Advice Matters: in This Issue You'Ll Learn About

Advice Matters
NEWCOMER EDITION
IN THIS ISSUE YOU’LL

LEARN ABOUT:
RESOURCES FOR
NEW CANADIANS
FINANCIAL BASICS
SAVING AND INVESTING
YOUR CHILDREN’S
FUTURE
HOME OWNERSHIP
YOUR CAR
MOBILE BANKING
Advice
Matters
Welcome
I’d like to welcome you to Canada and Scotiabank.
We understand that settling in a new country and well into the future. If you have any
is both an exciting and overwhelming time, questions or need guidance, reach out to a
with so many things to do – from transferring Scotiabank advisor to schedule an appointment.
your work skills and finding a job to choosing Like you, many Scotiabank advisors have also
a home in a community where you’ll be happy. moved to Canada from another country and can
The goal of this special edition of Advice help set you on the right path to manage your
Matters is to provide you with important finances with confidence.
information on banking in Canada.
You can get started now.
This publication covers seven key topics:
While we’d love to meet you in person,
• Resources for new Canadians
you can also visit the ScotiaAdvice+ Centre
• Financial basics
(scotiabank.com/adviceplus) to get advice,
• Saving and investing
tips, tools and timely financial information.
• Your children’s future
We’re constantly adding new content, so make
• Home ownership
sure you check back frequently!
• Your car
• Mobile banking No matter where you are on your journey right
now, we’re here to support you.
Whether you’re starting this new chapter
of your life on your own or with your family, So let’s start a conversation about your
we hope the information provided will help better tomorrow.
make your move to Canada easier.
As you settle in, we’d love to talk.

At Scotiabank, we’re here to make sure you get
tailored and personalized advice that will help Dan Rees
you reach your financial goals – today Group Head, Canadian Banking
Advice Presented by
Matters A simple conversation today can help

you reach your goals tomorrow.
In this issue you’ll find
RESOURCES FOR NEW CANADIANS YOUR CHILDREN’S FUTURE
04 Advice+ from Scotiabank 24 Are you maximizing your RESP?
05 Getting settled in Canada: Checklist

for newcomers HOME OWNERSHIP
1 29 Thinking about renting vs. buying a home?

FINANCIAL BASICS
32 9 steps to owning a home as a newcomer
1 08 Why financial advice is so important
11 How to work with a Canadian financial advisor YOUR CAR
14 Everything you need to know about credit 37 New car vs. used car: Car buying guide
MOBILE BANKING
S AV I N G A N D I N V E S T I N G
41 Online banking: Everything you
17 Getting started on saving and investing:
need to know
A brief how-to guide
44 Tips to stay safe with mobile banking
21 Investing with a PAC mentality
Advice
Matters
NEWCOMER EDITION
04
RESOURCES FOR
NEW CANADIANS
Advice+ involves three steps.
Advice+ from 1. A conversation
Scotiabank
We start with your story. It starts with a simple
conversation to get to know you better – where
you are and where you want to be. We want to
understand your money goals, but also your
A new way to collaborate, plan and keep
life goals.
you headed in the right direction. We get
to know you better to guide you better –
2. The steps to get you there
today and tomorrow.
Together, we create an easy-to-understand
roadmap – tailored just for you. Your life has
many moving parts, so we’ll create a financial plan
that looks at everything – the big and small,
as well as your short- and long-term goals. We’ll
also recommend helpful tools that can make you
feel more confident about managing your money.
3. Confidence you’ll make it

Your life doesn’t stay the same for long, so we’ll
help you adjust your plan to help you stay on track
and meet your goals. And along the way, you’ll get
insights from us to help you get the most out of
your money. Anytime you need to talk, we’re here.
It all starts with a simple conversation

• Book an appointment with an
advisor today
or
• You can also visit scotiabank.com/
adviceplus for quick tips and insights
and to learn more about Advice+.
Home Table of contents Previous Next

Advice
Matters
NEWCOMER EDITION
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Getting settled
in Canada:
Deck
Whether you’ve come to study, work, or start

Checklist for a new life for yourself, Canada is a great
place to live. It’s a diverse country with lots
newcomers of opportunity – but there’s also plenty to

adjust to as a newcomer.
Our newcomers’ checklist that follows can

help you navigate your first few months living
in Canada.
Open a Canadian bank account

You can do some initial research on the
Canadian banking industry by visiting the
Canadian Bankers Association (CBA) website.
Once ready, book an appointment with a
multilingual Scotiabank advisor to discuss
which bank account would work best for
your needs.
Get a SIN card

You need a Social Insurance Number (SIN) to
work in Canada and get access to government
benefits. All family members (even children
and infants) should apply for one on arrival.
For more information, visit the Government of
Canada website at Canada.ca, Social Insurance
Number – Overview.

06
Getting settled in Canada: Advice

Checklist for newcomers Matters
Get a health card

All permanent Canadian residents are eligible
for government-subsidized medical care.
You should apply for a health card as soon
as you arrive in Canada. Each member of
the family, including infants, must have their
own health card. Apply by contacting the
Ministry of Health in the province or territory
where you live. For more information, visit the
Government of Canada website at Canada.ca,
Learn about health care in Canada.
Start building your Canadian credit history

Building good credit in Canada can help you
Enroll kids in school
save money on interest rates and get approved
more easily for things like cell phones, lines of Public education is paid through your taxes
credit and car loans. A credit card is a good way and is therefore free and available to every
to build your credit history in Canada. Refer to child in Canada. You will need to pre-register
the article Everything you need to know about your children (ages 5 to 17) as soon as you arrive
credit on page 14 for more information. Book at the school or school board office in your area.
an appointment with a multilingual Scotiabank For more information, visit the Government
advisor to discuss which credit card would of Canada website at Canada.ca, Learn about
work best for your needs. education in Canada.
Secure housing Use the free support services available to you

For most newcomers, your first home will likely Canada has many immigrant-serving
be a rental house or apartment. The Canadian organizations that help newcomers settle into
Mortgage & Housing Corporation (CMHC) life in Canada. They can help with things such
can help you learn more about your rights as as learning basic English or French, supporting
a tenant in Canada. For information on renting you in securing housing or helping you find a
versus buying in Canada, refer to the article job. Find free newcomer services near you at the
Thinking about renting vs. buying a home? Government of Canada website at Canada.ca,
on page 29. Find free newcomer services near you.

07
Getting settled in Canada: Advice

Checklist for newcomers Matters
Get your education and Improve your English and French

work credentials assessed
If you’re a permanent resident you can take
If you’re immigrating to Canada as a Federal free language classes in Canada. These are
Skilled Worker, coming to work in specific provided by the Canadian government.
professions or trades, or coming to study, You will need to get a formal language
you will need to have your existing education, assessment before registering. For more
work experience or professional credentials information, visit the Government of Canada
assessed. For more information, visit the website at Canada.ca, Language classes
Government of Canada website at Canada.ca, funded by the Government of Canada.
Get your credentials assessed in Canada.
Build your network in Canada
Get a driver’s licence
To help settle easier into Canada, building
Your foreign driver’s license is only valid for a your social network is helpful. Joining Canadian
limited time after arriving in Canada. You may newcomer social media groups, volunteering,
need to pass a written examination and one or attending community events, in addition to
two driving tests to qualify for your Canadian joining a professional association, will help.
driver’s licence, depending on the rules in Many Scotiabank advisors have moved to
your province. For more information, visit the Canada from another country and can help
Government of Canada website at Canada.ca, give you advice on building your network.
Driving in Canada.
Simplify your banking with the Scotiabank

StartRight® Program1 for newcomers
The Scotiabank StartRight Program can help you start banking in Canada with access to credit,
savings, no-fee international money transfers and more.
To learn more about the Scotiabank StartRight Program, schedule an appointment with a multilingual
Scotiabank advisor today.
To learn more about the steps you can take to reach your financial goals, visit the ScotiaAdvice+
Centre at scotiabank.com/adviceplus. Here you’ll find timely financial information, advice, tips
and tools to help you become better off today and tomorrow.
1
Scotiabank StartRight Program, created for Canadian Permanent residents from 0–3 years in Canada, International Students and Foreign Workers.

Advice
Matters
NEWCOMER EDITION
08
FINANCIAL BASICS
Why financial
As we get a bit older, our lives get much more
complex. We find ourselves planning for a variety
of events, such as the purchase of a home,
advice is so a child’s education, a parent’s elder care or
a possible career change.
important Additional complexities could be introduced

with second marriages, unique living arrangements,
Let’s face it: We all could use a little a changing job market – or even a global pandemic.
advice from time to time – especially Against this backdrop, financial advice has become
when it comes to our finances. more important than ever.
While there’s certainly no shortage

of financial advice in today’s digital age,
making sense of all the information
and determining what applies to you
can be overwhelming. DID YOU KNOW?
What types of advice Canadians are
most interested in receiving?1
51% Advice on investments
45% Help saving for retirement
33% Quick tips to help improve

financial situation
31% Saving for an emergency

or reduction in income
25% In-depth review of financial

situation (e.g., a financial plan)
25% Saving for a large purchase

(e.g., an automobile, vacation)
1
Source: Scotiabank, Advice Blueprint – The Sequel, A closer look at channel
preferences and financial advisor best practices, August 2020.

