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New Immigrant Financial Guide | Moving to Canada

Updated

First Steps After Landing

Financial Priorities (First Month)

Priority Action
1 Get SIN (Social Insurance Number)
2 Open bank account
3 Get phone number
4 Apply for health card
5 Set up address proof

Get Your SIN

Where Service Canada
Required for Work, banking, taxes
Documents PR card/work permit, passport
Timeline Same day usually

Banking in Canada

Opening Your First Account

Major Banks Newcomer Programs
RBC RBC Newcomer Banking
TD TD New to Canada
Scotiabank StartRight
BMO NewStart
CIBC Newcomer Banking

What Banks Offer Newcomers

Benefit Typical
No monthly fee 1 year
Free Interac transfers Often
Credit card approval Without Canadian history
Mortgage pre-approval Based on down payment

What to Bring

Document Purpose
PR card or work permit Status proof
Passport ID
SIN For interest reporting
Proof of address Utility bill, lease
Employment letter If available

Building Credit

Why Credit Matters

Reason Details
Rent approval Landlords check
Phone contracts May need credit
Mortgage Essential for approval
Lower interest rates Good credit = savings

How to Build Credit

Strategy Details
Secured credit card Deposit = limit
Newcomer credit card Bank programs
Phone plan In your name
Pay on time Every month
Keep utilization low Under 30%

Secured Credit Cards

Option Details
Home Trust Secured Popular choice
Refresh Financial Rebuilding focus
Bank secured cards Ask your bank

Timeline for Credit Building

Month Expected Progress
0 Apply for secured card
3 Credit file established
6 Score visible (~600-650)
12 Score improving (670+)
24 Full credit history (700+)

Understanding Canadian Taxes

When You Become Tax Resident

General Rule Upon landing
Tax on Worldwide income
First year May be partial
Filing deadline April 30

Your First Tax Return

Report
Canadian income Employment, investment
Foreign income From residency date
Foreign assets Over $100K (T1135)

Important Tax Numbers

Concept Explanation
RRSP room Based on earned income (18%)
None until first Canadian job
TFSA room Accumulates from year of residency
~$7,000/year

Government Benefits

Canada Child Benefit (CCB)

If You Have Children
Apply After tax return filed
Amount Based on income, children
Tax-free Yes

GST/HST Credit

Who Qualifies Low-to-moderate income
Apply With first tax return
Payments Quarterly
Tax-free Yes

Provincial Benefits

Province Benefits
Ontario Trillium Benefit
BC Climate Action Credit
Alberta Climate Action Rebate
Quebec Solidarity Tax Credit

TFSA and RRSP for Newcomers

TFSA Rules

Key Points
Room starts Year you become resident
2024 limit $7,000
No catch-up For years before residency
Best for Emergency fund, savings

RRSP Rules

Key Points
Room based on Previous year’s earned income
First year Zero room
After first tax return 18% of income (capped)
Best for Tax reduction if income

Housing

Renting in Canada

Requirement Details
Credit check Landlords will check
References From previous landlord
Employment proof Paystubs, job letter
Deposit First + last month typical

Without Credit History

Strategy
Offer more deposit Extra months rent
Employer letter Confirm income
Bank statement Show funds
Co-signer If possible

Buying a Home

Newcomer Programs
35% down payment May skip some requirements
FHSA Can contribute immediately
Home Buyers’ Plan RRSP withdrawal (if room)

Banking Costs

Typical Fees

Fee Type Range
Monthly account fee $0-$30
Interac e-Transfer $0-$1.50
ATM (other bank) $2-$5
Foreign exchange 2.5%

Free Banking Options

Provider Type
Simplii Financial No-fee bank
Tangerine No-fee bank
EQ Bank High-interest, no fees
PC Financial No-fee banking

Money Transfer

Bringing Money to Canada

Method Cost
Wire transfer $15-$50 + exchange
Wise (TransferWise) ~0.5-1%
Bank draft Varies
Carry cash Declare over $10K

Best Options

For Consider
Large amounts Wise, OFX
Recurring Wise
Speed Wire (expensive)
Exchange rates Compare carefully

Employment

Getting Paid

What to Know
Direct deposit Most common
Pay frequency Bi-weekly often
Taxes withheld Automatic
Pay stub Shows deductions

Understanding Your Paycheque

Deduction What It Is
Income tax Federal + provincial
CPP Canada Pension Plan
EI Employment Insurance

Insurance Needs

Health Insurance

Provincial Coverage
Start date Varies by province
BC After 3 months
Ontario After 3 months
Alberta Immediately

During Waiting Period

Need Interim private coverage
Providers Manulife, Blue Cross
Cost $100-$200/month
Essential See doctor without paying

Other Insurance

Type When Needed
Tenant insurance Required for renting
Auto insurance Required for driving
Life insurance When you have dependents

Cultural Financial Differences

Canadian Banking

May Be Different
Cheques Still used sometimes
Interac e-Transfer Common for person-to-person
Tap payments Very common
Credit cards Widely used

Tipping Culture

Service Standard Tip
Restaurants 15-20%
Taxi/Uber 10-15%
Hair salon 15-20%
Delivery $3-5 or 10-15%