Banking as a New Permanent Resident
Congratulations on becoming a Canadian Permanent Resident! One of the most important first steps is establishing your banking relationship. As a PR, you have full access to all Canadian financial products — the same as a Canadian citizen — and you can start building your credit history right away.
Best for New PRs
KOHO
- $100 sign-up bonus (code: 45ET55JSYA)
- No credit check needed
- Earn cash back on purchases
- Free Mastercard prepaid card
- Budgeting tools built-in
Best Big Bank for PRs
TD New to Canada
- Free for first year
- Build credit immediately
- Open account pre-arrival
- TD Secured Visa available
- Large ATM network
Best Credit Builder
Scotiabank StartRight
- Free for PRs in first year
- Secured credit card included
- Scene+ rewards program
- RRSP/TFSA accounts available
- Free year 1 package
Best No-Fee
Simplii Financial
- $0 monthly fee forever
- Unlimited transactions
- High interest savings option
- Backed by CIBC
- No minimum balance
Best Savings Rate
EQ Bank
- No monthly fee
- High interest savings
- Unlimited Interac transfers
- CDIC insured
- Budget-friendly features
Best Full-Service
RBC Newcomer Advantage
- 1 year free banking
- Free international transfers
- Dedicated newcomer advisors
- RBC rewards program
- RRSP/TFSA/FHSA accounts
Financial Priorities for New Permanent Residents
1
Open a chequing account — Your primary account for day-to-day transactions and receiving your salary
2
Apply for a secured credit card — Start building your Canadian credit score immediately. This affects your ability to get a mortgage, car loan, or apartment lease
3
Open a TFSA (Tax-Free Savings Account) — As a PR, you accumulate TFSA contribution room ($7,000/year in 2025). Any growth inside is completely tax-free
4
Start RRSP contributions once working — Reduces your taxable income and grows tax-deferred
5
Consider an FHSA — First Home Savings Account. If you've never owned a home, you can contribute $8,000/year (up to $40,000 lifetime) tax-free toward your first home purchase
Building Credit as a New Permanent Resident
Your credit history from your home country does not transfer to Canada. You start with no Canadian credit score. Here's how to build it fast:
- Get a secured credit card — Deposit $500–$1,000 as collateral, use it monthly, pay in full
- Apply for a store card — Canadian Tire, PC Financial, or department store cards are easier to get
- Never miss a payment — Payment history is the most important factor (35% of your score)
- Keep utilization low — Don't use more than 30% of your available credit
- Check your score regularly — Borrowell and Credit Karma offer free monthly Equifax scores
Frequently Asked Questions
What documents do I need to open a bank account as a permanent resident?
You typically need your passport, your PR card (or Confirmation of Permanent Residence document if your card hasn't arrived yet), and a Canadian address. A SIN is helpful but not always required to open a basic chequing account.
Can a permanent resident open an RRSP or TFSA?
Yes. Permanent residents have the same access to registered accounts (RRSP, TFSA, FHSA, RESP) as Canadian citizens. TFSA contribution room starts accumulating as soon as you become a Canadian resident for tax purposes, regardless of your immigration status.
How long does it take to build a good credit score as a new PR?
Most newcomers can achieve a credit score of 650–700 within 12–18 months of consistent credit use. To get above 750 (excellent), it typically takes 2–3 years of responsible credit management, including on-time payments and low utilization.
Does my credit history from my home country count in Canada?
Generally no. Canadian credit bureaus (Equifax and TransUnion) don't import foreign credit histories. However, some newcomer programs (like Nova Credit, which partners with certain US, Mexico, India, and other countries) can sometimes translate foreign credit. Ask your bank about this option.
Is KOHO a good option for permanent residents?
Yes. KOHO is excellent for new permanent residents because it requires no credit check, has no monthly fees, and offers a $100 cash bonus (use code 45ET55JSYA). It comes with a Mastercard prepaid card and cash back on purchases. It can be opened entirely online in minutes.
Should I keep my foreign bank account after moving to Canada?
Yes, for the first few months at minimum. Keep it active to receive any remaining payments from your home country and to have a backup. Once you're settled with Canadian accounts and a credit card, you can decide whether to close it. Note: you must report foreign assets over $100,000 CAD to the CRA annually.