Breaking down refugee resettlement costs and financial assistance in Canada
On This Page You Will Find:
- Exact costs refugees pay when resettling to Canada in 2026
- Step-by-step breakdown of mandatory fees and hidden expenses
- Financial assistance programs that can eliminate most costs
- How the Immigration Loans Program works for travel expenses
- Which refugee categories get government support vs. private sponsorship
- Fee exemptions that could save your family hundreds of dollars
Summary:
If you're planning to resettle to Canada as a refugee, you're facing potential costs of up to $10,000 for transportation alone, plus hundreds more in application fees. However, Canada offers multiple financial assistance programs including the Immigration Loans Program and fee exemptions that can dramatically reduce your out-of-pocket expenses. Understanding which refugee category you fall into—government-assisted, privately sponsored, or refugee claimant—determines what financial support you'll receive. This guide breaks down every cost you'll encounter and shows you exactly how to access the financial help that's available, potentially saving your family thousands of dollars in the resettlement process.
🔑 Key Takeaways:
- Refugee families can face up to $10,000 in travel costs, but Immigration Loans Program covers these expenses
- Government-assisted refugees receive up to one year of income support through RAP
- Fee exemptions are available for protected persons, potentially eliminating application costs entirely
- Private sponsorship applications are processed completely free of charge
- Loan repayment doesn't begin until 12 months after arrival in Canada
Maria Santos clutched her acceptance letter with trembling hands, tears streaming down her face. After three years in a refugee camp, her family of four had finally been approved for resettlement to Canada. But as she read through the documentation, her joy turned to anxiety. Transportation costs: $8,200. Application fees: $1,350. Right of Permanent Residence Fee: $2,300. How could her family possibly afford nearly $12,000 when they had nothing?
What Maria didn't know yet—and what thousands of refugees don't realize—is that Canada has built one of the world's most comprehensive financial assistance systems specifically designed to help families like hers resettle without the crushing burden of upfront costs.
Understanding Canada's Refugee Cost Structure
The reality is that refugees do face significant expenses when resettling to Canada, but the country has created multiple safety nets to ensure money never becomes a barrier to protection and safety.
The Big-Ticket Item: Transportation Costs
For most refugee families, transportation represents the largest single expense in their resettlement journey. These costs can reach $10,000 for larger families, covering:
- International airfare for all family members
- Travel documents and visa processing
- Medical examinations required for travel
- Transit costs to departure airports
Here's what makes this manageable: the Immigration Loans Program steps in to cover these expenses upfront. You don't need to have $10,000 in your bank account—the Canadian government provides this as an interest-free loan that you'll repay over time once you're established in Canada.
Application Fees That Add Up Quickly
Beyond travel costs, refugees encounter several mandatory application fees:
Humanitarian and Compassionate Grounds Applications:
- $550 per adult applicant
- $150 per child
Permanent Residency Applications:
- $75 base application fee
- $475 for the principal applicant
- $550 for spouse or partner
- $150 per dependent child
Right of Permanent Residence Fee (RPRF):
- $575 per person (required before becoming a permanent resident)
For a family of four, these fees alone can total over $2,000. But here's the crucial detail many miss: protected persons and those applying on humanitarian grounds often qualify for fee exemptions or RPRF loans.
The Financial Safety Net: How Canada Supports Refugee Resettlement
Immigration Loans Program: Your Transportation Lifeline
This program is specifically designed for refugees who've been selected for resettlement but lack the funds for travel expenses. Here's how it works:
What it covers: All travel documents, transportation costs, and related expenses to get your family to Canada
Repayment terms: You don't pay anything for the first 12 months after arrival. This gives you time to find work, learn English or French, and get established
Monthly payments: After the first year, you'll make manageable monthly payments based on your income
Interest rate: The loans are interest-free, meaning you only pay back exactly what was loaned to you
Resettlement Assistance Program (RAP): Income Support When You Need It Most
If you're a government-assisted refugee, RAP provides crucial income support for up to one year after arrival. This isn't a loan—it's direct financial assistance to help you meet basic needs while you establish yourself in Canada.
Who qualifies: Government-assisted refugees without adequate personal financial resources
How much you receive: Payments are based on provincial social assistance rates in your settlement province, typically covering rent, food, and basic necessities
Duration: Up to 12 months or until you achieve self-sufficiency, whichever comes first
Three Refugee Categories: What Your Status Means for Financial Support
Understanding your refugee category is crucial because it determines exactly what financial assistance you'll receive.
