Tài liệu UNDERSTANDING BANKING IN CANADA docx

Banking
Understanding banking
in Canada
With a long history of working with newcomers to Canada, Royal Bank of Canada
can help you get settled and become established financially
Understanding banking in Canada 1
Moving to another country is an exciting beginning to a new stage in your life. At the same
time, it can be challenging and somewhat overwhelming. Many newcomers have told us
they are surprised by how different banking here is from their homeland — and they wish
they’d had someone to help them learn what they needed to know.
Welcome to banking in Canada
Royal Bank of Canada wants to help you today, tomorrow
and in the future. This guide tells you what you need to
know to establish your finances in Canada, whether you
have moved here already or are making plans from abroad.
Once you are settled, it will help you chart a path towards
achieving your hopes and dreams for the future, to make
life even better for yourself and your family.
This guidebook also provides sound advice on building
wealth to realize important life goals, protecting the things
that matter to you and developing a financial safety net.
We’ve been helping newcomers to Canada for seven
generations. Come into one of our branches or call us
at 1-800-769-2511 for service in up to 180 languages.
What you’ll find inside
Welcome to banking in Canada
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RBC
®
: A history of helping newcomers 2
Part 1: Getting settled in Canada

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First step: You need a bank account 5
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Accessing your money 7
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Sending and receiving money 10
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Understanding credit 11
Part 2: Building a foundation —
financial security for today
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Borrowing for your short-term goals 14
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Mortgages: Buying your home 16
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Borrowing for your business 17
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Protecting yourself and your family 18
Part 3: Planning for your future —
financial security for tomorrow
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Choosing your investments — RBC makes it easy 21
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Investment options to suit your needs 22
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Saving for retirement 23
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Saving for a child’s education 25
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How to invest with RBC 26

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Important banking and investment terms 27
2 Banking
RBC: A history of helping newcomers
For more than seven generations, Royal Bank of Canada has been supporting new
immigrants, making it easier for newcomers to get settled, become established and succeed
in Canada. During that time, we have developed a deep understanding of the needs and
priorities of newcomers, and have introduced banking services in up to 180 languages to
make newcomers feel at home.
Today, we’re one of the country’s largest
1
, most reputable
financial institutions, with many businesses other than
banking. Our long history and experience around the
globe mean you can feel confident turning to us as a
financial partner that understands your individual needs.
In April 2012, Global Finance magazine rated RBC as one
of the top 10 “World’s Safest Banks.”
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Our name. In Canada, you’ll find us under the name
“RBC.” That’s the name we use to represent all our
companies. Our banking business uses the name
RBC Royal Bank
®
, and almost all of our other businesses’
names start with RBC as well.
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Convenient locations. We have the largest combined
branch and ATM network in Canada. You’ll find branches
and banking machines in communities across Canada,

from large urban centres to small towns. There’s likely
to be a branch close to where you live and work.
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Trusted advisors. We have account managers, financial
advisors, mortgage specialists and investment retirement
planners. Many of our employees speak more than one
language.
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Strong international presence. With branches around
the world and clients in more than 150 countries,
RBC Wealth Management
®
is one of the largest Canadian
providers of international private banking services.
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Products and services designed specifically for
newcomers. We’ve created products and services like
our RBC Welcome to Canada package
2
, RBC International
Remittance
®
services and secured credit cards to make it
easier for you to bank with us.
We speak your language
If you need financial advice and wish to speak
to someone in your language, we can help:
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Call us at 1-800-769-2511 for service in up to 180
languages. Or call 1-888-769-2598 for dedicated

service in Mandarin or Cantonese.
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Our newcomer website has been designed
with you in mind. This site is available in English
(rbc.com/canada), French (rbc.com/francais/canada)
and simplified Chinese (rbc.com/chinese/canada).
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Visit maps.rbc.com to find a branch in your
neighbourhood that provides service in the language
of your choice. As a group, RBC employees speak
dozens of different languages, and we staff our
branches to meet the culture and language needs of the
communities we serve.
Understanding banking in Canada 3
RBC in your community
RBC is committed to helping new Canadians get settled
and established in their communities. We sponsor and
contribute to a number of programs that focus on
newcomers but ultimately benefit us all.
Celebrating other cultures. RBC supports a wide range of
multicultural activities within the community, from local
events and festivals to business and cultural associations.
Helping newcomers find work. We support a number of
organizations that help immigrants find employment and
success. These include the Immigrant Access Fund in
Calgary, a not-for-profit group that provides micro loans
to internationally trained newcomers so they can upgrade
their accreditations and training, and the Toronto Region
Immigrant Employment Council (TRIEC). In partnership
with TRIEC, RBC sponsors the annual Immigrant

