Canada slashed its immigration targets, putting 3 million temporary residents into financial uncertainty — what it means for your money?

The IRCC publishes processing-time estimates by application type on its website. Checking those estimates is still the best way to track changes that could affect your application.

What financial products can you access without PR status?

If you’re a newcomer awaiting permanent residency, the good news is that you can still access many financial accounts and benefits as a temporary resident, including the following:

Registered Retirement Savings Plan (RRSP): Accessible to temporary residents who earn Canadian income and file a Canadian tax return. The contribution room is based on prior year earned income, so the earlier you start filing and contributing, the more room you accumulate.

Tax-Free Savings Account (TFSA): Any Canadian resident aged 18 or older with a valid SIN can open a TFSA account, regardless of immigration status. The contribution room accumulates for each calendar year you meet the residency conditions.

First Home Savings Account (FHSA): This account is open to any Canadian resident who is a first-time home buyer, regardless of whether they hold PR. Given the FHSA’s $8,000 annual contribution limit, consider opening this account as early as possible.

Mortgage qualification: Many Canadian financial institutions have specific mortgage programs for newcomers, including temporary residents. While the eligibility criteria can vary between institutions, you will likely require a valid work permit and verifiable full-time employment. While you may qualify without a Canadian credit history, you will likely have to fulfill other criteria, such as a larger down payment.

What about government benefits and supports?

According to the Canada Revenue Agency (CRA), you must be a resident of Canada for income tax purposes to receive any benefit or credit payment, both federal and provincial. However, even non-permanent residents who hold temporary residency qualify. That means if you have a valid school or work permit, or other temporary permit issued by IRCC, you qualify for government benefits.

The benefits available to non-permanent residents include the Canada Child Benefit (CCB) and the Canada Groceries and Essentials Benefit (formerly known as the GST/HST credit), and more. Note that not all benefits are available immediately upon your arrival in Canada, and each benefit has its own requirements. Make sure you check with the CRA for more details on the benefit you wish to receive.

How to build your credit score in Canada

Building credit in Canada while on a work or study permit is entirely possible, but it requires some planning.

One challenge for newcomers is that foreign credit histories generally do not transfer to Canada, so newcomers to Canada start with a blank credit file upon arrival. That said, building credit in Canada while on a work or study permit is possible, but you need to go about it the right way.

Consider starting with a secured credit card or another credit-building product. Use it regularly and pay the balance in full each month. Many major banks also offer newcomer banking packages that include easier access to entry-level credit products; just be aware that these can come with higher fees.

Bank smarter from day one. Whether you’re earning your first Canadian paycheque, saving for a home or building your financial future, compare newcomer bank accounts with low fees, welcome bonuses and everyday banking benefits. Or check out National Bank’s banking package for newcomers that includes a bank account with no fixed monthly fees for up to 3 years, along with additional services designed to help simplify the transition to life in Canada. For a limited time, eligible newcomers may also qualify for up to $600 cashback when opening and using eligible banking products and services. See offer page for more details. The offer is available to permanent residents, temporary workers and international students who have been in Canada for 5 years or less. Open an account today.

One mistake you’ll want to avoid is applying for multiple credit products at once. Every application generates a hard inquiry, which can temporarily lower your score. If your residency timeline isn’t yet settled, focus on building a longer, stronger credit history rather than opening multiple accounts.

The housing decision: Should you buy or rent while waiting for PR?

There is no simple answer as to whether you should buy or rent while still a temporary resident, but there are some practical guidelines you can follow.