Cost of Living
“Quality of Life” vs. “Cost of Living” in Canada
Many foreign nationals are asking questions about the ‘quality of life’ in Canada. When one enquires further, it becomes clear that in many cases a question about ‘quality of life’ actually equates to a question about the ‘cost of living’. In this section we will explain that ‘quality of life’ and ‘cost of living’ are very different concepts that may correlate.
Careful analyses show that ‘quality of life’ is affected by many different factors, including the following:
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- Income
- Taxes
- Ability to enjoy physical environment through activities (e.g. organized sport and activities like fishing or hiking).
- Exposure to crime and other types of socially unacceptable behavior
- Cost of living (and the exchange rate).
The question of ‘quality of life’ is therefore complex and requires a detailed answer.
Before discussing some of the concepts of the larger concept of ‘quality of life’, a comment about the future is highly relevant. Most economic immigrants decide to leave their countries of Citizenship as they believe that their future is threatened. Such threats could be criminal, political or economic in nature. Some threats are immediate and very serious. When some individuals ask questions about ‘quality of life’ in Canada, they tend to forget or deliberately ignore the actual reasons for emigrating (crime, etc) and only focus on the ‘cost of living’ or how much they can buy with their earnings after arrival.
Ultimately, it is important to consider all relevant factors (not just disposable income) before making a personal judgment about ‘quality of life’ in Canada.
Our standard response to people that has an excessive focus on how much money that will earn after arrival or about their spending power is as follows:
a. Foreign nationals are paid the prevailing wage of Canadian citizens in the same occupation. A foreign national coming to Canada with a Labour Market Impact Assessment (LMIA) or a provincial certificate of nomination must be paid the prevailing wage:
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- In the case of an LMIA, Immigration and Refugee Protection Regulation 203 dictates that the prevailing wage must be paid.
- In the case of a provincial certificate of nomination, payment of the prevailing wage is not legislated, but all provinces follow the same rule about the prevailing wage.
Therefore an immigrant that comes to Canada under these two methods must get paid what Canadians get paid in a similar position in the same part of the country. It is suggested that immigrants don’t make too many demands before arrival. After arrival, an immigrant can prove themselves to the Canadian employer and labour market in Canada, and their wage can be adjusted accordingly.
b. Commit to your decision. After the Spanish Captain, Cortez and his men landed in Mexico in 1519, he apparently said to his men: “burn the ships”. Whether it is true or not is the issue. The message is: “retreat or giving up is easy when you have an option.” Immigrants should stop having monetary demands before their arrival: “If I earn this or that, then I will be happy and or satisfied”. If a newcomer proves him or herself in the labour market, the market will ensure that an immigrant will be paid what they are worth.
Salaries
Salaries are high for many different types of journeyman (artisans). In most cases we have seen up to a 3-fold increase in wages when South African journeyman or doctors move from South Africa to Canada.
This following report was compiled in 2024 using the full 12 month data source from 2023:
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- Alberta: $73,612 per year
- British Columbia: $70,847 per year
- Manitoba: $59,391 per year
- New Brunswick: $59,151 per year
- Nova Scotia: $57,378 per year
- Ontario: $70,160 per year
- Prince Edward Island: $55,358 per year
- Quebec: $66,218 per year
- Saskatchewan: $63,359 per year
- Yukon: $66,605 per year
- Northwest Territories: $79,446 per year
- Nunavut: $79,881 per year
Sources:
How to Compare Prices
If a loaf of bread costs C$1.99 (100 whole wheat) in Canada (January 2025) some would say that is about R25.54 (based on an exchange rate of R12.83 = C$1) and quickly think how expensive life in Canada must be, as a loaf of bread in South Africa is only R17.99 (Sasko Premium brown bread). Sources: https://www.loblaws.ca/en and www.pnp.co.za
This type of calculation is erroneous because many occupations earn double or three times more in Canada when compared to South Africa. The cost of a loaf of bread should be compared against the salary earned by an individual, tax paid and other expenses (e.g. education). The cost of a specific item should be considered in the context of an individual’s total budget and spending power.
