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As an international student, the Canadian government mandates that you have adequate financial resources to support yourself during your studies.

According to Immigration, Refugees, and Citizenship Canada (IRCC) guidelines, you’ll need $20,635 (or $15,278 if studying in Québec) to cover your living costs, including rent, food, and tuition. This amount is based on 75% of the low-income cutoff (LICO) determined by Statistics Canada.

While this may seem daunting, the financial tips below can help you prepare both before you leave your home country and after you arrive in Canada.

Financial Preparation Tips for International Students in Canada: Before Arrival

Start Saving in a High-Interest Account:

Begin by saving money in a high-interest bank account in your home country. Once your savings are ready, transfer them into a Guaranteed Investment Certificate (GIC) to improve your chances of securing a student visa or study permit in Canada.

Explore the Student Direct Stream:

Look into Canada’s Student Direct Stream program, which can expedite your application process.

Step 1: Open a Guaranteed Investment Certificate (GIC):

Canada offers a variety of banks where you can open a GIC, with “the big five” being the most reputable. These banks include:

• Bank of Montreal (BMO)
• Canadian Imperial Bank of Commerce (CIBC)
• Royal Bank of Canada (RBC)
• Toronto-Dominion Bank (TD)
• The Bank of Nova Scotia (Scotiabank)

Deposits in these banks are insured up to $100,000 by the Canadian Deposit Insurance Corporation. Your money earns interest while you wait to arrive in Canada.

Step 2: Plan for Life in Canada:

Canada’s climate varies widely across the country, from the rainy weather of British Columbia and Nova Scotia to Toronto’s humid summers and Montreal’s snowy winters.

Living costs also differ by location, including expenses for rent, food, and tuition. Upon your initial arrival, your GIC funds will provide at least $4,127 CAD ($3,016 CAD in Quebec), with a fixed monthly payout of $1,376 CAD ($1,005 CAD in Quebec).

Rent Costs:

Rental prices in Canada vary significantly, with an average of $2,193 across the country. A one-bedroom apartment in Vancouver, BC, could cost as much as $2,653, while in Saskatoon, SK, the average is $1,183.

To find affordable housing, consider working with your university or college’s student union, financial aid office, or housing office.

Food Costs:

According to a Dalhousie University study, the average monthly grocery expense for a woman aged 19-30 is $292, while it’s $529 for men in the same age group.

Other Expenses:

• Utilities: $100-$200 per month (if not included in rent)
• Internet: $50-$125 per month
• Mobile phone: $50-$120 per month
• Additional expenses: clothing, dining out, transportation, etc.

Creating a budget is essential. Many banks offer budgeting apps to help you manage your finances.

If you plan to work part-time, you’ll need a Social Insurance Number (SIN). To get a SIN, your study permit must indicate that you are allowed to work in Canada.

Financial Tips for International Students: After Arrival in Canada

Step 3: Open a Canadian Bank Account:

To avoid international banking fees, open a bank account in Canada. Whether you’re paying rent, transferring money, or depositing your GIC withdrawal and first paycheque, having a Canadian bank account simplifies your financial life.

You can open an online account from your home country with some digital banks like EQ Bank, Neo Financial, or Tangerine. However, additional documentation might be required to finalize your account after arriving in Canada.

Required Documents to Open a Bank Account:

• Proof of ID: Canadian driver’s license or valid passport
• Permanent Resident card or relevant IRCC forms (e.g., IMM 1000, IMM 1442, IMM 5292)
• Proof of entry into Canada
• A document card with your photo from select provincial authorities

What to Consider When Choosing a Bank Account:

Many Canadian banks offer special packages for newcomers:

• BMO’s NewStart program: Free chequing for one year, then $16.95/month (waived with a $4,000 balance).
• TD’s New to Canada Banking Package: Free for one year, then $16.95/month (waived with a $4,000 balance).
• CIBC’s Welcome Package: No-fee banking for two years, but no credit card.
• RBC’s Newcomer Advantage: Free for one year, $11.95/month thereafter (reduced with bundled products).
• Scotiabank’s StartRight program: No-fee banking, unlimited transactions, and a $1,000 credit card limit while you’re a student.