09
Advice
Why financial advice is so important
Matters
THE BOTTOM LINE:

WORKING WITH A FINANCIAL
ADVISOR HELPS YOU INCREASE
YOUR WEALTH2
Research has shown that households working
with a financial advisor accumulate more
assets than those that don’t – and the longer
they work with an advisor, the more their
savings will grow.
Consider the following research:

Versus non-advised households, the
average household with a financial advisor
accumulated:
Key benefits of financial advice
• 1.8 times more financial assets over
There are a number of important reasons for choosing 4 to 6 years
to seek professional advice.
• 2.1 times more assets over 7 to 14 years
A financial advisor can help you by: • 2.3 times more assets over periods
• Providing objective insights into your finances greater than 15 years
• Putting in place a comprehensive financial plan
Canadian households with a financial advisor
to meet your goals accumulate more financial assets versus
• Building up your wealth through better savings comparable non-advised households
behaviour and increased financial knowledge
2.3x more
• Monitoring and updating your long-term savings assets
2.1x more
strategy to build for a comfortable retirement 1.8x more assets
assets
• Ensuring your investments are diversified
in order to lower your risk
• Selecting tax-efficient investments to help you
keep more of your money
No 4 to 6 years 7 to 14 years 15+ years
• Preparing you for unexpected events,
advice of advice of advice of advice
such as job loss or disability
2
Source: More on the Value of Financial Advisors, Claude Montmarquette,
• Helping to prevent emotional investing decisions, Alexandre Prud’Homme, CIRANO 2020.
especially during periods of market volatility

10
Advice
Why financial advice is so important
Matters
DID YOU KNOW?

According to recent Scotiabank research on
Canadians working with a Financial Advisor:
Are confident in the advice

81% they receive from their advisor3
Feel empowered and The best advice starts

76% knowledgeable/optimistic about with a conversation
the future of their finances after
speaking with their advisor4 Scotiabank advisors are highly qualified with
experience in financial planning to work with you
to create a financial plan that’s right for you and
Indicate the advice they receive
64% evolves with you – answering your questions,
from their advisor has made
them better off financially than providing advice and updating your financial plan
if they would have managed along the way to help you achieve your goals.
their money on their own5 You’ll also have access to additional resources
and advice as Scotiabank advisors work with
range of specialists across the bank.
3, 4, 5
Source: Scotiabank, Consumer Confidence, Saving, Investing & Advice, 2020
Investment Poll (COVID-19 wave, July 2020).
Book an appointment with a Scotiabank advisor For more information on managing

at 1-866-698-5927, or visit scotiabank.com/ your finances in Canada, have a look
GetAdvice to meet some of our advisors and at these articles:
to learn about the wide range of topics you
➞ 5 reasons to start your financial plan today
can discuss with them – from savings and
investments to budgeting for you and your ➞ 5 keys to your financial well-being
family and planning for retirement.

Advice
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NEWCOMER EDITION
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How to work
with
Deck
a Canadian
financial advisor While there are many unknowns when moving
to a new country, there are a number of
resources in Canada to help you and your
family succeed.
When you set up a bank account at Scotiabank,

you will have access to a financial advisor who
will help you navigate the Canadian financial
system and reach your personal financial goals.
Here are four tips on how to get the most out

of your financial advisor meetings.
1. Don’t be afraid to ask questions
As a newcomer, some parts of the Canadian

financial system may be new to you.
It’s important that you understand the
accounts and investments that your advisor
recommends and how they work with your
financial plan. If you have any concerns or
don’t understand something, always ask for
clarification. Your advisor is there to answer
your questions.
Before you attend a meeting with your financial

advisor, take some time to review your financial
goals and make note of key items you want to
discuss. To help answer some of your initial

12
How to work with a Advice

Canadian financial advisor Matters
questions about banking in Canada,

visit the Scotiabank New to Canada website
at scotiabank.com/startright, which answers
commonly asked questions, such as how
to secure a Canadian bank account and how
to send money to and from Canada.
When you attend any follow-up meetings

with your advisor, remember to bring all
relevant paperwork, including recent account
statements, budget plans and relevant
tax forms.
2. Become an informed investor
Always continue to learn and improve your 3. Stay involved

knowledge of the Canadian financial system.
Stay on top of your finances by keeping a file
Make sure you read documents that you
of your account statements, tax slips and any
receive about your accounts and investments.
other related Canadian documents. Take some
As a newcomer there will be new investment
time to review your statements when you receive
opportunities for you to consider such as a
them. Remember that if you have any concerns
Tax-Free Savings Account (TFSA), Registered
or questions, contact your advisor – they are
Retirement Savings Plan (RRSP) and High
there to help you.
Interest Savings Account (HISA).
Your advisor will direct you to helpful

4. Keep your advisor informed
resources to help build your knowledge base.
of changes
Scotiabank’s investment account fees at
a glance is a great resource to help Just like you would tell your dentist if you’re
understand the costs associated with having tooth pain, you need to keep your advisor
your new investments. informed about changes in your personal or
financial circumstances. Major life changes –
such as marriage, the birth of a child, divorce
or the death of your spouse – can profoundly
impact your financial outlook. Keep your advisor
updated so that he or she can make necessary
adjustments to your financial plan.

13
How to work with a Advice

Canadian financial advisor Matters
3 steps to starting a financial

plan with your advisor
One major benefit of working with a financial advisor is that they can help you
create a Canadian financial plan.
A financial plan is like a customized roadmap for your financial future, and with the help of an
advisor, considers major aspects of your life to help you achieve goals such as buying your first
home in Canada or retirement. This is an important step in achieving long-term financial success
and stability in Canada. Here are three steps to get started:
Calculate your net worth Establish a budget Set your goals

List out all your assets (for Where does all your money go? Are you saving for your first
example, your current savings, Tracking spending can be a bit home in Canada or funding your
paid off car etc.) and liabilities daunting, especially as you are child’s education? The financial
(any debt). This is an important familiarizing yourself with a new plan that you build with your
step in understanding your financial system in Canada. advisor will be personalized to
current finances and reaching To help you get started, try out you, based on your unique goals
your goals. the Scotiabank Money Finder and stage in life.
Calculator.
Remember, when in doubt ask questions. Your financial advisor is there to help you navigate the
Canadian financial system and ultimately succeed in your new home.

Advice
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NEWCOMER EDITION
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Everything
you need to
Deck
know about Now that you’re in Canada, you may have

started hearing a lot about “credit.” Obtaining
credit “credit” allows individuals to obtain goods

or services before paying for them, with an
understanding that it will be paid for later.
A credit card, which is issued by a bank, is the

most common method of paying for goods or
services on credit. Many banks require that a
person have a credit history before approving
them for a credit card, which can put some
newcomers at a disadvantage. A credit history
refers to your payment history and your
ability to consistently pay your credit card
bill, and any other bills, on time.
Why do I need to build my credit

history in Canada?
When you apply for credit in Canada, lenders
will normally check your credit history to help
with their decision as to whether to give
you credit.
Building good credit could help you save

money on interest with lower interest rates and
get approved more easily for things like cell
phones, lines of credit and car loans.

15
Everything you need Advice

to know about credit Matters
The Scotiabank StartRight® Program1,

however, offers you the chance to obtain your CHECK
first credit card without providing a credit

history beforehand. This will help get you
started on building your credit in Canada.
What’s more, if you set up your banking
through the StartRight® program, you can
bank without monthly account fees and get
up to $5,000 in a credit limit on a Scotiabank
credit card!2 There are many factors within your control
that impact your credit score.
Which credit card should • Payment history refers to how consistently
you apply for? you pay your credit card bill, and any other
bills, on time. Paying off your bills in full, by
Before applying for a credit card, it’s important
their due date, is the best thing you can do
to decide which type of card will suit your
to increase your credit score. In all cases you
needs. Some credit cards have low annual
should ensure you pay at least your minimum
interest rates (less than 19.99% on purchases),
payment by the due date. Payment history is
while others may have low or no annual fees.
the most important part of your credit score.
Other cards offer rewards or incentives when
you use them to pay for everyday purchases. • Account activity, such as opening new and
In Canada, rewards can come in a variety of multiple credit accounts in a short period of
formats like points, travel miles or cash back. time, can negatively affect your credit score.
Whatever the format, rewards typically give you Try to apply for credit only when you need it,
some sort of benefit for using your credit card such as when you arrive in Canada.
to make everyday purchases.
• Length of credit history makes up about
15 per cent of your total score. In general,
What is a credit score? the longer you use a credit card and ensure
Once you’ve been approved for a credit card, you make payments on time, the better it is
it’s important to use it responsibly in order to for your score.
build a good credit score.
It’s important to keep in mind that too many
A credit score is a number that represents credit checks can also lower your credit score.
your financial health at a specific moment in Whenever a money lender asks for access to
time. It indicates how risky you are to money your credit score, it is recorded on your credit
lenders, and how likely you are to pay your report. Multiple or recent inquiries may give
bills on time. In Canada, your credit score lenders the impression that you need credit
generally falls between 300 and 900, urgently or aren’t budgeting your money
and the higher the better. well enough.

