Managing Money

People often use 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. Canadian lenders typically check each applicant’s credit files at one of the main credit reporting agencies (Equifax Canada and TransUnion). Without a credit history, newcomers may need a loan co-signer with a Canadian credit rating, and considerable assets as collateral. Or, newcomers must demonstrate a history of stable income in Canada to receive a loan. Fortunately, you can start to build your credit record and history shortly after you arrive in Canada.

Upon arriving in Canada, managing money effectively is a priority.These personal finance tips can help you build a budget. It’s also important to save for emergencies and use credit effectively.

Before you leave, research the cost of living 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 to know the following costs: -average monthly rent – transit – basic costs for food and utility bills, and – medical insurance. While you can curb spending on things like entertainment and clothing, you will find some expenses are less flexible. You want to ensure you have enough money for essential living costs. Find out more about the cost of living in Canada. Research salary ranges for your job or profession to estimate how much you can expect to earn and compare it to the cost of living.

Opening a Canadian bank account is easy. And, if you open an international account before you arrive you can easily show proof of funds (minimum funds you need to settle in Canada).   When you arrive in Canada you can visit a bank branch to set up your chequing (for daily transactions) and savings (for long-term savings) accounts. Opening a bank account at a local bank will allow you to manage your finances and avoid significant transfer fees from your accounts back home. Pick a bank close to your home or work for convenience, and it’s smart to set up online banking.