Refugees and Credit in Canada: Building a Financial Foundation from Day One

Mar 20, 202626 min read

Starting Your Financial Journey in Canada as a Refugee

Arriving in Canada as a refugee is simultaneously one of the most relieving and overwhelming experiences a person can go through. After months or years of uncertainty, danger, and upheaval, you’ve finally reached safety. But safety alone doesn’t pay the bills, put food on the table, or build the stable future you’ve been dreaming of. That’s where your financial journey begins.

Understanding the Resettlement Assistance Program (RAP)

The Resettlement Assistance Program is the financial backbone of your first year in Canada as a Government-Assisted Refugee. Understanding how RAP works is essential for planning your finances and making the most of the support available to you.

What RAP Provides

RAP provides two main types of support:

One-time start-up allowance: When you arrive, you receive a one-time payment to help cover the costs of establishing your household. This includes money for basic furniture, household supplies, clothing, telephone installation, and other essentials. The amount varies based on family size but is designed to provide the basics you need to set up a home.

Monthly income support: For up to 12 months (or until you become self-sufficient, whichever comes first), RAP provides monthly income support roughly equivalent to provincial social assistance rates. This money is intended to cover rent, food, transportation, and other basic living expenses.

Good to Know

RAP Income Support Amounts (Approximate)

RAP income support is typically aligned with provincial social assistance rates, which vary by province and family size. For a single person in Ontario, this is approximately $700-850 per month. For a family of four, it may be $1,400-1,800 per month. These amounts are modest, and budgeting carefully is essential. Your settlement agency counsellor can provide exact figures for your province and situation.

RAP Support by Refugee Category

Refugee Category	Financial Support Source	Duration	Key Features
Government-Assisted Refugee (GAR)	Federal government via RAP	Up to 12 months	Income support + start-up allowance
Privately Sponsored Refugee (PSR)	Sponsoring group	Up to 12 months	Support varies by sponsor group commitment
Blended Visa Office-Referred (BVOR)	Government (6 months) + sponsor (6 months)	Up to 12 months	Shared financial responsibility
Refugee Claimant (asylum seeker)	Provincial social assistance (if eligible)	Varies	Less structured support, varies by province

Managing Your RAP Payments

Your RAP payments will typically be deposited directly into your bank account. Here’s how to manage them effectively:

Open a Bank Account Immediately

Your settlement agency will help you open a bank account, usually within your first few days in Canada. This is essential for receiving your RAP payments. Most major banks have newcomer programs specifically for refugees, often with waived fees for the first year.

Create a Basic Budget

With your settlement counsellor’s help, create a simple budget that allocates your monthly income support to essential categories: rent, food, transportation, phone, and personal items. In most cities, rent will consume the largest portion of your income support.

Understand When Support Ends

RAP support has a fixed duration — typically 12 months. From day one, be aware of this timeline and work toward financial self-sufficiency. This means pursuing employment, language training, and skills development as soon as possible.

Save Even Small Amounts

Even on a tight budget, try to set aside small amounts for emergencies. Even $20-25 per month adds up to $240-300 in your first year, which could cover an unexpected expense. Ask about emergency funds available through your settlement agency if a crisis arises.

Credit Resources Team — Expert Note

The biggest financial mistake I see newly arrived refugees make is not understanding that RAP support is temporary. Many come from situations where government support, while limited, was ongoing. In Canada, RAP is designed as a bridge to self-sufficiency. I encourage every client to start planning for life after RAP from the very first week. That means language classes, job searching, and building financial skills simultaneously.

Opening a Bank Account as a Refugee

Opening a bank account is one of the first financial steps you’ll take in Canada, and it’s been made as accessible as possible for refugees. Canadian law ensures that even without traditional identification documents, you can access basic banking services.

