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Tag: newcomer

  • New to Canada? Here’s how the Scotiabank newcomer offer can help – MoneySense

    As a newcomer, you can get personalized financial advice and apply for credit cards that don’t require a lengthy Canadian credit history. This gives you the chance to start building your credit score right away, so you can qualify for higher credit limits or better borrowing terms as you’re setting up life in a new country.

    Why your credit score matters

    It’s hard to overstate just how important your credit score is. This three-digit number reflects your financial habits and history, and it’s the number lenders and card issuers look at when they’re deciding whether or not to approve your applications for credit. 

    Essentially, your credit score tells lenders how risky you are to lend to. 

    People with low credit scores or those who don’t have a credit score at all will likely find it much harder to be approved for loans, credit cards, and mortgages. On the other hand, people with high credit scores will not only be more likely to be approved, but also may have access to better interest rates and loan terms.

    How to establish a strong credit score in Canada

    The credit monitoring bureaus, Equifax and TransUnion, look at your personal financial factors to determine your score, but they don’t weigh these factors equally. Here are the rough numbers:

    • 35% of your score is determined by your payment history: This is your record of loan or credit payments. Since missed payments can damage your credit score, always make at least the minimum payment for all your accounts each month.
    • 30% of your score is influenced by credit utilization: This is how much available credit you’re using. Using around 30% or less of your available credit will help boost your score.
    • 15% of your score is determined by your credit history: Newcomers are at a distinct disadvantage with this factor since it takes into account the age of your Canadian credit accounts—foreign accounts don’t count.
    • 10% of your score is dependent on your credit mix: Credit bureaus want to see a mix of credit types to see if you’re responsible with your finances. Having a mix of auto loans, lines of credit, credit cards, and even student loans on your history can help your score.
    • 10% of your score is determined by requests for credit: Lenders pay attention to how often your credit report is pulled, like when you’re looking for new credit. Many pulls in a short time can indicate you’re struggling financially, so limit the number of credit applications you submit to protect your credit score.

    Many of these factors take time to develop, which can make it difficult for newcomers to build a good credit score. Fortunately, Scotiabank has a powerful credit-building tool for new Canadians.

    How the Scotiabank StartRight® Program works

    As most newcomers to Canada find out quickly, you typically can’t bring your credit history with you when you move, so it’s hard to access loans and other credit products. That’s where Scotiabank’s StartRight® Program comes in.

    StartRight™ allows you to set up your personal finances through Scotiabank, including a no-monthly fee chequing account for the first year, credit cards and specialized mortgage financing. 

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    As a Scotiabank’s StartRight® Program member, you can get: 

    • Up to $700 when you bundle an eligible banking package, savings account, and registered account.
    • No monthly account fees on a Preferred Package chequing account for the first year.
    • Unlimited no-fee international money transfers from a Scotiabank chequing or savings account.
    • Apply for credit cards even without an established Canadian credit history, so you can start building a credit score as soon as you’re approved 
    • 10 free equity trades when you invest at least $1,000 in a new Scotia iTrade® account.

    You can make an appointment at any Scotiabank location to join StartRight™ if you meet the qualifications.

    Permanent residents must show one piece of Canadian government-issued ID along with a permanent resident card or Confirmation of Permanent Residence (COPR) document. Foreign workers must show a work permit and one piece of Canadian government-issued ID.

    FAQs

    This article is provided for information purposes only. Any information, data, opinions, views, advice, recommendations or other content included in this article are solely those of the author and not of Scotiabank or its affiliates. It is not to be relied upon as financial, tax or investment advice or guarantees about the future, nor should it be considered a recommendation to buy or sell. Information contained in this article is subject to change without notice.

    This is a paid post that is informative but also may feature a client’s product or service. These posts are written, edited, and produced by MoneySense with assigned freelancers.

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    About Jessica Gibson


    About Jessica Gibson

    Jessica Gibson is a personal finance writer with over a decade of experience in online publishing. She enjoys helping readers make informed decisions about credit cards, insurance, and debt management.

    Jessica Gibson

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  • Balancing personal and financial goals as you build a new life in Canada – MoneySense

    For many newcomers to Canada, personal and financial goals can feel like they are pulling in opposite directions. You want to say yes to everything—travel, dinners out, live music, social events—but you’re also thinking about building an emergency fund, saving for retirement, and staying out of debt. Add to that the cost of settling in, a limited credit history, and (in many cases) living off savings or a survival job, and it becomes clear that trying to do it all right away can be risky.

    This article isn’t about me, but I will say this: my family and I chose to focus on building a strong financial foundation before chasing all the extras. At the same time, we were very aware of how easy it is to fall into the trap of grinding so hard that you lose steam. If the journey to build a better life becomes joyless, it can be hard to remember why you moved in the first place.