Success Awards.
Diversity in our workforce. We believe that a diverse
workforce helps us better meet the needs of our clients.
In the past 10 years, the percentage of visible minorities
that have worked for us has more than doubled, to 26% as
of October 31, 2008, from 12% in 1998. Members of visible
minorities now fill 25% of all management positions within
RBC Royal Bank.
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Stability. Canadian banks are extremely secure.
The World Economic Forum has rated the Canadian
banking industry number one in the world for safety
and soundness.
3
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Cost. Fees for banking products and services can vary.
It’s important to understand what they cover so you pay
the right amount for what you need.
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Interest rates. Interest rates for different products are set
by each bank, but they are all influenced by the rate set by
the Bank of Canada, which is Canada’s central bank.
What to expect
Banking practices and laws are different around the world. Here are some key characteristics of Canadian
banks that may be new to you:
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Hours of operation. Branch hours vary, but with bank
machines, online banking and telephone banking, you can
bank whenever it’s convenient for you.
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Other services. Banks are more than just a place to keep
money. They also offer loans, safe deposit boxes and other
financial products and services.
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Staff. Bank staff are encouraged to interact with customers.
4 Banking
Part 1:
Getting settled in Canada
Part of moving to a new country involves
putting your finances in order. RBC advisors
are here to help you get settled and give you
the confidence and advice you need to start
a successful and prosperous life in Canada.
Understanding banking in Canada 5
While we offer many different accounts and options, there
are two basic types of bank accounts:
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Banking or transaction account. Your banking account
will meet most of your everyday needs for depositing and
withdrawing money, around the clock and around the
world. This is the first account you’ll want to set up.
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Savings account. You may also wish to open a savings
account for extra cash that you won’t need for day-to-day
expenses but that you would like to have readily accessible.
How to open your account
We make it easy to start banking in Canada. There are
two ways to open an account. You can visit your local
RBC branch, or you can open an account online. For
newcomers already in Canada, it is best to open your

account in person at a branch. If you are interested in
opening an account online or before you arrive in Canada,
visit www.rbc.com/canada
These are the steps you need to follow to open your account
at a branch:
Step 1
Visit your local RBC branch
An RBC advisor will help you through the account
opening process. For your convenience, choose a branch
that’s close to where you live or work. You can use our
online branch locator (maps.rbc.com) to find a branch near
you that provides service in your language, or call us at
1-800-769-2511 and we can help you make an appointment.
Step 2
Present valid identification
For regulatory and legislative reasons we are required to
identify our clients and can accept only certain types of
identification. Be sure to bring your passport and either
your landing paper or Permanent Resident Card so we
can open your account quickly on your first visit. Please
refer to the box on page 6 for the full listing of acceptable
identification you need to open an account.
Step 3
Choose a banking package
We offer many different types of banking accounts, each
with its own features and benefits. Your RBC advisor can
help you decide which account is right for you, based on
your individual needs.
First step: You need a bank account
One of the first things you’ll want to do when you arrive in Canada is to set up a bank

account to deposit the money you brought with you. Your money will be safe and you’ll
have easy access to it.
U.S. dollar accounts
If you would like to hold funds in U.S. dollars, and you
need to access those funds from Canada or the U.S., we
have several different options to choose from. U.S. dollar
accounts have different requirements and must be opened
at an RBC branch in person. For more information, please
go to www.rbcroyalbank.com/usbanking
A safe place for your valuables
A safe deposit box is a worry-free way to keep
important documents and valuables secure yet
accessible when you need them.
Identification papers and jewelry are among the most
common items people store in safe deposit boxes, which
come in various sizes.
Located inside the bank’s vault, a safe deposit box keeps
your valuables in a secure environment, protecting them
from risks like fire and theft. You can access the contents
of a safe deposit box any time during banking hours. You
can rent a safe deposit box at most RBC branches.
6 Banking
What identification do you need to open a bank account?
This table lists the most common pieces of identification accepted
for opening a Canadian dollar account at a bank in Canada.
You must bring two pieces of valid identification — one from List A and an
additional item from either List A or List B. For a complete list, contact an
RBC advisor or visit www.rbc.com/canada
When selecting which pieces of identification to bring, please keep the following in mind:
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The date on each document should be current. We cannot accept documents that are expired or have been cancelled.
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The documents must be original. There should be no markings on the identification or any sign that the documents have
been altered.
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Your name must be the same on all pieces. If the names don’t match, you will also need to bring with you a certificate
(either the original or a certified copy) showing the name change.
List A (must have at least one) List B
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Permanent Resident Card or Citizenship and
Immigration Form IMM 1000 (dated prior to
June 28, 2002) or IMM 1442 or IMM 5292
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Canadian or foreign passport
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Driver’s licence issued in Canada
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Social Insurance Number card issued by the
Government of Canada
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Employee identity card issued by a well-known
employer
4
, bearing the individual’s photograph
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Credit card issued by a member of the Canadian
Payments Association in the name of, or bearing the
name of, the individual and bearing the individual’s
signature
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Confirmation of identity by a current RBC client or an
individual in good standing
4