16
Everything you need Advice

to know about credit Matters
TIPS FOR BUILDING

A GOOD CREDIT SCORE
Get a credit card and use it

responsibly to build your credit
history
Always pay your bills on time
Try to pay your bills in full
whenever possible
Don’t spend more than your
credit card allows
Limit yourself to just one or Scotiabank has a wide range of credit
two credit cards cards for newcomers. A Scotiabank
advisor can help you decide which
Read your monthly account
one may be right for you.
statements to ensure they’re correct
– and report any errors as soon
as possible
Know your credit score 1
Scotiabank StartRight Program, created for Canadian Permanent residents
from 0–3 years in Canada, International Students and Foreign Workers.
2
Conditions apply. Subject to credit approval.
For more information on credit in Canada, have a look at these articles:

➞ Credit: Step-by-step introduction to credit, credit scores, credit cards and more
➞ Why you should find out your credit score
➞ Establishing a healthy financial life in Canada
➞ Start earning rewards with your credit card

Advice
Matters
NEWCOMER EDITION
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Onlinestarted
Getting
on saving and
Deck
investing: As you set out on your journey to begin saving and
A brief how-to investing to meet your financial goals, you’ll need

to determine which products and/or investment
guide strategies are right for you and your financial

situation.
To determine the most appropriate savings and

investing options, begin by asking yourself these
three key questions:
What are you saving or investing for?
What is your time horizon to reach your goal?
What is your risk tolerance?
DID YOU KNOW?
An RRSP and TFSA are investment

vehicles, while GICs and mutual
funds are investment products you
hold within these vehicles.

18
Getting started on saving and investing: Advice

A brief how-to guide Matters
The following is a brief, high-level guide to get you started on choosing which investment
options align with your goals and timelines:
TIME EXAMPLE OF RECOMMENDED

HORIZON FINANCIAL GOAL OPTIONS
Short-term Less than 3 years • Contributing to an • Savings accounts

goal emergency fund • Short-term Guaranteed
• Saving for a car Investment Certificates (GICs)
• Saving for a vacation • Cashable savings bonds
Medium- 3 to 5 years • Saving for a down payment • GICs

term goal on a house • Tax-Free Savings Account (TFSA)
• Saving for a major home • Mutual Funds
renovation
Long-term 5+ years • Contributing to a retirement • Registered Retirement Savings

goal nest egg Plan (RRSP)
• Funding your children’s education • Tax-Free Savings Account (TFSA)
• Saving for a cottage or investment • Mutual Funds
property • Registered Education Savings
Plan (RESP)
• Long-term GICs
YOUR RISK TOLERANCE – A KEY FACTOR IN DETERMINING

HOW YOU’LL INVEST YOUR MONEY
Your risk tolerance, or risk appetite, is the amount Many investments offer the potential for a higher
of risk you’re willing to accept when investing and rate of return but also involve some level of risk.
your financial ability to handle loss. Having a clear More risk may be acceptable if your financial goal
understanding of your risk tolerance will help you is longer term, which will allow for more time to
determine which investments are appropriate recover any financial losses.
and which to avoid.
Your Scotiabank advisor can help assess your risk
tolerance and build an investment plan tailored
to address your unique needs and comfort level.

19

BASICS OF SAVING AND INVESTING OFFERINGS – FREQUENTLY

ASKED QUESTIONS
Visit scotiabank.com to learn more:
High-Interest Savings Accounts (HISAs) vs.
Guaranteed Investment Certificates (GICs)
• High Interest Savings Account (HISAs)
• Guaranteed Investment Certificates (GICs)
What are they?
HISAs usually earn more than a typical savings
account, helping you increase your savings over
RRSP vs. TFSA
time. How much interest you earn depends on
the financial institution, but typically, the higher
your balance or the longer you keep your money
RRSP and TFSA: What are the main
in the account, the more interest you can earn.
benefits and key differences?
GICs work similarly to savings accounts, as you
Essentially, both the Registered Retirement
can earn interest on your funds without the risk
Savings Plan (RRSP) and the Tax-Free Savings
of losing your original principal investment.
Account (TFSA) let you shelter your investment
However, unlike many savings accounts, GICs
returns from taxes.
are not meant to be touched for a set amount of
time. GIC terms range from 30 days to 10 years,
An RRSP is an investment that helps you grow
so you can choose the option that works best
your retirement savings. One of the main benefits
for your investment goals. GICs usually require a
of an RRSP is that you defer paying taxes on
minimum deposit between $500 and $1,000.
the money you contribute and any investment
income earned, until years later when you
How much do I have to invest? withdraw your money in retirement.
If you have a large sum of money to invest, a GIC
will usually help you earn a better interest rate A TFSA is a relatively new investment vehicle
than a savings account. However, it’s important that was introduced in 2009. It can be used to
to keep in mind that there are penalties for early save towards retirement, but also many other
withdrawal, so you have to be certain that the goals because, unlike an RRSP, you’re free to
money invested in a GIC won’t be needed for the withdraw funds at any time without penalties.
entire term of the certificate. The main benefit of a TFSA is that they are
completely tax free. Since you’ve already been
If you want to make ongoing contributions to taxed on the money you put into your TFSA, any
your investment, then a HISA might be the more income you earn from the investments within
appropriate option. You can continuously add to your TFSA is tax free, even when withdrawn
your savings as long you hold the account. from the account.

20

What type of investments can I hold

in an RRSP or TFSA? THE MOST FREQUENTLY HELD
Generally, the same types of investments are INVESTMENT PRODUCTS
permitted in both. There are a wide variety AMONG CANADIAN INVESTORS
of options to choose from, including cash,
guaranteed investment certificates (GICs),
exchange-traded funds (ETFs), mutual funds,
Mutual
stocks and bonds. 89% funds
Visit scotiabank.com to learn more:
• Registered Retirement Savings Plan (RRSP) 69% Stocks
• Tax-Free Savings Account (TFSA)
Guaranteed Investment
54%
Mutual Funds Certificates (GICs)
What is a mutual fund? Exchange-traded

29%
Funds (ETFs)
A mutual fund is a professionally managed
investment that pools money from different
investors to invest in a variety of stocks, bonds,
23% Bonds
short-term money market instruments or
other securities.
Source:
Ipsos Canadian Financial Monitor (12 months ending August 2021).
Mutual fund investors get the benefit of
diversification and having a professional
manager reviewing their investment on an
ongoing basis. Their investment knowledge can The various savings and investment choices
be an invaluable resource, especially for many mentioned have their own unique benefits,
investors, who simply don’t have the time and to maximize their effectiveness, your
or investment expertise to micro-manage personal circumstances, time horizon
their investments. and risk tolerance should be considered.
A Scotiabank advisor can recommend
Visit scotiabank.com to learn more: options and help you choose an investment
• Scotia Portfolio Solutions strategy that works best for you.
• Scotia Aria® Retirement Program
For more information on setting long-term financial goals, have a look at this article:
➞ Establishing savings goals

Advice
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Investing PAC BENEFITS
with a “PAC”
Deck Helps you stick to your plan
When it comes to saving, it’s sometimes easy
mentality to get sidetracked. A PAC allows you to make
saving priority number one by ensuring you
never forget your plan.
Pre-Authorized Contributions (PACs)
make investing for long-term goals Minimizes scrambling to meet RRSP
easy and affordable. contribution deadline
With a PAC you’ll save automatically for your
Registered Retirement Savings Plan (RRSP)
– all year round – and avoid the stress of
meeting the RRSP deadline and making a
yearly lump-sum contribution.
Eliminates the guesswork of when to invest

Research has shown that investing on a regu-
lar basis is much more effective than trying to
“time the markets”– especially during peri-
ods of volatility. See the section that follows,
“PACs – Making the Most of Market Volatility.”
Looking for an easy and convenient way
to start building up savings for retirement? Works with almost any budget
With Pre-Authorized Contributions (PACs),
With a PAC, you determine what you can
you choose the amount you’d like to contribute,
afford to save. Get started with as little as
and how often – and you make adjustments
$25 per month.
at any point in time!
The beauty of a PAC is that it’s automatic. Takes advantage of potential

Just choose the amount you want to save and how compound growth
often you want to save it – for instance, weekly, Saving over a longer period of time allows
biweekly or monthly. Once it’s set up, you’ll be your money more time to grow and to bene-
saving money without even thinking about it. fit from compound growth.

