Dreaming of a fresh start? If you're one of the 400K newcomers to Canada, here’s how to build savings and thrive from day one

Moving to Canada is more than just arriving in a new country — it’s embarking on a journey toward stability, opportunity, and financial security.

Whether you're planning your immigration in 2025 or already navigating life here, here's a few tips and insights on building your savings and protecting your financial profile.

Building savings in Canada

Getting a head start on savings and investing can set you up for long-term success. Here’s how newcomers to Canada can begin this journey:

Emergency fund first

Look for no‑fee, high‑interest accounts. Aim to save three to six months of living expenses in a high-interest savings account.

Registered accounts: TFSA and RRSP

TFSA (Tax-Free Savings Account): Contributions grow tax-free and withdrawals don’t affect your taxable income — ideal for short- and medium-term goals.

RRSP (Registered Retirement Savings Plan): Contributions reduce taxable income, and earnings are tax-deferred — great for long-term savings.

Both accounts are accessible to residents with a Social Insurance Number (SIN).

Low-cost investing options

Consider index funds or ETFs through platforms like TD Direct Investing — which often offer new investors commission-free trades or cash rebates.

Start small, with diversified portfolios, and reinvest dividends to harness growth.

Automate and monitor

Set up automatic contributions to your TFSA or investment account — consistency builds wealth.

Review your portfolio annually; adjust as your income and goals evolve.

Use newcomer incentives

Banks and credit unions often offer bonuses for saving or investing and incentives for newcomers, so take full advantage of all the perks offered by financial institutions.

Putting It All Together: Your Financial Roadmap

1. Open a chequing account via a newcomer package (e.g., TD or National Bank) for perks.
2. Launch a high-interest savings account and build an emergency fund.
3. Register and contribute to TFSA and/or RRSP based on your goals.
4. Sign up for investing (e.g., TD Direct Investing) and start with low-cost ETFs or index funds.
5. Automate contributions and revisit strategy each year as your income grows.

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Why you need to build up credit

In Canada, lenders report the relevant details of your credit accounts (whether you’re paying on time, how much of a balance you carry and more) to two major credit bureaus: Equifax and TransUnion.

From there, the credit bureaus give you a three-digit score between 300 and 900.

Most of the time, you’ll need a credit score to:

• Rent an apartment or buy a house
• Take out credit cards
• Take out a private student loan
• Apply for a job
• Get utilities to connect to your home
• Get a cellphone
  
  

How to build up your credit

First of all, you want to get an idea of how far you need to go to qualify for better interest rates or become a better borrower. Fortunately, you can check your score for free online.

Now that you know your baseline, remember there are five factors that go into calculating your credit score. While your payment history and level of debt carry a lot of weight, there’s also how long you’ve had your credit accounts, what mix of credit you carry and how many new accounts you have.

With that in mind, here are five of the best ways to build up your credit as an immigrant to Canada looking to build a healthy financial profile.

1. Apply for an unsecured credit card: Apply for a Canadian credit card as soon as possible. Many of the big banks offer new immigrants a credit card with a low line of credit as part of their initial banking package, including RBC's “Welcome to Canada” package or Scotiabank's “Start Right” program. Once you get your credit card, start using it right away.

2. Apply for a secured card if need be. Not everyone will be eligible for an unsecured credit card without credit history. Those who find themselves in this position should instead consider applying for a secured credit card, which requires a refundable security deposit (typically matching the card’s credit limit). The advantage of using a secured card is that your repayment habits will be reported to the credit bureaus, allowing you to gradually build the all-important credit history you need.

Could the best credit card in Canada be the RBC® British Airways Visa Infinite, with a $1,176 first-year value? Find out by comparing more than 140 cards in just 5 seconds — your future self will thank you!

3. Apply for a mobile phone. Some phone carriers, such as Telus, specifically state that no credit history is required to get an account, and that they will report your post-paid subscription to the credit bureaus. While you may be tempted to get a pre-paid plan, a post-paid plan will help you build a credit history.

4. Pay your credit card bill on time. Whether paying the minimum or more, make your credit card bill payments on or before the due date. Thirty-five percent of your credit score is based on payment history. If you’re late, even by an hour, your credit history will be negatively impacted. Paying on time does not mean paying your entire balance. Paying on time means paying the monthly minimum payment at the very least, which is shown on your credit card statement. Understand how long you have after receiving your credit card bill to make your payment, which is called the "grace period" — it’s usually around 21 days. To help you pay on time, you can set-up automatic monthly payments through your bank account.

5. Pay off your balance in full each month. While carrying a balance and making your payments on time will help your credit history more than paying in full each month, we would never recommend carrying a balance just to build your score. This is actually a myth when it comes to what affects your credit score, so be careful with your balance. Using your credit card and paying it off every month will help build your credit score as well, just not as fast. However, it’s a better strategy than paying excessive interest charges just to build a credit history.

6. Get different types of credit. The credit bureaus love people with different sources of credit. So if you can manage to get a credit card, cell phone, or car loan (usually with a large deposit), it will help you build a credit history with a strong score that much faster.

7. Build your credit score with some help. Use tools to help you build your credit score faster. If money is tight, consider a free tool although the options for real-time tracking and personalized insight may be limited. If you have a bit of funds to commit to building a credit score, consider paying for a tool that helps you track and improve your credit history using personlized recommendations.

Financial institutions will usually start using your credit history after it’s been established in good standing for a period of 18 months. But several other factors will be considered as well, including your savings history, net worth, income and ability to provide a security deposit — such as a down payment on a mortgage. These strategies should go a long way towards establishing a Canadian credit history for new immigrants.