Non-Resident Bank Account in Canada

Non-Resident Bank Account in Canada:

Americans have the ability to open a bank account easily in Canada, if you hold a legal work permit or are a civilian of Canada, then you can open a resident bank account in Canada. However, if you are not a resident of Canada, then you have the option to open a non-resident bank account with the help of your photo identity, which includes passport or driving license. You have several banks to select from, but deciding which one to use can be overwhelming.

Things to Consider:

Below discussed are some vital considerations to think, while deciding to open a bank account in Canada:

1. Transfer of Money

At times, you may need to send and receive money from or to your bank account situated across the nation. In addition, it can be very expensive to send and receive money across international bank accounts. You have numerous international money transfer services, which do not require bank accounts, though the service charge is quite high. If sending and receiving money with international transfer service is a top priority, then you may have to consider a bank that has a special account for immigrants or reduced international transfer charges in Canada.

2. Transfer of Money within Canada

Not every country follows the rule of paying rent through checks, as when you pay rent through checks, the bank may charge say around $5 to cash your check. Hence, property owners ask their tenants to deposit their rent (cash) directly into their bank accounts or through electronic transfers. Therefore, choose a Canadian bank, which offers online banking facility to transfer money without visiting the bank in person to deposit the money in your account.

3. Payroll Transfer

Often employers pay salary directly into the account of employees. However, if your employer pays a bearer check (or cash if you lack work permit), then you may need to visit that particular branch and cash in. In case, you go to your bank or any other bank other than your employer’s bank, you may have to pay a fee of $4 to $6 for cashing the check. Therefore, you need to consider a bank, which accepts your payroll check without charging heavy service fees or else, try to open a non-resident account in the bank of your employer, as this will help to do all banking deals at one place without the hassle of visiting multiple banks and paying additional charges.

4. Branch Nearer to Home or Office

The banking hours of banks in Canada have to be considered, while deciding to open a non-resident bank account in Canada. Most banks function from Monday to Friday, while few others function from Monday to Sunday. It will be of great use, if your bank works until 6 p.m. If you think you need to daily transactions, then open an account with a bank that has branch close to your office or home. In addition, you can apply for debit card from your bank, since these days, banks even offer debit cards to non-resident citizens too.


While looking for a best bank to open a non-resident bank account in Canada, you will be surrounded with too many options. On the other hand, it is wise to take suggestions from other people, who hold accounts in the bank, wherein you decide to open an account in Canada.

In addition, you need to consider the bank charges, as the fees charged may vary from one bank to another. The leading banks in Canada are the Canadian Trust and the Canadian Imperial Bank of Commerce. Besides these, you can also find some international banks in Canada.

Employment Insurance For Self Employed Individuals (Canada)

In January, 2010 the Federal Government extended Employment Insurance benefits to self employed individuals/small business owners. The following represents some of the key details:

* You will not be able to claim weekly income replacement benefits in the event that you become unemployed, however you will be entitled to the following benefits (these are the same benefits available to Canadians who are employed):

Maternity benefits up to 15 weeks parental benefits up to 35 weeks sickness benefits up to 15 weeks compassionate care benefits up to 6 weeks

* You will need to wait for one year from the time of registration and payment of premiums before initiating any claims

* For 2010 the rate of EI premiums is 1.73% (1.36% in Quebec) upto a maximum of $43,200 i.e. maximum premiums payable are $747.36 (Quebec = $587.52)

* The benefit is calculated at 55% of the insured (earnings) amount. The maximum weekly benefit is $457, which is subject to reduction if there are earnings from other sources.

* Once you have received benefits, you can not opt out of the program; you will have to pay premiums for as long as you earn self employment income. Prior to receiving benefits you can apply to terminate the agreement.

* In order to make a claim, you will need to have earned a minimum of $6,000 (and paid premiums) in the previous calendar year.

You can register online with Service Canada with a Service Canada Account

Opting into the plan is probably most beneficial if you are planning to start a family, and you anticipate a significant reduction or cessation of your self employment income. If you do not intend to take advantage of the maternity and parental benefits, it may not be worth initiating coverage since you cannot opt out of the plan once you have started to receive benefits. Alternatives include contributing to a private health and disability insurance plan or simply setting up a savings account earmarked for rainy days.

Why Sub Prime Is Not Likely to Affect Canada

The Canadian housing market is better shaped and more professional than the US housing market. It is because, the housing market in Canada has very little of sub prime mortgage activity, comparatively limited and restricted speculative structure and also the housing stocks are not more than what is desired. The best thing about all this activity is that you have good amount of construction activity on the run in the Canadian housing market.

Moreover, as per the current statistics, the affordability costs in Canada’s housing sector are also slated for increase, with Bank of Canada having slashed the rates by 150 basis points since December. The results shall be perceptible in the form of contraction of mortgage spreads and house price gains coming down.

The sub-prime mortgage market in Canada accounts for about 5% of outstanding mortgages, while, in the United States, sub-prime mortgages account for roughly 14% of the outstanding mortgage market. Speculative investing is also much tamer in Canada. Investor-owned mortgages account for roughly

2% of all mortgages in Canada compared to about 10% in the United States and the United Kingdom.

