When you move to Canada, there are many things to consider, and the process can be quite long. One of the biggest things to consider is how to transfer your money and belongings to Canada quickly and cost-effectively. Fortunately, you have many options to transfer money and belongings to your new home in Canada.

Transferring your money before you move to Canada

Before you move to Canada, you must find a safe and easy way to transfer your money. Fortunately, there are many ways you can transfer money from your home country before you move to Canada. 

Should you open a bank account in Canada before you move?

When moving to Canada, you will have to make an important decision; should I open a Canadian bank account before I move or after I move to Canada? This decision will determine how effectively you can handle your finances once you move to Canada.

Opening a bank account with a Canadian bank before you move is possible, though you need to know how to do it. However, it is usually better to open an account with a Canadian bank before you arrive than waiting until after you land. Opening a Canadian bank account before you move to Canada will make it easier to:

• Transfer your money to Canada before you move
• Show proof of funds when you arrive in Canada, and
• Focus your attention on other important activities, such as getting a job.

Some people prefer to open a Canadian bank account after they arrive. However, opening a Canadian bank account from outside Canada requires more documents and can be a little stressful. Some people prefer to open an account when they can talk to a professional face to face rather than completing the process online. If this sounds like you, then you can wait until after you arrive to open your Canadian bank account. Just remember that it’s possible to open a Canadian bank account before you move and many newcomers have done it.

Now let’s look at some common ways to transfer your money to Canada.

1. Wire transfer

Wire transfer is one of the easiest and simplest ways to transfer your money to Canada. However, you can only do this if you have already opened a bank account in Canada before you move to Canada. And with a Canadian bank account, you can send a wire transfer from your current bank account to your Canadian bank account.

Opening a bank account with one of Canada’s larger banks is a good idea because they have branches across Canada and are easily accessible. The larger banks also usually offer better customer service.

Some of Canada’s larger banks are:

• Bank of Nova Scotia (ScotiaBank)
• Toronto-Dominion Bank (TD)
• Canadian Imperial Bank of Commerce (CIBC)
• Royal Bank of Canada (RBC
• Bank of Montreal (BMO)

After you open a Canadian bank account, you can send a wire transfer to your Canadian account. Once you arrive in Canada, you can easily access your funds from your Canadian bank account.

2. International money order

An international money order is one of the most common ways to transfer your money from your country of origin to Canada. It is a good option if you decide to open a Canadian bank account after you move to Canada. You will need to get an international money order from your current bank in your country of origin before you move to Canada. 

When you arrive in Canada, you will need to open a bank account and deposit the money order to your Canadian bank. Most international money orders have a maximum limit of $1,000 per order. This means that you will have to buy multiple orders to deposit all your money in a Canadian bank.

This method of transferring your money is usually safer than carrying cash. This is because money orders are paper documents and only a few can be worth a lot of money.

It is important to note that you will not be able to use your money right away. Once you have deposited the money order into your Canadian bank, you will have to wait for some time before you can access your money. The wait time will vary depending on the bank, so ask your bank when you can access your money.

3. Cash

Cash is another option, though it may not be the safest way to transfer money to Canada. It might be a little hard to travel with all of your life savings. However, if you feel comfortable with carrying all your money as you move, Canada will allow you to do this.

You must declare the amount of money you carry to the Canadian Border Services Agency (CBSA). You will only need to declare it if that money is valued at more than $10,000 in Canadian dollars. This money could already be in CAD or it could be foreign currency. This step ensures that you do not transfer illegal money into Canada. 

If you carry more than CAD $10,000 and do not declare it, the CBSA can seize your money. You may have to pay a penalty of anywhere from CAD $250 to $5,000 to retrieve your money from the CBSA.

If you’re bringing a large amount of money, cash is not the best way to bring money into Canada. Cash can be hard to handle when there is a lot of it and there is always a chance of the money getting stolen.

Bringing your jewelry and valuables when moving to Canada

Most of the jewelry and valuables you bring to Canada when you are moving are duty-free. This means you will not have to pay any taxes on those items. There are some items that you might have to pay duty on. For example, you will have to pay duty on new items or items that still have tags on them.

Generally, you do not have to pay duty on any goods you bring when you move to Canada. However, once you have moved to Canada and are bringing back any valuables from abroad, those goods may be subject to duty. You will also need jewelry appraisal reports from a recognized Canadian jeweller. 

Bringing personal items when moving to Canada

Canada will allow you to bring almost all your personal belongings and items duty-free. Things such as silverware, pots and pans, and any other household items are duty-free. However, any new items that still have a tag on them are subject to duty so keep that in mind. Alcohol and tobacco are also subject to duty if you bring them in large amounts.

There are some goods that you are restricted to bring into Canada. These goods include weapons and firearms, fireworks, ammunition, and explosives. You are not allowed to bring any of these goods into Canada.

You can check out this comprehensive article by the Government of Canada to learn more about what you can bring to Canada and if it is subject to duty.

Deciding what to move to Canada

Ideally, you don’t want to ship more than you have to since shipping costs are based on volume. You may decide that it’s less expensive to buy what you need when you arrive in Canada. You can always check out the cost of furniture and other items you may need in Canada online and compare it to the cost of shipping. If replacement costs are higher, then shipping makes sense. You’ll also avoid the stress of shopping when you arrive. Another benefit of shipping your goods is having your familiar belongings from home.

Shipping your belongings to Canada

If you have more goods than you can carry with you while travelling, you can ship your goods before you move to Canada. There are many options to ship your goods to Canada, some are considerably more expensive than others.