22
Advice
Investing with a “PAC” mentality
Matters
QUICK FACTS2
60% Savings put away each month

$100 or less 28%
Contributing to long-term of Canadians
$101 to $500 44%
investments (e.g., for retirement) save money on
continues to be the most important a monthly basis More than $500 28%
financial priority for Canadians1 1
Scotiabank, Scotia Global Asset Management Investor Sentiment Research, Fall 2021.
2
Source: Scotiabank Investment Poll, 2021.
“PAC” IT UP – CONTRIBUTE MAKE IT BI-WEEKLY

MORE AS YOU EARN MORE AND SAVE EVEN MORE
As you get older, it’s likely your cash flow will improve. While Changing your contribution from a monthly basis
Canadians are saving on a monthly basis, many forget to to bi-weekly can really add up. You may be making
adjust their plan as their financial circumstances change. It’s a bi-weekly mortgage payments. Do the same with
great idea to revisit your PAC contributions on a regular basis your savings. It’s a small change, but the benefits
– especially after major changes, like paying off student debt can add up.
or landing a promotion. While it’s tempting to just set it and
The example below underscores the savings
forget, you’ll be amazed by how much more you can save by
advantage provided by bi-weekly contributions
increasing your contributions – even a little bit.
over a 20-year period.
In the graph below, we look at an investor who contributes
$200 monthly for 15 years versus the same investor
increasing their monthly contribution by just $25 each year.
PAC contribution over 15 years Monthly vs Bi-weekly contribution
$200 monthly plus $100 bi-weekly

$25 increase each year $200 a month (20-year period)
(20-year period)
$200 monthly
$93,713 $81,492 $88,186
$53,181
Over a 15-year period, Almost $7,000 more when saving

the difference is over $40,000! on a bi-weekly basis.
For illustrative purposes only. The example uses a hypothetical rate of return of 5%, assumes reinvestment of all income, For illustrative purposes only. The example uses a hypothetical rate of return of 5%, assumes reinvestment of all income,
compounded annually and does not include transaction costs, fees, or taxes. The example does not reflect actual results compounded annually and does not include transaction costs, fees, or taxes. The example does not reflect actual results
or the returns or future value of an actual investment. or the returns or future value of an actual investment.

23
Advice
Investing with a “PAC” mentality
Matters
GET MARKET VOLATILITY WORKING FOR YOU
Number of units 50
purchased with $250
$12 Unit Price 40
41.7
Units Purchased
35.7 35.7
31.3 31.3 30
$8 27.8 27.8
25.0
20
20.8 20.8 20.8
$4 16.7
10
$0 0
Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec
For illustrative purposes only and does not represent the performance of an actual mutual fund.
PACs – MAKING THE MOST

OF MARKET VOLATILITY
Market swings often make it difficult for investors to
determine exactly when to invest – especially when Your Scotiabank advisor can help
trying to invest one lump sum each year. However, Investing on a regular basis through
with PACs you can invest a fixed-dollar amount at Pre-Authorized Contributions is a great way
regularly scheduled intervals. By contributing on a to build your savings easily and automatically.
regular basis, you take advantage of the market dips
by purchasing more fund units when your dollar goes To see how quickly your savings can grow,
farther and in turn, lowering your average cost. visit scotiabank.com/PAC and try out our
interactive PAC video.
The graph above illustrates regular monthly
contributions of $250 at the beginning of each Speak with a Scotiabank advisor to set up
month. As the unit price fluctuates from month to a PAC that meets your needs.
month, the quantity of units purchased also changes
(when the unit price is lower, more fund units are
purchased: when the unit price is high, less funds
are purchased).
Commissions, trailing commissions, management fees and expenses may be associated with mutual fund investments. Please read the prospectus
before investing. Mutual funds are not guaranteed or insured by the Canada Deposit Insurance Corporation or any other government deposit
insurer, their values change frequently and past performance may not be repeated.

Advice
Matters
NEWCOMER EDITION
24
MYOOBUI LRECBHAI LNDKRI N
EGN’S FUTURE
Online
Are you Whether your child is just learning how to crawl
or starting to master their times tables, you’re
maximizing
Deck
probably thinking a lot about what their future
will look like.
your RESP? Your child will likely be interested in some form

of post-secondary education – be it college,
university or an apprenticeship. That’s why
From saving automatically it’s essential to start planning for the costs
to taking advantage of of education now.
government grants, don’t
leave money on the table. But higher education can be expensive.
The average annual cost of post-secondary
education in Canada is $19,499.1 So, how can
you help your child afford to continue their
education? Enter RESPs, a smart and ideal way
to fund a child’s future ambitions.
LET’S START WITH THE BASICS:

WHAT IS AN RESP?
A Registered Education Savings Plan (RESP)
is the most common education savings vehicle.
It allows parents, grandparents, family
and friends to save towards a child’s
post-secondary education.
Although RESP contributions are not tax
deductible, they allow savings to compound
and grow tax-efficiently until the beneficiary/
child is ready for college or university.

25
Advice
Are you maximizing your RESP?
Matters
FREQUENTLY ASKED QUESTIONS

How much can I contribute You can make contributions of up to a lifetime maximum of $50,000
to an RESP? per beneficiary (i.e., your child or whoever the RESP is set up for).
What types of RESPs There are options:

can I chose from? ➞ A family plan to pool contributions for one or more children
in the same family until age 31
➞ An individual plan to name one beneficiary without age or
relationship restrictions (it can even be yourself)
Are my RESP contributions Contributions are not tax-deductible, but the investment income
tax deductible? earned inside the plan is tax-deferred until you withdraw it.
When the funds are taken out of the RESP as an Education Assistance
Payment (EAP), the investment income and grants are considered
taxable income to the beneficiary. Your child, or beneficiary, will need
to make sure they include this amount as part of their income in the
year it is withdrawn.
How can I make an You can deposit a lump sum or arrange to have Pre-Authorized
RESP contribution? Contributions (PACs) taken from your bank account on a regular basis.
To see how quickly your savings can grow, visit scotiabank.com/PAC
and try out our interactive PAC video.
What if my child You have several options:

decides not to pursue a ➞ You can name another beneficiary, if certain conditions are met.
post-secondary education? ➞ You can make a tax-free withdrawal of your original contributions,
but any grants and bonds received must be returned to the
government.
➞ You may be able to transfer up to $50,000 of the investment income,
tax-free to your Registered Retirement Savings Plan (RRSP) or your
spousal RRSP, if you have enough contribution room available.
Plus, you can also withdraw the investment income as cash
(which would be subject to taxes).2

26
Advice
Matters
MAXIMIZING YOUR RESP’S

VALUE WITH FEDERAL
GOVERNMENT INCENTIVES3
The government partially matches contributions
to an RESP in the form of grants, helping to increase
education savings faster and more effectively.
Canada Education Savings Grant (CESG)
• The Canada Education Savings Grant (CESG)

matches 20% on the first $2,500 of your eligible
contributions each year. So you can receive up
to $500 (per year, per beneficiary under 18) to a
lifetime maximum of $7,200.4
• Depending on your net family income, you could

also receive an additional CESG, of 10% or 20%
on the first $500 contributed each year, up to $100
(per year per beneficiary under 18) towards the
maximum lifetime CESG of $7,200.4
Canada Learning Bond (CLB)
Let’s look at net family income in more detail
The Additional amount of CESG may be up to: • An eligible child born on or after
- $100 if the 2021 adjusted net family income January 1, 2004 may receive the Canada
is $49,020 or less ($500 x 20% = $100) Learning Bond, which offers a $500 initial
- $50 if the 2021 adjusted net family income deposit, then $100 per year until the eligible
is greater than $49,020 and up to $98,040 child reaches 15 years of age, to a maximum
($500 x 10% = $50) of $2,000.5 You do not have to contribute
to your RESP to apply for or receive the CLB.

27
Advice
Matters
CONSIDER THESE TWO RESP CONTRIBUTION STRATEGIES

1. Annual investment strategy 2. Lump-sum investment strategy
This is the most common savings strategy For those with the financial means, a one-time
which allows parents and family members maximum contribution of $50,000 per
to save significant funds, while maximizing beneficiary is an efficient savings strategy
annual government grants, to help fund to accumulate as much money as possible
post-secondary education. for post-secondary education.
Annual investment Lump-sum investment

strategy strategy
How does it work? Contribute $2,500 (or approximately Contribute the $50,000 lifetime
$208 monthly) each year until maximum in year one and remain
the beneficiary turns 17, with an invested until the beneficiary
additional lump-sum contribution reaches age 18
of $7,500 in the final year
Your total contribution $50,000 $50,000
Canada Education Savings $7,200 lifetime maximum $500

Grant (CESG) amount ($500 per year, per beneficiary (as there is only one contribution
under 18) made in the first year)*
Investment growth $25,200 $51,804

(Assumes a 4% annual
rate of return)
Estimated value of RESP $82,400 $102,304

when beneficiary turns 18 (See illustration on next page) (See illustration on next page)
What is taxable Both the CESG ($7,200) and the Both the CESG ($500) and
and to whom? Investment growth ($25,200) are Investment growth ($51,804)
taxable in the beneficiary’s hands are taxable in the beneficiary’s
upon withdrawal (a total of $32,400) hands upon withdrawal (a total
of $52,304)
* Assuming the child is not eligible for the additional amount of CESG.