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Canadian university or college student card with photo
Understanding banking in Canada 7
Using your RBC Royal Bank Client Card
When you open an RBC Royal Bank bank account, you’ll
be given a Client Card for convenient and secure access
to your money. Most Canadians regularly use their Client
Card to access their money. You will be asked to choose
a numeric, confidential Personal Identification Number
(PIN) that acts as your “electronic signature” whenever
you use your Client Card.
Your Client Card, together with your PIN, gives you
convenient and timely access to your money in a number
of ways. You can use your card:
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At any RBC Royal Bank branch in Canada
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At any RBC Royal Bank automated teller machine (ATM)
or other ATMs in Canada displaying the Interac
‡
logo
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At more than 230,000 retailers in Canada that accept
Interac Direct Payment — payment is made directly
from your account
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At ATMs outside of Canada that display the
PLUS System
‡


symbol
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At more than one million merchants in the U.S. that use
the NYCE
‡
Network
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Through RBC Royal Bank Online Banking and Telephone
Banking services, to access account information 24 hours
a day, seven days a week
Accessing your money
We know how important it is to have easy
access to your money, especially in the
early days of settling in. With your RBC
Royal Bank Client Card and cheques, you
will have plenty of options available to you.
Protect your PIN
Protect your Client Card and your Personal
Identification Number (PIN) — they are as
valuable as cash.
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Choose your PIN carefully. Use numbers that you can
easily remember but that will be hard for others to guess.
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Keep your PIN secret. Never reveal it to anyone,

including bank employees, law enforcement agencies,
family and friends.
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Memorize your PIN. We recommend that you never write
down your PIN or store it electronically.
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When you make a purchase, protect yourself from fraud
by making sure you can see your Client Card at all times.
Your card should be swiped only once per transaction.
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Shield the keypad when entering your PIN to keep it
confidential.
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If you suspect that someone knows your PIN,
immediately change it at an RBC Royal Bank branch
or at select RBC Royal Bank ATMs.
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Check your statements and balance regularly to
verify all transactions. If you see any mistakes, visit
your branch or call us immediately.
If your Client Card is lost or stolen, visit your branch or
call us immediately.
Daily withdrawal limits
You can access your money through the branch during
regular business hours; however, to protect the money in
your account, we set a daily dollar limit on the amount of
money that you can withdraw with a Client Card using self-
service channels. This daily limit includes withdrawals
made through an ATM, online and at a store or other
retailers. Your RBC advisor will tell you about your daily

debit limits when you get your Client Card and PIN.
8 Banking
Writing personal cheques
Cheques are another convenient way to access your money.
They are useful when cash or a credit card isn’t appropriate
for giving money to a friend or relative, paying bills or
paying your rent. Vendors who accept cheques may request
certain information. Typically, they will want your phone
number and photo identification, such as a passport or
driver’s licence.
You can order cheques online or at your branch. Many
account packages include them for free, including the
RBC Welcome to Canada package. Personal cheques, which
have your name and possibly your address and phone
number printed on them, can help you demonstrate that
you have a permanent Canadian address, which can be
important when you want to pay bills and set up utilities.
Our online security guarantee
We understand how important security and
privacy are to you.
To provide you with greater peace of mind, all RBC Online
Banking clients are protected by the RBC Online Banking
Security Guarantee. If an unauthorized transaction is
conducted through your RBC Online Banking service, you’ll be
reimbursed 100% for any resulting losses to those accounts.
8
You must fill out
Payee — name of
person or business
that payment is being

made to
Numeric dollar
amount
Written-out dollar
amount
Payment description
(optional)
Your signature
Date (day/month/year)
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General information
Your name and
address
Cheque number
Your branch’s
address
Your RBC Transit
number
Your RBC Account

number
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B
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What your personal cheques will look like
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Manage your account when you want
with Online Banking
One of the most convenient options available to you when
you open your account is RBC Online Banking
5
. Through
Online Banking, you will have everything you need to
manage your banking and financial needs 24 hours a day,
seven days a week from the convenience of your home,
office or any other computer that has Internet access.
With easy-to-use navigation, financial tools, calculators
and comprehensive features, you have control over how
and when you bank.
You can save time by taking advantage of the many
features offered through Online Banking:
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View all of your account balances and transactions
in one place
n
Access and print electronic statements
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Transfer funds between your RBC Royal Bank accounts
and to other RBC Royal Bank clients
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Pay bills such as household utilities or credit cards
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Transfer funds to anyone in Canada using Interac
e-Transfer
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Send money to family and friends overseas using the
RBC International Remittance
®
service
Mobile Banking
Enjoy the simplicity and convenience of everyday banking
and investing on your Smartphone, anywhere you are, with
the RBC Mobile
6
App. It’s safe, secure, and transactions are
covered by the RBC Online Security Guarantee
7
.
Note: All cheques must be written in blue or black ink.
Understanding banking in Canada 9
Telephone Banking
With RBC Telephone Banking
5
, all you need is a telephone to
access your financial information and perform transactions.
We offer our Telephone Banking service 24 hours a day,
seven days a week from anywhere in Canada, the United
States or overseas.
Keeping track of your account
Every month, you will receive your account statement in
the mail. It is a record of all your transactions for the time
period indicated. Be sure to check it against your own

