Canada is a diverse cultural mosaic, with over 23% of its population born outside the country. Yet, according to Statistics Canada, many immigrants face social and financial challenges even four years after arriving. Building financial security in a new country can feel overwhelming, but with the right steps and support, it’s achievable.

Here are some essential financial tips for newcomers to Canada:

1. Open a Bank Account

Having a Canadian bank account is the first step in managing your finances securely and efficiently. With numerous banks and credit unions to choose from, take the time to compare account options, fees, ATM availability, and customer service.

• Account Types: Look for checking and savings accounts tailored to your needs. Many banks offer newcomer accounts with fee waivers for a certain period.
• Fees and Charges: Be mindful of transaction fees, maintenance charges, and international transfer costs. Choose packages that fit your financial habits.
• Accessibility: Ensure that branches and ATMs are conveniently located, and consider institutions that offer services in your native language.

Opening an account soon after arriving allows you to handle essential transactions, like renting an apartment or depositing your salary when you begin working.

2. Begin Establishing Your Credit History

Establishing a solid credit history in Canada is crucial. Your foreign credit score doesn’t transfer, so you’ll need to build one from scratch by:

• Applying for a credit card and paying off your balance each month.
• Paying bills on time, such as utilities and phone services.
• Taking out small loans and repaying them on schedule.

Good credit is vital for big financial milestones like buying a car or home. It takes time to build a “good” credit score, so starting early is key.

3. Secure Your Financial Future

Once you’ve settled in, think about your long-term financial goals. This could involve saving for retirement, your children’s education, or other life events.

• Registered Retirement Savings Plan (RRSP): Contribute up to 18% of your annual income to save for retirement and reduce your taxable income. RRSPs allow your investments to grow tax-free until withdrawal in retirement.
• Tax-Free Savings Account (TFSA): Contribute each year (up to $7,000 for 2024) and enjoy tax-free growth on your investments.
• Registered Education Savings Plan (RESP): If you have children, an RESP helps save for their post-secondary education, and the government will match up to 20% of your contributions.

4. Get Professional Financial Guidance

Navigating the complexities of financial products in a new country can be daunting. A financial advisor can help you set clear financial goals, choose the right products, and create a plan tailored to your needs and budget.

By following these tips, new Canadians can build a secure financial future in their new home.

Ready to take control of your finances in Canada? Reach out to Yomi today for more personalized advice!