Lessons along the way - a Canadian's journey to the US

[FeelingYoung66 11]

On 4/24/2020 at 5:41 PM, Gak said:

Just wondering, has anyone used VBCE to transfer all your CAD to USD? I've been using it for a small amount of money whenever I travelled to the states because they offer a good exchange rate but wondering if anyone has used it for moving a large sum of money.

Suggest you check-out services like Transferwise. Highly professional, a leader in the field, and exchange rates that are up to the minute.

[T&S_MTL 111]

On 4/11/2020 at 10:54 AM, NikLR said:

Building my US credit score was easy. I used RBC and they gave me a US unsecured card with a low % because I was working and had great credit in Canada. I updated it with my SSN afterwards. Hubs and I already had a joint bank account. 

How long before moving to the US did start building your credit score with the RBC US credit card ? Im wondering if a couple of months is enough.

[NikLR 13,220]

50 minutes ago, T&S_MTL said:

How long before moving to the US did start building your credit score with the RBC US credit card ? Im wondering if a couple of months is enough.

Well i applied for it about 4 months after I moved, so 5 months? I wasn't checking it regularly.  

[ADW & JOP 146]

Providing another update to this thread.

 

Credits and Such

 

Last I left off, I had a credit score of 750. With this, I applied to a few credit cards. Unfortunately, my applications were turned down even though I met their credit score cutoff. and the reason they gave me was because of an insufficient history. Double whammy here as the applications also lowered my credit score by about 15 points. In early May, I decided to move my downpayment money into a new account with HSBC because I've heard they give pretty good mortgage rates to existing customers. I was given the option to apply for a credit card with them and received one with a $28,000 limit. I also obtained a pretty good 30-year fixed mortgage rate at 2.95% with 20% down.

 

Driver's License

 

The California DMV was shut down when I arrived due to COVID19. Since their re-opening, I've been waiting to schedule an online appointment with the DMV. I learned last week that new appointments won't be available to be scheduled until the middle of August, so I decided to wake up early to line up at the DMV in San Diego at around 0600. I was 5th in line. After they opened at 0800, it was about 30 minutes before I was called to the counter. I was assisted by an agent and asked to provided my documents which included my passport, my temporary i-551 stamp, SSN card, two different bank statements. She inputted my information into the computer system and told me she could not proceed forward without an i-94. I didn't really put up much of an argument because to be honest, I did not know much about the i-94. She was nice enough to give me a post-it to let the workers at the front know when I returned with the document so that I could bypass the extremely long lines. On my way home, I researched the i-94 and realized this was CBP record for non-immigrants and realized she probably made a mistake. I returned to the DMV, i-94 in hand (which had my last "visit" history as a non-immigrant). I was let back inside and the front desk worker asked if I wanted to go back to the same agent or line up for the next available. Realizing she may not have much experience dealing with my situation, I decided to line up for the next available agent. Fortunately, I had a more senior staff member who told me the i-94 was not necessary given my temporary i-551 stamp in the passport. He was nice enough to walk over to the other agent to explain the situation and she came to apologize for my troubles. To be honest, I was not too bothered by this experience as they were otherwise pretty friendly. I had to write my knowledge test, which I prepared by reading the DMV handbook (free online) and doing practice questions at https://driving-tests.org. I passed and was instructed to sign-up for a DMV behind-the-wheel road test by visiting the DMV website. I tried this, but the only information I was able to glean from their website is that new appointments are currently not available. However, If you google, "DMV California behind the wheel test", you will find a easier way to schedule a behind-the-wheel test and I was able to get one for the upcoming weekend. Fingers crossed.

 

Job Search

 

After sending my resume to numerous prospective employers, I finally received and accepted offers for a full-time job and a per-diem job. I have found no issues with supplying them with a copy of my temporary i-551 in my passport and my SSN. One interesting thing I've learned related to my profession is that there are many more regulatory licenses I needed to obtain. This added 4-6 weeks which I completed in May. If I had to do it again, I would have done a little more research, albeit, I was fortunate this did not significantly impact me as I did not receive any job inquiry responses prior to mid-June.

Edited July 13, 2020 by ADW & JOP

[KAP2019 184]

@ADW & JOP Thanks for sharing what you've learned along the way!!