    You can’t do everything at once—and that’s okay

    The truth is that it’s hard to prioritize when you’re trying to settle in and feel like you belong. The urge to do and see everything is real. But when your early days in Canada are being funded by personal savings—or worse, high-interest credit—impulsive spending can get dangerous fast. 

    Without a financial plan, it’s easy to overspend—and because newcomers often have no credit history, the only credit products available may come with steep interest rates and strict limits. One misstep can quickly spiral. Instead of trying to do everything, consider what really matters most in the short term. What helps you feel grounded? What creates forward momentum? What is truly urgent, and what can wait?

    Focus on the foundation

    There’s a difference between building a life and decorating it. In those early months, start with the essentials—the things that give you stability, reduce your stress, and set you up for long-term success.

    Earning, saving and spending in Canada: A guide for new immigrants

    Here are a few financial goals that are worth tackling early.

    1. Build your credit history

    Get a secured credit card, if necessary, and use it for manageable expenses like phone bills or groceries. Pay it off in full every month. This helps you build a strong credit profile, which will eventually open doors to lower interest rates and better financial products.

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    2. Set up an emergency fund

    Even if you’re starting small, building a financial cushion gives you breathing room. Try to set aside enough to cover one month of basic expenses, and grow it over time.

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    3. Understand the Canadian financial system

    This includes learning the difference between TFSAs, RRSPs, RESPs, and more. Many financial institutions, community organizations, and nonprofit agencies offer newcomer-specific resources. Take advantage of them.

    Compare the best TFSA rates in Canada

    4. Avoid high-interest debt

    Unless absolutely necessary, avoid payday loans or quick-cash offers. These products often have extremely high interest rates and can lead to long-term financial stress. If you are unsure, ask questions. Get advice before you borrow.

    5. Make small progress on long-term goals

    Even small, regular contributions to your child’s education fund or your own retirement savings can have an outsized impact over time. The key is to get started.

    But don’t put life on hold

    Now here’s the important part: building a financial foundation does not mean you have to live a joyless life. You didn’t move here to just pay bills and build spreadsheets; you moved here for something more. And if you strip away everything fun or fulfilling in the name of discipline, you may find yourself questioning whether the move was worth it.

    What helped me was learning to make room for both—a night out every now and then, a concert ticket, a staycation with my family. Nothing extravagant, just moments that reminded us that we were here to live, not just survive.

    If you plan for it, joy doesn’t have to be expensive, it just needs to be intentional.

    A quote that changed my perspective

    I recently saw a quote on Instagram that stayed with me:

    “Your life will change when you realize you are not building wealth for the things you can buy. You are building wealth for the problems you won’t have. The emergency that doesn’t devastate you. The opportunity you can take. The pressure you don’t feel. Wealth is peace, not possessions.”

    Vickram Agarwal

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  • New to Canada? A new way to transfer your credit score – MoneySense

    New to Canada? A new way to transfer your credit score – MoneySense

    The credit reporting company said Thursday that the Global Consumer Credit File will make it easier for immigrants to access services like loans and cellphone plans in Canada by providing the additional data.

    “It’s really important when newcomers land that they get access to the financial services ecosystem, and without credit history that’s very difficult to do,” said Sue Hutchison, head of Equifax Canada.

    “They’re typically looking to, you know, rent an apartment, get a mobile phone, probably a credit card, and all of those things require credit history. So not having it makes it very difficult for newcomers.”

    Earning, saving and spending in Canada: A guide for new immigrants

    What is Nova Credit? What does it offer?

    Equifax isn’t the first to launch such a program in Canada. San Francisco-based Nova Credit, which launched in 2016 to provide global credit score access, expanded into Canada last year in a partnership with Scotiabank.

    The company has since expanded with partnerships at RBC, BMO and Rogers Communications Inc., among others.

    Nova Credit partners with several credit bureaus, including Equifax, to provide data from more than 20 countries. With Equifax becoming a competitor in the space, Hutchison said conversations are underway around data access going forward.

    Foreign credit score sourcing with Equifax

    Equifax, which has operations or investment in 24 countries, will have the advantage of being the direct provider of data from its foreign bureaus, said Hutchison.

    “It’s going be coming directly from us. So that’s, I think, very attractive to the lenders themselves that they’ll be dealing directly with the credit bureau.”

    The Canadian Press

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  • What new rules in B.C. mean for gig worker rights in Canada – MoneySense

    What new rules in B.C. mean for gig worker rights in Canada – MoneySense

    Regulations that came into effect on Sept. 3 introduced protections for gig workers in the province, including: a minimum wage, mileage compensation, upfront fare transparency, and rules for account deactivation and dispute resolution. The regulations also give workers access to workers’ compensation through WorkSafeBC, a provincial agency that supports injured workers. 

    If you’re a gig worker or considering working through an app, here’s what you need to know about the rights you have across the country. 

    What led to new gig worker protections in B.C.? 