Shipping by air or by sea

Two ways you can ship your goods to Canada are by sea and air. Shipping by sea is cheaper than air but it is less convenient. Firstly, shipping by sea can take a lot of time. You will have to ship all your goods a good while before your move to Canada so you can access them when you arrive. You may not want to do that if you need those goods until you move. Once your goods arrive in Canada, you pick them up from a warehouse. The goods will not be delivered to your house.

Your other option is to ship by air. Shipping by air is more expensive, but it’s fast. You will have the comfort of waiting until your move and then shipping the goods to Canada. But just like shipping your goods by sea, you have to pick up your goods at a warehouse or further pay a moving company to deliver the goods to your home in Canada.

So to summarize, shipping by sea is a good choice if you want to save money or ship a large amount of belongings. However, you’ll have to wait longer for your goods to arrive. Shipping by air might be a better option if you’re shipping a few items to Canada. In the end, make sure to carry any essential items with you when you travel so you can access them when you arrive. Ensure you do not exceed the weight and size restrictions your airline will allow.

10 questions to ask every moving company

Hiring a professional moving company for your move to Canada can help you understand what to ship, its costs, and most importantly the shipping and customs regulations. However, it’s vital to carefully evaluate the company that you select to move your valuable belongings. To assess potential movers, be sure to ask these important questions:

1. 1. How long has your company been in the relocation industry?

2. Can you provide references?

3. What licensing and insurance can you provide?

4. What type of estimates do you require?

5. How do you charge for moves?

6. How will you protect my home?

7. How will you protect my belongings?

8. Do you have workers’ compensation insurance?

9. What is your claim process?

10. When will my shipment arrive?

Storing your goods

There is a cheaper alternative to storing your goods in a warehouse for pickup. If you have a friend or relative in the Canadian city you are moving to, they might be able to help you. If you do not have too many goods you are shipping, you can ship the goods to their home in Canada. Once you arrive in Canada, you can pick up your goods from their home. This will help you save money you would have had to pay to store your goods in Canada.

Insuring your belongings

When shipping your household belongings to Canada, you want them to arrive safely and without damage. Unfortunately, contents can be damaged during shipping. But if your goods are not insured, you cannot claim damages. It is understood that if you’re paying to ship bulky items to Canada, then their value must be high. Therefore it’s crucial to pay for insurance to ensure the safety of your belongings and give you peace of mind.

Usually, it is better to consider the cost of insurance as part of the shipping costs. This leaves you with no option but to pay for the insurance as well, which is a good choice by all means.  To determine and prioritize your budget for the insurance, always make a comprehensive list of what you are shipping and how much it would cost if you have to replace it all in Canada.

Protecting yourself and your family against unexpected danger and risk is what insurance in Canada is all about for newcomers to Canada. Knowing what types of insurance are available before you arrive is smart financial planning that can save you money and build security.  For example, the first type of insurance newcomers need to understand is renters insurance (or tenant insurance). Most landlords require it. And then there are health insurance plans. This guide can help you find the right insurance for your new life in Canada.

Why do newcomers need insurance?

Insurance is one way that newcomers to Canada can manage risks. Things can go wrong. Accidents happen. Floods happen. And you don’t want to start over financially from scratch. So, when you purchase insurance, you transfer the cost of a potential loss to the insurance company in exchange for a fee (known as the premium). Insurance companies invest the funds securely, grow, and pay out when there’s a claim.

How are insurance brokers and agents different?

An insurance broker is not the same thing as an insurance agent. Brokers know how insurance policies work and can access more options than an agent. This lets them pick the best rates for the coverage you need from many insurance companies.

What are insurance premiums?

An insurance premium is the amount you or your business pays for an insurance policy. Insurance premiums pay for policies that cover things like healthcare, auto, rental, home, and life insurance.

Why do I need risk insurance?

Risk insurance protects your home and property from “risks and perils.” It covers property damage or loss from accidents or unforeseeable incidents (flood, sewer backup, frozen pipes, etc.)

Travel medical health insurance

Canada is renowned for its healthcare system, and quality healthcare is one of the reasons newcomers seek to build a life here. Government health insurance programs like the Ontario Health Insurance Plan (OHIP) and Alberta Health Care Insurance Plan (AHCIP) let you apply for coverage once you arrive in Canada and establish your permanent residency.

Buying travel medical health insurance to cover unexpected medical expenses before you and your family can join a government health insurance program is smart. Without it, you could end up paying significant out-of-pocket costs. 

What’s the difference between provincial health plans and medical insurance?

Once you arrive in Canada and establish your permanent residency government health insurance programs allow you to apply for coverage. But, in some provinces, there is a wait period before you are eligible for government health insurance. That’s where private insurance coverage is a good idea for both temporary visitors to Canada and people on the path to becoming permanent residents and Canadian citizens.

When purchasing visitor travel insurance, there’s no one-size-fits-all solution. As a newcomer to Canada, you must understand your options and select the right coverage based on key factors like age, dependants, health status, and deductible preference.

Buying travel medical health insurance can be challenging for newcomers and international students. It requires navigating the process especially if you have age-related risk factors and pre-existing health conditions. Finding the right coverage is important. It’s vital to know the basic requirements you or a loved one need before you buy a travel medical health policy.

Who is eligible for visitor to Canada insurance?

Visitors to Canada Travel insurance isn’t just for visitors! It’s also beneficial to the following individuals:

• New immigrants waiting for provincial healthcare plan to kick in
• Canadian citizens who have recently returned to Canada after living abroad (you may need emergency travel medical insurance for a few months until your provincial healthcare plan coverage takes effect)
• Visitors to Canada on a working visa.

How much money will I need to move to Canada? The answer depends on the size of your family. Applying to become a permanent resident (PR) in Canada can be a long process, including showing proof of funds to the Canadian visa office in your home country. Proof of funds shows that you have the minimum amount of settlement funds to move to Canada and support your family when you arrive. It’s also helpful to research the cost of living in the city where you plan to settle to understand living costs. Discover how you can meet proof of funds requirements for Express Entry, minimum amounts, and documents (i.e. proof of funds letter) you’ll need.