What Documents You Need

As a refugee, you may not have the identification documents that banks typically request. The good news is that banks are required to accommodate alternative forms of ID. Here’s what you can use:

Acceptable Document	Notes
Permanent Resident Card (for resettled refugees)	Primary ID for Government-Assisted and Privately Sponsored Refugees
Immigration, Refugees and Citizenship Canada (IRCC) documents	IMM 1000, Confirmation of Permanent Residence
Refugee Protection Claimant Document	For refugee claimants awaiting a hearing
Letter from settlement agency	Can serve as supporting identification
Letter from IRCC	Confirming your identity and status
Passport (if available)	Some refugees arrive without passports — this is understood
SIN confirmation letter	Once you’ve received your Social Insurance Number

Pro Tip

Your Settlement Agency Will Help

Your settlement counsellor will typically accompany you to the bank to help open your account. They can explain your situation to bank staff, translate if needed, and ensure you’re treated fairly. Don’t try to navigate the banking system alone in your first days — use the support available to you.

Choosing the Right Bank

Several major Canadian banks have specific programs for refugees and newcomers:

RBC Newcomer Advantage: Offers a free bank account for the first year, a credit card with no credit history required, and free international money transfers. RBC has been particularly proactive in serving refugee communities.

Scotiabank StartRight Program: Provides a free chequing account, a credit card with no Canadian credit history required, and dedicated newcomer banking advisors who speak multiple languages.

TD New to Canada Banking Package: Includes a free premium bank account, a credit card, and access to TD’s financial education resources. TD branches in major cities often have staff who speak Arabic, Dari, Tigrinya, and other languages common among refugee communities.

BMO NewStart Program: Offers no-fee banking, a credit card pathway, and access to BMO’s financial literacy resources for newcomers.

CIBC Smart Account: A no-fee banking option that works well for refugees on a tight budget, with unlimited transactions and no minimum balance requirement.

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Opening a bank account isn’t just a practical necessity — it’s your first step toward building a Canadian financial identity. Every deposit, every payment, every transaction begins to write your financial story in Canada.

Banking Tips for Your First Year

Choose a no-fee account: When your newcomer banking package expires (usually after one year), switch to a no-fee account. Simplii Financial and Tangerine offer free chequing accounts.
Set up direct deposit: Have your RAP payments and any employment income deposited directly into your account. This ensures you receive your money quickly and safely.
Learn mobile banking: Most bank apps are available in multiple languages. Learning to use mobile banking early saves time and helps you manage your money more effectively.
Avoid cheque-cashing services: These services charge high fees. Always deposit cheques through your bank account instead.
Understand bank fees: Ask your bank to explain all fees associated with your account. Overdraft fees, ATM fees, and wire transfer fees can add up quickly on a limited budget.

Building Credit as a Refugee: Your Step-by-Step Guide

Building credit may not feel like an immediate priority when you’re focused on finding housing, learning English or French, and settling into a new country. But starting early on credit building pays enormous dividends down the road. A good credit score makes everything easier in Canada — from renting an apartment to getting a phone plan to eventually buying a home.

Why Credit Matters for Refugees

In Canada, your credit score is essentially your financial reputation — a three-digit number between 300 and 900 that tells lenders, landlords, and service providers how trustworthy you are with borrowed money. Without a credit score, you’re invisible to the Canadian financial system. Here’s how that affects your daily life:

Housing: Most landlords run credit checks on prospective tenants. No credit score often means being passed over for an apartment, or being asked to pay several months’ rent upfront as a deposit.
Cell phone: Postpaid cell phone plans (with better rates and included phones) require a credit check. No credit means you’re stuck with expensive prepaid plans.
Employment: Some employers, particularly in finance and security, check credit as part of the hiring process.
Future borrowing: When you’re ready to buy a car, start a business, or purchase a home, your credit score determines whether you get approved and at what interest rate.

Credit score needed for most competitive loan rates in Canada

First Steps to Building Credit

Get a Secured Credit Card

A secured credit card is the single best tool for building credit from zero. You provide a security deposit (typically $200-$500), and the bank issues you a credit card with a limit equal to your deposit. Use it for small, regular purchases — groceries, transit passes, phone top-ups — and pay the full balance every month. The Home Trust Secured Visa and Refresh Financial Secured Card are popular options. Some newcomer banking packages from major banks also include a secured card.