Step 4: Build Credit with a Credit Card:

Establishing a good credit score is essential in Canada. It can help you secure better rates on loans, access better housing options, and even earn discounts on bills.

• Debit Card: Comes with your bank account but doesn’t build credit.
• Prepaid Credit Card: Functions like a debit card but doesn’t help build credit. Consider KOHO, which offers a budgeting app and a credit builder tool for a fee.
• Secured Credit Card: Requires a deposit as collateral and helps build credit. Some cards, like the Neo Financial card, offer cashback.
• Unsecured Credit Card: The traditional credit card, which helps build credit and may offer rewards like cashback or travel points. Some banks offer cards specifically for newcomers.

Examples of newcomer credit cards:

• Scotiabank Scene+ Visa: Up to $5,000 credit limit, plus 5,000 Scene+ points as a welcome bonus.
• RBC Cash Back Mastercard: 2% cashback on groceries with no annual fee.
• BMO No-Annual-Fee Options: Several choices with welcome offers like bonus points or cashback.
• MBNA True Line Gold Mastercard: Low interest rate (8.99%), but with a $39 annual fee.

Bundling Financial Products:

Bundling your checking account, savings account, and credit card with one bank can save money on fees and earn more rewards. For instance, some banks offer a Student Banking bundle with up to $640 in welcome bonuses and savings.

Step 5: Save More, Spend Less, Invest the Rest:

Adopt the motto: “Save more, spend less, invest the rest.” For example, instead of dining out, consider staying in and investing the money saved. Early investments, thanks to compound interest, can accelerate your path to financial freedom.

While it’s important to manage finances wisely, don’t forget to enjoy your life in Canada. After all, your financial well-being should also contribute to your overall happiness.

Immigration, Refugees and Citizenship Canada (IRCC) is planning to introduce a new pathway for permanent residency targeting workers with intermediate or semi-skilled experience. This initiative would involve modifications to the Immigration and Refugee Protection Act.

The government’s objective is to diversify the pool of immigrants by including individuals with varied skill sets and backgrounds. More information about the eligibility criteria for this new category will be disclosed later this year.

Canada’s TEER System and Its Effects

In 2022, Canada launched the TEER system to classify occupations based on the required education and training. Jobs requiring higher education or specific apprenticeship training are classified under TEER levels 0-3, while roles that need only a high school diploma or on-the-job training fall under TEER levels 4 and 5.

Currently, individuals in TEER 4 and 5 jobs often struggle to secure permanent residency through federal immigration programs like Express Entry. This has led to a growing number of temporary residents in Canada.

Many new arrivals to Canada find themselves in lower-skilled roles, particularly in sectors such as hospitality and retail. This pattern is especially prevalent among temporary foreign workers and international students, leading to lower wages and challenges in establishing economic stability in Canada.

Canada’s Strategy to Reduce Temporary Residency through Permanent Options

IRCC is taking proactive measures to reduce the number of temporary residents in the country. This includes developing new pathways to permanent residency for workers in lower-skilled occupations (TEER 4 and 5).

The temporary resident population reached a historic peak of over 2 million in 2023, a figure that has become challenging for Canada’s economy to sustain. To manage this, IRCC has set limits on international student applications and plans to incorporate temporary resident levels into its upcoming immigration strategy.

The government is also emphasizing permanent residency for individuals already living and working in Canada by increasing domestic Express Entry draws. This approach aims to meet immigration targets while simultaneously reducing the temporary resident population.

Essentially, Canada is focusing on converting its existing temporary residents into permanent ones rather than relying solely on bringing in new workers from abroad.

Interested in Immigrating to Canada as a Semi-Skilled Worker?

Reach out to CanadianVisas today. Our cases are managed by skilled and experienced immigration professionals.

Have Questions About Your Immigration Needs? Book your one-on-one consultation now or call us at +1-416-665-3933.