The following are some of the top reasons Canadians abroad send money home.
Paying Household Bills: Canada has some of the best cities to live and work in. However, the cost of living can be high. Household expenses can take up to 50% of salaries. Canadians living abroad with families to take care of back home may send a sizeable percentage of remittances to cater for these expenses.
Education: On average, the cost per year for an undergraduate program in Canada is $5,000 USD and for a graduate degree is about $5,500. For a household with insufficient income, this can be quite a lot of money.
Mortgage Payments: On average, Canadian mortgages have a 5-year term. However, it can take up to 25 years to pay off the entire loan. Some Canadians living abroad have mortgages they are paying for back home hence the regular remittances.
Savings and Investment: Canadians looking to build assets back home invest in financial assets like equities, bonds, and derivatives.
Contributions to Social Causes: Apart from family and investment reasons some of the remittances to Canada go towards social causes. These could be charity, wedding contributions, social support for the unfortunate in society and so forth.