 

I've been in the US since March on a B2 and applied for AOS ~1 month ago (still awaiting receipts). So my situation varies in that I don't have that beautiful i-551 stamp and I'm a non-resident alien...what a sad term. 

I'm trying to figure out what I'm allowed to do in terms of transferring money and getting a mortgage. Do you happen to know of a good resource for rules surrounding this? Is the main thing to be aware of is IRS/CRA thresholds? My bank doesn't have a USD funds option for transferring stuff in chunks over time as you did. Have you been happy with TD in that regard? 

[Sofitalian 132]

@ADW & JOP  Thanks for your detailed sharing. 

 

You mentioned you filed FBAR. Do you plan to also take out your RRSPs and move the cash to US? I'm a Canadian non-resident and the only assets I have left in Canada are my RRSPs. I'm unsure if I should withdraw RRSP once I settle down in US (hopefully in Fall this year). My Canadian accountant said if I withdraw CAD$5,000 per year, the withholding tax is 10%. I guess if I don't withdraw, I'll have to file FBAR every year?

[ADW & JOP 146]

3 hours ago, KAP2019 said:

@ADW & JOP Thanks for sharing what you've learned along the way!!

 

I've been in the US since March on a B2 and applied for AOS ~1 month ago (still awaiting receipts). So my situation varies in that I don't have that beautiful i-551 stamp and I'm a non-resident alien...what a sad term. 

I'm trying to figure out what I'm allowed to do in terms of transferring money and getting a mortgage. Do you happen to know of a good resource for rules surrounding this? Is the main thing to be aware of is IRS/CRA thresholds? My bank doesn't have a USD funds option for transferring stuff in chunks over time as you did. Have you been happy with TD in that regard? 

I don't think there are a lot of CRA/IRS rules in terms of transferring your own money. You need to be aware of filing T1135(CAD)/FBAR if you exceed a certain amount. Both countries require you to report income as residents, so if you are making income from US investments when you are still a Canadian resident, you will need to report that to the CRA and vice versa. You need to report cash or property gifts from anyone exceeding a certain amount in the US but not in Canada and there is also IRS considerations if your US spouse transfers money/assets to a non-US spouse.

 

In terms of mortgage, I am not an expert. We put offers for three homes in February, April and May. In February, we went to my US spouse's bank, which she had an existing student loan. They didn't seem to have a problem to give us a pre-approval without my SSN (and I was not an immigrant as of yet, just a visitor with a US citizen spouse). We didn't get passed the pre-approval stage so I am not sure if this would have become an issue when we had to put in a formal loan application as credit scores factor impact your mortgage rate.

 

I enjoyed my relationship with TD bank, but the issue I found is that they had no presence on the west coast. When I came in March, and I had to get money moved into escrow, they didn't allow for wiring money over the phone, but instead requires an in-person visit to the nearest branch (which was on the east coast). Fortunately, I had my cheque book so I moved my money over to a local bank. They don't offer mortgages for property in California so I never discussed this with them.

 

I personally have had a good experience with HSBC so far, but I've been a premier client and I have had a very dedicated banker assigned to me, who recently was promoted to work with higher-end clients, but he still kept me on board and gave me his direct line and connected me with the mortgage lender.

[ADW & JOP 146]

23 minutes ago, mave said:

@ADW & JOP  Thanks for your detailed sharing. 

 

You mentioned you filed FBAR. Do you plan to also take out your RRSPs and move the cash to US? I'm a Canadian non-resident and the only assets I have left in Canada are my RRSPs. I'm unsure if I should withdraw RRSP once I settle down in US (hopefully in Fall this year). My Canadian accountant said if I withdraw CAD$5,000 per year, the withholding tax is 10%. I guess if I don't withdraw, I'll have to file FBAR every year?

I liquidated everything before I moved to the US, found it easier to not have to deal with the taxes once I moved to the US.

 

"U.S. citizens and residents with a financial interest in or authority over foreign bank accounts or "foreign financial accounts" with an aggregate value of $10,000 are required to file a FBAR."

[Sofitalian 132]

14 hours ago, ADW & JOP said:

I liquidated everything before I moved to the US, found it easier to not have to deal with the taxes once I moved to the US.