    The regulations come after years of efforts by unions and gig workers themselves to have gig work covered by provincial employment standards. In provincial labour law, app-based workers are considered independent contractors rather than employees, which means they haven’t been eligible for traditional employment protections, such as a minimum wage and rules around termination and severance pay. Gig work platforms also don’t have to make employment insurance (EI) or Canada Pension Plan (CPP) contributions on behalf of gig workers.

    The workforce for ride-hailing and delivery platforms, including Uber, DoorDash, SkipTheDishes and Lyft, grew 46% in 2023, according to Statistics Canada’s December 2023 labour force survey. That brought the total number of workers aged 16 to 69 to 365,000, up from 250,000 in 2022. Landed immigrants accounted for almost six in 10 of those workers.

    B.C.’s rules are a “step in the right direction,” says Jim Stanford, an economist and the director of the Centre for Future Work, a progressive research institute. But gig work is still largely the “wild west of employment,” he says, and there are few avenues for workers to assert their rights.

    Wages for gig workers

    B.C. is the first province or territory to implement a minimum wage for gig workers. At $20.88 per hour, the rate is 120% of the regular provincial minimum wage of $17.40 per hour. It only applies to “engaged time,” meaning the time drivers and couriers actually spend on assignments—hence the wage premium. Workers whose engaged time over a select pay period falls below the gig worker minimum wage are topped up by the platform at the time they’re paid. (Tips are not included in the minimum wage calculation.) 

    “The equation is difficult and it’s not perfect, but it aims to start to address idle time, when someone is waiting to pick up a person or package,” says Pablo Godoy, director of emerging sectors for the United Food and Commercial Workers Canada (UFCW), a private sector union. The UFCW Canada signed an agreement with Uber Canada in 2022 that made the union the official representative for Uber drivers and delivery workers across the country.

    Tips and vehicle allowances

    As part of the new legislation, B.C. has mandated that platforms pay workers 100% of their tips. It has also introduced a vehicle allowance to compensate workers for the cost of maintaining their vehicles. Drivers receive 45 cents per kilometre for personal vehicles and 35 cents per kilometre for other forms of transportation, including motorized e-bikes and bicycles. (Those who travel by foot aren’t eligible for the allowance.) 

    Kelsey Rolfe

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  • New to Canada and no pension: How to save for your retirement – MoneySense

    New to Canada and no pension: How to save for your retirement – MoneySense

    The difficulties facing newcomers to Canada with respect to retirement planning are particularly acute. Given how Canada’s immigration points system works, economic immigrants are usually in their late 20s or early 30s—and they face unique challenges:

    1. Depleted savings: If you’re a 30-year-old newcomer, chances are you’ve used a large portion—if not all—of your savings to set up your new life in Canada. So, you’re behind in the retirement savings game. If retirement savings were a 100-metre race, lifelong Canadians have a 20- to 30-metre head start over newcomers.
    2. Lower income: If you’re a newcomer to Canada, you’ve probably had to restart your career a few rungs lower on the corporate ladder because of your lack of Canadian work experience. This means you’re not earning as much as others your age who have similar experience. Consequently, your ability to save for retirement is lower.
    3. Lack of knowledge: You need to understand Canada’s financial and tax systems to maximize its retirement planning opportunities, and gathering this knowledge takes time.
    4. Reduced contributions: Joining the Canadian workforce later in life than their Canadian-born peers, immigrants have fewer years to contribute to the Canada Pension Plan (CPP) and build up registered retirement savings plan (RRSP) and tax-free savings account (TFSA) contribution room. For this reason, they rely on less tax-efficient unregistered savings and investment vehicles to sustain their retirements to a greater degree than their neighbours.

    But there’s good news. As Toronto-based financial advisor Jason Pereira points out, “Canada’s retirement system does not discriminate against newcomers. The rules are the same for everybody.” So, with the right knowledge and expertise, you can work towards building a strong retirement plan. 

    How to start retirement planning as an immigrant

    To plan for retirement, you need to know:

    • How much money will you need each month in retirement? The simplest method to estimate your income requirement in retirement is to consider it to be 70% to 80% of your current income. For example, if you earn $75,000 a year today, 70% of that is $52,500—that’s $4,375 per month—in today’s dollars. Alternatively, you could estimate the amount you’d need in retirement using this tool.
    • How much you’ll receive from government pension and aid payments: You need to estimate approximately how much you’ll get from the Canada Pension Plan (CPP) and other government programs: Old Age Security (OAS) and the Guaranteed Income Supplement (GIS). The tool at this link will help you do so. Ayana Forward, an Ottawa-based financial planner, notes that “some home countries for newcomers have social-security agreements with Canada, which can help newcomers reach the eligibility requirements for OAS.”
    • How much you’ll receive from your employer-sponsored retirement plan: Workplaces without a defined benefit pension plan sometimes offer a registered investment account (usually a group RRSP), with contributions made by you and your employer or only your employer. If you have a group RRSP from your employer, what will its estimated future value be at the time of your retirement? You could use a compound interest calculator to find out.
    • How to make up for a shortfall: The CPP, OAS, GIS and your group RRSP likely won’t be enough to fund your retirement. You’ll need to make up for the shortfall through your personal investments or additional sources of income.