28
Advice
Matters
ANNUAL vs. LUMP-SUM ANOTHER OPTION TO ASSIST

INVESTMENT STRATEGY WITH EDUCATION COSTS:
The following graphs compare both TAX-FREE SAVINGS ACCOUNT
strategies based on an assumed (TFSA)
4% annual rate of return
Lump-sum
investment If you have concerns that an RESP
Annual strategy may not provide enough funds
investment to cover post-secondary costs,
strategy
another viable option to consider that can
$51,804 effectively complement your RESP is a TFSA.
$25,200
$7,200 $500 RESPs and TFSAs are similar as contributions
made to either type of account are not tax
$50,000 deductible.
$50,000
Let’s look at some benefits of a TFSA:
$82,400 $102,304 • Income earned within a TFSA is never

Total RESP Total RESP subject to tax, even when funds are
withdrawn
Your contributions • Funds within a TFSA can be used for any
Canada Education Savings Grant purpose – not just for education
(CESG)
• The cumulative TFSA lifetime contribution
Investment growth
limit is $75,500, with a current annual
limit of $6,000. The lifetime maximum
1
Source: Maclean’s magazine (2018). Weighted average of all major expenses contribution for an RESP is $50,000 per
for a typical undergrad student living off-campus at a Canadian university.
2
Some conditions apply. Speak with your financial advisor for more details. beneficiary.
3
Conditions apply to all government incentives. Please ask your financial advisor for details.
4
Until December 31 of the year the beneficiary turns 17. Restrictions apply.
5
The Canada Revenue Agency determines eligibility.
A Scotiabank advisor can develop an education savings strategy that works with your financial situation,
incorporating applicable government incentives, to help you meet your child’s education needs.
To learn more or to open an RESP, speak with a Scotiabank advisor today.

Advice
Matters
NEWCOMER EDITION
29
M
HOOM
B IEL E
OWB ANNE K
R ISNHGI P
Online
Thinking
about renting
Deck
vs. buying Where you live is a huge decision. Here are
a home? some things to keep in mind as you are thinking

of renting vs. buying in Canada.
To rent or to own, that’s the question

you’ll have to face when you’re planning out
the next stage of your life in Canada.
Depending on the city you are choosing to

call home, you might not have the luxury of
choosing. According to The Toronto Real Estate
Board the average cost of a home in the city,
as of December of 2019, was $837,788.1
The Real Estate Board of Greater Vancouver,
meanwhile, benchmarked the average cost
of real estate in the city at about $1 million.2
In fact, Toronto was recently ranked the world’s
second most overvalued property market,
with Vancouver following closely behind in
sixth.3 For a recent graduate, those prices are
often well out of reach.
For those not planning to settle in some of the

world’s most competitive real estate markets,
however, the decision of whether to rent or buy
is more complicated.

30
Advice
Thinking about renting vs. buying a home?
Matters
Here are a few things to consider before deciding to rent or buy a place.
What are your goals? impact career decisions. When you’re renting
Buying your first home is an exciting and major a condo/apartment, you have a bit more
decision so you want to make sure you’re doing flexibility to more easily move to pursue new
it when you are ready. When you’re graduating career opportunities or downsize in order to
from school, you likely have a number of switch careers or pursue a lower paying position.
financial goals that you are trying to balance, Your home can also impact who you spend your
like paying off your student loan as well as time with, where your children go to school and
saving and investing for your future. when you’re able to retire, so it’s a decision that
Come into your bank and meet with your you’ll want to give a lot of thought.
financial advisor to help you map out a plan
that details your goals, how much money it will What can you afford?
take for you to achieve them and what it will When you are buying a home, you are making
take for you to get there. Once you have your a major investment. Your home equity can
plan, you’ll have a better idea of when you’ll grow over time. Want to get an idea of what
be ready to buy. the numbers could look like for you? Check out
Scotiabank’s Rent or Own Calculator to crunch
Where do you see yourself in 5 years? the numbers and compare rent and mortgage
Where you buy your home ties you to a specific payments.
location. Because of that, it should only be
considered by those who are certain (or fairly Budgeting for fees
certain) they know where they want to live for For renters, budgeting can be simpler as there
at least the next three, but ideally five or more are usually few additional fees that come with
years. If you are not sure where you’ll be in renting. A landlord sets a monthly fee which
three years, the costs of homeownership might sometimes includes utilities, but sometimes
not make sense, as the market will have little not – and that’s normally the end of it.
time to grow between when you will be buying
and selling your house, condo or apartment.
Housing affects just about everything

Whether directly or indirectly, the decision of
where we live impacts just about every aspect
of our lives, including your career path. If you
are looking at buying a house or condo, once
you’ve committed to paying a certain amount
each month, you need to ensure you’re able to
afford those payments long-term, which can

31
Advice
Thinking about renting vs. buying a home?
Matters
For homeowners, there are additional fees to

consider beyond monthly mortgage payments
and utilities. Those who live in a building or
complex with shared spaces or amenities will
likely have to pay maintenance fees. There
are also property taxes to consider as well as
the cost of the down-payment, homeowners
insurance and the cost of maintaining the
home. For example, if a pipe bursts or a roof
needs to be repaired, those repair costs are
the responsibility of the owner.
What works for you?
At the end of the day, factors like lifestyle,

employment and mobility should play a
large role in your decision of whether to
rent or own, but whether or not you are
ready from a financial perspective is key.
Make an appointment to talk to your

financial advisor about what will work
1
https://www.bnnbloomberg.ca/december-brings-another-double-digit-sales-rise-for-
toronto-housing-1.1369866
best for you at this stage of your life. 2
https://www.bnnbloomberg.ca/vancouver-home-sales-rise-88-1-in-december-from-
last-year-1.1368856
They can help you build a plan for 3
https://business.financialpost.com/real-estate/toronto-is-now-the-worlds-second-
whatever your next step looks like. most-overvalued-property-market
For more information on renting a home as a newcomer, have a look at this article:
➞ Guide to renting your first home as a newcomer in Canada

Advice
Matters
NEWCOMER EDITION
32
M
HOOM
B IEL E
OWB ANNE K
R ISNHGI P
Online
9 steps to Owning your own home is a dream for many
owning a
Deck
people, but for the first-time home buyer in
Canada, there are many steps to go through
before it becomes a reality.
home as a Below are nine steps that will help you in buying
newcomer
your first home in Canada.
STEP #1:
As you settle into Canada, Decide if homeownership
homeownership may be something is right for you
you consider for you and your family.
Buying a new home is a large financial
commitment, especially if you’ve recently
moved to Canada, so one of the first steps to
buying a house in Canada is to decide whether
it is the best option for you.
Start by asking yourself the following questions:

• What makes sense financially? Scotiabank
offers a “Rent or Own” online tool to help
compare mortgage and rent payments.
• What is your credit score? A big part of
obtaining funding for a home is having a
stable credit history. That can be especially
difficult for new immigrants who might be
starting over building credit in a new country.
Waiting to build your score might help you
get a better mortgage rate. Refer to the
article on credit, Everything you need to know
about credit on page 14.

33
Advice
9 steps to owning a home as a newcomer
Matters
• Are you aware of the additional costs STEP #3:

that come with homeownership? Seek out support
Some of the extra fees that come with buying There are many options in Canada to help
a home may include: you on your journey to buying a first home in
- Moving costs Canada. You can work with a real estate agent,
- Home inspection fee access real estate services online, or buy your
- Legal fees home privately without real estate services.
- Land survey
- Land transfer tax Good real estate agents are experts on the
- New home warranties housing market, assist with the large amount
- Home insurance of paperwork required to complete a home
- Title insurance sale, negotiate on the final purchase price
- Mortgage life insurance and provide overall guidance and support.
- Utilities and property tax Real estate agents earn money through
commissions, which are paid by the home seller
when a purchase is made and are typically
STEP #2:
between 3% and 7% of the sale price.
Find out what you can afford
A majority of Canadians borrow money, using
a mortgage, to buy their first home. Before
you start looking for a home, determine what
you can afford. Visit scotiabank.com under
“Mortgage Tools” and try out the What Can I
Afford Calculator to calculate the maximum
purchase price you can likely manage.
Next, consider meeting with a Scotiabank

advisor to start the mortgage pre-approval
process. A pre-approval is when a mortgage
lender looks at your finances to determine
the maximum amount they will lend you.
The actual amount you get will depend on the
value of your home and amount of your down
payment. Typically, the pre-approval is valid
from 60 to 120 days before the offer expires.
Getting a pre-approval will let you know what
price range you should consider when you start
looking for a new home and will help you better
navigate how to make an offer on a house
in Canada.

