Canada refugee claimants deserve recognition. Imagine having to flee your home country for fear of persecution and move to a new destination where everything is different, including the language. Furthermore, you might not have family, friends, or a community to support you.
However, refugees need help settling into their new home, and many times this involves financial assistance. Fortunately, the Canada’s financial programs for government-assisted refugees give some support, but ultimately, refugees need to learn how to access credit in Canada in order to finance their future needs.
Loans and credit products will help refugees build credit scores and financial history in Canada. They also cover some of the cost of life’s biggest expenses, like a mortgage or auto loan.
Can You Get A Loan As A Refugee?
In order to get a loan in Canada as a refugee, you need to become a permanent resident. Non-residents are not eligible for loans in Canada. There are several requirements to be eligible for a personal loan, and being a permanent resident or Canadian citizen is one of them.
Refugees must resettle in Canada to become eligible to get a personal loan. To come to Canada, the United Nations Refugee Agency (UNHCR) or a private sponsorship group has to sponsor you. A person can’t apply directly to Canada for resettlement.
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How To Become A Permanent Resident?
People considered as refugees may apply for permanent residence status and apply to become Canadian citizens.
If the Immigration and Refugee Board of Canada (IRB) accepts your claim for refugee protection, you’ll receive a letter that you can use to prove your status.
If you resettled as a refugee in Canada as a protected person chosen from abroad, you’ll receive a “Confirmation of Permanent Residence” document, then eventually a Permanent Resident Card.
At this point, it’s possible to apply for a personal loan in Canada.
How To Get Your Permanent Resident Card (PR Card) As A Refugee?
A permanent resident is someone who has been given a permanent resident status but is not a Canadian citizen status. A Permanent Resident Card validates a person’s status in Canada and allows them to have access to certain resources.
If you’re recognized as a Protected Person or a Protected Temporary Resident by the IRB or Immigration, Refugees and Citizenship Canada (IRCC), you may apply for permanent residence.
Sponsored refugees are not required to apply for a Permanent Resident Card when they first arrive in Canada. The card will automatically be sent to the address listed as their residence in Canada.
Are you a foreign worker? Find out what are your rights and responsibilities as a temporary foreign worker in Canada.
What Is The Difference Between A Refugee And An Immigrant?
The terms “refugee” and “immigrant” may sometimes be used interchangeably, but they are not the same. An immigrant is someone who decides to move to another country and settle there permanently. A refugee, on the other hand, is someone who is forced to flee their country due to fear of persecution and/or threat to their lives.
Documentation Required For Different Loan Types
| Loan Type | Typical Required Documents |
| Personal Loan | - Name, date of birth, contact information - 1 or 2 government-issued IDs (1 photo) - Social Insurance Number (SIN) - Proof of employment (income, employers name, job title) - Loan purpose - 3 months' worth of bank statements - Bank account details (for direct deposit and withdrawal of payments) |
| Payday Loan | - Name, date of birth, contact information - 1 or 2 government-issued IDs (1 photo) - Proof of income (bank statements, paystub, benefits information) - Bank account details (for direct deposit and withdrawal of payments) |
| Car Loan | - Name, date of birth, contact information - Driver’s license - Social Insurance Number (SIN) - Proof of employment (income, employers name, job title) - 3 months' worth of bank statements - Bank account details (for direct deposit and withdrawal of payments) - Proof of insurance - Vehicle identification number |
| Vehicle Title Loan | - Name, date of birth, contact information - 1 or 2 government-issued IDs (1 photo) - Proof of employment (income, employer's name, job title) - 3 months' worth of bank statements - Bank account details (for direct deposit and withdrawal of payments) - Car title - Vehicle identification number - Vehicle details (make, model, age, etc.) |
| Home Equity Loan | - Name, date of birth, contact information - 1 or 2 government-issued IDs (1 photo) - Social Insurance Number (SIN) - Proof of employment (income, employers name, job title) - Bank account details (for direct deposit and withdrawal of payments) - 3 months' worth of bank statements - Property’s deed - Recent mortgage statements - Most recent property tax bill |
Can You Get A Student Loan As A Refugee?