    Sample retirement cash flow for a 35-year-old (retirement age 65)

    This table illustrates the types of income you could have in retirement. The amounts used in the table are hypothetical estimates. (To estimate your retirement income, try the various tools linked to above.)

    Amount (today’s value) Amount (inflation adjusted)
    A Amount needed $52,500 $127,400
    B Government pension and aid payouts
    (CPP, OAS, GIS)    		 $22,000 $53,400
    C Employer-sponsored pension plan
    (group RRSP)    		 $8,000 $19,400
    D B + C $30,000 $72,800
    E Shortfall (A – D) $22,500 $54,600
    F Needed value of investments in the year of retirement (E divided by 4%, based on the 4% rule) $562,500 $1,365,000
    G Needed flat/constant monthly investment amount from now to retirement $969

    In the example above, the person faces an annual shortfall of $22,500. In other words, this person needs to generate an additional $22,500 per year to meet their retirement income needs, after accounting for the typical government pension or aid payouts and their employer-sponsored retirement plan. To do this, they’d need to invest about $969 per month, assuming an 8% annual rate of return from now to retirement 30 years later. How could they fill this gap and meet their shortfall? Enter self-directed investments, real estate and small-business income.

    Build your own retirement portfolio

    An obvious and tax-efficient way to cover your retirement income shortfall is to build your own investment portfolio from which to draw income in your retirement years. These investments can be held in registered or non-registered accounts. Registered accounts, such as the TFSA and RRSP, offer useful tax advantages—such as a tax deduction and/or tax-free or tax-sheltered gains, depending on the account—but the amount you can contribute to these accounts is limited. Non-registered accounts have no contribution limits but offer no tax advantages. 

    Newcomers often have lower TFSA and RRSP contribution room compared to their peers because they’ve lived and worked in Canada for a shorter period. “TFSA contribution room starts accruing the year of becoming a resident of Canada,” Forward explains. “RRSP contribution room is based on earned income in the previous year.”

    Your TFSA and RRSP contribution room information is available on your Notice of Assessment from the Canada Revenue Agency, which you’ll receive after you file your tax return. To check your TFSA limit, you can also use a TFSA contribution room calculator.

    Aditya Nain

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  • 5 credit card habits that earn points faster – MoneySense

    5 credit card habits that earn points faster – MoneySense

    1. Unlock the earning potential of your everyday spending

    Everyone has expenses. The trick is to figure out how to earn rewards on the purchases you’re already making. Your best bet is to pick a card that offers boosted earn rates in the categories you spend the most in. For many Canadians, the top spending categories are groceries and gas, so paying with a card like the National Bank World Elite Mastercard can reap a lot of points.

    Let’s say your family spends around $1,000 per month on groceries and about $250 on gas. If you paid for these purchases with the National Bank World Elite Mastercard, you could earn up to 5,500 points per month—that’s 66,000 points per year just in those two categories. With 66,000 points, you could redeem for tech merchandise (like a smartwatch or tablet) or pay down your National Bank of Canada mortgage, for example.

    Here’s how it works: The amount of points earned on grocery and restaurant purchases depends on the total gross monthly amount charged to the credit card account, regardless of the purchase category. You will earn five points for every dollar in eligible grocery and restaurant purchases until a total of $2,500 in gross monthly purchases is charged to the account. After that, you’ll earn two points per dollar in eligible grocery and restaurant purchases. (The total gross monthly amount is calculated based on your monthly billing period.)

    Apply for the National Bank World Elite Mastercard between May 13 and August 15, 2024, and you could earn up to 40,000 bonus rewards points in the first year. Minimum purchase and insurance product required. See applicable terms and conditions.

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    National Bank World Elite Mastercard

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    • Annual fee: $150
    • Interest rates: 20.99% on purchases, 22.49% balance transfers and cash advances
    • Earn rate: Up to 5 points per $1 on grocery and restaurant purchases; 2 points per $1 on gas, EV charges, recurring bill payments and travel booked through À La Carte Rewards; and 1 point per $1 on all other purchases.
    • Welcome offer: In the first year, you can earn up to 40,000 rewards points. Must apply by August 15, 2024. Minimum purchase and insurance product required. Learn more about applicable terms and conditions.
    • Annual income requirement: Personal income of $80,000 or household income of $150,000

    go to site

    2. Make the most of your optional spending

    There’s more to bills than groceries and gas, of course, so choose a card that rewards more of your other purchases. When you use your National Bank World Elite Mastercard to pay your restaurant bill, you could earn up to five points per dollar. Plus, with a base rate of one point per dollar spent on your card in other categories, your rewards will rack up quickly.