records for accuracy.
If you prefer, you can choose to receive your statement
electronically, through RBC Royal Bank Online Banking.
Electronic statements are archived every month and are
available for up to seven years for you to view, print or file
through Online Banking. You can also view copies of your
cheques electronically for up to 90 days.
If you have questions about your account statement or
need financial advice and wish to speak to someone in
your language, we can help:
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Call us at 1-800-769-2511 for service in up to 180
languages. Or call 1-888-769-2598 for dedicated service
in Mandarin or Cantonese.
Pay your bills automatically
For bills that arrive regularly, such as utilities, phone
or cable bills, you may want to arrange automatic
withdrawals from your bank account. Receiving and
paying bills has never been easier.
With RBC Online Banking you can pay bills any time,
without leaving home. You can schedule your bills to be
paid regularly or post-date them to be paid at a later time.
You can also receive and pay your bills through RBC ebills
(a service provided by Canada Post
‡
). This third-party
service provider of RBC Royal Bank is accessed via Online
Banking. If you have any questions, call one of our
Online Banking specialists 24/7 at 1-800-769-2555.
A note about holds

When you deposit a cheque, a “hold” may be
placed on your account while the money is
transferred from the account of the person who
wrote the cheque. This feature ensures that the
person who wrote the cheque has enough
money to cover it.
When a hold is in effect, the funds will appear in your
account but you will not have access to them. The
length of the hold depends on the type of cheque.
These hold periods are based on rules that are
established by the Canadian federal government and
the Canadian Payments Association, and are applied
by all the banks in Canada. We apply the following rules
on hold periods:
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Up to five business days for cheques and other
negotiable items written in Canadian or U.S. currency
when the funds are from an account at a Canadian
branch of any Canadian financial institution
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Up to 15 business days for cheques and other negotiable
items when the funds are from a U.S. bank account
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Up to 25 business days for cheques and other negotiable
items when the funds are from a bank account outside
of Canada and the U.S.
When the hold period expires, the hold will automatically
be released, and you will have access to the funds.
However, our release of funds to you does not mean that
the cheque cannot be returned for another reason.

10 Banking
Sending and receiving money
You may wish to receive money from,
or send money to, relatives, friends or
business associates in Canada, back
home or in another country.
As an RBC Royal Bank account holder, you have access
to a range of convenient payment services, which we
have listed below. Just ask your RBC advisor or contact
your RBC branch to find out more.
Send money online with
RBC International Remittance
If you have access to the Internet, this secure 24-hour
service allows you to send money to friends and family in
more than 120 countries, whenever it’s convenient for you,
for a small fee.
As long as you have an RBC Royal Bank personal banking
account
9
, are enrolled in RBC Online Banking
5
and have
the funds available in your account, you can send money
worldwide. You need to have the Bank Identifier Code (BIC)
and the bank account number where the funds will be sent.
With this cost-effective service, you can send up to $2,500
Canadian dollars each day.
10
For more information, visit
www.rbcroyalbank.com/internationalremittance

Bank drafts
Bank drafts can be used to make a payment to a third
party in almost any currency. They can be made out for
any amount.
Wire payments
Wire payments can be sent almost anywhere in the world
and in almost any currency. You can arrange an outgoing
wire payment at any branch. We can also process incoming
wire payments, if you’re receiving money from inside or
outside of Canada.
Foreign currency exchange
If you want to convert cash, drafts, money orders or wire
transfers into another currency, our in-branch foreign-
exchange services can assist you at very competitive rates.
We can do the conversion and provide you with the product
or service best suited to your needs. Please visit us at the
location most convenient to you.


Understanding credit
To borrow money in Canada, you first need
to establish a Canadian credit history —
proof to potential lenders that you can
be relied upon to pay your bills and make
repayments on time.
A credit history is a list of facts, gathered from financial
institutions, retailers and other lenders, about how you
have handled debt in the past. In Canada, there are three
central credit agencies that track this information and
develop a profile of your Canadian creditworthiness, called

your credit rating. Whether you’re borrowing to buy a
house, purchase a car or set up a business, a good credit
rating is likely to make it easier and more affordable.
How to establish a Canadian credit history
One of the best ways to establish a Canadian credit history
and build a good credit rating is to get a Canadian credit
card. As you use your card and make regular payments, you
will create and build a credit history. If you ever need more
credit in the future, your good credit history and score
will be beneficial. A good credit will encourage potential
lenders to look more favourably upon your request to
borrow larger sums.
Of course, credit cards have other advantages, as well.
They are safer than cash and can be a secure and convenient
way to shop. Some let you earn rewards points, and they
are widely accepted at stores, restaurants and service
providers across Canada and around the world. They are
also essential for certain services, such as setting up
contracts for a mobile phone, renting a car or making
online purchases.
Even if you already have a credit card issued from another
country, it is valuable to have a Canadian credit card for a
few other reasons:
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You’ll avoid the exchange rates and currency conversion
charges that may apply to non-Canadian credit cards
(charges to convert Canadian dollar purchases to the
currency of the country where the credit card was issued).
Understanding banking in Canada 11
12 Banking

