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WELCOME TO CANADA
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TAKE YOUR FIRST STEPS IN CANADA
From documents to resources to money management, here is what to do first
The words “Welcome to Canada” are probably still echoing in your ears. You have just recently landed in Canada and are now faced with numerous decisions and plans to make. How to get help … how to choose a bank to deposit your savings … how to access the health care system … and more.
The list is long and can seem confusing at times. The best way to approach it all is to itemize, make a plan of action and check off things you accomplish as you go.
So let’s begin …
DOCUMENTS TO GET
Get your wallet-sized permanent resident (PR) card. It’s convenient proof of your permanent resident status. You must submit your Canadian address to Citizenship and Immigration Canada within 180 days after landing and your PR card will be mailed to you.
Apply for your Social Insurance Number (SIN) card. Without it, you cannot get a job or apply for any government assistance or credit. Applications for a SIN card can be made in person at a Service Canada location. Find one at servicecanada.gc.ca.
Apply for your health care card. Application forms for these cards are available from doctor’s offices, hospitals and most pharmacies, or by calling the provincial medical services authorities. Since there is a three-month waiting period for coverage in Ontario, B.C., Quebec and New Brunswick, don’t delay in your application. Ensure you have temporary private health coverage to cover your family during the waiting period. Also look into private insurance for uninsured health care services such as dental work and eye care. Talk to your banker or another private insurer about these services. If you’re already employed, your employer may offer extended health care coverage to pay for uninsured health care services like dentistry, optometry, massage therapy, chiropractic care and more.
RESOURCES TO ACCESS
Don’t miss the first stop! Hopefully before you left the airport, you visited its newcomer welcome centre. These kiosks will have pamphlets and resources to help you in your first days in Canada.
Visit a local immigrant settlement agency in your community. Such non-profit organizations receive government funding to offer newcomers services, such as free ESL training, settlement counselling, employment workshops and more. Taking English classes is perhaps the most important start to improve your language skills.
Further your training. Whether you want to keep improving your English, learn about Canadian corporate culture, upgrade your training or find an immigrant bridging program to transition back into your field of expertise, research what programs are available at local educational institutes and colleges. Your settlement agency counsellor can help! Talk to your The essential document checklist bank about the possibilities of getting a small loan Do you have? or microloan to help with ✔ permanent resident card tuition. ✔ social insurance number card
Validate your profes- ✔ public health care card sional credentials. Con- ✔ driver’s licence tact a foreign credentials ✔ savings and chequing accounts assessment service to have ✔ banking debit card your credentials evaluated ✔ secured credit card in comparison to Canadian standards. Or, if you’re in a licensed profession, contact the provincial licensing board regulating your industry. Not sure if your industry is regulated? Find out more about your industry and jobs available on the Government of Canada’s Job Bank website (jobbank.gc.ca). Enrol your kids at school. Every child between the ages of five and 16 is entitled to, and in fact required to, attend school. Ask at public schools in your neighbourhood or contact the local school board for guidance.
MONEY TO MANAGE
Open an account at a financial institution near your home. It’s important to start a relationship with a bank as soon as possible, so you can manage your money, deposit your savings, pay your bills and begin building a credit history. Manage your savings well. The money you brought with you is going to have to last you for a while, until you start earning an income in Canada, so be frugal. Cost of living can be expensive in Canada, especially in cities like Vancouver and Toronto, with high rental housing, transportation and food prices. Create a budget that focuses on your needs versus wants to get you through your transition in Canada. Start creating a credit history. If you want to be able to take out a loan or a mortgage to buy a home in the near future, it’s imperative you start building a Canadian credit history. Banks look at your history with loans, paying bills on time and so on to determine your ability to handle debt before lending you any money.
LICENCE TO DRIVE
Get your Canadian driver’s licence. An international licence is only valid for a few months. Check with your provincial motor vehicle branch on the rules in your province and start the process to get your Canadian licence. If you have brought a car or purchased a new one, ensure you get it insured as well!
