Money Matters

Overview

Cost of Living

The average international student in Australia spends approximately AUD$575 per week on living expenses, about AUD$25,000 – AUD$35,000  per year, but it depends on the location and your spending habits. Cities like Melbourne, Sydney, and Brisbane are more expensive. Most OzTREKK students use a combination of personal funds, student loans, and bank loans/lines of credit to fund their Australian university studies.

Australian Government Cost of Living Estimates

You – AUD$24,505
Partner or spouse – AUD$8,574
Child – AUD$3,670

Check out the cost of living calculator and comparison tool to get a better idea.

Bank Loan / Line of Credit

I have an offer. Now what?

First, some background information to ensure we’re on the same page.

Canadian banks have student lines of credit and loans for Canadians studying internationally. In most cases, students will be approved for a certain amount and will use it through their degree. Most students will get a Professional Student Line of Credit, which is a line of credit (interest only) during your study that converts to a loan (principal and interest) once you graduate.

Do Your Options Make “Cents”?

We advise all students to shop around to see what options are available to them before settling on a bank. Specifically, you’ll want to investigate how much money you are eligible for and what the interest rates are.

When going to the bank, here are some questions to consider:

  • What credit options are available (loan or line of credit)?
  • What are the repayment terms? Is there a grace period after graduation?
  • When do I need to start paying interest? What about the principal?
  • Are there any constraints on withdrawals? Do I have access to all money right away?
  • My degree is 4 years. Do I need to do anything throughout my studies?
  • Do I need to have a cosigner?
  • What are the interest rates? How low will the bank go? How long do these interest rates last?
  • Whom do I speak with if I have any issues?

Nearly all students will be required to have a Canadian resident as a cosigner(s), so be prepared to ask a family member to act as a guarantor. Beginning in 2018 and for CIBC specifically, cosigners need to have an existing relationship with the bank.

All amounts listed from Canadian banks will be in Canadian dollars, and you will be paying your costs in Australia in Australian dollars, so when you work out estimated expenses and budgets, remember to factor in the (constantly fluctuating) exchange rate! What is the dollar at now?

It is important to keep an eye on the exchange rates as you can save thousands of dollars by watching. Even a fluctuation of 1–2% can mean a significant savings when you consider the total cost of your degree.

“Cheque” your Options!

Below are some of the main banks that offer student financing options. OzTREKK does not recommend one financial institution over another. We recommend that you research and compare banks—especially loan amounts, interest rates, and repayment terms. A critical point of differentiation will be the competitiveness of the bank’s interest rate for your student line of credit. Some banks set their student interest rates at 0.5% above the bank’s prime rate, while others set it at 1.0% above prime. Over the course of your degree, even a point (or percentage difference) can result in a few thousand dollars’ difference.

Other banks may increase the variance rate above prime because you are a Canadian studying internationally. Pay close attention to the various interest rates, whether that rate applies each year you have the financing, and make sure you ask how low the bank will go!

#OZTREKKTip: Start your conversations with the banks early to make sure studying in Australia is a feasible option for you. You won’t be able to complete the application until you have an offer, but you can start comparing your options and discussing it with your cosigner.

Please note these amounts are updated as of October 2023. It should also be noted that these are general guidelines. The financial situation of a cosigner can dramatically impact these limits, rates, and terms.

Bank Program Total Borrowing Amounts (2023) Interest Rates Pros Get More Information!
BMO Medicine and Dentistry Students

Up to $350,000 for the length of your program

Access up to $95,000 in first year

Continued access during residency/specialty studies

BMO’s Prime Rate minus 0.25% while you are in school.

(Interest is calculated on your daily balance and charged monthly to your account.)

Interest-only payments while at school and for two years after graduation.