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You’ll find that Canadian-issued credit cards may
be accepted as a secondary form of Canadian
identification when you are applying for other
services, financial or otherwise.
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Your credit history from a credit card issued in
another country is not considered when establishing
a credit history in Canada by any financial institution.
A Canadian credit card is the easiest way to begin
establishing a good credit history in Canada.
How to get an RBC Royal Bank credit card
RBC Royal Bank credit cards provide you with a safe
and convenient payment method that is accepted at
millions of locations worldwide. They also include built
in Chip and PIN technology as well as Purchase Security
and Extended Warranty Protection for added security with
every purchase. For those who are new to Canada and do
not have a Canadian credit history, we offer both a secured
and unsecured option for almost all of our RBC Royal Bank
credit cards.

The RBC Royal Bank credit card —
no credit history required
11
RBC Royal Bank offers a selection of unsecured RBC Royal
Bank credit cards for newcomers to Canada who have been
in the country for less than one year as a Permanent Resident
(form IMM5292). This card will provide you with up to $1,000
of credit (some conditions apply)

11
. Talk to your RBC Royal
Bank advisor to find out more about your credit options.
RBC Royal Bank secured credit card options
RBC has developed specific policies designed to help
newcomers establish credit in Canada. If you are looking
to start building your Canadian credit history, you may
benefit from the secured RBC Royal Bank credit card.
With this card, you decide how much credit you think
you’ll need and then deposit that amount as security.
For example, a $1,000 security pledge would give you a
spending limit of $1,000 on your RBC Royal Bank credit
card. The secured card must be applied for at an RBC Royal
Bank branch
11
. Talk to your RBC Royal Bank advisor to find
out more about your credit options.
Good credit card practices
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Use your credit card only to make purchases you know
you can afford to pay when the statement comes in.
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Pay off your credit card balance in full each month.
If you choose not to pay off your balance in full, try
to pay more than the minimum payment due.
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Ensure that your payment is received by the bank
on or before the payment due date indicated on the
statement.
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Limit the number of credit cards you use so it’s easier to
keep track of the money you owe.
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Memorize and protect your PIN at all times.
Your security pledge: it’s an investment
Your security pledge is placed in an RBC Guaranteed
Investment Certificate (GIC), where it earns interest for
you. The amount deposited will grow while you build a
credit history. Once your credit rating is established, the
GIC security will be released from your RBC Royal Bank
credit account. It can take up to 18 months to establish
a credit rating — that’s why it’s important to start the
process now.
Understanding banking in Canada 13
Part 2:
Building a foundation —
financial security for today
What does it mean to be “financially secure”? For most of us, it means having some money
put aside to see us through any difficult times, protecting our current wealth and assets
and being able to purchase things that we want or need.
Being financially secure involves a lot more than just saving. It also involves investing
or, perhaps, borrowing to reach your short-term goals, and it involves protecting your
belongings and your loved ones with an effective insurance strategy.
14 Banking
Borrowing for your short-term goals
Sometimes your short-term goals can’t wait — the furnace needs repairing, for example,
or your old car has finally quit working and you need a new vehicle. Other times, the item
you want (such as a house) is just too large to save for and pay for all at once.
In those situations, borrowing can be a smart solution.
There are many different ways to borrow, including a

loan, line of credit or mortgage. Each approach has its own
advantages. When you decide to borrow, it’s best to review
your situation with an RBC advisor, who can help you find
the lowest-cost, most flexible solution for you. Here’s a look
at the different kinds of credit you may want to consider.
Loans
With a loan, you usually agree to pay back the money over
a predetermined length of time (typically one to five years).
If it’s a fixed-rate loan, the interest rate you pay and the
amount you pay weekly, biweekly or monthly stays the
same. With a variable-rate loan, the amount you pay weekly,
biweekly or monthly stays the same while the interest rate
moves up and down with the bank’s prime rate.
12

Line of credit
A line of credit lets you borrow money whenever you need
it. You apply for the line of credit just once and never have
to apply again. You can then borrow at any time, just by
writing a cheque, withdrawing money or transferring money
from your line of credit to your chequing account. You are
charged interest on amounts owing from the day you
withdraw money until you pay the loan back in full.
At minimum, you need to pay the interest every month.
Understanding banking in Canada 15
Buying a Car
You’ll find that it is fairly common to own a new or used car
in Canada. However, most Canadian drivers need to bor-
row funds to purchase their vehicle.
There are several ways to borrow money to buy a car in