 

"U.S. citizens and residents with a financial interest in or authority over foreign bank accounts or "foreign financial accounts" with an aggregate value of $10,000 are required to file a FBAR."

Thank you. I guess it's a good idea to manage finance in one single place.

[ADW & JOP 146]

Green card

 

After a ~4 month wait, I decided to submit an online inquiry on MyUSCIS to understand why there has been no progress or status update on my green card since port of entry. I paid all my immigration fees prior to my POE. I received a generic response stating that my inquiry has been forwarded to the office handling my case and that they would be in touch with me. After waiting another 4 weeks without hearing from the office, I sent another inquiry though MyUSCIS and received a similar response. I contacted the ombudsman via a electronic form and received a response within days explaining that they investigated and my green card was now in production. About a week later, I logged onto MyUSCIS it stated that the case was now closed and my card has been mailed and I received my green card ~6 months from my POE. I wasn't in a rush to receive my green card, but I do wonder whether reaching out to the ombudsman earlier would have facilitated the process faster.

 

Importing My Vehicle

 

I had done a lot of research on importing my vehicle prior my POE. I had obtained a certificate of conformity from Volkswagen Group of America, Inc. back in December 2019 stating that my car was my vehicle was certified by the manufacturer to conform to all applicable Canadian Motor Vehicle Safety Standards (CMVSS), US Federal Motor Vehicle Safety Standards (FMVSS), California Air Resources Board (CARB) Emission Regulations, and US Environmental Protection Agency (USEPA) Emission Regulations. I also obtained a letter from Audi Finance stating that my vehicle was paid in full.

 

I had done a lot of research to try to find the most cost efficient way to transport my vehicle from Toronto to San Diego, including a straight drive from Toronto to San Diego, importing it from Toronto to Vancouver (originally planned to attend a friend's wedding), then drive down and enjoy the West Coast or ship it directly from Toronto to San Diego. I relied heavily on internet reviews, recognizing the biases typically associated with reviews. Initially, I planned the Toronto to Vancouver route, however, with COVID, plans changed. My wife and I tried sharing one car, but with both of us commuting to work, we decided to bite the bullet and ship my car done in late August. By this time, many of the shipping companies did not directly transport vehicles on their own, but relied on third-party companies. Fortunately, I did found a company that offered a competitive price (cheaper to Hansen's Forwarding) with enclosed transportation. Overall, I was very satisfied with their service. My communications with them was through email and they asked me to fill out a bunch of applications forms, asked for a copy of my certificate of conformity, bill of sale, evidence of authorized stay (they didn't initially recognize a photocopy of my temporary i-551 in my passport, but this was eventually clarified), and a picture of my odometer. The provided me a pick-up date at the address of my choice, came on time, and told me to expect my car in San Diego in 10-14 days. I didn't hear from them until the transport driver called me the day prior to arrival and indicated an estimated time of arrival. My car actually arrived earlier than expected and I found their service to be excellent. A couple of quirks that would have made the experience even better: One, they only accept wire transfer. Two, there is no method to track progression - I had no idea my car was coming earlier had it not been a call I received the day prior to delivery date, which was fortunate that I had the week off. In total, I spent approximately 3500 USD (shipping, custom brokerage, duty).

 

Registering My Car in California

 

DMV California makes ServiceOntario look like Amazon Prime. To be honest, I had a relatively easy experience getting my driver's license back in July, but I think that was the exception not the rule.

 

First off, I found the information on the website re: importing new vehicles to be a little vague. It gives the general requirements, but I wasn't too sure whether I needed a smog test and whether the smog test needed to be at a Star Station. On the website, under importing a vehicle, it states "you may also need: a smog certificate", but under smog inspections, it states "your vehicle does not need a smog inspection if your vehicle is gasoline-powered and less than four model years old", which is true in my case. 

 

However, I decided to go ahead with a Star Station Smog Test prior to visiting the DMV because I did not want to line up at the DMV just to find out I needed a smog test. Unfortunately, the smog test failed because the OBDII monitor, specifically the EGR/VVT system, was not ready. I had some maintenance work on my car done 1 month earlier and the vehicle was transported and not driven for a while, so the technician at the Star Station told me to drive for ~100 miles and come back for a free re-test, as this may ready my monitors. I decided to try my luck at the DMV with a pre-filled out vehicle registration application anyway because I had the week off and went to a "less busy" one. I lined up for a couple of hours and even the DMV agent managing the line wasn't too sure whether I needed a smog test so he went to ask a senior personnel and it turns out you do need a smog test in California even when your vehicle is less than 4 model years old. I stayed in line to hand in my application, pay my registrations fees, received a temporary 30-day permit and was told to return to have my vehicle inspected by an agent and complete the process within a month.