When one reviews the cost of living in any country it is important to understand how the decimal system operates. In 30 countries of the world the decimal mark is a comma, but in English speaking Canada it is period/full stop. Therefore in South Africa the custom is to write R10,99 but in English speaking Canada the custom is to write $5.99. It is also interesting to note that in French speaking Canada the comma is used (similar to South Africa). After arrival immigrants should follow the local Canadian custom. More can be read about this topic at: https://en.m.wikipedia.org/wiki/Decimal_separator
Taxes January 2025
Canadians (and foreign workers) are subject to both federal and provincial taxes, which are assessed according to their annual income.
Canadian Federal Tax
Federal taxes on annual income of individuals are calculated as follows:
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- 15% on the portion of taxable income that is $57,375 or less, plus
- 20.5% on the portion of taxable income over $57,375 up to $114,750, plus
- 26% on the portion of taxable income over $114,750 up to $177,882, plus
- 29% on the portion of taxable income over $177,882 up to $253,414, plus
- 33% on the portion of taxable income over $253,414
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Canadian 2024 Provincial Taxes on Annual Income are as Follows:
Provincial taxes on annual income of individuals are calculated as follows:
Alberta
10% on the first $148,269 of taxable income, plus
12% on $148,269.01 up to $177,922, plus
13% on $177,922.01 up to $237,230, plus
14% on $237,230.01 up to $355,845, plus
15% on the amount over $355,845
British Columbia
5.06% on the first $47,937 of taxable income, plus
7.7% on $47,937.01 up to $95,875, plus
10.5% on $95,875.01 up to $110,076, plus
12.29% on $110,076.01 up to $133,664, plus
14.7% on $133,064.01 up to $181,232, plus
16.8% on $181,232.01 up to $252,752, plus
20.5% on the amount over $252,752
Manitoba
10.8% on the first $47,000 of taxable income, plus
12.75% on $47,000.01 up to $100,000, plus
17.4% on the amount over $100,000
Newfoundland and Labrador
8.7% on the first $43,198 of taxable income, plus
14.5% on $43,198.01 up to $86,395, plus
15.8% on the next $86,395.01 up to $154,244, plus
17.8% on $154,244.01 up to $215,943, plus
19.8% on $215,943.01 up to $275,870, plus
20.8% on $275,870.01 up to $551,739, plus
21.3% on $551,739.01 up to $1,103,478, plus
21.8% on any amount over $1,103,478
New Brunswick
9.4% on the first $49,958 of taxable income, plus
14% on $49,958.01 up to $99,916, plus
16% on $99,916.01 up to $185,064, plus
19.5% on the amount over $185,064
Northwest Territories
5.9% on the first $50,597 of taxable income, plus
8.6% on $50,597.01 up to $101,198, plus
12.2% on $101,198.01 up to $164,525, plus
14.05% on the amount over $164,525
Nova Scotia
8.79% on the first $29,590 of taxable income, plus
14.95% on $29,590.01 up to $59,180, plus
16.67% on $59,180.01 up to $93,000, plus
17.5% on $93,000.01 up to $150,000, plus
21% on the amount over $150,000
Nunavut
4% on the first $53,268 of taxable income, plus
7% on $53,268.01 up to $106,537, plus
9% on $106,537.01 up to $173,205, plus
11.5% on the amount over $173,2059.65% on the first $32,656 of taxable income, plus
13.63% on $32,656.01 up to $64,313, plus
16.65% on $64,313.01 up to $105,000, plus
18.00% on $105,000.01 up to $140,000, plus
18.75% on the amount over $140,000
Ontario
5.05% on the first $51,446 of taxable income, plus
9.15% on $51,446.01 up to $102,894, plus
11.16% on $102,894.01 up to $150,000, plus
12.16% on $150,000.01 up to $220,000, plus
13.16% on the amount over $220,000
Price Edward Island
9.65% on the first $32,656 of taxable income, plus
13.63% on $32,656.01 up to $64,313, plus
16.65% on $64,313.01 up to $105,000, plus
18.00% on $105,000.01 up to $140,000, plus
18.75% on the amount over $140,000
Saskatchewan
10.5% on the first $52,057 of taxable income, plus
12.5% on $52,057.01 up to $148,734, plus
14.5% on the amount over $148,734
Yukon
6.4% on the first $55,867 of taxable income, plus
9% on $55,867.01 up to $111,733, plus
10.9% on $111,733.01 up to $173,205, plus
12.8% on $173,205.01 up to $500,000, plus
15% on the amount over $500,000
Source: https://www.nerdwallet.com/ca/personal-finance/provincial-tax-rates
The combination of these tax rates are obviously high, but taxpayers do get value for money through free provincial medical services, good schools and effective police services – just to name a few.
