cost of goods and services.
Expenses such as transportation, groceries, entertainment are all similar to other cities in Canada. Take a closer look at what the average costs are for the basic living expenses below.
WHETHER YOU’RE RENTING OR BUYING, THE FOLLOWING EXPENSES SHOULD BE CONSIDERED:
Housing:
The average cost for a one bedroom apartment in the city centre of Ottawa is $2,069 per month.
The benchmark price for purchasing a condo apartment is $429,000.
The composite benchmark price for purchasing a home including apartments, townhouses and single family homes is $628,500. The median price often gives a more accurate sense of the market representing the midpoint which is $617,000.
The lowest mortgage rates average 4.54% in a 5 year fixed.
Utilities:
The cost of utilities varies depending on the size of the home, the number of people living in the house and usage.
Electricity, Heating, Cooling, Garbage, Sewer and Water costs for a Single Occupant in an apartment average a monthly cost of $264.
Heating is dependant on what source you are using and personal preferences. In Ottawa, most homes are heated by natural gas or electricity.
Electricity bills vary widely based on factors such as size of home, number of people, appliances used, energy efficient upgrades etc. Hydro Ottawa offers various programs and rebates to help the consumers reduce their electricity bills. They also offer a breakdown of their rate charges on their website.
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Internet:
Bell and Rogers are the most common internet providers in Ottawa. They both have basic plans that start at approximately $80 monthly.
Transportation:
Ottawa has an excellent public transportation system with multiple options available. Monthly public transport cost using the basic bus service is $129, where as vehicle and gas prices vary dramatically.
The average monthly cost for a driver is $624.
You can learn more about the current fares for OC Transpo at the link below.
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Monthly Grocery Costs:
There are a wide range of food resources within the city. The cost of groceries in Ottawa is similar to other Canadian cities. The monthly grocery costs vary depending on the size of your family.
The estimated monthly grocery costs for a single person is $300 per month while a family of four is $1,200 per month. This may seem low to many people currently but these are the statistics available.
Insurance:
Home insurance is another cost to consider whether you are renting and just paying for content coverage or you own and are covering replacement value. The city has one of the highest median insurance premiums in the country.
Income:
The average salary is approximately $72K annually. The median household income in Ottawa is $100K annually after tax. Minimum wage in Ontario is currently $16.55 per hour.
Salaries depend on industry and position. Some of the top-paying sectors in Ottawa are; healthcare, technology and professional services.
Costs to Consider when Purchasing A Home in Ottawa:
Moving Expenses:
Moving to Ottawa can be an expensive endeavor. Here is an itemized list of some of the moving expenses you can expect.
Moving Company: Depending on the distance and size of your move, a moving company can cost anywhere from $1,000 to $5,000.
Rental Truck: Renting a moving truck can cost around $50-$100 per day, depending on the size of the truck.
Packing Supplies: Boxes, tape, and other packing supplies can cost anywhere from $50-$200.
Insurance: If you are moving valuable items, you may want to consider purchasing insurance, which can cost around $200-$500.
Lawyer Fees:
The average ballpark figure for a ‘Purchase’ with a mortgage including taxes and disbursements (land title fees, bank fees, courier charges, trust charges, search fees, software user costs) would be approximately $2,000. Title insurance is an additional fee which typically ranges from $200-$600.
For a ‘Sale’ with on mortgage discharge including all disbursements and fees, the cost is approximately $1,500.
Applicable Taxes:
Land transfer tax applies to all taxable transactions upon closing. It is normally based on the price paid for the property.
Speculation Tax is a 25% tax on the purchase of properties by non citizens or permanent residents of Canada.
You can find out further details by clicking on the Ontario Government logo below.
Still interested in moving to Ottawa? Here are some handy ‘local’ links to help you with your move…
WE HAVE CREATED A LIST OF LOCAL ‘SERVICE PROVIDERS’ IN THE COMMUNITY THAT WILL HELP YOU THROUGH THE PROCESS OF YOUR MOVE. FEEL FREE TO GIVE US SOME SUGGESTIONS OF OTHER SERVICES YOU WOULD LIKE TO SEE ADDED TO THIS LIST!
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Sources: Statistics Canada, City of Ottawa, Numbeo