Researching the cost of living in the city where you plan to settle will help you understand the average costs of renting or buying housing, transportation, food, childcare, etc. This will help you budget for expenses after your arrival.

Steps to show proof of funds in express entry

1. Determine the minimum amount you acquire to show proof of funds for PR in Canada

You must show that you have enough money to settle in Canada and to cover living expenses such as housing, food, transit, and other costs. Living in Canada can be expensive depending on which city you settle in. For example, Vancouver is Canada’s most expensive city and Toronto is the fifth most expensive.

When calculating how much money you will need to move to Canada, remember to include Canada Permanent Resident Immigration Fees. To reduce financial pressure, ideally, you should have enough money to cover expenses until you land a job in Canada.

2. Assess your financial situation

Once you know the minimum settlement funds required, assess your financial situation. Consider how much money you have in savings, investments, cash, etc. You may discover that you need to improve your financial situation to show that you meet the minimum requirements. Or, you may find that you have a suitable amount of settlement funds for your new start in Canada!

3. Contact your financial institution to obtain a proof of funds letter

If you are invited to apply for permanent residence, you must show you have the minimum funds available. These funds must be money that you can readily access. Your bank will provide a proof of funds letter that is written on the bank’s letterhead and includes the following:

• The bank’s contact information
• Your name
• Outstanding debts such as credit card debts and loans
• Account number, the date the account was opened, current balance, and average balance for the last six months for each bank and current investment account.

How much money will I need for proof of funds?

Before you move to Canada, you need to show that you have the minimum amount of settlement funds set by IRCC. Known as proof of funds, this shows the Canadian government that you have enough money to settle in Canada and cover living expenses. If you have more than the minimum amount, list the amount in your Express Entry profile.

Immigration, Refugees and Citizenship Canada (IRCC) updates how much you require each year based on family size. These figures are current as of May 2024.

The amount of settlement funds you require depends on the size of your family. Source: IRCC May, 2024

Who needs to show proof of funds?

You must show proof of funds if you are applying using the:

• Federal Skilled Worker Program
• Federal Skilled Trades Program

You do NOT have to show proof of funds if you:

• Have a valid job offer in Canada
• Are currently working or authorized to work in Canada, OR
• Have been invited to apply for the Canadian Experience Class.

Tips to obtain and maintain proof of funds for Canada PR

• Update your Express Entry Profile if there is a change in your settlement funds. You need to update your profile to maintain your eligibility.

• Avoid unnecessary spending to ensure you have the minimum amount of settlement funds available and can access the funds.

• Maintain a financial buffer to meet any unexpected expenses or fluctuations in the exchange rate.

How much money can I bring when I move to Canada

While you must meet the minimum amount of proof of funds, you can bring as much money as you wish to make it easier to move to Canada and find a home.

When you cross the border and enter Canada, Canadian customs regulations require you to declare if you bring more than C$10,000 into Canada. You may be fined or imprisoned if you do not tell them. To avoid this, declare how much money you are bringing and expect to pay duty (a fee) on the amount greater than $10,000 Canadian. These funds could be in the form of:

• Cash
• Stocks, bonds, debentures, treasury bills, etc., or
• Bankers’ drafts, cheques, travellers’ cheques, or money orders.

How much money can I bring when I move to Canada?

Beyond the minimum funds you require, exceeding the minimum is helpful. Additional money will help you to settle in Canada easily and reduce financial pressure. It’s smart to research the cost of living in the city where you plan to settle. The additional amount of funds that you require will vary based on:

• Location and city where choose to live, and
• Family size.

Consider any additional financial needs that you and your family may have. Each family will have different financial needs. Also, it’s a good idea to research how much things cost in the city where you plan to live. Here are some guidelines to help you assess how much you may need (costs do not include airfare or moving expenses):

• One adult moving alone: $25,000 CDN
• One couple moving together: $30,000 CDN
• A couple with one child under 10 years: $33,000
• A couple with a child over 10: $35,000
• For each additional child under 10: add $1,000
• For each child additional child over 10: add $2,000

• These guidelines will provide you with breathing room to settle in Canada with financial ease. Depending on your budget, this should cover basic living expenses for four to six months while searching for a job.

Researching the cost of living in Canada

Living costs vary across Canada so it’s important to research average housing, utility, transportation, childcare, food, and other essential costs. According to Numbeo, among Canada’s most expensive cities are Toronto, Vancouver, Markham, Calgary, and Brampton.

Housing costs will be your largest expense whether you rent or buy a home so research average housing costs and salaries for your profession in Canada. Choosing cities that offer affordable housing and lucrative jobs is your best option. Toronto and Vancouver, Canada’s largest and most sought-after cities, are major job hubs, however, housing costs are the highest. If you dream of homeownership, you’ll likely be able to buy a larger home in a suburb or smaller city.

by Zain Usmani | Oct 15, 2024

Moving to a new country like Canada can be one of the most exciting experiences of your life. However, it can be challenging as well. Managing your finances as a newcomer is one of the most important aspects of starting your new life in Canada. One effective way to take control of your money and adjust to your new financial landscape is by taking on the “no-spend challenge.” This simple yet powerful approach can help you build better spending habits, save money, and achieve your financial goals. Discover practical no-spend challenge ideas and tips!

The no-spend challenge is a personal finance strategy where you commit to not spending money on non-essential items for a period ranging from a few days to a month or more. A “No Spend Month” is exactly what it sounds like, a month when you commit to spending money only on essential items. This approach isn’t about deprivation; it’s a mindful way to reset your spending habits, prioritize your needs, and build healthy financial practices.