Many citizens of countries such as South Africa pay thousands of Rands for private medical insurance, private schools and private armed response/security guards, because the government cannot provide these services to the taxpayers.
General Sales Tax
All provinces have General Sales tax of 5% on all goods and services.
Some supplies of goods and services are taxable at the rate of 0% (zero-rated). GST is charged at a rate of 0% on these supplies. Some common examples of zero-rated supplies of property and services are:
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- basic groceries such as milk, bread, and vegetables;
- agricultural products such as grain and raw wool;
- prescription drugs and drug-dispensing fees; and
- medical devices such as hearing aids and artificial teeth
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Provincial Sales Tax
Most provinces have about 7-8% tax rate on goods and services. Alberta does not have any Provincial Sales Tax.
Cost of Automobiles
The best website to look at car prices arehttps://www.autotrader.ca/
In January 2054, new 2 liter Toyota Corolla in Canada (has 8 possible models) is CAD26,852 or about R344,736 (Source: www.Totoya.ca) while Toyota 2 liter XR in South Africa is R599 500 (Sourcewww.cars.co.za ). Therefore, South Africa is 42 % more expensive.
It is also worth noting that the gap between new and used cars in Canada, is smaller compared to places like South Africa.
Cost of Medical Services & Schools
Medical services are free and held at a high standard. Most employers provide medical benefits for medicine, dental and ophthalmic services.
Elementary, primary and secondary schools are completely free. Secondary school is the name for high schools in Canada.
Cost of Post Secondary Education
Post high school education is called post secondary education. This includes colleges, trade schools or university education.
Post secondary education is expensive, but children will be able to find a job on completion of their studies. There is a scheme in Ontario called Ontario Student Assistance Program (see http://osap.gov.on.ca), which helps students (and their parents) with money for college or university, with a very low interest rate payable only 6 months after the student graduates and commences to work. Most banks also give student loans for further studies, also at very low interest rates.
Children can go to school, college or university without fear of being attacked. The daughter of our principal immigration consultant Jacobus Kriek, often took the train ‘downtown’ Toronto and back with her friends or individually.
Cost of Public Transport
Public transport is very effective. City and inter-city bus and train systems are safe and generally clean. This is another benefit you receive for paying taxes.
In the province Alberta, the city of Calgary has an aboveground train called the C-train (http://www.calgarytransit.com). A ticket costs $3.80 for an adult, $2.55 for a youth, and children under 12 and seniors (over 65) ride free. A monthly pass costs $118 per adult, and $84 per child.
In the province of Ontario, the city of Toronto, has a train called the TTC (Toronto Transit Commission – https://www.ttc.ca). A TTC ticket is $3.35 for an adult, $2.40 for youth, seniors (over 65) for $2.30, and children under 12 ride free. A monthly ticket costs $156 for adults and $128 for youth, post secondary students and seniors.
In the province of Ontario, the Greater Toronto Area (GTA) also has a GoTransit System (https://www.gotransit.com/en) that transports 240,700 riders each day during the work week. The passengers are transported into the city from surrounding communities including: Peterborough, Durham, York, Dufferin, Waterloo, Wellington, Brantford, Peel, Halton, Hamilton, and Niagara.
In the province of British Columbia, the city of Vancouver, has train called TransLink (https://www.ttc.ca). A TransLink ticket is charged based on the distance travelled out of the city of Vancouver. Zone 1 is for the entirety of Vancouver, Zone 2 covers the immediate surrounding municipalities: New Westminster, Richmond, Burnaby, North and West Vancouver; and Zone 3 covers the exterior municipalities: Surrey, Port Moody and Coquitlam. The costs are as follows: $3.20 for Zone 1, $4.65 for Zone 2, and $6.35 for Zone 3. When a card is purchased from TransLink, the cardholder can store value on the card and ride for $0.60-$1.45 cheaper depending on the Zone travelled to. A monthly ticket costs $$107.30 for Zone 1, $143.50 for Zone 2, and $193.80 for Zone 3.