Canada. Here is an overview of some of your car financing
options:
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Car loan. With a car loan, you can borrow up to the full
amount of the purchase price and pay it back over a pre-
determined time frame, typically one to seven years. Loan
repayments will be on a regular schedule that you choose,
but you can pay back some or all of the amount of the loan
at any time. Consider a variable or fixed-rate loan.
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Dealer financing. Most car dealers provide financing
in their dealerships. This can be very convenient as it
is arranged at the time and place the purchase is made.
The Dealer Locator Tool is available at maps.rbcroyalbank.
com/dealer to assist you in identifying an authorized
dealer in a location close to your home or workplace.
n
Lease. If you choose to lease a car, keep in mind that you
don’t own the car. Instead, you pay a monthly amount to
a leasing company for the term of the lease, typically one
to seven years. At the end of the term, you can return the
car to the dealer or buy it at a price that’s in your lease
agreement. When you lease a vehicle, it’s very important
to inform yourself of the conditions that come with
leasing. The more information you have, the easier it will
be to decide if leasing is an option that works for you.
Other considerations
n
Insurance. Remember to factor in the cost of car insurance,
which is mandatory in Canada. Car insurance can cost

$1,000 or more each year, depending on the car, your age,
your driving habits and where you live.
n
Canadian driver’s licence. You may have been able to use
your foreign driver’s licence for the first few months after
you arrived in Canada, but at some point, you will need to
get a Canadian driver’s licence to continue driving. To get a
Canadian driver’s licence, you need to take a road test and
a knowledge test on the rules of the road. Some provinces
use a graduated licensing process, which gradually gives
you more freedom to drive as you gain experience.
Getting you on the road
To learn more about how we can help you buy a car
or reach other important goals, drop by one of our
branches or call to make an appointment.
16 Banking
Find out everything you need to
know about buying your first home

at rbc.com/homeincanada
Mortgages: Buying your home
Purchasing a home is likely one of the biggest investments you will make in your lifetime.
Most first-time homebuyers in Canada need a mortgage — a long-term loan from a bank
that uses the home as security.
In addition to providing you and your family with a place
to live, a home is a valuable investment for your financial
future. Purchasing a home is likely one of the biggest
investments you’ll make in your lifetime, and it comes with
financial and emotional implications. Finding the right
location is key, especially when you have children.

Consider these points before starting your search:
n
You’ll want a safe neighbourhood, close to schools and
transportation.
n
Factor in all of the costs associated with buying a home,
above and beyond your down payment and mortgage
payments, like land transfer taxes, closing fees or even the
cost of appliances and window treatments.
n
Consider moving costs, taxes, insurance, utilities and
maintenance.
It is important to note that most first-time homebuyers
in Canada need a mortgage — a long-term loan from
a financial institution that uses the home as security.
Mortgage rates are among the lowest of all credit products,
but because of the large amounts involved, a mortgage loan
is also typically the longest to pay back. As you grow your
savings in Canada and enjoy more financial security, you
may be able to take steps to pay down your mortgage faster.
Borrowing for your business
Businesses are dreams and ideas brought to life. That’s why owning a business is more
than a source of income — it’s also a source of pride.
Whatever your motivations for starting a business in Canada,
your idea is just the beginning. And receiving the right
advice at the start from your bank can help you achieve
success. Your RBC Royal Bank small business advisor can
offer you sound advice and the right financial solutions.
RBC Royal Bank has a comprehensive suite of services
designed to meet the needs of new business owners, from

start-up loans to payroll management to foreign exchange
services. Many of our branches have specialized small
business advisors who are trained to listen, understand
your business and work with you to find the solutions
you need.
Starting a business? We can help
If you’re thinking of starting a new business, you can
speak with an RBC Royal Bank small business advisor who:
n
Understands your needs as a newcomer to Canada
n
Can offer advice and information on how to start and
operate a business in Canada
n
Can connect you with the organizations and individuals
in your community that can provide you with the
guidance and support your business needs
Also, dozens of different languages are spoken at RBC,
and we staff our branches to meet the culture and language
needs of the communities we serve. Please visit us online
at maps.rbc.com to find a branch in your neighbourhood
that provides service in the language of your choice.
Call 1-800-769-2520 to speak with an RBC small business
advisor today to help you find the best solution for your
business needs.
Understanding banking in Canada 17
Protecting yourself and your family
Protecting yourself and your family is an
essential part of feeling financially secure.
Consider the following:

n
How would your family manage financially if you or your
spouse were to pass away?
n
How would you and your family cope financially if you
became seriously ill or were injured and unable to work
for a number of weeks or months?
n
Who would cover the outstanding balance, line of credit
or monthly payments of your mortgage, loan or credit card
if you were to die or become disabled?
The good news is that there are many kinds of affordable
insurance options available to you, each one designed to
provide a specific type of financial protection.
Please refer to the next page for a listing of insurance options.
How RBC Royal Bank can help
You can purchase travel emergency medical and creditor
insurance directly from RBC Royal Bank branches.
n
Travel HealthProtector
®
insurance is available at any
RBC Royal Bank branch, by calling 1-800-565-3129 or
by visiting www.rbcroyalbank.com/travelinsurance
n
For more information on HomeProtector
®
insurance
(life and disability coverage for your mortgage) or
LoanProtector