Use Your Card Regularly But Sparingly

Use your secured credit card for purchases you’d make anyway, keeping your balance below 30% of your credit limit. If your limit is $300, never carry a balance above $90. Pay the full balance by the due date every single month. This demonstrates responsible credit use to the credit bureaus.

Get a Cell Phone Contract

After 2-3 months with your secured credit card, apply for a postpaid cell phone plan. Carriers like Rogers, Bell, and Telus report payment history to the credit bureaus. Paying your phone bill on time each month adds another positive tradeline to your credit report.

Sign Up for Free Credit Monitoring

Create free accounts with Borrowell (which shows your Equifax score) and Credit Karma Canada (which shows your TransUnion score). These services update regularly and help you track your credit-building progress. They also alert you to any changes or issues with your credit file.

Apply for a Regular Credit Card After 12 Months

After a year of responsible secured card use, contact your bank about upgrading to a regular (unsecured) credit card. Many banks will convert your secured card, returning your deposit and potentially increasing your limit. This is a significant milestone in your credit journey.

Continue Building Over Time

Credit building is a marathon, not a sprint. Continue using credit responsibly, always pay on time, keep utilization low, and gradually diversify your credit mix as opportunities arise. Within 2-3 years, you can have a credit score in the 700s — putting you on equal footing with established Canadians.

Good to Know

Credit Building for Refugee Claimants

If you’re a refugee claimant (asylum seeker), you can still build credit in Canada. As long as you have a valid SIN — even one starting with 9 — you can access credit products. Your credit history will remain on file even as your claim is processed. If you receive permanent residency, your credit history transitions with you when you get a new permanent SIN.

Common Credit-Building Mistakes to Avoid

Building credit is straightforward, but there are pitfalls that can set you back significantly:

Missing payments: Even one missed payment can drop your score by 50-100 points. Set up automatic payments or phone reminders to ensure you never miss a due date.
Maxing out your credit card: Using all your available credit (high utilization) signals financial stress to lenders. Keep usage below 30% of your limit.
Applying for too many credit products at once: Each application creates a “hard inquiry” on your credit file, which temporarily lowers your score. Space applications at least 3-6 months apart.
Ignoring your credit report: Errors happen. Check your credit report regularly and dispute any inaccuracies with the credit bureaus.
Using payday loans: These are predatory products with extremely high interest rates. They can trap you in a cycle of debt. Avoid them at all costs.

Credit Resources Team — Expert Note

I’ve helped hundreds of refugees build their credit in Canada, and the ones who succeed fastest are those who start immediately and stay consistent. You don’t need to spend a lot — just $50-100 per month on your secured credit card, paid in full each time, is enough to build a solid credit foundation within a year. The key is consistency and patience.

Interim Federal Health Program (IFH) Coverage

Healthcare is one of the most important — and potentially most expensive — aspects of settling in Canada. The Interim Federal Health Program provides essential health coverage to refugees and protected persons who aren’t yet eligible for provincial health insurance.

Who Is Covered by IFH

The IFH covers the following groups:

Resettled refugees (Government-Assisted, Privately Sponsored, and BVOR) during their first year in Canada or until they qualify for provincial/territorial health insurance, whichever comes first
Refugee claimants until their claim is resolved
Protected persons (those whose refugee claims have been accepted)
Certain other groups as determined by IRCC

What IFH Covers

Coverage Category	What’s Included	Notes
Basic Coverage	Hospital services, doctor visits, lab tests, immunizations	Similar to provincial health insurance
Supplemental Coverage	Prescription medications, dental (emergency and preventive), vision care, mental health counselling	Some limitations and pre-authorization may apply
Prescription Drug Coverage	Medications prescribed by a licensed Canadian physician	Must use a pharmacy that bills IFH directly
Dental Care	Emergency dental, basic preventive care, some restorative work	Pre-authorization required for non-emergency procedures
Vision Care	Eye exams, basic corrective lenses	Coverage may be limited in scope
Mental Health	Counselling, crisis intervention, psychiatric services	Critical for trauma recovery; no referral needed for crisis

Warning

Not All Providers Accept IFH

One of the most frustrating aspects of IFH coverage is that not all healthcare providers accept it. Some doctors, dentists, and pharmacies choose not to participate in the IFH program due to administrative complexity and payment delays. Before booking an appointment, always confirm that the provider accepts IFH. Your settlement agency can provide a list of IFH-accepting providers in your area.