BMO Student Lines of Credit
1-800-665-9665 or

Jeff Robichaud
Jeff.Robichaud@bmo.com
902-421-5774

  Professional Programs (e.g., accounting, chiropractic, law, MBA, optometry, pharmacy, veterinary medicine) Credit limits range from $1,000 up to $175,000 depending on your program and borrowing needs Low variable interest rate based on BMO’s Prime Rate plus 1% while you are in school. Interest-only payments while at school and for two years after graduation and after that repayment of principal starts.  
  Other programs

Up to $20,000 per year

Up to a maximum of $80,000 in four years

Variable Interest Rate Interest-only payments while in school and for 2 years after graduation and after that repayment of principal starts.  
RBC Medicine and Dentistry Students Up to $350,000 Preferred rate of Prime – 0.25% for RBC Healthcare Advantage Plan members for the life of your loan Continue to have access to your line of credit after graduation. RBC Royal Credit Line for Students
1-866-881-6618
  Professional Programs Up to $200,000 Interest rates dependent on program of study, budget, and qualifications Only pay the interest on what you owe while you are still in school and continue to pay only the interest for 2 years after graduation.  
  Other Limits start at $5,000 Variable interest rates You have up to 2 years before you need to start repaying the principal amount. In the meantime, you have full access to your credit line.  
TD Medicine and Dentistry Up to $350,000 Low variable interest rate

Minimum payments while in school and for 24 months after you leave school.

No need to reapply

TD Canada Trust Student Life
1-866-222-3456 or

TD Credit Specialists
1-800-983-2582

  Graduates and Professionals

Master’s or PhD up to $80,000 over 2 years of study

Naturopathy: Up to $80,000 over 4 years of study

Chiropractic: Up to $100,000 over 4 years of study

Optometry/Pharmacy: Up to $175,000 over 4 years of study

Law: Up to $150,000 over 3 years of study

MBA: Up to $125,000 over your study period

Vet Med: Up to $200,000; up to $50,000 in your first year of study

Variable by program No principal payments due until 24 months after you leave school.  
CIBC Medicine and Dentistry Up to $350,000 CIBC Prime – 0.25% Maintain your line of credit with interest-only payments while in school and up to 24 months after graduation, residency, or articling.

CIBC International School Specialists (search your area)

or

1-866-682-9569

or

Prateek Ahuja, Cambridge, ON 519 623 6110 ext. 236 prateek.ahuja@cibc.com

 

  Professional Programs

Chiropractic: Up to $140,000

Veterinary Medicine: Up to $140,000

Business: Up to 125,000

Pharmacy: Up to125,000

Law Up to 100,000

Occupational Therapy, Physiotherapy or Accounting: Up to $80,000

Nursing or Engineering: Up to $60,000

CIBC Prime + 1%

CIBC Prime

(dependent on Program)

Maintain your line of credit with interest-only payments while in school and up to 24 months after graduation, residency, or articling.  
ATB (Alberta students only. ATB is a highly recommended lender!) Medicine and Dentistry

Up to $350,000 for medicine or dentistry

Up to $125,000 for other eligible professions

Preferred, variable, based on ATB’s prime rate

Pay only monthly interest while you are in school and for up to 24 months after graduation.

Take up to 25 years to repay principal and interest—or pay in full any time without penalty.

Need to be an Alberta resident, need to have an Alberta cosigner

Sam Lucente
Branch Manager
ATB Financial Stephen Ave Branch
403-968-8566
Slucente@atb.com
  Undergraduate degree Up to $60,000 Variable, ATB’s prime rate + 1%

Pay only interest each month you are in school and for 12 months after graduation. Then, establish a repayment schedule with up to 20 years to repay the funds you borrowed.

Need to have an Alberta cosigner

 
Scotia Bank Place Does not do funding for students studying abroad
National Bank of Canada Professional & Non-professional Amounts range from $1,000–$200,000 CAD per year, depending on your area of study. Prime + 1.3% National Bank has advised OzTREKK that they have student lines of credit for both professional and non-professional programs for Canadian studying internationally. National Bank of Canada Student Loans
1-888-483-5628

 

Student Loan vs Bank Loan vs Student Line of Credit

Loan – With a bank loan, you will be paying interest on the full amount that is borrowed. For example, if you are given a loan of $50,000, you will pay interest on $50,000. Your payment amounts will also include the principal (called P&I). This may be a better option for you if you have a big chunk of savings and have the capacity to make payments while you are in school.

Line of Credit (LoC) – With a line of credit, you will only pay interest on the money you borrow. For example, if you have a $50,000 line of credit and you use $20,000, you will pay interest on the $20,000 until your LoC converts to a loan (at the end of your studies).