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FINANCIAL FIRSTS
Opening a bank account, managing your savings and more money tasks
When you arrive in Canada, your most immediate financial task is to open a Canadian bank account for your day-today banking.
Opening a Canadian bank account keeps your money safe and makes it easy to access your money when you need it. Generally, you will want to open a chequing account for day-to-day banking and a savings account for money you don’t need to access often. Your bank representative will walk you through the set-up process and help you choose the right ones for you.
When you open your account or accounts, your bank will provide you with a debit card, also known as a bank card. Having a debit card means you can access your money through automatic banking machines (ABMs) and can pay for purchases at stores without using cash. Most stores and service providers, including restaurants, grocery stores and more, accept debit cards in Canada.
You can also ask to have online banking set up for your account, which is an excellent way to maintain your finances. Online banking allows you to log into your account, where you can make payments and transfers from your home computer. You can also set up preauthorized bill payments; this means that you can have your cable, internet, hydro and phone bills come automatically out of your account at a predetermined day that you choose every month.
Most Canadians rely on their banking system to receive their paycheques by direct deposit. You may also use your account statements as proof of address to obtain important Canadian documents.
When you are ready to open your new account, bring two pieces of personal identification with you. You may need an appointment to open an account, depending on the bank.
You’ll most likely choose only one bank and do all your banking with that institution, including anything related to the following:
• chequing and savings accounts • mortgage and financing options • credit card options • traditional loan options • line of credit financing • business financing • online banking • automated banking machine (ABM) card and access • personal investing and savings options
Savings starting to dwindle? After establishing your bank accounts, one of the most important financial steps you’ll need to take after you land — even before you start job or house hunting — is to decide how you will spend the savings you brought with you.
Deciding on what you can and can’t afford during your first few months will help you get through both the initial settlement process and the period where you are searching for employment and have yet to secure a steady income. You can do this by dividing your money and allotting it appropriately for the following expenses:
• General cost of living: this category includes food, phone, heat 20
and electricity (if not included in your rent/housing costs), laundry, cable and internet services, etc.
• Shelter: this includes rent or mortgage payments (for rent, anticipate that you will have to pay first and last month’s rent).
• Transportation: the cost of public transport or the cost of purchasing a car, including gas cost and insurance.
• Unexpected expenses: this can include emergency medical costs, costs associated with your children’s or your own schooling, unexpected purchases you’ll have to make, etc.
• Back-up savings: finally, it’s a good idea to keep a percentage of your money saved in case of an emergency.
Outside of these general categories, you will want to refrain from spending your principal savings until you’ve gained employment. Creating a budget will help you do this.
Preparing a budget Once you’ve figured out what your key expenses will be on a weekly and monthly basis, you’ll want to set up a budget for managing your financial resources and expenditures. Once you do have an income, you’ll want to reassess your budget in a way that allows you to account for allotting a percentage of your money toward savings. In your first days in Canada, it’s wise to adopt a conservative spending mindset. Assess what you need versus what you want. At this stage, you’ll want to avoid making any purchases that are unnecessary or extravagant.
TD is the #1 ranked financial institution among newcomers to Canada.
The TD New to Canada package1 can help give you the financial foundation you need to settle successfully.
Open an account with no monthly fee.2 Get a TD credit card even with no credit history.3 Enjoy no fee money transfers.4 And get a bonus interest rate on your savings account.5 It’s our way of saying welcome, you’re going to like it here.