Government-Assisted Refugees: Maximum Support Available
If you're a government-assisted refugee, you have access to the most comprehensive financial support:
- Immigration Loans Program for all travel costs
- RAP income support for up to one year
- Fee exemptions for most application costs
- Settlement services and language training
The Canadian government essentially ensures you won't face financial hardship during your first year while you learn the language, find employment, and integrate into Canadian society.
Privately Sponsored Refugees: Community-Funded Support
Private sponsorship creates a different financial arrangement:
- No government income assistance during the sponsorship period (typically one year)
- All financial support comes from your sponsors—individuals, groups, or organizations who've committed to supporting your family
- Free application processing for private sponsorship applications
- Access to Immigration Loans Program for travel costs
Your sponsors are legally required to provide financial support equivalent to what you'd receive through RAP, but this comes from community members rather than government programs.
Refugee Claimants: Provincial Support System
If you're making a refugee claim from within Canada:
- No special refugee income assistance programs
- Access to provincial social assistance under the same conditions as other residents
- Standard application fees apply (though fee exemptions may be available based on circumstances)
Fee Exemptions: How to Eliminate Application Costs
Many refugees don't realize they may qualify for complete fee exemptions. Here's what you need to know:
Who qualifies for exemptions:
- Protected persons
- Those applying on humanitarian and compassionate grounds
- Convention refugees in certain circumstances
How to apply for exemptions: Submit your exemption request along with your application, providing documentation of your financial situation and refugee status.
RPRF loans: Even if you don't qualify for full fee exemptions, you may be eligible for Right of Permanent Residence Fee loans, allowing you to pay this $575 fee over time rather than upfront.
Canada's 2026-2028 Commitment: What This Means for You
Under Canada's current Immigration Levels Plan, the country is dedicating 13% of all immigration admissions to refugee and protected person programs. This represents tens of thousands of spaces annually and demonstrates Canada's ongoing commitment to refugee resettlement.
What this means practically:
- More resettlement opportunities available
- Continued funding for assistance programs
- Expanded settlement services
- Additional admission spaces for displaced populations
Smart Financial Planning for Your Canadian Future
Before You Arrive
- Apply for all available exemptions when submitting your applications
- Understand your refugee category and what support you'll receive
- Connect with settlement agencies in your destination city
- Research the cost of living in your settlement province
Your First Year in Canada
- Take advantage of free settlement services including financial literacy training
- Begin language training immediately to improve employment prospects
- Start Immigration Loan repayments only after your 12-month grace period
- Build credit history by making loan payments consistently
Long-Term Financial Success
The goal of Canada's financial assistance programs isn't just to get you to Canada—it's to set you up for long-term success. Most refugees who access these programs achieve financial independence within 2-3 years of arrival.
Common Misconceptions About Refugee Costs
Myth: "Refugees get everything for free" Reality: While extensive support is available, refugees do repay transportation loans and are expected to achieve self-sufficiency
Myth: "You need money upfront to resettle to Canada" Reality: The loan and assistance programs are designed specifically so you don't need upfront funds
Myth: "All refugees receive the same financial support" Reality: Support varies significantly based on your refugee category and pathway to Canada
Taking Action: Your Next Steps
If you're currently in the refugee resettlement process:
- Determine your refugee category and corresponding support programs
- Apply for fee exemptions if you qualify as a protected person
- Contact the Immigration Loans Program if you need travel cost assistance
- Connect with settlement agencies in your intended destination
- Prepare for financial independence by researching employment opportunities and required credentials
The path to Canada as a refugee involves significant costs, but the country has built comprehensive systems to ensure these expenses don't prevent you from finding safety and building a new life. With proper understanding of available programs and careful planning, the financial aspects of resettlement become manageable steps toward your Canadian future rather than insurmountable barriers.
Remember: Canada's refugee assistance programs exist because the country recognizes that protection and safety shouldn't depend on your ability to pay. These systems have successfully helped hundreds of thousands of refugees resettle and thrive in Canada—and they're designed to help you do the same.
FAQ
Q: What are the actual costs refugees face when resettling to Canada, and how much should I expect to pay upfront?
Refugee families typically face up to $10,000 in transportation costs alone, plus application fees ranging from $1,350-$2,300 depending on family size. However, you likely won't need to pay these costs upfront. The Immigration Loans Program covers all travel expenses as an interest-free loan, while fee exemptions are available for protected persons and those applying on humanitarian grounds. Government-assisted refugees receive comprehensive support including income assistance for up to one year through the Resettlement Assistance Program (RAP). The key is understanding that Canada's system is designed so you don't need thousands of dollars in savings to resettle—the financial assistance programs handle upfront costs and give you 12 months to establish yourself before any loan repayments begin.
