Updated: April 2025  |  bremo.io financial guides

Banking as a Permanent Resident in Canada

Becoming a permanent resident (PR) of Canada opens up financial products and pathways that are not available to temporary residents. From newcomer credit cards and mortgages to TFSAs and full access to government benefits, your PR status is the key that unlocks Canada's full financial system. This guide walks you through everything you should do with your banking and finances after receiving PR status.

What Changes When You Become a Permanent Resident

As a PR, you have nearly all the same financial rights as a Canadian citizen. You can work for any employer without restrictions, access all government benefit programs, open any type of bank account or investment account, apply for any credit product, and eventually apply for a mortgage. The main thing you cannot do as a PR that citizens can is vote federally — but financially, you're on equal footing.

Your First Banking Steps as a New PR

1. Apply for your SIN immediately at Service Canada if you don't already have one
2. Open a chequing account at a major bank or credit union — bring your PR card (or COPR) and passport
3. Apply for a credit card — either a newcomer card with no Canadian credit history required, or a secured card
4. Open a TFSA — this is one of the best financial tools available to Canadian residents and you should use it from day one
5. Enroll in CRA My Account to track your tax information and benefit eligibility

Newcomer Banking Programs for PRs

All five major banks have programs specifically for new permanent residents:

• RBC Newcomer Advantage — 1 year free everyday banking, newcomer credit card, 1 free international transfer
• TD New to Canada — 1 year free everyday banking, credit card with no Canadian credit history required
• Scotiabank StartRight — 2 years free everyday banking, credit card, free safety deposit box
• BMO NewStart — 1 year free everyday banking, starter credit card
• CIBC New to Canada — 1 year free everyday banking, safety deposit box, credit card

These programs are generally available to PRs within their first two to three years of landing. Bring your PR card when you apply.

Building Credit as a New Permanent Resident

Your foreign credit history does not automatically transfer to Canada. You are starting fresh with Canada's credit bureaus (Equifax and TransUnion). The fastest way to build a strong score:

• Get a credit card immediately and use it for all everyday spending
• Pay the full balance every single month — never carry a balance
• Keep your utilization below 30% (don't spend more than 30% of your limit)
• After 6 months, check your score for free via Borrowell or Credit Karma Canada
• After 12 months, apply for a second credit card to increase your available credit and diversify your credit file

TFSA: Open This Immediately

The Tax-Free Savings Account (TFSA) is one of Canada's best financial tools. As a PR who is 18 or older with a valid SIN, you can open a TFSA immediately. Key facts:

• Contributions grow tax-free — no tax on interest, dividends, or capital gains inside the account
• Withdrawals are tax-free and the room is restored the following year
• The annual contribution limit in 2025 is $7,000
• Contribution room accumulates from the year you become a Canadian resident (18+), not from birth

Use your TFSA for a high-interest savings account at minimum. Many PRs also invest their TFSA in index funds through a discount broker like Questrade or Wealthsimple.

RRSP: When Can You Start?

The Registered Retirement Savings Plan (RRSP) requires earned income in Canada to generate contribution room. You accumulate 18% of your prior year's earned income as RRSP room each year (up to an annual maximum). If you arrived in Canada mid-year and worked, you'll have some RRSP room. If you worked a full year in Canada, you'll have more. Your RRSP room shows on your Notice of Assessment from CRA after you file your tax return.

Mortgage Eligibility for Permanent Residents

As a PR, you can apply for a mortgage in Canada. Lenders will look at your income, credit score, and down payment. If you have less than 20% down, your mortgage must be insured through CMHC, Sagen, or Canada Guaranty. Some lenders offer special programs for new PRs with limited Canadian credit history — RBC, TD, and Scotiabank all have these. Typically, with a larger down payment (10–20%), a newcomer with 12+ months of employment and a growing credit file can qualify.

Government Benefits Available to PRs

• Canada Child Benefit (CCB) — Monthly payments for families with children under 18
• GST/HST Credit — Quarterly payments to low-to-moderate income Canadians
• Employment Insurance (EI) — Income support if you lose your job (after working enough insurable hours)
• Canada Pension Plan (CPP) — Retirement pension based on contributions during your working years
• Old Age Security (OAS) — Monthly pension after age 65 (requires 10+ years of Canadian residency)

All of these require filing annual tax returns and having a SIN. Apply for the CCB through CRA My Account if you have children — do not delay, as retroactive payments are limited.

Sending Money Internationally as a PR

Many PRs continue to support family abroad. Use Wise, Remitly, or Western Union rather than bank wire transfers — you'll save $15–$25 per transfer plus get better exchange rates. For regular monthly transfers, setting up a recurring transfer on Wise or Remitly can save hundreds of dollars per year.