    3. Subscribe to rewards points

    If you’re like most Canadians, you’ve got a bunch of bills that show up each and every month, including services like your phone plan and subscriptions to streaming services. Get something back for your monthly bills by setting up automatic payments with your National Bank World Elite Mastercard. You’ll get two points per dollar for recurring payments, and you’ll never have to worry about missing a payment.

    4. Get the family involved

    When you add a cardholder to your account, all their rewards points add up along with yours in the same account, so you reach your rewards goals faster. This can be a terrific option for spouses, for example. Each person will have their own card with their own PIN, but all transactions are charged to the same account. With the National Bank World Elite Mastercard, the annual fee for each additional card is only $50 per year. 

    5. Earn more on travel

    Using a credit card is a convenient and secure way to pay for travel—and it can also let you earn rewards points. With the National Bank World Elite Mastercard, you’ll get two points per dollar spent on any travel you book through the À la carte Travel portal. Plus, every year you’ll get a travel credit of up to $150 to reimburse eligible expenses charged to your card, including flight upgrades, seat selection, airport parking, extra checked bags and access to airport lounges. And, with the included travel insurance on this card, you’ll be all set for your next journey. (Insurance coverage is limited to specific amounts. Please read the full insurance details.)

    Keph Senett

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  • How to use your credit card responsibly – MoneySense

    How to use your credit card responsibly – MoneySense

    What is a credit score?

    A credit score is a three-digit number, usually between 300 and 900, that banks and other lenders use to determine how likely you are to pay back your loans. The higher the number, the more credit-worthy you are to the banks.

    Your score is based on information in your Canadian credit history, such as whether you pay for your phone bill and utilities on time and in full each month. The problem is, for newcomers and others without a Canadian credit history, lenders don’t have any information. This makes it hard for people to get credit.

    Your first credit card in Canada

    If you’re young, or a newcomer, or you haven’t used credit in Canada before, you’ll need to start simply. Credit cards themselves are forms of credit, so the first step is to get an entry-level credit card and prove your credit-worthiness by paying your bills on time. Then you can work your way up.

    Entry-level credit cards usually have fewer perks than more premium cards, but they also typically have lower income requirements and a lower annual fee—in some cases, $0.

    National Bank’s mycredit Mastercard is a great example. There’s no annual minimum income requirement to apply for this card and no annual fee, making it very accessible. And, while the mycredit Mastercard doesn’t come with a full suite of included benefits, it does allow you to earn 1% cash back on recurring bill payments and restaurant spends, and 0.5% back on everything else.

    If you want more features and rewards, National Bank’s Platinum Mastercard is a good option that also has no minimum income requirement. National Bank’s World Elite Mastercard has an annual fee of $150 and comes with more perks—including an annual travel expense refund up to $150.

    4 tips for credit card use

    You already know you should use your credit card responsibly, but what, exactly, does that mean?

    • Stick to your budget
      Most entry-level credit cards come with modest credit limits. Still, it’s important you don’t spend more than you can pay off, no matter your limit. This is sometimes tricky for new credit cardholders, but budgeting is an essential part of your financial health.
    • Pay your card balance in full
      Best practice is to pay off your credit card, in full and on time, every month. Interest rates on credit cards are very high, so debt can balloon quickly if you carry a balance. Stick to your budget and don’t overspend.
    • Pay the minimum amount
      If, for any reason, you can’t pay a bill in full, make sure you pay at least the minimum amount, which appears on your bill. Credit card companies report your payment history to the credit bureaus, and even one missed payment will lower your score. You can avoid that by making the minimum payment (or more) by the due date.
    • Pay your bill on time
      Timeliness is as important as making minimum payments. It shows the credit bureaus that you can meet your financial obligations. If you need help remembering your due date, consider setting up an automatic payment through your online banking. 

    When it comes to credit cards, you should work towards paying in full, on time, every month. Every payment helps you build your credit score buy showing you are responsible with credit, and over time, you can become eligible for upgraded financial products, with more features and perks.

    Keph Senett

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  • A credit card that deserves to be your everyday card – MoneySense

    A credit card that deserves to be your everyday card – MoneySense

    This hard-working credit card offers generous earn rates of up to five points per dollar spent on restaurants and groceries, which is a significant spending category for most Canadians. The amount of points earned on these purchases depends on the total gross monthly amount charged to the credit card, regardless of the purchase category. You will earn five points for every dollar in eligible grocery and restaurant purchases until a total of $2,500 in gross monthly purchases is charged to the account. After that, you will earn two points per dollar in eligible grocery and restaurant purchases. (The total gross monthly amount is calculated based on your monthly billing period.)

    Another big expense—gas or EV charging—earns two points per dollar spent, as do recurring bill payments, along with any travel booked through National Bank’s À la carte Travel service. All other purchases earn a base rate of one point per dollar, so nothing goes unrewarded.

