Banking in Canada: how Australians build credit from zero in Toronto

You might have had a spotless credit file in Australia for fifteen years. In Canada, you're a ghost until you build one again.

The short version

• Canada has two main credit bureaus, Equifax and TransUnion, and they only record credit activity in Canada [3]. Your Australian history doesn't come with you.
• You don't need a job to open a bank account. You need ID, and a foreign passport is on the accepted list [1].
• The big banks run newcomer packages for temporary workers, often with a year of free banking and a credit card that needs no Canadian history [5].
• Use one card lightly, pay it in full every month and your score starts building. Scores run from 300 to 900 [3].
• Checking your own report is free and doesn't hurt your score [4].

Why your Australian credit history doesn't count

In Australia, Equifax, Experian and illion hold your credit file. In Canada, the two main bureaus are Equifax and TransUnion, and they "only collect information about credit activity in Canada" [3]. Equifax operates in both countries, but your Australian file doesn't move across.

FCAC notes that some lenders may look at your credit history from another country, and you might be asked for a foreign credit report and a meeting with a bank officer [3]. That can help with a car loan or a mortgage. For everyday things, like a phone contract or a rental application, you start at zero.

Why it matters in Toronto in particular: landlords in the city often ask for a credit check with rental applications. With no score, expect to be asked for more evidence, such as a job letter, bank statements or extra rent upfront where that's legal. Our renting in Toronto guide covers what landlords can and can't ask for.

Opening your first account

What you need

FCAC sets out two ways to prove who you are [1]:

1. Two pieces of ID from the approved list. One shows your name and address, the other your name and date of birth.
2. One piece of ID plus a referee. The referee is a customer in good standing with the bank, or a person of good standing in your community.

Your Australian passport counts as one piece [1]. The tricky part is the second piece with a Canadian address, because you won't have a utility bill yet. Banks have more flexibility than the list suggests and may accept other documents in some cases [1]. Ask what they'll take, such as your lease or an employment letter.

Bring originals, not copies [1]. Give your SIN once you have it. The bank needs it to report interest to the CRA, but you don't need it to apply for a credit card [6].

Your rights

You have the right to open a personal account as long as you meet certain conditions, and a bank can refuse only on limited grounds, such as reasonable suspicion of fraud [2]. If you open an account by phone, you have 14 business days to close it without charges, with fees refunded except interest [2]. Banks must also send you an electronic alert when your balance drops below a set amount [2].

Opening from Australia

FCAC says people living outside Canada can open an account with proper ID, but you may need to visit a branch [1]. Several banks let you start the application before you leave, then finish at a Toronto branch. Handy, because it means a debit card in your first week.

Newcomer packages at the big five

Canada's big five are RBC, TD, Scotiabank, BMO and CIBC. All run packages for newcomers. The details change often, so compare current offers. As an example, here's what RBC published in late 2026 [5].

The fine print matters. Offers "may be withdrawn or amended at any time" [5], and approval still depends on the bank's criteria. Set a reminder for month 11, when the free year ends. That's the time to switch to a cheaper account or negotiate.

Big bank, online bank or credit union?

Most Australians open with a big bank to get the newcomer credit card, then add a no-fee online account once they have some history.

Building a Canadian credit score

FCAC lists what shapes your score [3]:

• how long you've had credit and how long each account has been open
• the types of credit you use
• whether you carry a balance or miss payments
• how much you owe, and how close you are to your limit
• how often you apply for new credit

The 12-month plan

1. Get one credit card in your first month. A newcomer card from your bank is the easiest start.
2. If you're declined, get a secured card. You lodge a cash deposit with the bank, and that usually becomes your limit. It reports to the bureaus like a normal card.
3. Put one regular bill on it, such as your phone plan, and set up an automatic full payment from your chequing account.
4. Keep your balance low. Being close to your limit counts against you [3]. Spending a small share of your limit is a good habit.
5. Never miss a payment. Even one late payment hurts for a long time.
6. Don't apply for lots of cards at once. Frequent applications count against you [3].
7. Check your report after three to six months to make sure your accounts are showing.
8. After a year, ask for a limit increase or apply for a second card. That adds to your available credit and history.

Checking your report

Both bureaus give you your credit report for free online, and you can also ask by mail or phone [4]. Equifax gives free online scores across Canada. TransUnion offers a free online score in Ontario and Quebec [4]. Some banks show a score in their app too [4]. Checking your own report or score doesn't affect it [4].

Moving money from AUD to CAD

The other big banking cost is getting your savings from Australia to Canada. A few rules of thumb:

• Don't use your Australian debit card for everyday spending. Many Australian cards charge an international transaction fee of a few per cent on top of the exchange rate margin.
• Avoid a straight bank-to-bank wire at the counter. Big Australian banks often build a wide margin into the rate, plus transfer fees on both ends.
• Compare the total cost, not the advertised fee. Check what lands in CAD against the mid-market rate on the day.
• Move a lump sum early to cover your bond, first month's rent and a buffer, rather than many small transfers.
• Keep an Australian account open for super, refunds and bills. See keeping Australian accounts while abroad.

Our guide to sending money home compares the options in more detail. They work just as well in the other direction.

Canadian quirks Australians notice

• Interac e-Transfer is how Canadians pay each other, split dinner and often pay rent. It's built into every bank app.
• Cheques still exist. Some landlords ask for post-dated cheques for rent, so order a chequebook.
• US-dollar accounts are common and useful if you shop or travel across the border.
• Tipping and tax at the till mean the price on the shelf is rarely what you pay. Budget for it.

Your Australian credit file while you're away

Your Australian file doesn't disappear while you're overseas. If you might buy property back home or need a loan when you return, keep one Australian card open and in good standing. Our guide to your Australian credit score while overseas explains how to keep it healthy.

Want to know which bank other Aussies in Toronto went with this year? Ask in Cooee Canada, our Facebook group for Australians in Canada. Members compare newcomer offers all the time.

Sources

1. Opening a bank account – Financial Consumer Agency of Canada
2. Opening a personal bank account: your rights – Financial Consumer Agency of Canada
3. Credit report and score basics – Financial Consumer Agency of Canada
4. Getting your credit report and credit score – Financial Consumer Agency of Canada
5. Bank offers for permanent resident and foreign worker newcomers – RBC Royal Bank
6. Protecting your SIN – Service Canada

Keep reading

• Your SIN and first-week admin in Toronto: the order that works
• Renting in Toronto as an Australian
• Income tax in Ontario: your first Canadian tax return
• Sending money home