Imagine embarking on a challenge where you don’t lock yourself away, but instead, you focus on spending only on what you truly need. That’s the essence of the no-spend challenge. Picture this: for a set period, typically around 30 days, you commit to only covering the essentials—things like food, utilities, shelter, and transportation. Fancy dinners out or attending concerts or events? Not this month.

But fear not, this isn’t a forever ban on the fun. It’s more like hitting pause on non-essential spending to give your savings a boost. Think of it as hitting the reset button on your budget, where the reward is worth the effort.

Before jumping into your no-spend challenge, you’ll need to establish clear rules and boundaries. Keep in mind that no one can set these rules for you. The no-spend challenge will help you gain financial footing, so it is up to you to set your own rules. This challenge is all about limiting your wants while fulfilling your needs.

Embarking on a no-spend challenge can provide a fresh perspective on your spending habits and financial priorities. Here’s how to get started:

• Create a Budget: It’s vital to manage your personal finances when you’re new to Canada, by assessing your monthly income and essential expenses such as rent, groceries, utilities, and transportation. Allocate a specific amount for each category, leaving no room for discretionary spending. Eliminate non-essential expenses, like dining out, entertainment shopping, subscription services, etc.

• Track Your Expenses: Record every penny you spend during the month. This will help you identify areas where you can cut back and make more mindful spending decisions in the future.

• Set Clear Goals: Whether you’re saving for a down payment on a house, paying off debt, or saving for an emergency fund, having a financial goal will keep you motivated throughout the challenge. Stick to the essentials and avoid any unnecessary purchases. Tracking your monthly expenses can help you stay accountable and see where to make further adjustments. 

Building a strong financial foundation is vital to your success. Join this webinar to start your banking journey in Canada on the right foot!

While cutting unnecessary expenses may seem daunting, there are plenty of ways to enjoy life without draining your bank account. Here are no-spend challenge ideas and tips to help you achieve your savings goals.

Plan your meals ahead of time and make a shopping list based on what you already have in your pantry. This helps you avoid unnecessary purchases and reduce food waste.

No spend challenge enables you to learn basic repair skills for things like clothing, furniture, or household appliances. There are plenty of online tutorials for fixing common items. This can save from hiring professionals or buying replacements. Instead of buying new items, challenge yourself to get creative and make things yourself.

Instead of buying books, movies, or magazines, utilize your local library. Libraries offer services for newcomers and a range of media for free borrowing, including ebooks and audiobooks.

 Another good no-spend challenge tip is to look for free events in your community, such as concerts, art exhibitions, or outdoor activities. You can also explore parks, beaches, or hiking trails for low-cost entertainment.

Take advantage of loyalty programs at stores you frequent. Many offer rewards or discounts for repeat customers, allowing you to save money on future purchases.

Unsubscribe from marketing emails and catalogues to reduce the temptation to make impulse purchases. Clearing out your inbox and mailbox can help declutter your mind and spending habits.

Before purchasing items you’ll only need temporarily, like tools or specialized equipment, check if you can borrow them from friends, family, or your local community center.

Take advantage of free online resources such as educational courses, podcasts, or tutorials. You can learn new skills or hobbies without spending a dime.

Use the no-spend challenge to reflect on your values and priorities. Instead of spending money on material possessions, invest in experiences and relationships that bring you joy and fulfillment. Set small milestones throughout the challenge and reward yourself with non-monetary treats such as a long bath, a nature walk, or a movie marathon. These rewards will motivate you without derailing your progress.

Why go it alone during a no-spend challenge when you can team up with friends and family? Post about your challenge on social media and let others help you stick to your goals. With support, you’ll avoid temptation and save money. Plus, your journey could inspire others to join in, spreading the money-saving message far and wide!

The no-spend challenge offers many rewards. Saving money is the main reward, especially as your savings grow. It’s a great way to save money fast, by avoiding unnecessary expenses.

Keeping track of your spending also helps you assess if you’re spending more just because you’re earning more. It also helps you identify if you’re buying things because of your emotions rather than your needs. 

The best reward of a no-spend challenge is that it puts you in the driver’s seat and gives you more control over your finances.

By following the no-spend challenge ideas and tips, you can gain valuable insights into your finances. You’ll better understand your spending habits, prioritize financial goals, and cultivate healthier money management skills. With careful planning, creativity, and determination, you can successfully navigate the journey toward financial freedom and security in Canada. So why not take the first step today and embark on your no-spend challenge? Your future self will thank you for it.

Read more about your financial first steps in Canada.

A lesson many newcomers learn when they arrive in Canada is that you need credit to pay for large expenses, buy a car, or purchase a home. However, it’s difficult to borrow without a credit history in Canada. 

Opening a bank account before you arrive in Canada offers many benefits including transferring funds before you travel to Canada. 

For newcomers and international students arriving in record numbers, it’s helpful to understand how the currect inflation rate in Canada can affect how much you pay for housing, groceries, transportation, and other expenses.

Protecting yourself and your family against unexpected danger and risk is what insurance in Canada is all about for newcomers to Canada and international students.

If you became a permanent resident and lived in Canada, even for a short period, filing your first income tax return with the Canada Revenue Agency (CRA) can provide financial benefits.

by Zain Usmani | Oct 15, 2024

March 2024 marks the 20th anniversary of Fraud Prevention Month in Canada. This month-long initiative aims to educate Canadians about various frauds and scams. It also aims to educate Canadians about fraud prevention measures we can take to protect ourselves.

As technology continues to change our world, many positive things come with it. However, this new era of technology has also given way to new types of fraud. Scams and fraud are the unfortunate realities we face. According to a recent poll conducted by Iposos, 43% of Canadians have affirmed being the target of fraud at some point in their lives.

