Action:
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Info:
Local Overseas Allowance (LOA). LOA is a non-taxable allowance paid to Service Personnel to help offset the additional costs of living overseas. LOA rates can fluctuate – you are advised, therefore, not to commit yourself to any expenditure based upon LOA calculations alone. LOA is dependent on rank, PStat Cat (Personal Status Category) and number of children at post. Details of current LOA rates should be obtained from your current unit prior to your posting.
Action:
You must open a Canadian Bank account as soon as possible and set up your split pay to enable payment of your rent. Once you have opened an account with a bank of your choosing inform the Global Admin Unit (GAU) of your Canadian Bank account and how you wish to split your pay.
Info:
Choose a bank by reputation and proximity to work and home. Consult with your predecessors but bear in mind that credit and debit cards are used almost exclusively for day to day purchases with no lower limit. Banks often charge for cheques so a standard monthly charge for these and other facilities may be worth considering. Canadian Banks will charge you to receive money from abroad, therefore you establishing a split pay breakdown from your UK account to a Canadian account that works for your anticipated monthly expenditure is key. Split pay is usually deposited on or around the 21st of the month whereas UK payments are made at the end of the month. You should investigate which banks provide what benefits to you and your family situation. The CAF uses Bank of Montreal (BMO) and they may offer additional perks to you as a foreign service member in the CAF.
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You should secure at least one credit card as soon as possible to establish a credit score in Canada. Your UK/European credit score will not transfer over to Canadian banks.
Info:
Most Canadian Bank Debit Cards that are used internally and therefore a credit card is essential for many types of payment. A work permit assists in obtaining credit cards though, as EO’s pay is UK based, many banks insist on a low limit (around $1000) for the first year. Usually this can be increased after 6-12 months provided the applicant has maintained a good credit score. Some credit cards come with additional perks such as the Costco CIBC Credit Card with cashback on purchases made in Costco. If you wish to monitor your credit score there are various companies that offer a credit monitoring service such as Equifax Canada for a monthly fee.
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