    Apply for the National Bank World Elite Mastercard between May 13 and August 15, 2024, and you could earn up to 40,000 bonus rewards points in the first year. Minimum purchase and insurance product required. Learn more about applicable terms and conditions.

    sponsored

    National Bank World Elite Mastercard

    go to site

    • Annual fee: $150
    • Interest rates: 20.99% on purchases, 22.49% balance transfers and cash advances
    • Earn rate: Up to 5 points per $1 on grocery and restaurant purchases; 2 points per $1 on gas, EV charges, recurring bill payments and travel booked through À La Carte Rewards; and 1 point per $1 on all other purchases.
    • Welcome offer: In the first year, you can earn up to 40,000 rewards points. Must apply by August 15, 2024. Minimum purchase and insurance product required. Learn more about applicable terms and conditions.
    • Annual income requirement: Personal income of $80,000 or household income of $150,000

    go to site

    Redeeming your rewards points

    Redemptions with the National Bank World Elite Mastercard are easy. You can use your points to shop for whichever rewards best suit you. Visit the online boutique and choose from merchandise, gift cards or travel, or invest your points in your National Bank of Canada TFSA and/or RRSP. You can also apply points to your credit card balance or National Bank of Canada mortgage. It’s quick, easy and all in one place.

    When it comes to perks, the National Bank World Elite Mastercard has the bases covered. Travellers will love the included travel and car rental insurance, and unlimited access to the National Bank Lounge at Montréal-Trudeau Airport for international flights. Plus, there’s an annual travel credit of up to $150 that you can apply to eligible expenses including seat selection, seat upgrades, airport parking, extra checked bags and airport lounge access.

    Other benefits include mobile device insurance and extended manufacturer’s warranty, so you’ll be covered for longer on virtually anything you buy with the card. (See all terms and conditions.)

    The right credit card offers convenience, security and benefits you can use. Consider the National Bank World Elite Mastercard as your everyday card.

    This article is sponsored.

    This is a paid post that is informative but also may feature a client’s product or service. These posts are written, edited and produced by MoneySense with assigned freelancers and approved by the client.

    More about credit cards:

    ® Mastercard and World Elite are registered trademarks, and the circles design is a trademark of Mastercard International Incorporated. Authorized user: National Bank.
    ® National Bank and À la carte rewards are registered trademarks of National Bank of Canada. 

    Keph Senett

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  • Earning, saving and spending money in Canada: A guide for new immigrants – MoneySense

    Earning, saving and spending money in Canada: A guide for new immigrants – MoneySense

    Getting started

    To get started, here’s an overview of what you need to know about moving to Canada, working in Canada and building a good credit history. 

    The more you know about Canadian money, savings and housing, the better prepared you’ll be. You can even do certain steps—such as opening a bank account—before you arrive. Learn about this and other personal finance topics, including key details about preparing to buy a home in anywhere in Canada.

    Finding a job and earning an income soon after arriving in Canada can contribute to your success. We explain who can legally work here, how to apply for a work permit, how to find credible job postings and what details to look for in a job offer. We also tell you about non-profit organizations that help immigrants find work, sign up for free English classes and more

    Moving to Canada or new to the country? These six major cities have many job opportunities in different fields—plus we look at the cost of living in each.

    From tech to health care, Canada offers plenty of jobs for newcomers—and many of them are included in national and provincial express entry immigration programs.

    Once you move to Canada, it’s important to start building a good credit history—it will have a big impact on your future here. If you plan to borrow money to buy a home or a car, for example, lenders will look at your credit report to decide if they’ll loan you money and how much interest to charge you. Employers, landlords and even cellphone companies may check your credit report. We explain how to build your credit history and how to improve your credit score.

    Some financial products in Canada are similar to what’s available in India, like fixed deposits and GICs. Check out our list.

    We’ve rounded up 15 more MoneySense articles that provide personal finance tips for different life stages—from your first steps in Canada to getting established to planning for retirement.

    MoneySense Editors

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  • How to become a contractor: The real costs – MoneySense

    How to become a contractor: The real costs – MoneySense

    What do I need to know about managing my finances as a contractor?

    No matter what type of construction business you launch or buy, it’s important to have a bookkeeping system in place—between material expenses, insurance fees, client payments and more, you’ll have a lot of money going in and out each month. You’ll need a separate bank account and line of credit for your business, and it’s smart to have a credit card that’s solely for professional use.

    Pro tip: Choose a credit card for contractors

    Scotiabank has a small-business credit card that’s great for contractors: the Scotia® Home Hardware PRO Visa† Business Card, which can be used wherever Visa is accepted. Its variable interest rate is tied to Scotiabank’s prime rate, and credit limits of up to $500,000 are available (a limit high enough for larger, or multiple, renovations). The card’s interest rate and credit limit depend on whether the account is secured or unsecured, subject to approval and the security provided. The Scotiabank Prime Rate is the prime lending rate published from time to time by The Bank of Nova Scotia. (See the current Scotiabank Prime Rate.) The card has no annual fee, and it has an interest-free grace period of 21 days on new purchases.