Awareness of the tactics that scammers use and the different types of fraud is the first step in prevention. Discover more about Fraud Prevention Month and how to protect yourself from online scams.

Fraud Prevention Month in Canada is an annual campaign held each March to raise awareness about various types of fraud and scams. In 2004, Fraud Prevention Month was officially established by the Canadian government. The initiative aims to educate the public to recognize and prevent fraud and report fraudulent activities.

A notable feature of Fraud Prevention Month in Canada is its emphasis on education. The campaign includes reaching out to individuals and businesses through workshops, seminars, and resources. Fraud can happen to anyone, anytime, from anywhere. Therefore, Fraud Prevention Month in Canada encourages Canadians to be proactive rather than reactive. Simply put, this means better equipping ourselves to deal with fraud rather than taking action after it happens.

Scammers not only target individuals but can also target whole businesses. If you have a business, click here to learn how to protect your business from fraud.

In the early 2000s, the Canadian government recognized the need to address the rising incidents of fraud. Responding to the increasing sophistication of scams, authorities identified March as Fraud Prevention Month. The first Fraud Prevention Month in 2004 included a campaign to teach Canadians how to safeguard themselves. The initiative gained momentum as more people became aware of the many types of fraud. Eventually, more government agencies, law enforcement, financial institutions, and non-profit organizations joined the fraud prevention initiative in Canada.

The initiative originally focused on traditional frauds and scams. However, fraud has a very adaptive nature in our ever-evolving world. Scammers continue to figure out new ways to scam Canadians out of their money or sensitive personal information. As a result, the fraud prevention initiative added emerging threats such as cyber fraud and online scams. It was forced to adapt to stay ahead of scammers so that preventive measures against fraud remain relevant.

Today, Fraud Prevention Month continues to help Canadians become aware of the different types of fraud. There is also an ongoing effort to stay ahead of fraudsters and scammers. The Canadian government is committed to adapting its strategies accordingly to combat the newest methods utilized by scammers. As Canadians, it is our responsibility to educate ourselves on such methods so that we can protect ourselves and our assets.

Building a strong financial foundation is vital to your success. Join this webinar to start your banking journey in Canada on the right foot!

There are many different techniques scammers use to commit fraud. Scams generally tend to target your money and your personal information. With increasingly sophisticated techniques, it can often be tricky to spot fraud and take preventative measures. To make it easier to recognize, we’ll explore three common types of fraud and techniques to avoid it.

Identity theft fraud occurs when someone wrongfully gains access to your personal information for fraudulent purposes, typically for financial gain. This stolen information can include your name, Social Insurance Number (SIN), date of birth, bank account information, and other sensitive data. The identity thief can then use this information to commit various types of fraud. This includes making unauthorized purchases, opening credit accounts, taking out loans, or engaging in other financial transactions in your name.

Victims of identity theft can face serious consequences, including financial losses, damage to credit scores, and legal complications. The stolen information can be acquired through various means, such as phishing scams, data breaches, hacking, and other fraudulent activities.

There are many steps to take that can reduce your chances of falling victim to identity theft:

• Use strong passwords online: weak passwords can often be easy for scammers to hack

• Don’t trust public wifi: your mobile device becomes susceptible to hackers and viruses if you download applications using public wifi

• Review your transactions frequently: check your credit card bills to look for unauthorized transactions or any discrepancies

• Be cautious with personal information: be mindful of what personal information you share online and on social media.

• Shred documents that contain personal information before disposing of them

• Be aware of phishing scams that can lead to identity theft.

Phishing scams are identity theft that occur through electronic communication, making them one of the most common types of fraud. They involve fraudulent messages, generally, emails and phone calls, that pretend to be from trusted sources, like banks. By imitating familiar entities, phishing scams aim to access your personal identifying information. The phishing scam can pretend to be financial institutions, government agencies, healthcare providers, or other reputable entities. 

There are many different ways that scammers employ phishing scams. These scams seek to achieve identity theft by acquiring personal details like names, addresses, and social security numbers. Financial fraud is another phishing scam that hopes to gain access to your banking information. All phishing scams attempt to obtain sensitive information through deceptive tactics. Since phishing scams are common and dangerous, they are an important type of fraud to discuss during Fraud Prevention Month in Canada.

Since phishing scams attempt to imitate familiar entities, they can often be tricky to spot. You might get an unexpected email that looks like it’s from a company you trust, like a bank or utility company. This can make them difficult to identify. However, phishing attacks usually ask you to do something that is not a standard procedure for the entity you believe is contacting you. They might tell you that your account is on hold because of a billing problem or invite you to update your payment details. Reputable entities do not usually send these kind of messages. For that reason, it is a good idea to take a deeper look if you receive a suspicious, unexpected message.

To learn more about how you can spot and prevent phishing attacks, click here.

Online purchase scams occur when fraudsters scam consumers into paying for misrepresented or non-existent products online. These types of scams don’t only happen on suspicious-looking or unknown websites. People also fall victim to online purchase scams on trusted online retailers such as Amazon and eBay. Online purchase scams generally fall under two categories:

1. Sellers list a non-existent item online and then vanish once they receive your payment.

2. Sellers list fake or counterfeit products that don’t function the way they are supposed to once you receive them. This type of scam is common with electronics and branded items.

Over the past decade, online shopping has become increasingly popular. With the increase in online shopping, comes many ways for scammers to engage in online purchasing fraud. These tips can help you avoid online purchase scams:

• Confirm that the online shop is legitimate: legitimate online retailers will display details such as the shop’s physical address, phone number, and email address. They’ll also generally provide extra details such as shipping details, warranties, and return policies.