In my view, public transport in Canada provides a great service while being affordable, safe, and convenient.
Cost of Electronics and Communication
Electronics in Canada are very affordable. A business such as “Best Buy” (see www.bestbuy.ca) has regular cheap deals for various electronics. Prices from Best Buy can be compared with Amazon.ca to get the best deals.
High speed internet costs on average between CAD$100-$150 per month. You could consider providers such as:
- Rogers
- Shaw
- Bell
- Telus
- Cogeco
Most cell phone plans include free local phone calls, and many providers are making all national calls within Canada free as well. You could consider providers such as:
- Rogers
- Bell
- Telus
- Virgin Mobile
- Koodoo
- Sasktel
- Freedom Mobile
Cost of Heating
Heating costs are higher in Canada than many third world or developing countries (which are usually in warmer climates).
Heating costs make up about 80% of the utility bills of Canadians. Provinces that have the highest utility bills include North West Territories, Nunavut and Nova Scotia. The provinces with the lowest utility bills are Quebec, Manitoba and British Columbia.
On average (according to the furnaceprices.ca), Canadians spend at least CAD 135 per month to keep their houses warm. Heating homes with natural gas can increase the cost up to CAD 160 per month. Unfortunately, these prices keep increasing with electrical heat seeing an increase of 1.5% in 2024, and natural gas increasing by 23.7%.
Cost of Alcohol & Tobacco
Alcohol and tobacco is expensive in Canada.
For example, a case of 24 beers (Lakeport Lager or Black label) is CAD38.99 for 24 beers, approximately $1.62 (R21.12) per beer. A bottle of wine starts at about CAD7.49 or R97.66 per bottle.
Cost of Real Estate and Mortgages
Interest rates for mortgages are about 4-5 % in Canada for a 5 year fixed rate. See: https://www.ratehub.ca/best-mortgage-rates/5-year/fixed. Variable mortgages are often lower.
The prices of property in every town varies and can be viewed at www.mls.ca – not all properties are listed on this website, but it gives the reader a general idea. Property is usually a good investment in the long term.
However, there are important indications of a Canadian Housing crash in the coming 1-2 years (2025- 2026). Our suggestion is to do research by searching the following on YouTube: “Canada housing crash”. You could follow Jon Flyn Real Estate Stats that predicts a crash in the next 6-12 months. The bank of Montreal expect that it would take until 2029 to recover.
Immigrants in small towns should be careful if they live in a town where there are only 1 or 2 large employers. If the employer is an exporter of metallurgical coal, the town’s real estate could be affected by the international price of steel.
Many people thinking about immigration to Canada have told me that property is too expensive in Vancouver or Toronto.
The Greater Toronto Area (GTA) is home to approximately 7 million people and includes 25 municipalities – not just one. It is important to understand that the Greater Toronto Area (GTA) consist of regional Municipalities or regions, including the:
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- Peel Region with the cities of Mississauga, Brampton and Caledon;
- Durham Region with the cities of Oshawa, Whitby, Ajax, Pickering and Bowmanville;
- Halton Region with the cities such as of Oakville, Burlington and Milton; and
- York Region with the Cities of Toronto, Aurora, King, Markham, and Newmarket, etc.
When reference is made to the cost of housing of Toronto, reference is made to one of the 25 Municipalities of the Greater Toronto Area or the City of Toronto (and not an average of all 25 municipalities). For example, a house in Toronto could cost $2 million, whereas a house in Burlington (35 km west of downtown Toronto) could cost $100,000.
Similarly, the Greater Vancouver Area (GVA) has about 2.2 million people in 13 Municipalities, including the cities of Surrey, Vancouver, Mission, Chilliwack, Abbotsford, Langley, White Rock, Burnaby, Maple Ridge, Pitt Meadows, Richmond, North Vancouver, West Vancouver. The City of Vancouver has 2 sections Vancouver West and Vancouver East.
When a reference is made to the cost of housing in ‘Vancouver’, it is normally made with specific reference the City of Vancouver, which is just one of 13 municipalities; it is not an average of all the 13 municipalities of the GVA. For example, a house in the City of Vancouver might cost that cost $2 million, while a house in the City of Maple Ridge (which is 35 km East of Vancouver) might cost $1 million. Many people live in surrounding municipalities and travel to Vancouver via train every day.