    And then there are the rewards. You’ll earn one Scene+TM point for every dollar spent on eligible business purchases made at Home Hardware, which has more than 1,000 locations across Canada, or online at homehardware.ca.

    For every 10,000 Scene+ points you collect, you can redeem $100 at Home Hardware. If you’re regularly buying construction and renovation materials, you can accumulate points quickly—and get a lot of free stuff. Points can be redeemed for groceries, travel, gift cards and more. Plus, as your contractor business grows, you can add supplementary credit cards at no cost. These are great perks for entrepreneurs who want to minimize spending while getting their home renovation business off the ground.

    The business credit card also includes insurance protection on most newly purchased items charged to the account. Most newly purchased items are covered for 90 days by Purchase Security, and these items may be eligible for replacement, repair or reimbursement if they are stolen, damaged or destroyed by fire.

    Cardholders also have access to optional business loan protection insurance, Scotia Business Loan Protect, which can help cover business loan payments, or provide a lump sum of money, if you or another eligible key person can’t work for health reasons or passes away. Scotia Business Loan Protect is underwritten by The Canada Life Assurance Company (1-800-387-2671, www.canadalife.com) under a group policy issued to the Bank of Nova Scotia. All coverage is subject to the terms and conditions outlined in the Certificate of Insurance, which you will receive upon enrollment.

    You can apply for the Scotia® Home Hardware PRO Visa† Business Card online. Plus, until May 31, 2024, you can earn up to 15,000 bonus Scene+ points in your first year (that’s worth up to $150 in points value) by making at least $1,500 in eligible purchases at participating Home Hardware, Home Building Centre, Home Hardware Building Centre, Home Furniture locations in Canada and online at homehardware.ca in the first three months after opening your account. Cardholders also have access to online tools and services designed just for business owners. See Scotiabank’s website for full card details.

    Building a successful career as a home renovation contractor

    If you have the skills and motivation needed to become a contractor in Canada, you have the potential to build a lasting, rewarding career in home improvement. Over time, you might find that the Scotia® Home Hardware PRO Visa† Business Card is just as important to your contractor business as any other tool in your belt. After all, every dollar matters to your small business—so make them count.

    Erin Pepler

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  • Best jobs in Canada for immigrants: The top 5 industries in demand – MoneySense

    Best jobs in Canada for immigrants: The top 5 industries in demand – MoneySense

    2. Jobs in health care

    The demand for health care workers has never been higher. The Canadian government has included health care workers in its first-ever category-based priority jobs process, announced in May 2023. The following month, it announced a new immigration stream for health care workers—the first 2,000 invitations to apply were sent out last year. Some provinces—including British Columbia, Alberta and Nova Scotia—have express entry or dedicated pathways for newcomers to get health care jobs quickly. Nova Scotia’s program is a pilot project. (See resource box below for links.)

    In-demand jobs: Health care jobs range from hospital administrative staff (such as medical office assistants, secretaries and schedulers) to unregulated care providers (such as personal support workers and physician assistants) to regulated professionals (such as doctors, nurses and pharmacists). (Regulation will vary by province or territory.) According to the Canadian Institute for Health Information (CIHI), the need for nurses here is high, based on Canada’s RN-to-population ratio. (In 2022, we had just 825 nurses per 100,000 people.) Physicians are also badly needed. From 2022 to 2031, the number of job openings for family physicians and general practitioners is expected to reach 48,900, far outweighing the estimated 29,400 job seekers, according to the Canadian Occupational Projection System (COPS).

    Training and credentials: This varies widely by job type, and by province or territory. Administrative and unregulated health workers may need training to satisfy job requirements; you can find courses at government-funded and private schools. For regulated health professionals, getting international credentials recognized in Canada can be challenging. This is changing somewhat, as regulatory bodies try to address the labour shortage. Still, getting licensed or certified to work in Canada can be expensive and time-consuming, and many newcomers are not successful in continuing their medical careers here. (Start with the government’s Foreign Credential Recognition Tool.)

    Industry hot spots: The demand for health workers is strong across Canada. However, there are some places where the need is greater than others. Family physicians are most needed in the three territories (Yukon, Nunavut and the Northwest Territories), Quebec and British Columbia. Among the provinces, the physician-to-patient ratio is the worst in Ontario, Manitoba, Saskatchewan and B.C. For personal support workers (PSWs) and continuing care assistants (CCAs), the demand is so high that some provinces, including Ontario and Nova Scotia, offer free training to qualified students. Graduates may be required to work in underserved communities for a certain period.