Transitioning to Provincial Health Insurance

IFH coverage is temporary. Once you’re eligible for provincial or territorial health insurance, IFH coverage ends. The transition timeline varies by province:

Ontario: OHIP typically begins three months after you establish residency. Apply immediately upon arrival.
British Columbia: MSP coverage begins after a waiting period of up to three months.
Alberta: AHCIP coverage may begin immediately or after a waiting period, depending on your situation.
Quebec: RAMQ coverage may begin immediately for certain refugees.

During any gap between IFH and provincial coverage, you may be vulnerable to healthcare costs. Ask your settlement agency about bridging options and emergency health funds.

Months — typical waiting period for provincial health insurance

Resettlement Financial Planning

Financial planning as a refugee isn’t just about surviving the first year — it’s about building a foundation for long-term financial health and independence. Here’s how to think about your finances at each stage of resettlement.

First 3 Months: Stabilization

Your focus during the first three months should be on meeting basic needs and establishing essential services:

Open a bank account and set up direct deposit for RAP payments
Secure housing (your settlement agency will help)
Obtain essential identification: SIN, provincial health card, and provincial photo ID
Enroll in language classes (LINC or CLIC programs — free for permanent residents)
Apply for the Canada Child Benefit if you have children
Apply for the GST/HST credit
Understand your RAP budget and create a basic spending plan

Months 3-6: Building

Once your basic needs are met, shift focus to building your financial infrastructure:

Apply for a secured credit card and begin building credit
Start looking for employment or enroll in job training programs
Open a savings account (even if contributions are small)
Get a library card — libraries offer free internet, printing, job search resources, and financial literacy programs
Learn about Canadian consumer rights and financial products
Begin networking through community organizations and settlement agencies

Months 6-12: Growing

In the second half of your first year, focus on achieving financial independence:

Actively seek employment (your settlement agency offers job search support)
If employed, start contributing to your emergency fund
Continue building credit through responsible credit card use
File your first Canadian tax return (important for benefit eligibility)
Plan for the end of RAP support — know your income and expenses, and identify any gaps
Explore skills training, credential recognition, or further education options

Year 2 and Beyond: Thriving

After your first year, your focus shifts to longer-term financial goals:

Pursue career advancement or further education
Increase your emergency fund to cover 3 months of expenses
Consider opening a TFSA for tax-free savings growth
If your employer offers a benefits package, understand and maximize your benefits
Begin thinking about longer-term goals: car ownership, homeownership, education for children
Consider whether to start an RRSP for retirement savings

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The transition from financial dependence to financial independence is a journey, not an event. Every small step — opening a bank account, getting a secured credit card, saving your first $100 — builds toward a future of stability and opportunity.

Government Benefits Available to Refugees

Beyond RAP support, refugees in Canada have access to several government benefit programs that can significantly supplement your income. Many refugees aren’t aware of all the benefits available to them, leaving money on the table.

Federal Benefits

Canada Child Benefit (CCB): If you have children under 18, the CCB provides a substantial monthly payment. For the 2024-2025 benefit year, the maximum is $7,787 per child under 6 and $6,570 per child aged 6-17. The amount is based on family income — lower-income families receive more. Apply as soon as possible after arrival by filing a tax return or using the RC66 form.

Maximum annual Canada Child Benefit per child under 6

GST/HST Credit: A quarterly payment of up to $496 for a single person (2024 amount) to help offset the cost of sales tax. You become eligible by filing a tax return. Even if you had no income, file a return to receive this credit.

Canada Workers Benefit (CWB): If you’re working but earning a low income, the CWB provides up to $1,518 for a single person or $2,616 for a family (2024 amounts). This is a refundable tax credit claimed when you file your return.