34
Advice
Matters
To find a real estate agent, ask those in your • Rural or Urban: Do you like being near the
new community if they can recommend one city centre or are you looking for a quieter
they have worked with before. You can also visit community with a smaller population?
the website Realtor.ca, which can help you find This will likely impact the size of your home
someone with a good reputation. Alternatively, or apartment – since if you like more space
Scotiabank’s mobile mortgage specialists you might be able to get a larger home in
can refer you to a trusted real estate agent a smaller community.
partner. Alternatively, online companies such as
• Cultural: Do you want to live close to your
Purplebricks.ca provide real estate services to
place of worship or cultural community
customers through a more affordable fixed fee,
centre? Are there particular areas in the
regardless of the value of the home.
city where immigrants with your cultural or
Buying a home privately is also an option in religious background live?
Canada. This may happen if you find a home
• Public Transportation: Will you need
that is for sale by the owner and would like to
access to public transit? (i.e., bus, subway,
simplify the exchange without a realtor. It is
commuter train)
recommended that you have an expert, such
as a lawyer, go over the paperwork before STEP #5:
signing the deal to make sure you understand Make the offer
the details that are included. This is especially
important to do if you are a newcomer Once you have found a home you like and can
to Canada, as there are people who might afford, your real estate agent will guide you
try to take advantage of your lack of knowledge through how to make an offer on a house in
of how real estate transactions work in Canada. The offer is made with an Agreement
Canada in order to scam you. of Purchase and Sale, which is a written contract
between you (the buyer) and the seller and
STEP #4: includes:
Find the right community
• the closing date – the date that you will be
for you required to pay for the home and transfer
Finding the right home in Canada also means ownership
finding a community that you would like to
settle down in – something that can be harder • the price – the total amount you agree to
for newcomers because you don’t yet know the pay for the home, and the deposit amount
neighbourhoods of your new city or what kinds (an amount you pay when you make an offer
of communities you might like best. Here are as a deposit to show that your offer is serious
some things to think about: – usually between 1% and 3% of the sale price)
• Children: If you have children, will it be • a request for a current land survey of the
important to live within walking distance of property – a document showing the bounds
school or daycare? of the property you’re buying

35
Advice
Matters
• a home inspection – an inspection by an If this is the case, this is when you can go back
expert to report on the condition of the to your Scotiabank advisor, who will then collect
property the necessary documents from you to confirm
your pre-approval information, such as your
• a list of items, such as a dishwasher or
income and down payment, and also confirm
lighting fixtures, that you would like included
the value of your property.
in the purchase price
There are many different ways to get a mortgage
After submitting the offer, the seller typically
and a variety of mortgage products to choose
comes back with a counteroffer that has
from. Not sure what mortgages in Canada look
revisions to the deal. This process can be
like? Visit our newcomer website scotiabank.
stressful, but ultimately helps to make sure the
com/startright and check out the article, “Buying
agreement works for both parties.
a home as a newcomer to Canada: What you
need to know about mortgages before you buy”,
STEP #6: which explains some of the basics. You can
Obtain a mortgage also talk to your Scotiabank advisor about the
Once you have an accepted offer, it’s time product that’s right for you as a first-time home
to get a mortgage. That process will be buyer in Canada.
considerably easier if you already followed
Step 2 and got pre-approved for a mortgage. STEP #7:
Schedule a home inspection
Once your offer is accepted, it is important
to follow through on having your new home
inspected by a professional. Home inspectors
will look for and evaluate mold, a damp
basement, roof condition, plumbing problems,
inferior electrical systems, and more.
Take care when choosing an inspector, as most

anyone can claim to be one. Most provinces
have associations that require inspectors to
meet professional standards. You can also find
more information about home inspectors from
the Canadian Association of Home and Property
Inspectors (CAHPI).

36
Advice
Matters
STEP #8:
Finalize the sale
Closing day is the final step in the process of
buying a first home in Canada. It’s when you get
the keys to your home and officially become
a homeowner. Usually this includes meeting
with a lawyer, who will ensure that all legal and
mortgage documents are signed, the home is
registered in your name, and that the down
payment is transferred to the person selling
the home.
Following are two costs to be aware of:

1. Land transfer taxes are due and range
from 0.5% to 4% of the property value
2. Legal fees may range from $500 to $1,000
or higher
STEP #9:
Be a responsible homeowner If you are a first-time home buyer you may be
eligible for the Government of Canada’s Home
You’ve finally done it! You’ve completed the
Buyers’ Tax Credit. You will be able to claim this
process of buying a first home in Canada! Once
when you file your income taxes for the year.
you have moved in, remember to protect your
investment by:
Submitting mortgage payments on time
Budgeting for ongoing homeownership Good luck on your journey to Canadian
costs (i.e., electricity, water, property taxes) homeownership! Remember that
budgeting and planning are fundamental
Saving money for emergency home repairs to your success. Scotiabank advisors
(e.g., roof, leaks, broken appliances) are available to provide you advice and
Making sure your home is protected through solutions at any point during this process.
home insurance and mortgage protection Call us today to book an appointment!
insurance

Advice
Matters
WINTER
NEWCOMER 2021
EDITION
37
MOOUBRI LCE ABRA N K I N G
Y
Online
New car vs.
used car:
Deck Buying a car is a significant financial decision,
which will have a large impact on your personal
Car buying finances, so it makes sense to spend time

thinking through this decision.
guide Here are some pros and cons to help you make
the final decision.
Maybe you’re tired of taking transit,

or maybe you have an old car that’s on Pros of buying a new car
its last legs and you want an upgrade.
Whatever the reason, you’re in the Aside from being able to bask in the new
market to buy a car. Now, should you car smell and driving a pristine car off the
buy a used car or a new car? dealership lot, there are a number of other
great benefits to buying a new car.
The first is that you’ll have the peace of mind of

the factory warranty should anything go wrong.
In two months if your car develops an electrical
problem, you’ll know it will be covered!
Another benefit is the fact that newer cars
have more bells and whistles and that you
can customize the cool features your car
has included in it when you buy new. Do you
want heated seats? You can have them! What
about media players for your kids? Those are
available on several different models. You also
have more control over choosing the colour,
the make and model. These options could
come at a cost so be prepared for that but
depending on your financial situation, this may
not be a concern.

38
Advice
New car vs. used car: Car buying guide
Matters
An additional advantage to buying a new car

is that you might be able to access better Cons of buying a new car
financing rates. Some dealerships offer special
rates that let you pay little or no interest on While there are some definite perks to buying
a new car. For example, you often hear of a new car, there are also some downsides.
dealerships offering 0% interest financing on
A significant disadvantage of buying a new car
new cars. Spring and summer are generally
that you’ve likely heard about is depreciation.
good times to buy a vehicle because there are
A car loses 11% of its value, on average, once it
lots of incentives and programs in the market
drives off the lot, according to Edmunds.* By the
at that time, but incentives can be available at
time you’ve paid off a five-year car loan, you’ll
any time throughout the year so don’t discredit
likely lose far more of the value – about 37%
“low selling times”. Summer and fall are often
on average. That’s a significant downside!
when new models are available if you’re after
the latest and greatest. Another downside is that the insurance on
a new car is often higher since it has to cover
Finally, buying a new car means you’ll know
the cost to replace the car at its full value.
the full history of your car – from the moment
In contrast, the insurance cost of an older car
you drive it off the lot until the moment you
tends to be less because the value of the car
sell it yourself. You won’t have to worry about
has depreciated.
potential cosmetic or significant damage that
you don’t know about, and you’ll be able to
ensure that you perform all the important Pros of buying a used car
maintenance tasks on your car.
The main benefit of buying a used car is the cost
of the car. After all, you don’t have to deal with
an immediate hit of depreciation – the car will
already have depreciated by the time it gets to
you. Used cars are often significantly cheaper
than new cars depending on how old they are
when you buy them – because you don’t pay for
the significant depreciation that takes place in
the first years.
If you buy a car that has a good resale value,

you’re likely to be able to maintain much of your
car’s value while you own the car, which means
that you could sell it without losing too much of
your investment.