Student Loan – A student loan is only funded by the government (provincial and/or federal). You will need to apply through your province (OSAP, BC Student Aid, etc.). With this money, you will not need to repay until you have completed school.

If most of a student’s funding is going to be through the bank, we advise students to get money from a government student loan first, then a line of credit. With student loans, there may be grants and it will not need to be repaid until after the studies are complete.

What to Bring to the Bank?

Once you have your bank appointment, they will advise on what documents you should bring to your meeting. Usually, they tend to ask for

  • identification (passport, driver’s licence);
  • your Offer letter and/or Confirmation of Enrolment;
  • proof of employment – T4, statement (if applicable);
  • a list of your financial resources (RESP, TFSA, government funding, etc.);
  • a cosigner – they will also need to bring identification, proof of employment (paystubs and T4).

Know your rights: https://www.canada.ca/en/financial-consumer-agency/services/loans/student-lines-credit.html

Before going to the bank, look on their website to see if there is anything further they recommend you bring.

FAQs

How do students usually fund their studies?
It is important to determine if you are financially equipped to study in Australia. You will need to have funding from a bank loan/line of credit, personal savings, a provincial student loan and typically support from your family. Yearly tuition can be anywhere from $30,000 AUD to $100,000 AUD depending on the program and the cost of living anywhere from $25,000 to $35,000 AUD depending on where you are living and your lifestyle.

Also, it is never too early to reach out to the bank to see if Australia is a viable option for you. Once you start applying through OzTREKK, it is beneficial to speak with a representative at the bank (or a few banks) to see if you would qualify for a line of credit should you receive an offer. Speak with your friends and family members to make sure you have someone willing to be a co-signor when the time comes.

Will I need a cosigner?
Yes. If you are applying for a student line of credit you will need a cosigner. Your cosigner will need to be a Canadian resident who is staying in Canada. For ATB specifically, they will need to be an Alberta resident. For CIBC specifically, they will need to already have a diverse portfolio with CIBC.

What is the cosigner for?
The banks want to make sure if you choose not to return to Canada, that your debts are still being paid. Banks are trying to reduce the risk as much as they can. The bank will assess your cosigner’s income capacity and their assets and resources to make sure they can take over payments if needed. Should you skip out on paying your credit line, your cosigner will be responsible for that debt. Make sure your cosigner understands this before signing.

Government and Provincial Student Loans

Try to apply for a government loan first, before applying for a bank loan. Unlike bank loans, government loans generally don’t have to be paid back until after you’ve completed your studies (and there may be grants available).

Provincially, students from Ontario often receive $10K, while BC students receive $20K, and Alberta students can receive up to $30K (all approximate amounts).

#OzTREKKTip: Canadian student loan disbursements are not typically received until around a month after a program starts, so they are not usually available in time to use toward your first semester’s tuition.

Newfoundland and Labrador
Student Aid Division
1-888-657-0800

Prince Edward Island
Student Financial Services
1-902-368-4640

Nova Scotia
Student Assistance Office
Toll-free: 1-800-565-8420 (within Canada)

New Brunswick
Student Financial Services
Tel.: 1-506-453-2577

*Quebec
Aide financière aux études
Tel.: 514-864-3557 (Montreal area)
Toll-free: 1-877-643-3750 (within North America)

Ontario
Student Support Branch
Toll-free: 1-888-449-4478

Manitoba
Student Aid Branch
Toll-free: 1-800-204-1685 (within North America)

Saskatchewan
Student Financial Assistance Branch
Toll-free: 1-800-597-8278

Alberta
Student Aid
Toll-free: 1-855-606-2096 (within North America)

British Columbia
Student Aid BC
Toll-free: 1-800-561-1818 (within North America)

Yukon
Students Financial Services
Toll-free: 1-800-661-0408 local 5929 (within Yukon)

*Northwest Territories
Student Financial Assistance
Toll-free: 1-800-661-0793

*Nunavut
Student Assistance Office
Toll-free: 1-877-860-0680

*Nunavut, the Northwest Territories, and the province of Quebec operate their own student assistance plans. If you are a resident of Nunavut, the Northwest Territories or Quebec, contact the provincial or territorial student assistance office for further information.

Finally, have a look at the Government of Canada Student Aid website.