Q: How does the Immigration Loans Program work, and what are the repayment terms?
The Immigration Loans Program provides interest-free loans covering all travel documents, transportation costs, and related expenses to get your family to Canada. You pay nothing for the first 12 months after arrival, giving you time to find work, learn English or French, and get established. After the grace period, you make manageable monthly payments based on your income level—there's no interest charged, so you only repay exactly what was loaned. For a family facing $8,000 in travel costs, typical monthly payments might range from $50-150 depending on your financial situation. The program has helped hundreds of thousands of refugees resettle successfully, and payment plans are designed to accommodate your circumstances while you build your new life in Canada.
Q: What's the difference between government-assisted refugees, privately sponsored refugees, and refugee claimants in terms of financial support?
Government-assisted refugees receive maximum support including Immigration Loans for travel, RAP income assistance for up to one year, fee exemptions, and settlement services. Privately sponsored refugees have their travel costs covered by loans but receive all financial support from their sponsors (individuals or organizations) rather than government income assistance—however, private sponsorship applications are processed completely free. Refugee claimants making claims from within Canada don't access special refugee programs but can apply for provincial social assistance under standard conditions. The key difference is that government-assisted refugees get comprehensive federal support, privately sponsored refugees get community support with some federal benefits, and claimants rely primarily on provincial systems. Understanding your category determines exactly what financial assistance you'll receive and from which sources.
Q: Which fees can be waived or exempted, and how do I apply for these exemptions?
Protected persons and those applying on humanitarian and compassionate grounds often qualify for complete fee exemptions, potentially saving hundreds or thousands of dollars. Application fees ($550-$775 per person), processing fees ($475-$550), and even the Right of Permanent Residence Fee ($575 per person) may be waived based on your status and financial situation. To apply for exemptions, submit your exemption request along with your application, providing documentation of your financial situation and refugee status. Private sponsorship applications are automatically processed free of charge. Even if you don't qualify for full exemptions, RPRF loans allow you to pay the $575 permanent residence fee over time rather than upfront. Many refugees don't realize these exemptions exist, so it's crucial to ask about them when submitting your applications.
Q: How long does financial assistance last, and what happens after the support period ends?
Government-assisted refugees receive RAP income support for up to 12 months or until achieving self-sufficiency, whichever comes first. Immigration Loan repayments don't begin until 12 months after arrival, giving you a full year to establish yourself. Privately sponsored refugees receive support from their sponsors for typically one year, as legally required. After the initial support period, you're expected to achieve financial independence through employment. Most refugees who access these programs become financially self-sufficient within 2-3 years of arrival. During your first year, you'll have access to free settlement services, language training, and employment assistance designed to prepare you for independence. The system is structured to provide intensive support initially while building your capacity for long-term success in Canada.
Q: What financial planning should I do before arriving in Canada and during my first year?
Before arrival, apply for all available fee exemptions when submitting applications, understand your specific refugee category and corresponding support programs, and research cost of living in your destination province. Connect with settlement agencies who can provide pre-arrival orientation and support. During your first year, immediately begin free language training to improve employment prospects, take advantage of settlement services including financial literacy training, and start building credit history through consistent bill payments. Don't worry about Immigration Loan repayments during your 12-month grace period—focus on language learning, credential recognition, and job searching. Create a budget based on RAP payments or sponsor support, and begin planning for financial independence before your assistance period ends. The goal is using your support year strategically to build the foundation for long-term financial success.
Q: Are there any costs or financial obligations that refugees should be aware of that aren't covered by assistance programs?
While Canada's assistance programs are comprehensive, there are some costs you should plan for. Personal items beyond basic necessities, specific clothing for Canadian weather, recreational activities, and non-essential household items typically aren't covered by RAP or sponsorship support. If you need professional credential recognition or additional training beyond basic language classes, these costs may not be fully covered. Some medical expenses not covered by provincial health insurance, such as dental work or prescription medications, might require out-of-pocket payment or supplemental insurance. However, many communities have additional support through local organizations, food banks, and clothing programs. The key is distinguishing between essential needs (which are covered) and additional wants (which you'll gradually afford as you achieve financial independence). Most refugees find that the comprehensive support covers all essential expenses during the critical first year.