Refugees that have resettled and applied successfully as permanent residents are eligible for student loans, like any other type of permanent resident. But if you are a non-resident, you’re not eligible for a Canadian student loan.
Can You Get A Mortgage As A Refugee?
Yes, anyone — including non-immigrants — can apply for a mortgage to finance the purchase of a home. The real estate market across Canada is accessible to nearly anyone.
Keep in mind, however, that while the process of applying for a mortgage is very similar for both residents and non-residents, there may be more required mortgage documentation for non-residents to reduce the risk for the lender.
Need a car loan? Learn how to get a car loan as a newcomer to Canada.
Can You Get A Credit Card As A Refugee?
Again, if you have a PR card that validates your status as a permanent resident of Canada, you can apply for any credit card in Canada. Most big banks in Canada also offer credit cards to non-residents.
That said, it may be difficult to get approved for an unsecured credit card since you likely have no credit history. In this case, you may have better luck applying for a secured card instead. These cards are easier to get approved for and can help you build credit in Canada.
| Annual Fee | Purchase Interest Rates | Min. Deposit | |
| Neo Secured Credit | $0 | - 19.99% - 29.99% - QC: 19.99%-24.99% | $50 |
| Secured Tims® Mastercard | $0 | - 20.99% – 26.99% - QC: 20.99% – 24.99% | $50 |
| Home Trust Secured Visa Card | 0$ or $59 | - 19.99% (no annual fee) - 14.90% (with annual fee) | $500 |
| Vancity enviro™ Secured Visa* card | $0 - $395 | 11.25% or 19.50 % | $500 |
Where Can You Get A Personal Loan?
Filters
- Amount
- Up to $35,000
- Rate
- 9.99% - 46.96%
- Term
- 9 - 78 Months
- Amount
- Up to $60,000
- Rate
- 19.99% - 39.99%
- Term
- 6 - 120
- Amount
- $1,500 – $10,000
- Rate
- Varies by province
- Term
- Varies
Financial Assistance For Refugees
As one can expect, there are several challenges to being a newcomer in Canada as a refugee. In addition to the difficulties that come with learning a new language and adjusting to a different culture, financial challenges can pose additional roadblocks to resettlement.
Thankfully, there are some financial assistance programs that the Canadian government provides to refugees to help ease the burden of settling in a new country.
Immigration Loans Program (ILP)
The Immigration Loans Program (ILP) provides funding to refugees adjusting to resettlement in Canada. These loans can cover expenses such as travel to Canada and other resettlement costs. More specifically, the following types of loans are available under the ILP:
- Transportation loans to help cover transportation costs
- Assistance loans to help with establishing residence in Canada
- Right of permanent residence fee (RPRF) loans
Resettlement Assistance Program (RAP)
The Resettlement Assistance Program (RAP) is a contribution program that consists of income support and assistance for many essential services provided by Service Provider Organizations (SPOs), usually within the first few weeks of arrival in Canada. Assistance under this program may include the following:
- Greeting newcomers at the airport
- Offering temporary accommodations
- Helping newcomers adjust to life in Canada, such as teaching life skills or financial training
- Helping to find a permanent home
- Referring to other relevant programs
Loans For Refugees FAQs
What is a credit score?
How do you build credit in Canada as a refugee?
What documents do I need to apply for a loan as a refugee?
- Original copy of a government-issued photo identification. Such as a driver’s license or Permanent Resident Card.
- Verification of employment, such as recent pay stub, letter of employment, or tax statements.
Final Thoughts
Canada refugees can have a difficult time getting access to credit when they first move to Canada. However, there are programs and products available that can help them. Canada’s refugees are eligible for credit and loans which buy life’s necessities and simultaneously build a healthy credit history.
