While Canada has a specific process that immigrants go through to obtain Permanent Resident status, others may be able to expedite the procedure by applying through the Express Entry process via the Provincial Nominee Program (PNP).
Immigrants who have special skills, education, training, and experience and can contribute to the Canadian economy may qualify as PNP Express immigrants. But no matter how you enter Canada and become a Permanent Resident, budgeting and building savings as a newcomer to Canada can be a challenge.
Read on to find out more about how to budget and develop a healthy financial profile as a PNP Express Immigrant.
Article Summary – Key Points You Should Know
- When you move to Canada, you should budget for rent, transportation, health insurance, basic personal expenses, and taxes.
- There are many tools in Canada to help you successfully manage your finances including YNAB and PocketGuard.
- Don’t forget to spend and save smart by using tools that earn you interest. Earn interest while spending and/or saving using KOHO, Simplii and EQ Bank accounts.
How To Budget As A PNP Express Immigrant
All Canadians, including newcomers like PNP Express Immigrants, should come up with a workable budget to ensure their income can adequately cover all of life’s basic expenses. The following are some of the key things that should be included in your budget:
Rent
It’s easier to find a rental property to live in as opposed to getting approved for a mortgage to buy a home. Many newcomers to Canada choose the rental route when they first arrive in Canada, at least temporarily until they’re able to secure a home loan to purchase a home. However, rent is still costly and is likely the most expensive component of anyone’s budget.
Depending on where you choose to live and the type of unit you decide to rent, you’ll be spending at least several hundred dollars a month. And if you choose to rent a larger unit or a house, you could be spending at least $2,000 or more.
Transportation
Whether you use public transportation or purchase a vehicle, transportation is another costly expense that you will need to account for. If you choose to buy a car, you should budget for upwards of $1,000 per month or more, depending on the type of vehicle you purchase and whether it’s new or used.
Even if you choose to rely on public transportation to get around, you’ll still need to budget accordingly. Taking the bus or train each way to and from work every day can add up to at least $100 a month.
Health Insurance
Each province and territory has a health program that provides basic medical coverage for Canadians. However, newcomers in some provinces or territories may not be covered when they first arrive. During this time, you may need to pay out-of-pocket for certain medical expenses if they arise.
Find out if extra health insurance is necessary as soon as you arrive in Canada.
Basic Expenses
Certain items are considered necessities, including food and clothing. You’ll need to budget accordingly to cover these increasingly expensive costs. The price of groceries, in particular, is on the rise, so you may need to revisit your budget on occasion to make sure your finances are being appropriately allocated to cover food.
Occasional Expenses
There are several miscellaneous items that you may find yourself paying for, which can all add up by the end of the month. Make a list of these potential expenses and their respective costs to keep your budget in check. Some examples of occasional expenses may include the following:
- Prescription medication
- Vision/dental appointments
- Long-distance phone calls
- School supplies
Income Taxes
When working in Canada, you’ll be required to pay income taxes. For most jobs, employers will deduct some money from your paycheque each pay period to cover your income taxes. The amount deducted for income tax purposes will depend on your income bracket.
Best Savings Accounts For PNP Express Immigrants
If you’re a newcomer to Canada, consider looking into the following savings accounts to help you get a financial head start in your new home:
| Monthly Fee | Interest | Extra Features | |
| KOHO | – Essential: $4 – Extra: $9 – Everything: $19 | 5% | – Earn up to 2% cash back on groceries, transportation, food, and drink – Earn up to 50% cash back when you shop with select KOHO partners. – Optional credit building program. |
| Simplii | $0 | 0.40% – 5.50% | – 6% interest welcome bonus. – Refer a friend program. |
| Neo | $0 | 4% | Open up to 10 Neo HISAs. |
| EQ Bank | $0 | Up to 4% | – Financial management app. – Refer a friend program. |
KOHO Accounts
KOHO is a great option for anyone looking to gain control of their finances. They offer three types of full-service accounts that come with a prepaid card, all of which are accessible through the KOHO app. The accounts can be used to make transactions like a debit card while earning cash back like a credit card. Moreover, you can earn up to 5% interest on your entire KOHO account balance.
KOHO Accounts
- Earned Interest Rate: Earn up to 5% interest on your entire KOHO account balance.
- Monthly Fees:
- Essential ($4 a month or $48 a year)
- No monthly fee if you set up a direct deposit or contribute $500 per month
- Extra ($9 a month or $84 a year)
- Everything ($19 a month)
- Essential ($4 a month or $48 a year)
- Minimum Account Balance: None
- Extra Features:
- Depending on the account type you have, you can earn up to 2% cash back on your purchases and up to an extra 50% cash back when you shop with KOHO partners.
- If you’re looking to build credit, you can apply for their credit-building program for a fee. Essential and Premium account users can enter the program at a discounted rate.
