You’ve decided to make Canada your new home – congratulations on a wonderful decision. We’re pretty fond of this place and know you will be too. But before you plan for ice skating adventures and your first Tim Horton’s feast, there are a few financial details you’ll need to sort out.
While perhaps not as fun as the above activities, creating a detailed plan for your finances will set you up for success in Canada – and these plans should start well before your plane even leaves the ground. Here’s what you need to know:
Steps to take before your move
Work your way through this list and make a financial plan before you board, and you’ll land prepared to begin your new life in Canada.
Organize your paperwork
As a newcomer, you may have to provide details about your money and other assets. Gather all of your paperwork (or digital records) on your personal finances in advance, and make sure you have them accessible, either online or with physical documents. If you have accounts with several banks, consider simplifying by combining your assets under one bank before you move – it will make things easier once you arrive. Make sure you have documentation for any assets like investments or houses you own.
Learn about the Canadian banking system
You’ll need a local bank account, so start your research now. The sooner you open an account, the sooner you can start building your credit score, which can help you get loans, credit cards or a mortgage. The higher your credit score, the more lenders feel they can trust you.
Scotiabank has a program specifically designed for newcomers, called StartRight, which allows you to open an account before you arrive. If you need to show proof of funds, you can deposit them here, and once you’re in Canada, you’ll get one free year of the Preferred Package chequing account, unlimited free international money transfers and access to credit cards and mortgages designed for newcomers (terms and conditions apply; credit is subject to approval).2 Scotiabank advisors will work with you to create a personalized financial plan for free.
Show proof of funds
Some newcomers to Canada, like those in the federal skilled workers or skilled trades programs, must show proof of funds as part of their visa entry requirements. You can access this money to support yourself and your family while settling into your new home. These funds must be in your name and available to you on request, so things like homes you own or other investments don’t count. You can provide proof of your financial situation with a letter from your bank or financial institution.
The amount of money you need to have in your bank account before you move to Canada depends on the size of your family and changes every year, but the minimum amount for a single person as of April 2023 is $13,757.1
Bring money with you
It’s a good idea to have money when you land. Bring cash, but keep some funds secure in traveller’s cheques, bank drafts, money orders, or a bank account you can access with a debit card. Carry a major credit card you can use in case of emergency. Note that if you’re travelling with more than $10,000, you must declare this to the border officer when you arrive.
The amount you’ll need depends on factors like the size of your family, whether or not you have employment, how much you’ll be paying in rent or buying a home, the cost of living in your new community, and any other expenses you might have. Creating a budget and anticipating up-front costs you’ll face upon arrival is a good idea.
Consider the costs
One of the most important steps you can take is to carefully consider the new living costs in Canada and create a financial plan that accounts for them.
Housing costs
Housing will be your biggest expense when you arrive in Canada. Get a sense of the cost by searching rental ads in local papers or on social media or sales in your new community. If you’re renting, be prepared to pay a refundable security deposit of around one-half of one month’s rent upfront. Note that in Ontario, charging a security deposit is illegal, though landlords can ask for the first and last months’ rent upfront. If you buy, consider using a local real estate agent to help walk you through the steps and expenses.
Cost of living
Your cost of living might be different from what you’re used to. Living expenses include household utilities like electricity, heating, water, and internet, plus clothing, groceries, and a cell phone. Transportation costs differ depending on where you live and whether you buy a car or use public transport.
Are you a student? As of January 1st, 2024, the cost of living for students has been updated to reflect a more accurate cost of living. Now, for a single student visa application, you must show you have $20,635 in your bank account, up from $10,000 previously.2 This jump is meant to ensure you have a clear idea of exactly how expensive Canada is and won’t be in for a surprise.
Other expenses
Take into account other possible expenses. For example, if you’re an international student or have just arrived, there may be a waiting period of up to three months before you can use your provincial health insurance. You can buy private health insurance in the meantime or pay for procedures and prescription drugs yourself.
Having fun
Finally, you’ll want to have money to explore your new home! Make sure you’ve got a little extra set aside to visit local events, see the sights and taste new foods.
Once you arrive in Canada
These next several months will be full of excitement and new challenges, but you can relax knowing that your finances are in order.
Meet with a Financial Advisor
Plan ahead and book an appointment to speak with a Scotiabank representative to discuss your banking options.
You can book an online appointment here.
Start banking and prepare for taxes
If you haven’t already, now’s the time to open a bank account. At a minimum, you should have access to a savings account and an everyday chequing account to pay bills and make purchases. Start saving now for an emergency fund to cover unexpected expenses. Get a credit card that offers rewards, so you can earn points or cash back as you spend.
Once you’re working, you’ll be responsible for paying taxes. Don’t worry! An accountant can help you set everything up properly. Your employer will deduct money from your paycheque that goes toward your tax bill, or if you’re self-employed, you’ll need to put that money aside yourself. A high-interest savings account is a good option for this money.
Build credit
Your credit score in Canada is similar to your financial report card. It can help you get rental housing, loans and services like cell phone plans. Unfortunately, your credit history from your home country doesn’t count, so you’ll need to establish a new one. The fastest way is to use a credit card responsibly by making at least the minimum payment on time and monthly. Your timely payments are reported to the credit bureaus, which help grow your credit score.
Embrace your new home with financial confidence
By following the plan above, you’re well on your way to financial success! Before you leave, remember to start the process by organizing your documents, learning about Canada’s banking system, and setting aside the money you’ll need.
Want some help pulling it all together? Visit us at StartRight for tips and tools on how to plan out your financial life in Canada.
Legal:
This article is provided for information purposes only. It is not to be relied upon as financial, tax or investment advice or guarantees about the future, nor should it be considered a recommendation to buy or sell. Information contained in this article, including information relating to interest rates, market conditions, tax rules, and other investment factors are subject to change without notice and The Bank of Nova Scotia is not responsible to update this information. All third party sources are believed to be accurate and reliable as of the date of publication and The Bank of Nova Scotia does not guarantee its accuracy or reliability. Readers should consult their own professional advisor for specific financial, investment and/or tax advice tailored to their needs to ensure that individual circumstances are considered properly and action is taken based on the latest available information.
