How to open a bank account in Canada as a newcomer, and the one mistake that trips most people up

The first week in Canada is a lot. Finding somewhere to sleep, sorting a SIM card, figuring out the transit system. And then someone tells you that you need a bank account. Usually pretty urgently.

And they're right. Almost everything here runs through a bank account. Getting paid, paying rent, building a credit history you'll need down the line. Without one you're basically stuck paying cash for everything or eating the fees on international transfers.

Opening an account as a newcomer is actually pretty simple once you know what to bring. The issue is most people don't. And the mistake they make ends up costing them months of fees they didn't need to pay.

A few things that might surprise you

If you're coming from Nigeria or the UK, a few things about Canadian banking will catch you off guard:

• Monthly fees are normal here. Most chequing accounts charge somewhere between $10 and $30 a month. That's why the newcomer packages that waive fees for the first year or two matter so much. Get on the right one from the start.
• Your credit history means nothing here. Your Nigerian or UK credit score doesn't transfer. You arrive as a complete blank. That affects your credit card applications, renting a place, eventually getting a mortgage. Building credit from the moment you land isn't really optional.
• Interac e-Transfer is how everyone moves money. Think of it like instant bank transfers in Nigeria or Faster Payments in the UK. It's how Canadians pay rent, split bills, send money to friends. Get comfortable with it in your first week.

What documents you need

This is where most newcomers get caught out. They show up at a branch, they're missing something, and they have to come back. Bring all of this:

Which bank?

All five major banks, RBC, TD, Scotiabank, BMO, CIBC, have newcomer programs. Honestly, any of them will do the job. The differences are in the details: fee-free periods, credit card offers, international transfer perks. My advice is to walk into two or three branches, ask specifically about their newcomer program, and compare what they actually offer you on the day. Things change and I'd rather you hear the latest directly from them than rely on what I say here.

What matters more than which bank you pick: say "newcomer program" out loud when you walk in. Don't assume they'll flag it themselves. Say the words. It removes any ambiguity about what account you're getting.

At the branch, what to actually do

• Book an appointment, don't just walk in. You want to see someone who knows the newcomer program, not a general teller who might open the wrong account type.
• Apply for a credit card at the same appointment. Every newcomer program includes one that doesn't require Canadian credit history. Starting your credit score on day one matters more than people realise.
• Add your SIN the moment you have it. People forget this step and then wonder why they can't open a savings account months later.

The thing nobody warns you about, bank drafts

When I was moving into my condo in Mississauga, I got caught completely off guard. My landlord asked for a certified bank draft for the deposit. I had the money. But I had just opened my account, had no chequebook, had no idea where to even get a bank draft from, and nobody mentioned there'd be a fee to get one issued. All of this on moving week. Not what you need.

Here's what a bank draft actually is: it's a payment your bank issues directly. They take the money from your account immediately and give you a physical document that the landlord knows will clear. No risk of it bouncing. That's why landlords and property managers in Canada prefer it for large deposits, especially first and last month's rent.

In Nigeria you'd wire money. In the UK you'd do a bank transfer. Here, for housing deposits especially, the bank draft is still very much the expected thing. It feels old-fashioned but that's just how it works.

To get one, you go into a branch in person. You can't do it online. A few things to know:

• Get the exact payee name right. The full legal name of your landlord or property company, spelled correctly. A draft made out to the wrong name is a real problem and you don't want to be fixing it on moving day.
• Go to the branch a day or two before you move, not the morning of. If something goes wrong you need time to sort it out.
• There's usually a fee. Around $7.50 to $10 per draft. Some newcomer packages include free drafts, so it's worth asking when you open your account.
• Ask in advance what your landlord actually needs. Don't assume. Some will accept e-Transfer for deposits, some won't.

Three things to do straight away

• Use the credit card and clear it in full every month. Spend a little, pay it off completely before the due date, never miss a payment. That's really the whole strategy for building a Canadian credit score.
• Open a TFSA once you have your SIN. A Tax-Free Savings Account. Investment growth inside it is completely tax free. It's one of the better financial tools Canada offers and most newcomers wait too long to start using it.
• Keep your Nigerian or UK account open. At least for the first year. Gives you a safety net while you're getting settled here.

The short version

Go in with your passport, your immigration document, and a temporary address. Say "newcomer program" when you sit down. Get the credit card sorted at the same appointment. Add your SIN when it arrives. And before you move anywhere, ask your landlord whether they need a bank draft for the deposit. Sort it a couple of days before, not the morning of.

That's really it. Get the account open in your first week. Everything else builds from there.

Written by

Gani Aderibigbe

Senior Banking Professional in Capital Markets. Former Senior PM at JPMorgan Chase London. 10+ years across banking in Nigeria, the UK, and Canada. Banking Decoded is the guide I wish had existed when I started.

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