 

A side note: I initially tried using one of the private "business partners" of the DMV to see if I can register my car without going to the DMV. I called in advance, was told it was fine, but after spending 1 hour there, a manger told me they don't process imported vehicles from outside the US. I am not sure whether this applies to other companies.

 

Passing the Smog test was quite a project. I decided to buy my own OBDII monitor (30ish dollars on amazon). After driving 100 miles, the EGR was still not ready so I proceeded to perform the "drive cycle" at midnight for four consecutive nights to see if I can ready my OBDII monitors. Unfortunately, no luck so I brought my car into the local Audi dealer where they investigated the OBDII monitor. They noted everything was working fine, then proceeded to reset the monitors and voila! It took them less than an hour to accomplish four nights of work. I brought my car back to the Star Station and I passed my smog test.

 

I brought my car back to the DMV for the inspection. The line was long, but the inspection was relatively straight forward. Interestingly, my vehicle has some labels but not all. However, the agent accepted my certificate of conformity from Volkswagen Group of America, Inc. and it was approved. I had to line up again to see another agent, but by this point, I decided the risk of being turned away before closing time was too high so I came on another day. 

 

On the final day, I came an hour before opening and was 50th in line. Fortunately, the DMV triaged customers based on their needs and because I was only there to drop off some forms, I was in and out 30 minutes after the DMV opened that day.

 

All in all, this ordeal shortened my life expectancy by a few years  from the risk of melanoma lining up in the sun, sleep deprivation, and unnecessary stress. To me it was worth it because I have a very special and clearly unhealthy bond to my car, but it took a lot of money, time and effort for a car that had no issues with conformity.

 

Edited October 5, 2020 by ADW & JOP

[ADW & JOP 146]

Also, I should mention you needed to bring the CBP paperwork to the DMV as they need proof of proper import.

[purem4g1c 113]

Heya, I've been living in the US for nearly 2 years now and am planning to buy a home soon. Planning on buying it with cash so I want to move my CAD to USD. I was reading about norbert gambit and remembered your post. Do you reckon Norbert Gambit is still the best option for me since I reside in the US but still have CAD? I did file FBAR & whatever else my account had me do last year. I think questtrade doesn't accept non-residents which is a pain so I'd have to use something else...? Also the superficial loss rule wouldn't apply to me since I don't reside in Canada would it?

[Tofu 343]

On 4/6/2020 at 4:28 PM, ADW & JOP said:

AmEx would not honor the global transfer program as I already have a pre-existing credit history in the US. I will just have to use my current cards to build up my credit score more and apply for something better.

Hey,  Can you clarify this for me?  Were you ineligible because you were an authorized user on your spouses card?  I have a US credit card through my cross border banking, so I am wondering if this will be the same case for me. 

[ADW & JOP 146]

17 hours ago, Tofu said:

Hey,  Can you clarify this for me?  Were you ineligible because you were an authorized user on your spouses card?  I have a US credit card through my cross border banking, so I am wondering if this will be the same case for me. 

That's what they told me.

 

I had a secured credit card that I obtained a year before I moved to start building a credit history. They told me that the global transfer program is only for individuals who have no established credit history. I was also an authorized user of my spouses card which helped lengthen my credit history (as far as I can see on my credit scores, my credit history dates back to when she first became a holder of said credit card).

[Tofu 343]

1 hour ago, ADW & JOP said:

That's what they told me.

 

I had a secured credit card that I obtained a year before I moved to start building a credit history. They told me that the global transfer program is only for individuals who have no established credit history. I was also an authorized user of my spouses card which helped lengthen my credit history (as far as I can see on my credit scores, my credit history dates back to when she first became a holder of said credit card).

Thanks for letting me know! 
 

As I say, I have a US credit card through my cross border banking. Once I am in the US, I will update here whether I was able to qualify for global transfer.