• Check the reviews before making a purchase: reviews made by other customers can help you better understand how trustworthy the online store is. If there are very few reviews or the reviews seem repetitive or suspicious, there is a chance that the store could be fraudulent.

• Deals that are too good to be true: while it is possible to find great deals through online shopping, some deals are just too good to be true. Even though these deals are tempting, it’s a good idea to be wary.

In summary, Fraud Prevention Month aims to create a well-informed society to reduce and eliminate fraud. Its goal is to empower Canadians to actively work towards minimizing the impact of fraud on individuals and businesses. Through education, awareness, and collective action, the initiative aims to build resilience and reduce the prevalence of fraudulent activities. With scammers constantly changing their tactics to target the public, we should constantly stay updated on how we can protect ourselves from fraud.

Read more about your financial first steps in Canada.

A lesson many newcomers learn when they arrive in Canada is that you need credit to pay for large expenses, buy a car, or purchase a home. However, it’s difficult to borrow without a credit history in Canada. 

Opening a bank account before you arrive in Canada offers many benefits including transferring funds before you travel to Canada. 

For newcomers and international students arriving in record numbers, it’s helpful to understand how the currect inflation rate in Canada can affect how much you pay for housing, groceries, transportation, and other expenses.

Protecting yourself and your family against unexpected danger and risk is what insurance in Canada is all about for newcomers to Canada and international students.

If you became a permanent resident and lived in Canada, even for a short period, filing your first income tax return with the Canada Revenue Agency (CRA) can provide financial benefits.

While there are many things to do, here are the top 10 financial steps to take before you leave for Canada. And when you take these steps, it will prepare you for better financial footing when you arrive in Canada.

1. Open a bank account pre-arrival

Having a Canadian bank account before departure has many benefits. You can use the statement as proof of funds for the immigration officer at the Canadian airport, you don’t have to carry cash and worry about safety, and you have funds ready to use and don’t have to wait a week before a draft clears. Scotiabank is one of the few banks that allow you to open a bank account online when in your home country.

2. Settle your affairs

Pay your debts. Review your insurance policies. Cancel your monthly services and obtain the necessary proof. Sell your property or arrange to manage it from afar. In the stress of moving to another country, it is incredible how easily we overlook details and leave behind loose ends. Never say “I’ll deal with it later,” because settling financial affairs from a distance often turns out costlier and more stressful.

3. Research living costs

Before you leave, research the basic costs in the city where you plan to settle. While you won’t be able to estimate your monthly expenses down to every detail, it’s helpful if you know the following costs:

• Average monthly rent
• Transit
• Utilities
• Medical insurance 
• Special services you may need.

• While you can curb spending on things like food, entertainment, and clothes, you will find that other expenses are less flexible. Ensure you have enough money for the essential living costs.

4. Gather important documents

Bring important documents such as professional licenses, education transcripts, and educational credential evaluation results. If enrolling young children in school, bring their birth certificates, school records, and immunization records.

Other documents include travel and temporary health insurance, medical records, driving license, and marriage certificate.

5. Research what goods you can bring into Canada

Check out the Canada Border Services Agency (CBSA) website for restricted and prohibited goods. You want to avoid paying fines or extra taxes or having to dispose of certain goods.

6. List your necessities

Make a list of everything you need to buy to set up a home, down to forks and spoons. The things we take for granted at home cost money, every single one of them. The list may be long, but you should always have a realistic idea of your needs. This way, you will avoid getting carried away when you shop for your new life in Canada.

7. Increase your savings

The Canadian government requires immigrants to show they have the minimum settlement funds to support themselves and their dependents for six months after arrival. However, it’s better to have more than the minimum.

When you arrive, you need to manage your savings carefully. If you can take on extra work and reduce unnecessary spending. These vital steps financial steps before you leave for Canada will minimize financial stress.

8. Take advantage of cheaper services

Take advantage of cheaper services while still in your home country. For example, in Canada, like in most advanced countries, dental services are notoriously expensive, as are many other medical or cosmetic procedures. Repairs and restorations of items such as artwork or other valuable possessions will, most likely, be more expensive in Canada.

9. Find temporary accommodation

If you don’t have any friends or family willing to offer temporary accommodation, research the cost of short-term rentals well in advance, and make reservations. Pick a cost-effective and convenient location that will allow you to move around easily while you search for a permanent home.

10. Obtain the appropriate financial tools

Know in advance how you will handle your money. Will you carry cash? Will you rely on credit? Many hotels in Canada do not accept cash and require a credit card, and rental buildings require payment by debit card or cheque.

It can be stressful carrying around too much cash, but you can easily lose track of spending solely relying on plastic. So make a point of checking your balance.

Moving to a new country will require a solid financial plan. And when you take these financial steps before you leave for Canada you’ll be better able to manage your finances.

For newcomers, it’s not uncommon to face an uncertain financial situation in your first few years. An emergency fund can help you meet unexpected costs, manage expenses while searching for employment, or stay afloat if you face a job loss. Unexpected expenses can arise at any time, anywhere to anyone. Those who are prepared will walk out without bearing too much harm to their financial health. A good way to make sure you can survive a financial crisis is to save money for an emergency fund. This article covers the different types of emergency funds and how you can save money for each fund. 

What is an emergency fund?

An emergency fund is a pool of cash that is set aside to be used in the case of an emergency. It should be stored completely away from your checking/saving accounts to ensure that you are not tempted to use it for daily expenses.

The purpose of an emergency fund is to keep you financially secure. When an unexpected expense arrives or you lose your job, this fund will help you cover expenses. Your fund could be used for emergencies such as:

1. Urgent medical, dental, or vet bills
2. Critical home repairs (i.e. a leaky roof)
3. Replacements for an essential major appliance (i.e. refrigerator or stove).

