New to Canada Line of Credit

The maximum limit for the New to Canada Line of Creditis $10,000^*. For credit amounts exceeding $10,000, please use our appointment booking tool to set up a meeting with an everyday banking advisor. They can provide additional options based on your specific financial situation.

You are eligible for ATB’s New to Canada Banking Solutions if you are a permanent resident, international student, temporary foreign worker or refugee that lives in Alberta and have landed in Canada five years ago or less (with proof of status).

The New to Canada Line of Credit is designed for permanent residents who need to establish Canadian credit. To identify the right solution, please use our appointment booking tool to set up a meeting with an everyday banking advisor. They can provide additional options based on your specific financial situation.

A line of credit is a flexible amount  of money provided by your bank that allows you to borrow up to a specific limit whenever you need it. Think of it as a pre-approved fund that stays waiting in your account; you only borrow what you need, and you only pay interest on the amount you actually spend. Because it is "revolving," as soon as you pay back what you borrowed, those funds become available for you to use again without having to apply for a new loan.

ATB’s New to Canada Line of Credit offers qualifying newcomers to Canada the ability to build Canadian credit and access up to $10,000^* in funds. With the New to Canada Line of Credit you don’t need a credit history to apply and access low interest borrowing. The benefit of a line of credit is you only pay interest on the money you spend, ensuring you have the funds when you need them with no unnecessary interest.

A line of credit is an excellent way for newcomers to build a Canadian credit history because it demonstrates to lenders that you can manage "revolving" debt responsibly. In Canada, your credit score is partially based on having a healthy mix of different credit types. By opening a line of credit with a standard credit card, you diversify your credit profile, which can help improve your score. To learn more about how to build your credit score as a newcomer to Canada, check out our article.

You do not need a Canadian credit history to apply for ATB’s New to Canada Line of Credit. This product is designed for newcomers and helps you build a Canadian credit score, without needing a Canadian credit history. To apply for this line of credit, you will need to visit us for an in-person appointment. 

If you are new to Canada, you may have not held any credit products here yet. This means that you don’t have a Canadian credit history and most likely do not have a credit score. Learn more about credit and why it’s important in this article.

To apply for the New to Canada Line of Credit, please book an appointment using our appointment booking tool. An ATB everyday banking advisor will support you with the application process.

For your meeting, we ask that you please bring one of the following documents:

• A valid passport (any country)
• Canadian driver’s license
• Canadian government ID card
• Permanent Resident Card

To prove Alberta residency, please also bring one of the following documents:

• SIN Letter from Service Canada with your Alberta address dated within the last two years
• Alberta Health Care Insurance Plan card
• Form IMM1442/IMM1000—Study permit, work permit, temporary resident permit with your Alberta address
• Letter from post secondary school with your Alberta address dated within last two years
• One electronic or paper utility bill that has your name and Alberta address listed
• Dated lease agreement
• Alberta Driver’s License

Note: Other identification documents may be accepted or required. Please contact us for more details.

• Unsecured Loan/LOC, existing ATB Borrower: Obtain one (1) Current document from the list below.
• Unsecured Loan/LOC, new ATB Borrower: Obtain one (1) Current and one (1) Annual document from the lists below.
  • Current Income                 
    
    • Most recent pay stub
    • Most recent two months of direct deposit
    • Current Letter of Employment
  • Annual Income
    
    • Previous year end pay stub
    • Most recent T4
    • Most recent T1 Income Tax return (or equivalent) with corresponding NOA
    • CRA Proof of Income statement

Interest on a line of credit is calculated as "daily rent" on the money you use. Every night, the bank looks at your current balance and applies a daily interest charge, which is your annual rate divided by the 365 days of the year. Unlike a credit card, there is no interest-free grace period, so you begin paying for the funds the moment you borrow them. Because the cost is calculated every day, any payment you make immediately reduces the balance and lowers the amount of interest you are charged the very next day.

You can access a line of credit loan the same way you would any of your deposit accounts—with your debit card at an ABM, ATB branch or through online banking. The debit card you use must be linked to the account, or you can make a transfer from your line of credit to your chequing account. 

To learn more about a line of credit, read our article “What’s a line of credit and when should I use one?”.

You have the option to make manual payments or set up automatic payments from your deposit account. The minimum month end required payment can come from your linked chequing account. If the line of credit is carrying a balance, your attached chequing account will automatically take any deposits made into the chequing account and put them towards the balance on the line of credit.This will reduce your interest costs. 

To learn more about interest and making payments on a line of credit, please read this article.

In Canada, credit scores are based on your financial activity (also referred to as credit history) over the last six years. A credit score is how businesses like banks and employers evaluate your ability to manage debt. As soon as you get a credit card, loan or line of credit, you’ll begin building your score. Once you have a credit product, like a credit card or line of credit, it takes about six months to build a credit score as a newcomer.

To learn more about Canadian credit, read our articles “What to know about credit if you’re new to Canada” and “How to build your credit score as a newcomer to Canada”.

A personal loan is a one-time loan with a fixed plan to pay it off by a set date, while a line of credit is a reusable tool that lets you borrow, repay, and borrow again as needed. You are given a limit, and you can borrow money, pay it back, and borrow it again when you need it. Your monthly payment changes because you only owe the interest on what you have actually spent. A personal loan is for a one-time need. You receive all the money at once and pay it back in fixed amounts every month until a specific date when the loan is completely finished. Once you pay back the loan, you no longer have access to its funds.

Interest rates will also vary between loans and lines of credit.

If you’d like to learn more, please book an appointment to speak with an everyday banking advisor. They’ll review your credit history and experience, as well as your short-and long-term financial goals to help you find the best borrowing option for you.