39
Advice
Matters
Because the car is older, you will also qualify for

a lower car insurance rate since the replacement
value of the car is considerably less.
Some people say one downside of buying a

used car is that you may have to pay a higher
interest rate when you buy a used car directly
from the dealer. But if you buy a used car
directly from the manufacturer’s dealer, you
may be able to qualify for a lower interest rate
via dealership financing in the same way you
would be able to get with a new car. Some
dealerships also offer extended warranties on • You might miss out on some more modern
used cars or often the car’s warranty has not features that are convenient, like the ability
yet expired. to link your cell phone to the stereo with
Bluetooth or even advanced safety features
It’s also important to note that a lower interest that are more likely to be included on
rate doesn’t make your loan cheaper or mean newer cars.
you pay less interest over the life of your loan.
If you borrow less because your car is used and You should also be careful about how many
costs less, you might be able to have a lower kilometers are on the car. It might be nearing a
monthly payment and pay less in interest over point where it will need a major repair or have
the life of the loan anyways. significant maintenance expenses, such as new
brakes or tires. Before you buy a used car, make
sure to check the owner’s manual to see what
Cons of buying a used car regular maintenance is coming up based on
the mileage of your car. You should also get a
There are a lot of things to consider when mechanic to check the car to make sure there
buying a used car: aren’t any major issues.
• You won’t have nearly as much choice over Speaking of maintenance, one downside of
the type of car you buy as you would if you buying a used car is that you won’t know how
bought new. well your used car has been maintained over
the years. You might find a responsible seller
• You won’t be able to customize the features,
who has kept copies of each and every oil
for example, the colour of the car.
change, but more likely than not you will buy
• You might not be able to find the model you a car without that history. If it wasn’t properly
want in your price range at the time when maintained, that could lead to significant costs
you’re shopping. down the road.

40
Advice
Matters
Buying a used car may make it harder to qualify

for financing. That’s because an auto lender
uses the car as security for the loan. As a result
of depreciation and the complexity of valuing
used cars, you might not be able to qualify for
a loan for a used car if it’s older than five to
seven years. You might instead have to take out
a personal loan, which isn’t secured, is harder
to qualify for, and might come with a higher
interest rate. There’s also the chance that you
might not be able to qualify for a personal loan.
If you intend to buy a used car directly from the

dealer, be careful of cars that aren’t very old but
have a lot of miles on them. These cars may have
been used by rental companies and not been
properly maintained, which could mean repair
costs for you in the future.
What’s right for you?

This will depend on what’s more important to
you when it comes to buying a car. Do you want
something that has all the bells and whistles and
which you can customize? If that’s the case, a
new car might be right for you. If you’re looking
for something that will give you the best value
and will be better for your bottom line, you’re
likely to benefit from buying a used car. You can
always speak to a car dealer before making any
decisions.
Whatever your decision, you’ll be happy you

took the time to thoroughly review both options
and choose the one that best fits your personal
and financial goals.
*https://www.edmunds.com/car-buying/how-fast-does-my-new-car-lose-value-infographic.html

Advice
Matters
NEWCOMER EDITION
41
MMOOBBI ILLEE BBAANNKKI INNGG
Online
Online
banking:
Deck
If you are new to Canada, or in the process
of immigrating, it is important to know about
Everything online and mobile banking. This article will help
answer some of the questions you may have
you need about using digital financial services, as well as

helpful tips on how to protect yourself online.
It’s good to know where your local bank branch
to know is, but to save time you can do a lot of simple

daily transactions online.
SAVE TIME WITH THESE

DIGITAL BANKING SERVICES
OFFERED BY SCOTIABANK
Check your balance, account history
and credit score
When you sign into your Scotia OnLine account
or mobile banking app, you can quickly access
your account details or search and browse your
transaction history from the comfort of your
new home in Canada. You will also be notified
instantly about new products and offers, such
as credit limit increases.

42
Advice
Online banking: Everything you need to know
Matters
Another great feature is the ability to instantly

check your credit score by registering for the
free TransUnion Credit Score service.1 Simply
sign on to your account through Scotia OnLine
or the mobile banking app to get started.
Checking your credit score is really useful for
things like signing a lease on a new apartment,
buying a home, getting approved for a business
loan and more. Refer to the article, Everything
you need to know about credit on page 14.
Send money to friends and family anywhere

in the world
Western Union Money Transfers let you send
money to loved ones anywhere in the world.
Send money through Scotia OnLine, Mobile
Banking or at any Scotiabank branch.
Pay bills online and go paperless

When you have settled and have had time
to set up utilities, a credit card and a phone
Pre-authorized payments
account, these companies will send you a
monthly paper invoice in the mail. A great Forgetting to pay your bills can be stressful and
way to limit paperwork and save time is to will cost you money in late fees. Once set up,
pay these bills online. You can pay your bills pre-authorized payments will automatically pay
using your computer, tablet, smartphone or your bills on time without you even thinking
by phone. You can easily take care of bills such about it. You can take care of bills including
as credit cards, internet, hydro, cell phone cable, internet, property tax, gym memberships
and property taxes online. and more.

43
Advice
Online banking: Everything you need to know
Matters
Transfer money between accounts

In Canada, people often have more than one
account, for example, a chequing account for Online banking can make your
monthly expenses and a savings account for life easier in so many ways, but
long-term goals. Sometimes you might need to it is very important to ensure you keep
transfer money between your accounts – and your finances secure. At Scotiabank, online
this can also be done through Scotia OnLine, privacy and security are our top priority.
Scotiabank’s online banking website. Limiting
the number of trips to the bank can help Here are five ways to help keep your
save time for other important tasks such as finances safe and secure online:
language classes or job training.
1. Choose secure passwords and don’t
reuse passwords on multiple sites.
Automate your savings
2. Never send any confidential
Thinking of buying a house or going back to
information, including credit card
school in Canada? Putting aside money every
or banking information, via email.
month is one of the most effective ways to save
for these long-term goals. To make it easier, 3. If you see unusual activity on your
Scotiabank has an Automatic Savings Plan that account, contact your bank right away.
allows you to have a pre-determined amount 4. Do not respond to unsolicited emails
transferred automatically to your savings that request personal information such
account at set intervals (every week, every two as your banking card number, online
weeks or every month). passwords, credit card number, etc.
5. Do not use public computers, such
Want to get the convenience of banking as in libraries or job centres, to access
on your phone or online? Learn how to Scotia OnLine.
register for an online account here!
For more information on the Scotia mobile app features, have a look at this article:
➞ Get to know the Scotia mobile app
1
Your TransUnion Credit Score is provided by TransUnion Interactive, Inc. (“TransUnion”) and is brought to you by Scotiabank at no additional charge. Accessing your TransUnion Credit Score will not impact
your Credit Score. Scotiabank is not responsible for the TransUnion Credit Score or any of the information provided to you through TransUnion’s Credit Score services.
To access your TransUnion Credit Score, Scotiabank will share your personal information such as name, address and date of birth with TransUnion so that TransUnion can identify you and provide your Credit
Score. Your information will not be used or disclosed by TransUnion for any other purposes.
The TransUnion Credit Score service is subject to certain terms and conditions that can be viewed here Terms of Use.

Advice
Matters
NEWCOMER EDITION
44
M
MOOBBI ILLEE BBAANNKKI INNGG
Online
Tips to stay
safe with
Deck
mobile From buying coffee with the tap of your phone

to depositing a cheque with a smartphone
banking snapshot, managing your money has never

been easier. According to the Canadian Bankers
Association, 76% of Canadians are using digital
Find security tips on how to channels – both online and mobile – to conduct
protect yourself when banking most of their banking transactions, and 91%
from your mobile device. believe that these new technologies have made
banking more convenient.1
With the Scotiabank mobile banking app,
you can complete your everyday banking
needs easily from anywhere, from sending an
international money transfer and renewing
your mortgage to paying your bills and
applying for new products. It’s no wonder
that Canadians love using mobile banking
apps, with 56% of Canadians reportedly using
mobile banking in the last year.2 In fact, 32% of
financial transactions are done with a mobile
device – and this number is only expected to
increase in the next five years.3
But how safe are mobile banking apps? Read
on to learn more about mobile banking and
safe mobile practices.

45
Advice
Tips to stay safe with mobile banking
Matters
Are mobile banking apps 2. Set up biometric authentication

safe to use? If possible, set up biometric authentication
Generally speaking, mobile banking apps to log in to the Scotiabank mobile banking
are very secure, as Canadian banks have app. Biometric authentication is more secure
invested heavily in sophisticated cybersecurity than a password login, because it means that
technology to keep you safe. Apps like the your fingerprint or face recognition is needed
Scotiabank Mobile Banking app have a secure to access the Scotiabank banking app. So, if a
connection with their system, making it very fraudster somehow cracks your code and gets
difficult for fraudsters to crack in and interfere. into your device, it would be virtually impossible
Plus, there are layers of security built into to access your banking information through
apps to protect your privacy, for instance: user the Scotiabank app. In this way, biometric login
identity is verified through multiple factors; is actually more secure than signing in with a
your credit card and account numbers are passcode, and your biometrics are never stored
hidden; account nicknames are available; on the Scotiabank system.
and, sessions are automatically timed-out.
3. Avoid access through a public
Scotiabank has also designed its interfaces
Wi-Fi network
to help protect those using devices in public
places, as well as to support biometric A “free” Wi-Fi network could be a computer-to-
authentication (fingerprint/facial recognition) computer network that allows cyber criminals to
when signing into the app. see everything you do online. For mobile banking
or online purchases, stick to a secure Wi-Fi
network that you know and trust.
Protect your device
4. Trust the creator of an app before
There are also some extra precautions you can
downloading it
take to safeguard your confidential information.
Beware of “free” apps and utilities like
Start by safeguarding your mobile device
wallpapers, calendars, and third-party
against cyberthreats by doing some of these
services that may collect your data, which can
easy and practical things:
compromise your cybersecurity. An app could
1. Choose a secure password contain malicious code like “spyware” (that
covertly monitors your online movements) and
Create a hard-to-crack banking password that
“keystroke loggers” (that secretly track what
uses a combination of letters, numbers, and
you’re typing), which can be used to access
symbols, and don’t reuse it for other websites/
your personal information or financial accounts.
apps. If you suspect your password has been
Luckily, Scotiabank has protections in place
compromised, change it immediately.
to defend against devices that have been
tampered with.

