Banking Guide for Indian Immigrants to Canada 2025

Updated March 2025 — bremo.io Canadian Finance Guides for Newcomers

Moving from India to Canada is one of the most common immigration paths in the world, with over 400,000 Indians arriving each year. Whether you are coming on a study permit, Express Entry, or as a family sponsorship, navigating the Canadian banking system is one of your first priorities on arrival. This guide covers everything you need to know about opening bank accounts, sending money home, building credit, and understanding your tax obligations as a newcomer from India.

Opening a Bank Account as a Newcomer from India

Every major Canadian bank offers a dedicated newcomer banking package designed for people who have no Canadian credit history. These packages allow you to open a chequing account, savings account, and often apply for a credit card within days of arriving — without a credit score or employment history in Canada.

The Big 5 Canadian banks each have their own newcomer program:

• TD New to Canada Banking Package — Free chequing for up to 12 months, with unlimited transactions. TD has a large presence in the Greater Toronto Area, where many Indian newcomers settle.
• RBC Newcomer Advantage — RBC offers free banking for up to 12 months and provides pre-arrival support so you can open an account before landing in Canada.
• Scotiabank StartRight Program — Free banking for 12 months, plus a Visa card with a low guaranteed limit even without credit history. Scotiabank is known for strong service in South Asian communities.
• BMO NewStart Program — Free chequing and savings for up to 12 months. BMO also has preferred rates for newcomers on international money transfers.
• CIBC Welcome to Canada Banking — Free chequing for 12 months, with access to CIBC's SmartBanking platform and a newcomer-specific financial advisor.

To open a newcomer account, you will generally need your passport, your immigration document (study permit, work permit, PR card, or letter), and sometimes a second piece of ID. Many banks will open accounts for you before you even arrive in Canada if you apply online.

Sending Money from India to Canada

Once you are settled, you may need to transfer savings from India to fund your life in Canada. You may also want to send money back to family in India. Here are the main options:

• Wise (formerly TransferWise) — Widely considered the most cost-effective way to transfer money between India and Canada. Wise uses the mid-market exchange rate with a transparent flat fee. Transfers are typically completed within 1–3 business days.
• Western Union — Available in thousands of locations across India and Canada. Convenient for cash pickups. Fees and exchange rates are less favourable than Wise for larger amounts.
• Bank wire transfers — Your Canadian bank can receive wire transfers from Indian banks (SWIFT transfers). Fees typically range from $15–$45 per transfer on the Canadian side, plus whatever your Indian bank charges. Exchange rates may not be optimal.
• Remitly and Xoom — Popular app-based services with competitive rates for India-Canada transfers. Often faster than bank wires for smaller amounts.

Note that India's Reserve Bank of India (RBI) governs how much money you can send out of India under the Liberalised Remittance Scheme (LRS). As of 2025, the LRS limit is USD 250,000 per financial year per individual. For larger transfers, consult your Indian bank and a cross-border tax advisor.

Building Credit as a Newcomer in Canada

Canada's credit system is separate from India's. No matter your CIBIL score or credit history in India, you start from scratch in Canada. Building credit quickly matters — it affects your ability to rent an apartment, get a cell phone plan, or eventually qualify for a mortgage.

• Secured credit cards — You deposit cash as collateral (e.g., $500) and get a card with that limit. Use it for regular purchases and pay in full each month. After 6–12 months, your score improves significantly. Most banks offer secured cards through their newcomer packages.
• KOHO Credit Building — KOHO offers a credit building feature where a small monthly amount is reported to Equifax as credit activity. It requires no credit check and costs a small monthly fee. Ideal for newcomers who want to build credit passively.
• Rent reporting services — Services like Rentreporters.ca can report your rent payments to credit bureaus, turning your rent into credit-building history.
• Become an authorized user — If you have family or a trusted contact already in Canada with good credit, being added as an authorized user on their card can help establish your file.

Tax Obligations for Indian Immigrants to Canada

Canada taxes residents on their worldwide income. Once you become a Canadian tax resident (generally when you establish significant residential ties), you must report income from all sources globally to the Canada Revenue Agency (CRA).

• Worldwide income reporting — Any income you earn from India — rental income, dividends, freelance work — must be reported on your Canadian tax return.
• Canada-India Tax Treaty — Canada and India have a tax treaty to prevent double taxation. Income already taxed in India may qualify for a foreign tax credit in Canada.
• T1135 Foreign Income Verification — If you own foreign property (including Indian bank accounts, investments, or real estate) worth more than CAD $100,000, you must file a T1135 form with the CRA each year.
• Departure tax in India — Consult a cross-border tax professional about your tax status when you leave India, especially if you hold property, business interests, or significant investments.

First Steps: SIN, OHIP, and Settlement Services

Your Social Insurance Number (SIN) is the gateway to working and banking in Canada. Apply at a Service Canada office or online at canada.ca as soon as you arrive. You will need it for your bank account, employment, and tax filings.

If you are settling in Ontario, note the 3-month waiting period before OHIP (provincial health insurance) coverage begins. During this gap, purchase private health insurance — many newcomer banking packages include referrals to affordable short-term coverage.

Settlement organizations across Canada offer free services to newcomers: resume help, language classes, community connections, and financial literacy workshops. ACCES Employment, COSTI, and the Centre for Immigrant and Community Services are well-known providers with strong reach in Indian communities.

Practical Banking Tips for Newcomers from India

• Use your newcomer bank account for the first 12 months to avoid fees, then reassess based on your actual banking needs.
• Set up Interac e-Transfer for payments to landlords and roommates — it is the standard way Canadians pay each other.
• Avoid payday lenders entirely. Interest rates are predatory and will damage your credit file.
• After 12 months of responsible credit card use, apply for an unsecured card with rewards — Air Miles, Aeroplan, and Scotiabank Scene+ are popular among newcomers.
• Open a TFSA (Tax-Free Savings Account) as soon as you have a SIN. Any Canadian resident 18+ can contribute up to $7,000 per year (2025 limit) and all growth is tax-free.