    Salary range: Salaries vary widely by role, location and experience. A few examples from Canada’s Job Bank: Medical administrative assistants can earn $17 to $34.55 per hour (lowest rate in Prince Edward Island, highest rate in Yukon), with a national median of $22.56 per hour. Registered nurses can earn $25 to $83 per hour (lowest rate in Quebec, highest rate in Nunavut), with a national median of $40.39 per hour. General practitioners (family physicians) earn $69,539 to $497,843 per year (lowest amount in British Columbia, highest amount in Manitoba), with a national median of $233,726 annually.

    Resources for health care workers

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    3. Jobs in skilled trades

    There are many ways to join skilled trades in Canada. In mid-2023, the government announced a category-based priority immigration plan that includes trades jobs, such as carpenters, plumbers and contractors. Some provinces, such as Ontario, British Columbia and Nova Scotia, have programs to compete for much-needed skilled workers. (See resource box below for links.)

    In-demand jobs: Below are the top five Red Seal tradespeople in demand from now until 2026, according to Employment and Social Development Canada. (The Red Seal Program sets the standards for skills assessment of tradespeople. Canada has more than 300 designated trades; about 50 of them are Red Seal trades.)

    Veronica Silva Cusi

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  • Why actor Isabel Kanaan says overnight success and wealth are similar – MoneySense

    Why actor Isabel Kanaan says overnight success and wealth are similar – MoneySense

    What’s the worst money advice you’ve ever received?

    “What’s the point in saving, you could die tomorrow.” 

    Although this is the worst advice I’ve received, it still taught me that I can let go and not keep thinking about the future but live in the present as well.

    Would you rather receive a large sum of money all at once or a smaller amount of money regularly?

    I’d rather receive a smaller amount of money every week or month for life.

    What do you think is the most underrated financial tip?

    Financial literacy is your friend. We live in a day and age where the internet has all the answers. Use that to your advantage. How to spend and save is going to differ from person to person, so it’s best to learn what strategies work for you.

    What is the biggest misconception people have about growing money?

    Believing in overnight wealth or success. There’s this misconception that as soon as you start investing, or as soon as you get a job with a big paycheque, or even if you win the lottery, all your money problems will go away. No, not at all. It takes time and effort. You need to keep working to sustain that lifestyle.

    Can you share a money regret?

    Not investing sooner.

    What does the word “value” mean to you?

    Value to me is usage, plus time, plus experience. For example, someone might rather save money by opting for cheaper winter boots. I would rather buy a sturdy quality pair. The lower-quality boots would have lower usage since they would break faster, use up my time more because then I’d have to buy new ones, and limit me from experiencing winter by being cautious of breaking the cheap boots. The higher-quality winter boots would have more usage and save me time, and I can maximize my experience with it with no hesitations.

    What’s the first major purchase you made as an adult? 

    I’ve been saving for most of my life and have refrained from making any luxurious purchases, and that put me in a position where I was able to buy my first house.

    Lisa Hannam

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  • OAS entitlement and deferral rules for immigrants to Canada – MoneySense

    OAS entitlement and deferral rules for immigrants to Canada – MoneySense

    You generally need 40 years of residency in Canada after the age of 18 to qualify for the maximum OAS pension. The maximum monthly payment as of the fourth quarter of 2023 is $707.68 for someone who started their OAS at age 65. Someone aged 75 or older would be entitled to up to $778.45.

    Exceptions to the OAS residency requirement

    There may be situations where you qualify for the full pension without meeting the 40-year residency requirement. One example would be if you were over 25 and lived in Canada or had an immigration visa on or before July 1, 1977.

    Another instance where you may qualify for a higher pension is if you lived in a country with a social security agreement with Canada. Time spent in other countries may count towards your OAS residency formula. If you worked outside Canada for the Canadian Armed Forces or an international charitable organization, this time might also count.

    Deferring OAS to increase residency requirements

    If you have under 40 years of residency, your pension is pro-rated. You need to have lived in Canada for at least 10 years after the age of 18 if you apply for OAS as a Canadian resident. If you live outside of Canada when you apply, you need 20 years of residency.

    Interestingly, Amin, you can defer your OAS pension after age 65 to increase your residency requirements. This can work well for someone who is trying to get to 10 or 20 years, respectively, to qualify for the pension at all. In your case, the deferral will not have an impact on the residency calculation. I will explain why.

    The reason is an OAS recipient deferring their pension after age 65 can only benefit from one of two enhancements: one, the years of residency; or two, the age-based increase. If you defer OAS to after age 65, your age 65 entitlement increases by 0.6% per month or 7.2% per year of deferral. You can start it as late as 70 for a maximum 36% increase.

    If you get an extra year or 1/40th of residency, that amounts to a 2.5% boost in your OAS.

    Unfortunately, Amin, you cannot get the 2.5% residency boost and the 7.2% age boost for deferring. You get the higher of the two, which is obviously the age-based adjustment of 7.2%.

    Jason Heath, CFP

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