®
insurance (life and disability coverage for
your loans and lines of credit), visit your RBC Royal Bank
branch or contact the Insurance Service Centre at 1-800-
769-2523.
n
For more information on BalanceProtector Premiere
™
plan
(life and disability coverage on your credit card), visit your
RBC Royal Bank branch or contact us at 1-888-896-2766.
n
For other types of insurance, ask your RBC advisor
for a copy of Your guide to choosing the coverage you need.
18 Banking
Understanding banking in Canada 19
Insurance product How it works Features and Benefits for you
Automobile/Car insurance
Car insurance is mandatory in Canada for all drivers;
however, each province has its own requirements.
The insurance pays for automobile replacement
or repairs in the event of an accident, fire, theft or
vandalism and covers the costs if you are found
liable for causing property damage or injuring
another person in an automobile accident. Also,
depending on the province you live in, it can cover
the cost of your medical expenses or loss of income
as a result of being injured in a car accident.
Most people don’t have the money to
pay for damage or injury caused while

driving. Car insurance helps project you
from financial loss from a car accident. It
protects you against liability claims from
other people, protects you and your family
for medical expenses from driving-related
injuries and from financial loss when your
vehicle is damaged.
Home and property insurance
It pays for full or partial replacement of your home
and its contents in the event of a fire, theft or
vandalism. Other potential mishaps may also be
covered. Most important of all, property insurance
can protect you against personal liability should
anyone be injured while visiting your property or
should you accidentally damage another person’s
property. It may also cover the costs if you are found
liable for injuring another person or causing
property damage anywhere in the world.
It helps protect your home and belongings
from financial losses and helps protect you
against liability claims that may arise if you
are held responsible for damage to other
property or injury to other people.
Travel insurance
It covers eligible emergency medical expenses
for RBC clients travelling outside their province
of residence or outside of Canada.
It can also cover travel-related costs such as trip
cancellation, trip interruption and baggage loss.
This insurance is subject to a maximum of $20,000

for persons without a valid government health
insurance plan coverage at the time of a claim.
It provides up-front payment for eligible
expenses wherever possible.
It includes a 24/7 toll-free help line with
access to health care professionals and
emergency assistance no matter where
you are.
It offers multilingual co-ordinators who
understand your coverage and can refer
you to the medical care facility you need.
Life insurance
It pays a tax-free, lump-sum amount to your
beneficiaries upon your death.
It helps protect your family financially in
the event of your death. It can help pay off
debts and maintain your family’s standard
of living in the event of your death.
Creditor insurance
(available from RBC Royal Bank)
It can cover the financial responsibilities for
a mortgage, home equity line of credit, loan, line of
credit or your credit card balance if you die or
become disabled.
It helps cover your debt obligations so
they aren’t a burden to your family or
your estate.
Your insurance options at a glance
20 Banking
Part 3:

Planning for your future —
financial security for tomorrow
Look ahead several years — what kind of life do you see for yourself and your family? By
taking some time to think about what is most important to you in the coming years, you’ll
be able to plan for the future. Talking to an RBC advisor can help you bring those plans into
focus. Your advisor will ask you to think about a number of areas in your life, and will ask
some key questions that can help you uncover what you hope for your future and identify
specific lifestyle and other goals. Then, you can work together to put a plan in place.
Understanding banking in Canada 21
There are many different investments to choose from. An
RBC advisor will explain the features of each one to you
and will help you select the mix that’s appropriate for you.
Together, you and your RBC advisor can explore the
following key factors.
You’ll want investments that help you meet your personal
goals and that have a level of risk that you’re comfortable with.
You can buy individual investments, such as Guaranteed
Investment Certificates (GICs), or you can buy mutual
funds, which are a selection of investments managed by
professionals on behalf of a number of other investors
like you. GICs are secure investments that guarantee to
preserve your principal and an ideal way to invest when
you want safety and security. Mutual funds offer an
effective way to build a diversified portfolio that holds a
range of different types of investments — likely many more
than you could afford to buy on your own.
Investment returns
Some investments, like many GICs, have guaranteed rates
of return. Other investments, such as mutual funds, are not
guaranteed but can offer higher potential for growth over the