That is why it is important to have at least three to six months of living expenses in your emergency fund. This type of fund is called a traditional emergency fund. However, it is not the only type of emergency fund that will help you.

Different types of emergency funds

Emergency funds are a very important asset to have because they can help you get through a financial crisis without bringing much harm to your financial health. Even so, a traditional emergency fund can take years of saving money to build. Fortunately, there are many types of emergency funds, some of which are easier to save money for. Let’s take a look at three different types of funds:

1. A traditional emergency fund

2. Stash of Cash (having cash on hand)

3. Passive income.

Traditional emergency fund

A traditional emergency fund is the biggest fund on this list. Because of this, it can take years to save up money to build a traditional emergency fund. Generally, a traditional emergency fund should cover three to six months of your income. This means that if you lose your job, you will have enough money in your emergency fund to pay all the bills for several months. 

A traditional emergency fund can also be used for things such as health emergencies, auto and home repairs, and any essential need that requires a large amount of money immediately. 

Stash of cash

A stash of cash isn’t a big emergency fund and it is easy to save up money for one. This type of emergency fund can come in handy during a natural disaster or a power outage. Basically, you need cash in any situation when you can’t withdraw money from an ATM. Your stash of cash could be anywhere between $500 to $1500. It should be enough to pay your expenses for a week when an ATM is inaccessible. 

The biggest concern about keeping money at home is safety. Some argue that it is unsafe to have that much money in your home. This challenge can be overcome by hiding that money in a place that is easily accessible, but hard to find. Just make sure it is nothing too obvious like a money pouch or a wallet. 

Most burglaries happen very quickly so hiding your stash of cash in a good place is enough to keep your money hidden. If you are still concerned about safety, you can buy a money safe or locker to hide your money.

Passive income

This third type of emergency fund isn’t even a fund at all. However, during a financial crisis, passive income can prove to be very beneficial. This strategy is also used by countries to avoid a nationwide financial crisis. The main idea here is to diversify your income. Here is how it works:

Most of us have one job that we rely on to pay all of our expenses. But what if you lost that job? How will you pay the bills? To avoid this, you can diversify your income. Simply put, you should find other ways to make money so that you will still have a flow of income that you can rely on to pay the bills if you lose your main job.

You can make passive income in many ways. Some common ways to make passive income are:

1. Buying and selling used items on sites like Kijiji or Facebook Marketplace
2. Fixing broken items and then reselling them
3. Freelancing
4. Starting a dropshipping store (e-commerce)
5. Creating a course
6. Creating a blog.

These are just a few ways to make passive income. There are countless other ways you can make extra money. You can also be a little creative and think of your own way to make money on the side. Overall, your objective should be to diversify your income source so that you can rely on other sources of income during a financial crisis.

Even when there is no emergency, passive income will help you save for your emergency fund and overall, have a higher household income. This will not only help you be financially secure but it will also help you grow financially.

Newcomers should know about the different types of bank accounts to use all the financial resources available to them. Knowing what each bank account is for will help you to put your money in the right place. Opening a bank account is one of the first things you do upon arrival in Canada. A bank account is a place where you can keep your money safe. And buying a house or using a debit card to pay at a grocery store would not be possible without a bank account. As well, a bank account makes you eligible for a loan such as a mortgage and is a convenient way to store your money.

What is a bank account?

A bank account is an account in which you can deposit and withdraw money. These transactions can be both negative and positive. A positive transaction is when you deposit money in your bank, making your account balance go up. A negative transaction is when you take out money from your bank account, making your account balance go down. These transactions decide what your account balance is, or how much money you have in your bank account.

With your bank account, you can store large amounts of money that you can withdraw at any time. However, not all bank accounts will allow you to withdraw money at any time. There are two main types of bank accounts; a chequing account and a savings account.

Opening a chequing account

Opening a chequing account will probably be the first thing you do in Canada because it is the account you will use for your day-to-day expenses. It allows you to withdraw money at any time, making it a convenient way to pay for expenses such as your grocery bill and withdraw money from an ATM. Opening a chequing account will also get you a debit card. A debit card is a card that can make payments without cash. Almost every store in Canada has a debit card terminal so you will almost always have the option of paying digitally from your chequing account.

One thing to keep in mind is that most chequing accounts have a small monthly service fee as long as the account is running. Most chequing account service fees are usually around the $10 range. However, some chequing accounts have no service fees, called no-fee chequing accounts. 

Some chequing accounts also offer ways to avoid paying monthly service fees. Some ways to avoid service fees are to either maintain a set minimum balance or deposit a certain amount of money into the account each month. The minimum deposit is usually around $5000. This means that if you have more than $5000 in your chequing account, you will be charged no fee that month. A minimum deposit usually ranges from $300 to $500. This means you need to deposit at least the minimum deposit amount in order to avoid paying your chequing account fees.

Opening a savings account

Opening a savings account allows you to save and grow your money. Unlike your chequing account, a savings account earns you interest on the money you save. However, a savings account cannot be used for day-to-day expenses. There is a fixed number of transactions you can do from your savings account each month, and that number is usually three. If you do any more transactions than that, you will have to pay transaction fees which make a savings account inconvenient for daily expenses.

Opening both a savings and a chequing account is a great way to manage your money. Together, they have all the features to meet your financial needs. You can keep the money you need for your daily expenses in your chequing account while keeping any additional money in your savings account. That way, you can pay for your expenses while earning interest on the rest of your money.

Now let’s look into some more specialized types of bank accounts that will help you save for the future.

Types of bank accounts to help you save for the future

Canadian banks have many resources to help you achieve your financial goals. Some of those resources include specialized bank accounts. The types of bank accounts covered in this section will help you achieve your financial goals faster. These accounts are all registered, meaning they are registered with the Canada Revenue Agency (CRA) to provide tax shelters. All the specialized accounts listed below are great saving resources because they can help you save on taxes.