The Government of Canada has also recently taken action by proclaiming that it is all ready to purchase a maximum of $25 billion in pooled mortgage loans from various financial institutions operating in Canada, via reverse auctions. This is based on the research taken by Canadian Mortgage and Housing Corporation (CMHC).

In this manner, the Canadian lenders will have the opportunity to get away with their loan debts in balance sheets for hard cash during imbalanced liquidity. The Government’s risk in all this is practically nothing, and moreover, the pooled mortgage loans are limited to ones insured by CMHC, and all the pooled mortgage loans are prime quality loans.

The entire mortgage system is expected to do well, primarily due to streamlined auction process and lower cost borrowings of Government of Canada. These will enough of credit for both, the government as well as banking sector in Canada.

On Oct 16, 2008, the first $5 billion worth of mortgage pool auctions were organized, and on this occasion, the rate average paid by Canadian banks was 132 basis points, which was above the cost of funding for the government of Canada. Moreover, the Canadian banks borrowing rate was 230 basis points.

This clearly showed positive swing in the transaction process, and as the result, the financial institutions received finances at low interest rates much lower than available through normal credit channels. Baring a few financial institutions in Canada, which have incurred losses due to credit crisis, the overall scenario looks healthy and workable altogether. This is the basis of sound Canadian financial system.

Accounts Receivable Factoring

Recently an Importer in Ontario Canada after having exhausted its efforts in seeking a Business Loan from its local banks in Toronto, Ontario, Canada looked to a Commercial Finance Broker.

Their customers are all across Canada and they have plans to expand into the US market and due to growing orders they had been maxing out their Operating Line of Credit consistently. Their bank had then capped at $50,000 and would not increase it.

The terms with their suppliers in China are 30% with the order placement and the balance before the product leaves the warehouse. These are quite popular terms when dealing with China for goods.

The sales for the company are $1.5 million per year with typical days sales outstanding of 45 days, which is quite common, and in many industries considered quite good. The average amount in Accounts Receivable is $200,000 so you can see the $50,000 Line of Credit was of little use to them.

The company had to carry inventory since their customers expected orders to be shipped within 1 week of receipt and the fact the main supplier was in China meant they had to have sufficient stock to carry them for a months sales at any given time.

Against the owner’s wishes, they had to use personal loans to cover the cash shortage so that they could operate and carry the required inventory.

The cash flow crunch was cured by setting up a new Business Line of Credit for the company using Accounts Receivable Factoring.

The Importer now can take advances up to 85% of their outstanding Accounts Receivable to carry the needed inventory, pay off the bank that was not willing to help them and even pay off the personal loans they had taken. Imagine the relief.

Because the new Funding Line was based on outstanding sales, the Line increased as the sales increased. So as sales grew, so did the availability of funds.

Wade Henderson

Wade Henderson is a recognized Expert in Business Finance with over 16 years Experience in the Commercial Lending Field and a strong reputation for getting the deal done. Visit his Commercial Finance Website to put his experience to work for you.

Canada, Accounting For Extensive Biomass Supply

Sometimes, when one envisions the country of Canada, rolling prairies and green forests spring to mind. This is not an altogether inaccurate picture because the nation still embraces its beautiful and sustainable natural resources. One of these resources, a source of renewable energy, is biomass.

Biomass is simply a supply of something once living able to be burned to manufacture heat for energy production. In various parts of Canada, a traveler may see a series of haystacks or piles of wood chips waiting to be converted into electricity of other forms of power. Unlike coal or petroleum-based sources of energy, biomass is constantly being replenished either by the natural growth and decomposition of trees and grasses or as a byproduct of these same resources. In short, it is a renewable energy.

In terms of renewable energy in Canada, biomass is responsible for 6% of the power maintained in the nation. This is second only to hydroelectricity. It can come from forest residue, crop residue, and animal manure. The forestry and agricultural industries account for most of the country’s biomass supply.

Paper and foresting companies account for a large portion of those industries employing biomass as a renewable energy source in daily operations. Independent power suppliers around the country also use biomass to produce electricity. And on an even smaller scale, many homes still utilize fireplaces as the primary source of heat. A wide range of biomass, biofuel manufactures and suppliers are found across Canada.

CanmetENERGY is currently studying methods such as combustion, gasification, and transesterification (the use of new and used vegetable oil) as methods of converting and utilizing biomass. They are also concocting methods for the transportation, pre-processing, and storage of biomass.

Methane, sometimes in the form of what is called landfill gas, is known as a greenhouse gas; however, Canada has begun to collect the gas emitted at landfills not only resulting in less harmful emission into the atmosphere, but providing a means of energy production as well.

The province of Nova Scotia makes use of biomass quite often. Over 100,000 homes in Nova Scotia use firewood for heat and a 22 megawatt co-generation plant can be found in Brooklyn in Hants County. This plant, along with two electricity-producing sawmills, pellet manufacturers, and greenhouses all use production waste to power the facilities.

Although the use of biomass as a renewable energy source is not as abundant as it once was in Canada, the process is under way to follow Nova Scotia’s lead and bring Canada back to prominence in the field of biomass.