Old Age Security (OAS) and Guaranteed Income Supplement (GIS): If you’re 65 or older, you may be eligible for OAS after 10 years of Canadian residency. GIS provides additional income for low-income seniors.

Provincial Benefits

Each province offers additional benefits. Common ones include:

Provincial child benefits: Most provinces have their own child benefit programs that supplement the federal CCB.
Social assistance: If your RAP support ends and you haven’t yet found employment, you may be eligible for provincial social assistance (welfare). Programs and names vary by province: Ontario Works (ON), Income Assistance (NS), Employment and Income Assistance (MB), etc.
Housing subsidies: Many provinces and municipalities offer subsidized housing or rent supplements for low-income individuals and families. Waitlists can be long — apply early.
Child care subsidies: Subsidized or free child care may be available while you attend language classes or work. Inquire through your settlement agency.

Pro Tip

File Your Taxes Even If You Had No Income

Even if you had zero employment income in your first year in Canada, file a tax return. Many government benefits — including the CCB and GST/HST credit — are calculated based on your tax return. If you don’t file, you don’t get these benefits. Settlement agencies and free tax clinics (CVITP) can help you file for free.

Financial Literacy Resources in Your Language

Learning about Canadian finances in a new language can be challenging. Fortunately, numerous resources are available in languages commonly spoken by refugee communities in Canada.

Settlement Agencies with Financial Programming

Settlement agencies funded by IRCC offer free financial literacy workshops and one-on-one financial counselling. These services are available in multiple languages. Major settlement organizations include:

COSTI Immigrant Services (Ontario): Offers financial literacy programs in over 40 languages
ISSofBC (British Columbia): Provides newcomer financial education in multiple languages
Calgary Catholic Immigration Society (Alberta): Comprehensive settlement services including financial guidance
S.U.C.C.E.S.S. (British Columbia): Multilingual financial literacy workshops
YMCA Newcomer Services (multiple provinces): Financial orientation and banking support

Online Resources

Resource	Languages Available	What It Covers
FCAC’s Financial Toolkit for Newcomers	English, French, Arabic, Simplified Chinese, Tagalog	Banking basics, credit, budgeting
ABC Life Literacy Canada — Money Matters	English, French	Basic financial skills
CRA Guides for Newcomers	English, French, Arabic, Chinese, Urdu, Spanish	Tax filing, benefits, SIN
Prosper Canada Learning Hub	English, French, some materials in other languages	Comprehensive financial literacy
Canada.ca Newcomer Information	English, French	All government services and benefits

Person studying financial documents representing refugee financial literacy learning — Financial literacy resources are available in dozens of languages through settlement agencies across Canada.

Housing and Financial Planning

Housing is typically the largest expense for refugees in Canada, often consuming 40-60% of RAP income support. Understanding the Canadian rental market and your rights as a tenant is crucial for financial stability.

Renting Your First Home

In most cases, your settlement agency will help arrange initial housing — either temporary accommodation or your first rental. As you become more independent, you’ll need to navigate the rental market on your own. Here’s what to know:

Rent costs: Rent varies dramatically by city. A one-bedroom apartment may cost $800-1,000 in smaller cities but $1,800-2,500+ in Toronto or Vancouver. Your settlement counsellor can advise on affordable neighborhoods.

Lease requirements: Landlords typically require first and last month’s rent as a deposit (the last month’s deposit is refundable when you move out). Some may ask for a credit check — without a credit history, you may need a co-signer or additional references.

Tenant rights: Canadian tenant protection laws are strong. Your landlord cannot evict you without proper legal process, cannot enter your home without proper notice (usually 24 hours), and cannot raise rent beyond the provincial limit during your lease term. Learn your provincial tenant rights early.

Warning

Rental Scams

Unfortunately, newcomers and refugees are sometimes targeted by rental scammers. Never send money for a rental you haven’t seen in person. Never wire money to a landlord you’ve never met. Be cautious of listings that seem too good to be true (extremely low rent for a nice apartment). Always get a written lease. Your settlement agency can help verify that a rental listing is legitimate.