Simplii Financial™ High Interest Savings Account
Simplii Financial is an online-only bank that serves as the digital arm of CIBC. The bank offers a no-fee, high-interest savings account that makes it easy to save while earning interest on deposits.
With Simplii Financial High-Interest Savings Account, you can take advantage of the following perks:
- Earned Interest Rate: Earn between 0.40% and 5.50% daily interest on your deposits.
- Monthly Fees: None
- Minimum Account Balance: None
- Extra Features:
- Referral program. Every time a friend you refer to opens an account with Simplii, you’ll earn $125 and your friend earns $50. There is a cap of 50 RAF within any 12 months and 250 RAF lifetime.
Welcome Offer
Earn 6.00% interest for 5 months on your first Simplii Financial High Interest Savings Account. Plus no fees, regardless of how much money is in your account. Limits apply. Offer ends April 30, 2024.
Neo High-Interest Savings Account
Neo Financial is a financial technology company that is disrupting the way traditional banking industry. They’ve created innovative ways to help Canadians spend smarter and save more. They offer numerous products such as their Neo Mortgages, Neo Credit card, Neo Secured Credit card, Neo Money account and Neo High-Interest Savings account.
- Earned Interest Rate: 4%
- Monthly Fees: None
- Minimum Account Balance: None
- Extra Features:
- Open up to 10 Neo HISAs to help set goals and track progress.
- Integrate your Neo HISA with your Neo Money™ account to transfer funds from saving to spending.
EQ Bank Savings Plus Account
EQ Bank’s Savings Plus Account blends the features of a savings and chequing account, which means you’ll get all the perks of each type of account, all with one financial product.
More specifically, you can use the EQ account to save your money and earn interest on your deposits, while enjoying the flexibility of daily transactions. Plus, there’s no monthly fee to pay.
The EQ Bank Savings Plus Account offers the following features and perks:
- Earned InterestRate: Earn up to 4.00%
- 2.50% everyday interest
- An extra 1.50% when you set up direct deposit for your paycheque
- Monthly Fees: None
- Minimum Account Balance: None
- Extra Features:
- Access the EQ app to manage your finances, pay bills online, and transfer funds from your mobile device.
- Refer a friend and earn $20 to $40 for each referral (up to a maximum of $500) when they open an account via your referral link and deposit at least $100 within 30 days.
What Documents Do PNP Express Immigrants Need To Open Bank Accounts in Canada?
To open a bank account in Canada, you’ll need to submit the following documents to your financial institution:
- Your passport
- Permanent Resident Card or Immigration, Refugees and Citizenship Canada (IRCC) forms
If you’re an international student, you may also need to present your student permit or Temporary Resident Visa.
Consider Using A Budgeting App
There are dozens of apps available for download that can help you easily budget according to your current income and expenses. The following are some of the more popular options to consider to help keep your finances in order, no matter what your current financial situation may be:
You Need a Budget (YNAB)
The YNAB app is designed to help consumers develop a budget and stick to it. Like the Mint app, you can link the YNAB app to your bank accounts, and the app will then assess how you spend your money.
If you’re in debt, the YNAB app will come up with a plan to help you get out of debt. It will also help you set realistic goals and make suggestions on how you can achieve them sooner rather than later.
The app also gives you spending reports so that you can see how you’re spending your money and whether or not you’re making any progress with your financial goals.
YNAB is free for the first 34 days but costs $14.99 per month (or $98.99 per year) following the free trial.
PocketGuard
Another free, easy-to-use budgeting app that immigrants to Canada will find helpful for creating a workable budget is PocketGuard. This app is designed to tell you exactly how much you’re spending so you have a realistic and clear sense of how much money is leaving your pockets each month relative to what you earn.
You can link the app to your financial accounts, and it will allow you to set savings goals and keep you up-to-speed on how much money you have remaining after all your income, bills, spending, and savings are taken into account. Plus, you can break down your expenses into different categories, such as groceries, entertainment, clothing, and so forth.
A great feature of PocketGuard is its bill-tracking which analyzes your bills and determines where you could potentially spend less.
Final Thoughts
If you have certain skills, work experience, or education in specific areas, you may qualify to immigrate to Canada as a PNP Express Immigrant. Regardless of how you immigrate, you’ll need to ensure that your financial situation is strong enough to cover life’s basic expenses, including rent, food, medical expenses, etc. Luckily, there are many convenient financial products available to help you come up with a budget so you can easily cover all of your expenses while keeping your debt levels in check.
PNP Express Immigrant FAQs
Does every province offer an Express PNP Nominee Program?
How much does it cost to immigrate to Canada?
- Individual applicants: Approximately $15,500
- Couples: Approximately $21,000
- Families with children: Roughly between $25,000 to $30,00