long term. While past performance of these investments
doesn’t guarantee the future returns you might receive, it
is one factor that you and your RBC advisor will consider in
making your decision.
Choosing your investments —
RBC makes it easy
RBC has helped thousands of new Canadians invest for their future. The advice and
personalized service we provide can make investing a much easier process than you
might think.
Your short-term goals may include buying a car or saving
for a down payment for a home. To reach these kinds of
goals, you are likely to set aside part of your earnings.
For example, you might find that saving $50 out of every
paycheque will help you reach your goals faster. Your long-
term goals might include saving for your children’s education
or retiring with the lifestyle you want. Putting a savings
plan in place today can help ensure you have the money
you need to achieve both your long-term and short-term
goals. The first step is to identify what you’re aiming for.
Once you’ve identified your saving and investing goals,
you need to consider the best way to invest to reach them.
Our RBC advisors can help you determine what plan is
right for you.
Tax-Free Savings Account (TFSA)
A TFSA can help your money grow faster because you
won’t have to pay any tax on your investment returns or
your withdrawals. Here’s how a TFSA works:
n
If you’re over age 18
13

, reside in Canada and have a
Social Insurance Number, you’re allowed to contribute
up to $5,000 a year.
n
If you don’t contribute the maximum in any year, the
unused portion is carried forward and added to your
contribution limit for the following year.
n
You can hold a wide range of investments within your
TFSA, including savings, GICs and mutual funds.
n
You won’t be taxed on investment returns in the
account, which means your money will grow faster.
n
You can make withdrawals at any time, for any purpose,
depending on your investments, and you won’t be taxed
on these withdrawals.
n
Any amounts that you withdraw can be re-contributed
in future years.
Investment options to suit your needs
The investments you choose will depend on
your unique short-term and long-term goals.
22 Banking22 Banking
Understanding banking in Canada 23
Your RBC advisor can help you put together a retirement
plan so that you can live the lifestyle you want in retirement.
In the majority of cases, the most effective way to start
saving for retirement is with a Registered Retirement
Savings Plan (RRSP).

Registered Retirement Savings Plan
An RRSP is a type of investment account in which you put
aside money to be used when you retire. The account can
hold a wide range of investments. RRSPs have important
advantages over non-registered accounts:
n
Contributions are tax-deductible. When you make a
contribution to an RRSP, that amount can be deducted
from the income that you report on your personal income
tax return for the year.
n
Plan earnings are tax-deferred. The earnings generated
by the investments in your RRSP are not taxed as long as
they stay in the plan. You pay tax only when you withdraw
the funds — usually when you are retired and are likely to
pay taxes at a lower rate.
Because RRSPs offer tax incentives, there is a limit on how
much you can contribute each year. New Canadians should
not make a contribution until the year after they begin
working in Canada. Your maximum contribution is
calculated for you automatically by the Canada Revenue
Agency. This is reported on your Notice of Assessment each
year as a percentage of the amount that you earned the
previous year up to a specified dollar maximum set by the
government, less any pension contributions that you or
your employer made to a pension plan. If you don’t contrib-
ute the maximum in any year, your unused contribution
room is carried forward and added to your contribution
room the following year.
Saving for retirement

Many newcomers to Canada may not be familiar with the concept of saving for retirement,
but this is something that you should start preparing for today. With a plan in place, you
will have a better idea of where your money will come from when you are done working.
24 Banking
Make it easy with automatic savings
One of the most effective ways to reach your investment
goals is to set up a regular contribution plan. At RBC Royal
Bank, you can make automatic contributions to your RRSP
with RSP-Matic
®
, to your RESP with RESP-Matic
®
and to
your TFSA with TFSA-Matic
®
. Contributions can be as low
as $25 and are deducted automatically from your bank
account every month, week or on whatever schedule
works best for you. These plans make it easy to contribute
regularly and bring you closer to your goals.
If you start early, you don’t need a lot
Even if you don’t have a lot of extra disposable
income to invest right now, the sooner you
start, the better. The amounts you contribute will
generate earnings, which will generate additional
earnings, and so on, and so on.
This “income on income” effect is called compounding,
and it’s a powerful investment force. As the chart below
shows, just $5 a day ($150 a month) contributed to your
RRSP and earning 6% annually will grow to more than

$100,000 in 25 years.

Year 5
$10,517
$24,704
$43,840
$69,652
$104,468
Year 10
Year 15
Year 20
Year 25
Source: Monthly Purchase Plan Calculator
( />purchase-plan-calculator.html)
Chart is for illustrative purposes only.
Your TFSA can help too
In addition to contributing to your RRSP, which is created
specifically to save for retirement, you can use your
Tax-Free Savings Account (TFSA) for retirement savings.
Your contributions aren’t tax-deductible, but they do
grow tax-free and can build to a significant amount by
the time you’re ready to retire.
This can give you a second source of funds that you can
draw on in retirement without any tax consequences.
Depending on the terms of your investments, if you need
the money sooner, you always have access to it and can
make withdrawals at any time for any reason.
While registered accounts are a great way to meet your
future goals, it is also important to include non-registered
investments as part of your overall long-term strategy.

Be sure to meet with your RBC advisor to discuss and
review investing goals and plans with your long-term
strategy in mind.