For details, visit a branch or tdcanadatrust.com/newtocanada
1You must meet the eligibility requirements and provide the required identification to qualify for the New to Canada Package. We reserve the right to change, extend or withdraw this offer at any time. 2Unlimited Chequing Account or All-Inclusive Banking Plan (the “New Chequing Account”) must be opened in order to waive the monthly account fee. The monthly account fee will only be waived for the first 6 months that the New Chequing Account is open and is limited to one account per person and the type of chequing account cannot change during the 6-month period. The monthly account fee waiver only applies to the regular/pro-rated monthly fee; all other fees will continue to apply. If the minimum monthly balance is maintained in the New Chequing Account in any given month during the first 6 months that the account is open and the monthly account fee is not charged, no monthly account fee waiver will be applied for that month. 3Subject to TD’s credit granting criteria. 4Offer only available to the New Chequing Account. Offer is limited to one account per person. Customers will receive a full rebate of one TD money transfer fee per month commencing the end of the following month, following the month the account was opened and will be effective for 6 months thereafter. The rebate only applies to the outgoing TD money transfer fee and not any other applicable fees, including any fees earned during foreign exchange transactions. TD will rebate the most expensive TD money transfer fee that occurred in the applicable month. 5Savings Account bonus offer only applies to a TD Every Day Savings Account or a TD High Interest Savings Account that is opened on or before the day the New Chequing Account was opened. Bonus offer is limited to 1 savings account per person and the type of savings account cannot change during the Offer Period. The bonus rate of 0.75% is in addition to the posted rate on the savings account and will be applied to the savings account commencing no later than 10 business days after the New Chequing Account was opened and will be effective for 6 months thereafter (“Offer Period”). Regular posted interest rates will apply after the end of the Offer Period. Bonus interest will be calculated separately and paid monthly. Interest rates are subject to change without notice. ®The TD logo and other trade-marks are the property of The Toronto-Dominion Bank.
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Here is a sample budget to help you get started:
Monthly expenses • rent or mortgage payments: $800-$1,500 • hydro: $45 • water: $25 • car payments: $300-$500 • car insurance: $100-$300 • public transport pass: $100 • cable (basic service): $35 • internet (basic service): $45 • home phone (basic service): $30 • cell phone (basic service): $45
Weekly expenses • groceries: $100-plus • laundry: $10 • car fuel: $80 • other costs (i.e., household items, clothing): $50-$100
Other expenses • large purchases like computers and furnishings: $1,000+ • back-up savings: at about 20 per cent of your overall monthly amount
While it is tempting to start your new life in Canada by spending money on new furnishings and tourist attractions, it is not always financially sensible. Visit websites such as Craigslist.org and Kijiji. ca to find free or low-cost items. Garage sales are a great place to buy used furnishings and household items. Library cards are free and allow you to borrow not only books, but also music and DVDs. There are opportunities to cut down costs if you look.
Establishing credit Ensuring a successful financial future involves establishing credit and building a solid Canadian credit history.
The best way to start building a credit history is to get a secured Canadian credit card, such as a Visa card. You will have to pay a deposit upfront and will only be able to access credit up to that amount.
Next is an unsecured credit card, which will provide you with a credit limit.
Again, stay conservative. Strive to pay off your credit card monthly, rather than accumulate debt by using the card to pay for things you can’t afford.
Banks will usually expect a period of up to 18 months of clean credit history before considering larger loans or mortgages. There are other important factors that are also taken into consideration, including your income, your assets, your tendency to save money and your net worth (i.e., your assets minus your liabilities/debts).
Applying for a credit card
As a newcomer, part of establishing a Canadian credit history involves using credit cards in an ongoing, responsible matter. When used responsibly, credit cards can help you establish good credit. However, if used irresponsibly, they can cause serious financial problems.
The big three credit card companies in Canada include MasterCard, Visa and American Express. Your bank will explain the various options to you. Some also come with incentives or benefits like Aeroplan reward miles or travel medical insurance coverage. Others may not bring any rewards, but may have lower interest rates.
To apply, you’ll have to go through a credit check and, if approved, the credit card company will determine the amount that will be available on the card. Once you use the card and spend some of the principal amount on it, you’ll have to pay back a minimum amount of it on a monthly basis. Better yet, pay it off each month.
With most credit cards, you can expect to pay a relatively high interest rate, which is why it’s good to only use your card when necessary or when you know you have enough cash in the bank to pay off the entirety of your month’s purchases when your bill comes.
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