Other cities like Calgary is one city without smaller municipalities. Therefore, a Calgary house price is a Calgary house price.
In the past 10 years, the price of accommodation in many of the major cities has skyrocketed. There are many discussions about a ‘housing bubble’ and decreased affordability in certain cities. Research: “housing bubble in Canada” and see what is reported. Pay attention to which locations could have overvalued housing markets, as some parts of the country (especially small towns of certain provinces) are not directly affected.
Furthermore, Canada has in the past 10 years seen a drastic rise in the cost of houses. Without a massive down payment, the probability of an immigrant owning a house in the GTA or GVA is small.
Price of Freedom & Safety
It is also relevant to determine why one would work and live in Canada.
Is the peace of mind of a stable future and safety in your home something that one can measure in terms of dollars? We do not believe so.
Future & Value of Pension
To determine a possible future in a new country, one should weight multiple factors.
The people asking questions regarding the purchasing power of their income, should also attempt to determine the economic and political history of Canada over the past 10-20 years and compare it with that of their own country.
One should look ahead and determine the value of a pension in Canada and compare it against a country such as South Africa. Individuals should consider predictions regarding the economic future of a country to determine the likelihood and potential of pension payouts or retirement planning.
Many highly skilled people are not thinking ahead, and are not making individual predictions concerning the future – as many people did not do in Zimbabwe.
Essentially, this is not just a question about the price of milk in two countries, but a question about the future and the risks involved in an individual’s choices.
Cost of Food and Household Consumables, Considering the Price Comparison
A comparison was made between the prices of a basket of goods: Canada vs. South Africa in February 2025. In Canada the prices were selected from The Canadian Superstore and in South Africa the prices of goods at Pick and Pay (comparable type of stores). This is obviously not a 100% scientific test. Many products are subject to seasonal fluctuations.
One interesting thing to note is the large variety of choice of products in Canada. It is not uncommon to shop for tomatoes and have to choose between 9 or 10 types of tomatoes. A funny example can be used to show the difference in diversity of choices available to shoppers in Canada. During October 2015 a well-known retailer in South Africa had ‘Old Spice’ (men’s deodorant) for sale. There was only one fragrance available on the shelf, which was the traditional fragrance of ‘Old Spice’, called ‘Original’ in Canada. At the same time in Canada, 14 varieties of ‘Old Spice’ were available: Champion, Swagger, Timber, Lion Pride, Bear Glove, Amber, Denali, Pure Sport, Crest, World Throne, Fiji, Citron, Game Day, Original, Fresh and Arctic Force. So be prepared for an overload of choices after arrival!
We also made a similar price comparison during November 2004 when the exchange rate was about R5 for C$1. By Oct 2015 the value of the Rand dropped to around R10 for C$1, which means the cost of Canadian goods skyrocketed in comparative terms (South African Rands). Therefore one can multiply the cost of Canadian goods by a factor of 10 to obtain an approximate price in Rands in Oct 2015. However, as mentioned earlier this is not good logic as salaries in Canada are generally higher than in South Africa; you will be earning the more powerful dollar. Potential immigrants should also consider the expected further depreciation of the Rand in the near future.
Here is a comparison of several products based prices in Canada and South Africa.
Please note that prices are constantly changing, but according to research preformed early February 2025 we can provide a rough cost of living analysis on food.
