Major Banks in Canada
Canada has a stable and well-regulated banking system. The five largest banks, often referred to as the “Big Five,” include:
- Royal Bank of Canada (RBC)
- Toronto-Dominion Bank (TD)
- Bank of Nova Scotia (Scotiabank)
- Bank of Montreal (BMO)
- Canadian Imperial Bank of Commerce (CIBC)
These banks all have wide branch networks, online services, and special packages for newcomers.
Newcomer Packages
Many Canadian banks offer newcomer banking packages designed specifically for immigrants, international students, or temporary residents. These usually include:
- No monthly fees for the first 6–12 months
- A chequing account (for daily banking)
- Access to a savings account
- A credit card (sometimes without requiring a Canadian credit history)
- Help with setting up direct deposit for pay or benefits
- Guidance on transferring money internationally
- Multilingual support
To open an account, you typically need to provide:
- A valid passport
- A study permit, work permit, or permanent resident card
- A proof of address (can sometimes be a hotel or temporary accommodation)
- A Social Insurance Number (SIN), if available
It’s a good idea to book an appointment and confirm the documents required ahead of time.
How Credit Scores Work in Canada
In Canada, your credit score is a number between 300 and 900 that indicates your creditworthiness. The higher the number, the better. Credit scores are calculated by two main credit bureaus: Equifax and TransUnion.
Your score is influenced by factors such as:
- Payment history (do you pay bills on time?)
- Credit utilization (how much of your available credit you use)
- Credit history length (how long you’ve had credit)
- Types of credit (credit card, car loan, line of credit, etc.)
- Recent credit inquiries (too many applications can lower your score)
A strong credit score is essential for:
- Renting a home
- Getting a mobile phone plan
- Being approved for loans or mortgages
- Qualifying for better interest rates
Building Your Credit History
As a newcomer, you may not have a Canadian credit history yet. Here are a few ways to start building one:
- Apply for a secured or unsecured credit card through a newcomer banking package. Use it for small purchases and pay it off in full each month.
- Pay all bills on time, including utilities, phone plans, and rent.
- Avoid maxing out your credit card—try to keep your balance below 30% of your credit limit.
- Use credit regularly, even if just a little, to show positive behavior.
- Check your credit reports from Equifax and TransUnion once a year (you can do this for free) to ensure accuracy.