The accounts covered in this section are Registered:

1. Retirement Savings Plan (RRSP)
2. Education Savings Plan (RESP)
3. Disability Savings Plan (RDSP)

Learn about Registered Retirement Savings Plans

Opening an RRSP is a great way to save for your retirement. An RRSP works by delaying when you pay taxes on your income. This can be both to your advantage and disadvantage. The reason this is considered a retirement savings plan is because you will be in a lower income tax bracket at the age of retirement. 

When you deposit money into your RRSP, it will come off your income directly and won’t be considered taxable income. For example, if your income is $50,000 and you decide to put $5000 toward your RRSP, the government will only make you pay income tax on $45,000 of your income.

This doesn’t mean you don’t have to pay taxes on that money in the future. When you withdraw money from your RRSP, that money will be considered as your income, and you will be taxed on it. 

So then what is the point of RRSPs? If it saves you from taxes now, only to make you pay taxes in the future, why open an RRSP account? The answer is simple. You will have to pay more taxes when you are earning compared to when you are retired. When you take out money from your RRSP at retirement, you won’t have to pay as much income tax compared to when you were working.

Learn about Registered Education Savings Plans

As the name suggests, opening an RESP will help you save for your child’s education. Here is how an RESP works.

Every time you deposit money into your RESP, the government of Canada will contribute some money to your RESP as well. This money is called Canada Education Savings Grant, or CESG. A basic CESG is 20% on top of your deposit. However, low-income families might qualify for a 40% CESG.

To put this into perspective let’s look at an example.

Let’s say you deposit $2000 to your RESP this year. With a basic CESG, the government of Canada will contribute an additional 20% of that $2000 to your RESP. 

$2000 x 20% = $400.

After your $2000 deposit, your RESP account balance will be $2000 (your contribution) + $400 (government’s contribution), which is $2400.

Learn about Registered Disability Savings Plans

An RDSP is a savings plan intended to help people with disabilities save for a financially secure future. It works very similarly to an RESP. The government contributes money for every dollar you put in your RDSP. Unlike an RESP, however, RDSPs offer incredible returns, even as much as triple your contribution. The money contributed by the government is called the Canada Disability Savings Grant, or a CDSG. CDSGs will vary from person to person so they can even be as high as 300%!

RDSPs are an amazing way to save for the future and ensure a financially secure future for anyone with a disability. They offer some of the best returns on investments in Canada so if you are eligible for an RDSP, look into getting one.

To learn more about registered accounts in Canada, here is an article on RRSPs, RESPs, and TFSAs that explains each of those in detail, as well as some frequently asked questions.

Opening a bank account before you arrive in Canada offers many benefits including transferring funds before you travel to Canada. Also, when you land in Canada, immigration officials may ask you to show proof of funds. When you open a bank account before you arrive, you can easily prove that you have available funds.

Canadian banks are among the most solid, secure financial institutions in the world. The Canada Deposit Insurance Corporation (CDIC) provides insurance to protect eligible deposits made to CDIC-member banks. And for Canadians, knowing their money is CDIC-protected is reassuring!

How to Choose a Bank in Canada

It’s necessary to open a bank account in Canada. Most Canadians rely on their bank to:

• Receive paycheques
• Pay bills
• Save money and earn interest.

To select a bank, you can visit the bank’s website to compare services and fees. While many banks have national branches and automatic banking machines (ABM) networks, it’s best to select a bank that has branches in the community where you will live.

Also, when you open a bank account you will receive a statement with your new mailing address. You can use your statement as identification when you apply for:

• Government services
• A provincial health card, or
• A driver’s license.

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Open a Bank Account with the Right Features

Banks offer a wide range of accounts to choose from, and that can be overwhelming. But keep in mind that most newcomers will require a chequing account to deposit funds, write cheques, and pay bills. You will also need a debit card to deposit and withdraw funds from an ABM or branch. You may also want a higher-interest savings account and credit card.

Related Posts:

Building Credit History in Canada as a Newcomer

How Much Money Will I Need to Move to Canada?

Move to Canada | Transferring Cash & Valuables

Types of Bank Accounts to Save for Your Future

Banking and Finance in Canada: Your First Steps

Banks offer banking service packages at low-cost monthly fees. For example, The Scotiabank StartRight™ Program for Newcomers*¹ offers a number of low-cost options to meet your banking needs.  To help you make your important banking decisions, Scotiabank can explain your options in the language that you prefer and provide personal support at the bank branch. 

Feel free to ask for an explanation if there is anything you don’t understand. The role of the bank employee is to provide quality customer service and any questions you may have. So you don’t need to worry about asking questions or taking up too much of their time.

Most importantly, get answers to your questions and only sign a contract when you’re confident you understand the terms.

Documents You Need to Open a Bank Account

To open a bank account in Canada, you will require the following documents: 

• Permanent Resident Card or Confirmation of Permanent Residence
• One piece of government identification such as your passport or driver’s license

If you’re an international student, you will require a letter of acceptance from a Canadian educational institution and a study permit. 

If you are a foreign worker, you will require a current valid passport and work permit.

To open a bank account, you need to go to a local branch in person and have two original pieces of identification. You will have an interview with a bank employee who will:

• Discuss different banking options

• Suggest the right bank account based on your needs

• Explain your rights and responsibilities, and

• Help you complete the paperwork.

With , you’ll be ready to manage your financial needs and achieve financial success in Canada.

*¹ – The Scotiabank StartRight Program, created for Canadian Permanent residents from 0-3 years in Canada, International Students, and Foreign Workers.

• Learn the basics of banking in Canada