Product | Canada Price (CAD$) |
South Africa Price (Rands) |
Difference between Canada & South Africa |
---|---|---|---|
Potatoes | $5.99 for 2.26 kg (about 5 lbs) $2.65 per kg |
R29.30 per kg | The price in Canada is about 40 % cheaper |
Bananas | $1.50 per kg | R9,95 per kg | About the same price |
Navel Oranges | $4.14 per kg | R9,99 per kg |
Double the price in Canada |
Tomatoes | $2.84 per kg |
R19,95 per kg |
About 30% more expensive in Canada |
Onions | $1.36 per kg | R23,99 per kg | South African is about 300% more expensive |
Toothpaste (Colgate) |
$0.84 | R16,49 per 75 ml |
South Africa is about 30% more expensive |
Whole Chicken (Frozen) |
$4.39 per kg |
R40,99 per kg |
Canada is a bit cheaper |
Coke (2L) |
$2.00 | R15,99 | Canada is about 30 % cheaper |
Evaporated Milk | $2.00 for 354 ml |
R23,99 for 380 grams |
Canada is about 50% cheaper |
Nestle Milo | $12.99 for 900 grams | R46,95 for 500 grams | The price per gram is about the same |
Salad Dressing | $3.59 for 425 ml | R29,99 for 200 grams | Canada is a bit cheaper |
Olive Oil (Extra Virgin) |
$11.49 for 500 ml | R114 for 500 ml | Canada is about 50 % cheaper |
Hellmans Mayonnaise |
$5.97 for 890 ml | R61,99 for 789 ml | Canada is about 50 % cheaper |
Milk | $4.85 for 2 liters | R21,99 for 2 liters | Canada’s price is double that the South African price |
Bread (Whole Wheat) |
$2.99 for 570g | R11,99 for 700g bread | Canada’s price is about double than the South African price |
Nescafe Coffee | $5.99 for 170g | R58,90 for 200 grams | Canada’s price is about double than the South African price |
Vicka Actaplus | $11.49 for 236 ml (called Dayquil in Canada) |
R61,99 150 ml | Canada is much cheaper |
Tissues (Kleenex) | $1.00 for a box | R25,99 (100 Kleenex Tissues) |
Canada’s price is about 50 % cheaper |
Couscous | $2.49 for 350g | R36,99 for 275g | Canada is about …. |
Can Of Beans | $1.44 for a can of 398 ml | R8,49 400g | Canada is slightly more expensive |
Orea Cookies | $4.49 for 270 grams | R17,99 for 176 grams | Canada is slightly cheaper |
Frozen Corn (McCain) |
$2.59 for 750g | R33,99 for 1kg | Canada is slightly cheaper |
Butter | $5.79 for 454g | R41,99 for 500g | Canada is slightly cheaper |
Margarine | $6.99 for 850g | R37,90 per kg | Canada is slightly cheaper |
Kellogg’s All Bran | $11.99 for 1050g | R59,99 for 1 kg | About the same price |
Canned Tuna | $0.97 for 170 grams | R15,99 for 170 grams | Canada is about 30 % cheaper |
Spaghetti | $2.99 for 900g | R15,59 for 500 grams | Canada is 3 time cheaper |
Dish Washing Liquid |
$1.97 for 828 ml | R49,90 for 750 ml | Canada is 5 times cheaper |
Baking Flour | $3.79 for 2.5 kg | R21,99 for 2,5 kg | Canada’s price is double |
Diapers (Pampers) | $22.99 for 128 diapers (size 5) |
R199,99,for 52 diapers of size 9-14 | South Africa’s price is double that of Canada |
AA Batteries | $11 for 10 (Energizer) |
R51,99 for 4 (Duracell) |
South Africa is a bit more expensive |
Sunlight Detergent | $9.97 for 4 liter | R44,99 for 1,5 liter | Canada is about 30 % more expensive |
Sugar | $3.47 for 2 kg | R31,99 for 2,5 kg | About the same price |
Tomato Sauce (Heinz) |
$4.99 for 1 liter | R24,99 for 750 ml | Canada is a little bit more expensive |
Peanut Butter | $6.49 for 1 kg | R45,89 for 800g | Canada is about 30 % cheaper |
Eggs | $4.64 for 12 eggs | R34,90 for 24 eggs | Canada is about double the price |
White Rice | $9.99 for 4 kg | R35,99 for 2 kg | South Africa is slightly more expensive |
Potato Chips | $3.50 for 220 grams | R19,99 for 200 grams (Lays) |
About the same price |
Water | $1.69 for 4 liter | R20,99 for 5 liter | About the same price |
Deodorant (Old Spice) |
$5.29 for 85 grams | R46,99 for 50 ml | Canada is much cheaper & the Canadian stick is about double the size |
Toilet Paper | $7.00 for 12 rolls or about $1.60 for a role |
R54,99 for 6 rolls or about R10 for a role |
Canada is a little bit more expensive |
Paper Towels | $8 for 6 rolls | R18,99 for 2 rolls (52 sheets) | Canada is about 30 % cheaper |
Cheddar Cheese | $8.79 for 700g | R74,60 for 1 kg | Canada is about 20 % cheaper |