8 financial mistakes newcomers to Canada make—and how to avoid them

We moved to Canada in 2019 to give our daughter a different kind of life—one closer to our extended family and rooted in the stability my wife had known growing up in Ottawa. I was born in India, raised across the Middle East, and educated in the U.K. Our financial foundations came from very different worlds, and those differences became clear the moment we arrived.

Where I came from, you only bought what you could afford. Credit existed, but it wasn’t part of everyday life. In Canada, building credit is essential to everything from renting an apartment to buying a home. I had never filed a tax return until we immigrated, and when our first Canada Child Benefit cheque arrived months later, I thought it was a mistake.

In those early days, I was also trying to navigate the Canadian banking system and build a credit history. I applied for a credit card and was declined… despite having a generous credit limit back home.

These were just some of the early surprises. Like many newcomers to Canada, I made mistakes, adapted along the way, and learned by doing. If you’re new to the country, here are eight common financial missteps and some practical financial tips for immigrants on how to avoid them.

1. Choosing a bank without comparison shopping

A few days after arriving, I visited one of the major Canadian banks with my mother-in-law. The staff were polite and walked me through their newcomer offers, but the experience felt transactional. I was surprised to learn I’d be paying monthly fees for basic banking—something that felt foreign to me, having come from countries where banking was typically free and came with added perks.

The branch itself didn’t help—the environment felt sterile, and the branding didn’t instill much confidence. I ended up choosing a different Big Five bank that offered a more welcoming space and a smoother onboarding experience for newcomers.

Looking back, I wish I had explored more than just the traditional options. Canada has credit unions, digital-first banks, and fintech platforms that often offer better rates, lower fees, and more flexibility.

Tip: Don’t just choose the bank your friend or relative recommends. Do your own research. Use comparison tools to find the best bank for newcomers to Canada based on your actual needs.