4. Earnings tax slab charge → marginal tax charge
You know the way in India, revenue tax is barely levied by the central authorities and never by the state governments. So, you pay revenue tax at what’s often known as your “slab charge,” decided by your annual revenue.
In Canada, the speed at which you’re taxed in your final greenback earned is your marginal tax charge. Each the federal authorities and the provincial/territorial governments have revenue tax charges for various tax brackets, and Canadians pay taxes to each. For instance, in the event you earn $75,000 yearly in Ontario, your marginal tax charge is 29.65%, as of the 2023 tax yr. If you wish to be taught extra about how taxes work in Canada, right here’s a brief video by Nationwide Financial institution: “How do tax rates work?”
5. Equated month-to-month installment (EMI) → mortgage cost
For those who took out a mortgage in India, you’ll need to know your EMI (equated month-to-month installment) quantity—the fastened quantity to pay every month through the time period of your mortgage. In Canada, although, your fastened mortgage compensation quantities, and any further funds you make, are merely referred to as “mortgage funds.” In your mortgage contract, it would seem as a extra particular time period, like “automobile cost,” “bank card cost” or “mortgage cost.”
6. CIBIL rating → credit score rating
In Canada, as in India, you could have a credit score rating. In India, it’s generally referred to as the “CIBIL rating,” due to the Credit score Data Bureau (India) Ltd. In each international locations, your credit score rating is a quantity between 300 and 900, representing how credit-worthy you might be, or how doubtless you might be to make your mortgage and different credit score funds on time. The upper your rating, the higher for you.
Your rating in each international locations relies on a number of elements, together with your compensation historical past, your credit score utilization ratio, the size of your credit score historical past, the forms of credit score you could have, and the variety of “exhausting checks” in your credit score report from lenders. Your credit score rating helps to find out which loans you could be authorized for and what rates of interest lenders might give you. Though credit score scores are essential in each international locations, in Canada, your rating is essential to your monetary well being, due to the credit-based nature of the economic system.
As a newcomer to Canada, you received’t have a credit score rating at first, as credit score scores aren’t transferable between international locations. You can begin constructing a credit score historical past by getting a bank card and paying off the stability in full each month. And, for a wholesome credit score rating, attempt to restrict your credit score use to 30% of the whole credit score obtainable.
7. S&P BSE 500 → S&P 500
When you begin earning enough income in Canada to cowl your wants, you will have cash left every month to place in direction of longer-term monetary objectives, akin to retirement. Many Canadians spend money on the inventory market, typically via a sort of asset that offers small quantities of publicity to a number of shares, akin to exchange-traded funds (ETFs) or mutual funds. These pooled investments provide better diversification than shopping for particular person shares.
Canadian residents and residents can entry each the Canadian and U.S. inventory markets. Subsequently, you’ll typically come throughout inventory market indices such because the S&P 500 (U.S.) or the S&P/TSX 60 (Canada). For those who’ve invested in India, you’re most likely accustomed to inventory market indices just like the S&P BSE Sensex or the NSE NIFTY 50. As a fast information: the S&P 500 is just like the S&P BSE 500—it represents the five hundred largest corporations by market capitalization on the inventory change; and the S&P/TSX 60 is just like the NSE NIFTY 50 as a result of these solely observe 50 to 60 of the biggest shares by market capitalization. To seek out ETFs to your portfolio, use MoneySense’s ETF screener.