46
Advice
Tips to stay safe with mobile banking
Matters
What are the risks • Depending on your device,

of mobile banking? you may be able to locate your TIPS TO HELP PREVENT
lost mobile device and/or delete UNAUTHORIZED ACCESS
Canadian banks are equipped
sensitive information remotely
to detect and deal with cyber TO YOUR BANKING
using a built-in app.
threats, but it’s essential that INFORMATION
you follow safe mobile practices Notify Scotiabank at 1-800-4 SCOTIA
to keep your device secure. One (1-800 472-6842) in the event of
thing you can do is use a mobile loss, theft, misuse or compromise of Enable a passcode or
banking app – a fraudster would your ScotiaCard, ScotiaCard number, biometric authentication
have a hard time replicating a mobile banking password or mobile (fingerprint or face
banking app, whereas it’s very device. recognition) to unlock your
easy to create a carbon copy phone. If possible, set up
of a website. Mobile app biometric authentication
security tips to log in to the mobile
What if I make a mistake? • Only download mobile banking banking app.
Don’t panic! Mistakes happen, apps from the Apple App Store Never share your user IDs,
and if you encounter a security (iPhone) or Google Play Store passwords, or PINs with
breach, immediately take the (Android). anyone – even family and
following action to protect your • Turn on automatic software friends.
information: and security updates. Do not click on links or
• Change your online passwords • Use biometric authentication. respond to questionable
(email, mobile banking, etc.). Enable Touch ID or Face ID on emails, texts, or phone
• Contact your device’s service eligible iOS devices, and Fingerpint calls.
provider to disable your or Face Unlock on eligible Android Avoid storing bank account
account and “blacklist” your devices to unlock your phone. numbers, user IDs, or
phone’s unique identifier passwords on your mobile
(IMEI). That means that Mobile banking apps are very safe to
use, provided that you’re adhering to device.
participating Canadian wireless
service providers will not allow safe mobile practices. The Scotiabank If something seems suspicious,
your device to be used on their mobile banking app is equipped with contact Scotiabank at
wireless networks. high-powered security systems that 1-800-4-SCOTIA
protect your privacy and financial (1-800-472-6842),
information. press ❸, and then press ❶.
1, 2, 3
Canadian Bankers Association, Focus: How Canadians Bank, March 2019
https://cba.ca/technology-and-banking.

RISE
We have
committed
$500 million
in community
investment by
2030 to help
people RISE.
Life can be unpredictable. At Scotiabank, we believe it’s important that everyone has the ability
to do more than simply recover from times of uncertainty, but instead rise from them stronger
than before. Building economic resilience is about helping individuals, households, communities
and economies to thrive under a range of circumstances. But resilience doesn’t just happen –
it has to be nurtured and invested in over time.
Helping newcomers rise to the top

We’re working with our community partners to ensure seamless integration of new Canadians
through career mentoring and financial support. Together, we can fast-track the way to meaningful
employment so newcomers can contribute to the prosperity and social fabric of their communities
at their fullest potential. That’s why we’re passionate about Windmill, a partner dedicated to providing
microloans for internationally trained immigrants to cover costs related to achieving career goals.
By working together to remove barriers to advancement and increase access to opportunities,

we can create a more inclusive and resilient world for everyone. And for every future.
Please visit scotiabank.com/scotiarise to learn more.
® Registered trademarks of The Bank of Nova Scotia.

As you settle in, we’d love to talk.
At Scotiabank, we’re here to make sure you get tailored and personalized advice that will help you
reach your financial goals – today and well into the future.
If you have any questions about the information provided in this publication or need guidance,
you can schedule an appointment to speak with a Scotiabank advisor.
You can also visit the ScotiaAdvice+ Cente at scotiabank.com/adviceplus where you’ll find timely
financial information, advice, tips and tools to help you become better off today and tomorrow.
® Registered trademarks of The Bank of Nova Scotia, used under licence. © Copyright 2021 The Bank of Nova Scotia. All rights reserved.
This document is provided for information purposes only. It is not to be relied upon as financial, tax or investment advice or guarantees about the future, nor should it be considered a recommendation to buy or sell. Information
contained in this document, including information relating to interest rates, market conditions, tax rules, and other investment factors are subject to change without notice and The Bank of Nova Scotia is not responsible to
update this information. All third party sources are believed to be accurate and reliable as of the date of publication and The Bank of Nova Scotia does not guarantee its accuracy or reliability. Readers should consult their own
professional advisor for specific financial, investment and/or tax advice tailored to their needs to ensure that individual circumstances are considered properly and action is taken based on the latest available information.
As used in this document, the term “Scotiabank Investment Specialist” or “Scotiabank advisor” refers to a Scotia Securities Inc. mutual fund representative or, in Quebec, a Group Savings Plan Dealer Representative. When
you purchase mutual funds or other investments or services through or from Scotia Securities Inc., you are dealing with employees of Scotia Securities Inc. Scotiabank may also employ these individuals in the sale of other
financial products and services. Activities conducted solely on behalf of Scotiabank are not the business or responsibility of Scotia Securities Inc. Scotiabank® includes The Bank of Nova Scotia and its subsidiaries and affiliates,
including 1832 Asset Management L.P. and Scotia Securities Inc.
ScotiaFunds® and Dynamic Funds® are managed by 1832 Asset Management L.P., a limited partnership the general partner of which is wholly owned by The Bank of Nova Scotia. ScotiaFunds and Dynamic Funds are available
through Scotia Securities Inc. and from other dealers and advisors. Scotia Securities Inc. is wholly owned by The Bank of Nova Scotia and is a member of the Mutual Fund Dealers Association of Canada.
Commissions, trailing commissions, management fees and expenses may be associated with mutual fund investments. Please read the prospectus before
investing. Mutual funds are not guaranteed or insured by the Canada Deposit Insurance Corporation or any other government deposit insurer, their values
change frequently and past performance may not be repeated. January 2022

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Advice Matters

IN THIS ISSUE YOU’LL

I’d like to welcome you to Canada and Scotiabank.

As you settle in, we’d love to talk.

Matters A simple conversation today can help

In this issue you’ll find

RESOURCES FOR NEW CANADIANS YOUR CHILDREN’S FUTURE

04 Advice+ from Scotiabank 24 Are you maximizing your RESP?

05 Getting settled in Canada: Checklist

1 29 Thinking about renting vs. buying a home?

11 How to work with a Canadian financial advisor YOUR CAR

Advice+ from 1. A conversation

3. Confidence you’ll make it

It all starts with a simple conversation

Home Table of contents Previous Next

Whether you’ve come to study, work, or start

newcomers of opportunity – but there’s also plenty to

Our newcomers’ checklist that follows can

Open a Canadian bank account

Get a SIN card

Home Table of contents Previous Next

Getting settled in Canada: Advice

Get a health card

Start building your Canadian credit history

Secure housing Use the free support services available to you

Home Table of contents Previous Next

Getting settled in Canada: Advice

Get your education and Improve your English and French

Simplify your banking with the Scotiabank

Home Table of contents Previous Next

important Additional complexities could be introduced

While there’s certainly no shortage

51% Advice on investments

45% Help saving for retirement

33% Quick tips to help improve

31% Saving for an emergency

25% In-depth review of financial

25% Saving for a large purchase

Home Table of contents Previous Next

THE BOTTOM LINE:

Consider the following research:

Home Table of contents Previous Next

DID YOU KNOW?

Are confident in the advice

Feel empowered and The best advice starts

Book an appointment with a Scotiabank advisor For more information on managing

Home Table of contents Previous Next

When you set up a bank account at Scotiabank,

Here are four tips on how to get the most out

1. Don’t be afraid to ask questions

As a newcomer, some parts of the Canadian

Before you attend a meeting with your financial

Home Table of contents Previous Next

How to work with a Advice

questions about banking in Canada,

When you attend any follow-up meetings

2. Become an informed investor

Always continue to learn and improve your 3. Stay involved

Your advisor will direct you to helpful