Subsidized Housing Options

Many municipalities offer subsidized housing for low-income residents, including refugees. While waitlists can be long (sometimes years), it’s worth applying early:

Social housing: Government-owned or non-profit housing with rent geared to income (typically 30% of your gross income)
Rent supplements: Programs that help bridge the gap between what you can afford and market rent
Co-operative housing: Member-owned housing communities that often offer below-market rents
Transitional housing: Short-term housing programs specifically for refugees in their first months

Employment and Financial Growth

Finding employment is the most important step toward long-term financial independence. As a refugee with permanent resident status, you have the right to work anywhere in Canada for any employer. Here’s how to approach your job search with financial goals in mind.

Employment Programs for Refugees

Numerous programs exist to help refugees find employment:

Language training with employment focus: Enhanced Language Training (ELT) programs combine language learning with workplace-specific vocabulary and skills.
Job readiness programs: Settlement agencies offer resume writing, interview preparation, job search skills, and workplace culture orientation.
Mentorship programs: Programs like TRIEC Mentoring Partnership connect refugees with Canadian professionals in their field for guidance and networking.
Bridge training programs: For professionals whose credentials aren’t recognized in Canada, bridge programs provide Canadian certification and workplace experience.
Self-employment programs: Some organizations offer micro-lending, business training, and support for refugees who want to start their own businesses.

Employment rate for refugees within 5 years of arrival in Canada

Understanding Your First Canadian Paycheque

Your first Canadian paycheque may look different from what you expect. Here’s a breakdown of typical deductions:

Deduction	What It Is	Approximate Rate
Federal Income Tax	Tax on your earnings paid to the federal government	15% on first $55,867 of income (2024)
Provincial Income Tax	Tax on your earnings paid to your province	Varies by province (5-13%+ for first bracket)
Canada Pension Plan (CPP)	Mandatory pension contributions for retirement	5.95% of pensionable earnings
Employment Insurance (EI)	Insurance for job loss, parental leave, etc.	1.66% of insurable earnings
Union Dues (if applicable)	Membership fees for your workplace union	Varies

Good to Know

Your Net Pay Will Be Lower Than Your Gross Pay

Don’t be surprised when your first paycheque is significantly less than your hourly rate multiplied by your hours worked. After federal tax, provincial tax, CPP, and EI deductions, your take-home pay (net pay) is typically 20-30% less than your gross pay. Budget based on your net pay, not your gross pay.

Dealing with the Costs of Resettlement

Transportation Loan Repayment

If you came to Canada as a Government-Assisted Refugee, your travel costs were covered by a transportation loan from the Canadian government. This loan must be repaid, typically starting one year after your arrival. Key facts about the transportation loan:

The loan covers airfare and medical exam costs before departure
The loan is interest-free
Repayment begins 12 months after arrival (or when you start working, whichever comes first)
Minimum monthly payments are typically $50-100, depending on family size and loan amount
The loan does not appear on your credit report, but defaulting can have consequences

Note: As of recent policy changes, the Canadian government has forgiven transportation loans for many refugees. Check with your settlement agency or IRCC to determine if your loan has been forgiven.

Credit Resources Team — Expert Note

The transportation loan has been a contentious issue for years. Many refugees arrive already carrying the psychological weight of displacement, and adding financial debt on top of that creates additional stress. The good news is that the government has been moving toward loan forgiveness. If you received a transportation loan, check your status — you may no longer owe anything. And if you do still owe, know that the terms are very flexible and interest-free.

Education and Training Costs

Investing in education and training is often the fastest path to higher earnings and financial stability. Many programs are available at no cost to refugees:

LINC/CLIC (language training): Free for permanent residents, including refugees
OSAP/student financial aid: Refugees with permanent residency can access provincial student financial aid for college and university
Skills training programs: Various government-funded programs offer free skills training in trades and technology
Bursaries and scholarships: Several organizations offer scholarships specifically for refugees, including the World University Service of Canada (WUSC)

Mental Health and Financial Wellbeing

Financial stress and mental health are deeply interconnected, particularly for refugees who may be dealing with the psychological impacts of displacement, trauma, and loss. Addressing mental health is not separate from financial planning — it’s an essential component of it.

