Living off the island is the way you want to go. The cost of living is much less, plus there's some really nice areas. But, if you don't drive or have a car, you could have a problem in certain areas.
Downtown has some really cool areas as well. It really depends on exactly what you are looking for. Are you fluent in French? Are you looking for a loft, office space, 3½, 4½, 5½ ?
There's pretty many Montrealers on the board. You should be able to get some good advice on the cost of living downtown and areas to avoid.
No matter if you live downtown or off the island, it is still going to be a lot less expensive than living in Vancouver.
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