According to a new TD Bank survey, 59% of new Canadians who have applied for credit believe they would have a better living experience if they had improved access, and 79% say it’s difficult to build credit history in Canada.
The poll focused on people who have arrived within the past five years, a period when many are trying to build a career, secure housing and begin saving or investing.
"For newcomers beginning their lives in Canada, getting off to a strong financial start can be incredibly challenging without access to the credit they need," explained Associate Vice President of the New to Canada at TD Bank, Muhammad Kara, in a recent statement.
"We recognize just how critical it is for new Canadians to build a credit history as they establish themselves and set the foundation for their future here," Kara added.
Credit challenges aren’t about lack of awareness
While one might assume these hurdles are due to inexperience, the survey suggested a different cause with 68% of respondents admitting that they already knew about credit scores even before arriving to their new home in Canada, while 92% recognized the importance of building credit in Canada.
In fact, the majority had already tried to access credit, most often via credit cards (92%), followed by car loans (18%) and mortgages (13%). But among those who applied, 82% reported facing at least one barrier.
The top challenges, according to the TD survey, were:
- Limited knowledge of credit card rewards programs (35%)
- Lack of familiarity with Canada’s financial system (31%)
- Being approved only for lower credit limits or loan amounts (31%)
TD’s report argues that these financial barriers have real-world consequences. Two-thirds (66%) expressed concern about their Canadian credit history, while 22% said their limited access to credit made it harder to maintain a comfortable lifestyle.
Stress, higher costs and housing hurdles
A shortage of credit access can affect people’s lives in different ways, especially when trying to establish a new life in a different country. Respondents in TD’s report, which surveyed 265 randomly selected newcomers in March of this year, indicated various financial problems, including 29% reporting increased financial stress or anxiety.
Turns out 28% of respondents reported limited ability to take out loans, with 27% reporting facing higher interest rates and difficulty securing housing due to a lack of credit access.
"Our survey revealed just how impactful credit challenges can be for Canadian newcomers,” said Kara in a statement.
“With many new Canadians experiencing stress and anxiety, loan access restrictions, or difficulty achieving their unique financial goals, the need for tailored solutions is evident.”
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Solutions and support for newcomers to Canada
When asked what could help, one in three (34%) newcomers said they would benefit from better access to financial advisors who understand the specific challenges they face.
While access to personalized financial advice isn’t always a realistic expense newcomers can afford to take on, there are more and more programs available within Canada’s big banks to help newcomers find their feet.
In this case, TD offers a range of tools and resources that are tailored to those newly arrived in Canada, including credit cards with higher upper limits (up to $15,000) for eligible permanent residents, foreign workers and international students, as well as specific newcomer banking packages.
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Sources
1. TD Bank Group: Fifty-nine per cent of new Canadians say better access to credit would improve their living experience, finds TD (August 12, 2025)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.