For any newcomer, the settling-in process raises the question of finances. Which Canadian bank to choose? Which bank account should I open? Credit card or debit card?
As French expatriates, we’ve been through all these stages and know the file inside out. You’ll see that it’s essential to choose carefully in order to benefit from the best offers, build your credit file and why not collect reward points along the way.
Here’s our guide for expatriates, welcome to Canada!
The main banks in Canada are
You can then find :
This bank search process can be carried out remotely before you arrive in Canada, and we recommend that you do so to facilitate your installation. When you arrive at customs, you’ll have to prove that you have sufficient resources.
You’ll avoid some of the delays associated with money transfers, be able to present a Canadian bank statement to customs, and finally have your money at your disposal immediately.
Before opening an account with any bank, store around, i.e. compare the services offered by each one. Once you’re with your bank, the process of changing banks can be long and involve penalties, so it’s best to choose the right bank for your profile from the outset.
Bank charges, services, communication, welcome offers. Proximity to the branch. Remember to look at everything.
Once you’ve chosen your bank, you can start opening a new account. Make an appointment with your new advisor.
Two pieces of photo identification will be required: Social Insurance Number (SIN), Canadian passport, Canadian driver’s license, permanent resident card, study permit, etc. Some banks may also require proof of address. For more details, here’s a link from the Canadian Bankers Association.
If you are doing the procedure remotely, you will need to complete an online form and various documents, which your advisor will provide to you.
You must complete your file with :
The complete file should be sent by post to your future bank.
No minimum deposit is required, and you don’t need to have a job. But sooner or later you’ll probably need to make an international money transfer, if you’re coming from abroad to make your first deposit into your new account. There will be a transfer time of around one to three days.
To send money from abroad, there are several companies offering this service:
These are intermediaries that allow you to have an online account to send, receive or spend money internationally. Fees may vary, however, so it’s up to you to compare.
After registering with either of these sites, you set up your transaction, add the bank details and validate the transfer. Please note, however, that some banks, such as the NBC, will require an initial bank-to-bank transfer rather than via an intermediary.
Each bank will offer a series of products associated with a package. You can start by opening a personal account (savings, chequing or combined account). Depending on your banking institution and the type of account, service charges vary.
Banks can provide you with a bank debit card. Cash withdrawals, deposits, transfers. All these transactions can be carried out at an Automated Teller Machine (ATM), using a Personal Identification Number (PIN). You’ll find them everywhere, open 24 hours a day. If you prefer, you can use your bank’s counters, in which case you will be charged an additional fee.
The bank gives you the option of transferring/receiving funds from one account to another, either by automatic transfer (e.g. Revenue Canada) or interac transfer, or to pay pre-authorized or unauthorized bills. Your bank can issue you with a checkbook to pay bills, goods or services.
Ask for a credit or charge card.
These services vary from one bank to another, and are also available online via the Internet, or by telephone in most cases.
The debit card will allow you to make an immediate withdrawal from your chequing account, but will not offer any points benefits.
Since credit cards are not linked to chequing accounts in the same way as debit cards, you can obtain one from any institution according to your profile. You’ll have access to a credit limit, allowing you to defer payment for a purchase while accumulating reward points. It’s important to pay your card in full every month. No balance, no interest, no debt!
The payment cardis also not linked to the chequing account. What’s more, there is no pre-set limit for the customer (only the issuer knows the limit). Here the balance must be paid on each statement and cannot be carried forward with interest.
Prepaid cards can be used abroad, for example, to load money in foreign currencies.
As an expatriate, another thing you need to know is that you’ll need a credit card in Canada.
It’s necessary if you want to borrow to buy a car or a house. No bank will accept a credit application if you have no credit history.
Two agencies, Equifax and TransUnion, are in charge of informing the institution about your credit file, i.e. whether you are a trustworthy person, in other words: a good payer. It shows you’re paying your card balances on time and not accumulating debt. To find out how your credit score is calculated, please click here.
All expatriates should therefore start using a credit card as soon as possible if they want to build up a credit history. However, you will need to find a bank willing to provide you with one:
Your credit history starts to build up as soon as you start paying rent and bills, for example, but it can sometimes take time for the bank to agree to increase your credit limit.
Not all credit cards are created equal. That’s why we’ve designed a credit card comparator and a ranking of the best credit card offers to help you.
Finally, you’ll need a credit card for online purchases.
This program is particularly aimed at expatriates who are new to Canada, or who have already been living in Canada for less than five years, and are aged 17 or over.
Today, NBC’s newcomer program is the best on the market .
We recommend the NBC for expatriates with low capital levels who are prepared to make a 3-year commitment in order to benefit from the services offered in the program. You’ll save $313.92 on the basic monthly fee over 3 years, and more than double that if you sign up for all Newcomers Offer products and services for 36 months.
Please note that the NBC requires that your first money transfer to Canada be made directly from bank to bank, and not via a money transfer service provider.
The NBC Chequing Account for newcomers to Canada is the best because it offers :
Opening an NBC Chequing Account for newcomers to Canada :
Savings of up to $600 with NBC.
What’s more, NBC grants newcomers a Mastercard even without any existing credit history.
Finally, the NBC has a network of 440 branches across Canada and 3,300 ATMs.
This New Beginnings with BMO program is explicitly aimed at expatriates who are new to Canada, or who have already been living in Canada for less than five years as a permanent Canadian resident or foreign worker. Only the Performances Banking Plan is offered to newcomers to benefit from the 12-month free banking offer.
Fees for transactions, services and products not included in the Performances Banking Plan remain payable.
Finally, take advantage of the current offer, which runs until February 29, 2024: get up to $600 in total welcome bonus when you open the main Canadian dollar chequing account linked to the Performances program and a Savings Builder Account (“the Savings Account”).
The BMO chequing account offers:
Savings are here (if you don’t see the sign-up form, please click here):