Many refugees experience anxiety around money due to past experiences of deprivation, loss of assets, or financial exploitation. These feelings are normal and understandable. Canadian settlement agencies offer free counselling services that can help you process these experiences and develop a healthy relationship with money in your new home.

The IFH program covers mental health counselling for eligible refugees. If your IFH coverage has ended, provincial health insurance typically covers psychiatric services, and many community health centres offer counselling on a sliding fee scale. Don’t hesitate to seek help — there is no shame in accessing mental health support, and doing so can significantly improve your ability to manage your finances and build your new life.

Frequently Asked Questions

Yes. Canadian banks are required to accept alternative forms of identification for account opening. As a refugee, your IRCC documents (such as your Confirmation of Permanent Residence, Refugee Protection Claimant Document, or a letter from IRCC) can serve as identification. Your settlement counsellor can accompany you to the bank and help facilitate the process.

As soon as possible — ideally within your first month. While you have many other priorities upon arrival, getting a secured credit card early and using it for small purchases creates a credit history that will benefit you for years. Even if you’re focused on language learning and basic settlement, making a few small purchases on a secured card each month and paying them off takes minimal time and effort.

The IFH provides temporary health coverage to refugees and protected persons who aren’t yet covered by provincial health insurance. Coverage includes basic medical care, prescription drugs, dental, vision, and mental health services. Your settlement agency will help you obtain your IFH certificate when you arrive. To use it, present your IFH certificate at participating healthcare providers. Not all providers accept IFH, so check before booking appointments.

Government-Assisted Refugees traditionally received interest-free loans to cover travel costs. However, the Canadian government has been forgiving these loans in recent years. Check with your settlement agency or contact IRCC to find out if your loan has been forgiven. If it hasn’t, repayment typically begins 12 months after arrival, with manageable monthly payments.

Yes, you can send money internationally from Canada using services like Wise, Western Union, WorldRemit, or Remitly. However, some destinations (particularly refugee camps) may have limited financial infrastructure. Western Union’s cash pickup service is often the most accessible option for recipients in remote areas. Compare fees across services before sending — the cheapest option varies by destination.

If you’re a permanent resident (which includes resettled refugees) or a protected person, and you have children under 18 living with you, you’re eligible for the Canada Child Benefit. The amount depends on your family income and the number and ages of your children. Apply by filing a tax return or using form RC66. The CCB can provide significant monthly income — for many refugee families, it’s the difference between financial struggle and stability.

RAP support ends after approximately 12 months or when you become self-sufficient. Ideally, by this point you’ll have found employment. If not, you may be eligible for provincial social assistance (welfare) as a bridge. Contact your settlement agency well before your RAP support is scheduled to end to discuss your options and ensure there’s no gap in your income.

Yes, absolutely. As a permanent resident, you have the same right to start a business as any Canadian citizen. Several organizations offer micro-lending programs, business training, and mentorship for refugee entrepreneurs. Organizations like Access Community Capital Fund, the Refugee Career Jumpstart Project, and various provincial small business programs can help you get started.

Your New Financial Life Starts Now

Building a financial foundation in Canada as a refugee is a journey that takes time, patience, and persistence. There will be challenges — tight budgets, unfamiliar systems, language barriers, and the emotional weight of starting over. But there will also be milestones — your first bank account, your first credit card, your first job, your first tax return, and the moment when you realize that you’ve built a financial life that is stable, secure, and entirely your own.

Remember that you’re not alone in this journey. Settlement agencies, community organizations, government programs, and neighbours who care are all part of the support system that Canada has built for refugees. Use these resources — they exist because Canada is investing in your success.

Every financial step you take, no matter how small, is a step toward the independent, secure future you deserve.

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At Credit Resources, we believe that everyone deserves access to clear, honest financial guidance — regardless of where they come from or how they got here. If you’re a refugee looking for help building your credit, understanding the Canadian financial system, or planning your financial future, reach out to us. We’re here to help, in confidence and without judgment.

Refugees and Credit in Canada: Building a Financial Foundation from Day One