Banking in Australia

Some Australian banks allow international students to open an account online from overseas up to three months before you arrive—and many OzTREKK students recommend doing this. When you arrive in Australia, the bank will require you to show proof of identification in person at a bank branch:

  • Your letter from the bank after you’ve opened the account
  • Your passport
  • Your student ID or proof of enrollment
  • Australian cell phone number if you have one

Australia’s major national banks:

#OzTREKKTip: Find out whether the bank you are interested in has an ATM or branch on or close to your campus.

ATMs and EFTPOS in Australia
When you open an Australian bank account, you will also receive a bank card (EFTPOS) for your account. Often, a bank will not give you the debit card at the same time as you open the account. You will normally be mailed your debit card or you will be asked to pick up your debit card at your local branch about five to ten days later. It’s a good idea to have a credit card handy should you need money in an emergency.

In Australia, Interac is referred to as EFTPOS (Electronic Funds Transfer at Point of Sale). EFTPOS (pronounced eft-poss) is available at most stores, restaurants, and hotels, and the actual machines are basically the same as those in Canada. This reduces the need to carry a large amount of money—but remember that there is usually a daily withdrawal limit. Please note that Australian EFTPOS machines will not accept your Canadian debit (Interac) card.

Check with your bank to see if fees apply for using EFTPOS.

Canadian Bank (Debit) Cards in Australia
You can take your Canadian debit card with you and access money through most ATMs in Australia if your Canadian bank card is accessible via the Plus or Maestro systems (check the symbols on the bank of your debit card).

This is one way to access money from overseas when you are in Australia. However, when you withdraw money in this way, the currency exchange rate of your Canadian bank applies to the transaction, plus a fee for the international withdrawal, which will be deducted from your Canadian bank account. As well, you will be able to withdraw only a certain maximum amount per day (usually $500 or $1,000), depending on the maximum limit set for your Canadian bank account. This is not a great way to have your money exchanged (in terms of getting the best exchange rate and paying bank fees), but can be convenient and helpful.

Find out what the Canadian Government says about using your debit card in foreign countries.

Credit Cards in Australia
OzTREKK recommends that you have a Canadian credit card with a reasonable maximum limit to take with you to Australia. It is not the best option for exchanging money from CAD to AUD, and paying for things in Australia, but it may be helpful for emergencies and when you first arrive in Australia while you are setting up an Australian bank account.

Before you leave Canada, please notify your credit card company that you will be overseas and that you have designated a family member to have power of attorney to act on your behalf. This will allow your family member to act on your behalf for any matters that arise regarding your credit card while you are overseas. You can also link your credit card to your family member’s bank account or link it to your Canadian bank account and make payments from Australia via internet banking.

Remember that you can apply for a credit card in Australia as well. It can be beneficial to keep track of your finances in one currency (AUD), while tracking for a better exchange rate, so as not to “lose” money through frequent currency exchanges/transfers between Canada and Australia. For example, you don’t want to be using your Canadian credit card in Australia all year long, if you have already transferred a considerable amount of your money to Australia. Otherwise, you would be losing money on the credit card company’s exchange rate, plus the fees charged for a foreign purchase (usually 2.5% to 3% per transaction). And you still have to figure out how to pay off the Canadian credit card back in Canada!

Read some tips about how to save money while studying in Australia!

Tax File Number (TFN)

International students who are enrolled in a course that is longer than 6 months are considered residents for tax purposes. A TFN reduces the tax rate you need to pay and is required if you plan to work in Australia and for lodging tax returns. Learn more.

Organizations such as banks, financial institutions and employers are entitled to ask for your TFN. For more information about TFNs and to apply, go to the Australian Taxation Office (ATO) website.

You can apply for a tax file number online if you meet these three conditions:

1. You are a foreign passport holder, permanent migrant, or temporary visitor.
2. You are already in Australia.
3. You have an overseas student visa (that’s you!)

To apply, you will need to have a valid passport or relevant travel documents. You don’t need to send your passport or identification in—they will  verify your identity with the Department of Home Affair’s records. Within 28 days, they will send your TFN to the Australian address you give on your application.

It may be necessary for you to file a tax return with the Canadian government for the year(s) you were studying in Australia. Visit the Canada Revenue Agency for more information.