Canadian newcomers mean new opportunities
There’s a growing market in the mortgage industry…people who are new to Canada. According to Statistics Canada, the Canadian population saw a record surge in growth last year. About 95.9% of this growth was fueled by immigration.
The number of permanent residents arriving in Canada is expected to be 465,000 in 2023, up from a record 431,000 last year. Almost half a million people will be looking for a place to call home.
Who are the Canadian newcomers?
Canada is actively encouraging immigration which supports Canada’s growth. According to #ImmigrationMatters, immigrants account for 33% of all business owners with paid staff. In addition to running businesses, they make up a significant amount of the workforce in health care, science and technology, food services, and other sectors. They volunteer in their communities, provide needed services, and contribute to the Canadian economy.
Canada immigration defines three categories of immigrants:
- The Economic Class: These are professionals and skilled workers looking to become permanent residents in Canada. This group accounts for about 60% of Canada’s immigrants.
- The Family Class: These are close relatives of Canadian permanent residents and citizens who wish to reunite.
- Refugees: These are people fleeing situations in their country. Canada’s refugee protection process provides permanent residence to about 30,000 refugees each year.
What impact does immigration have on housing?
As much as immigration contributes to the economy and helps address the labour shortages, there are some areas where the added population will cause additional pressure, such as the housing market.
The impact is far from certain. A recent report on The Ins and Outs of Immigration and Canada’s Housing Market suggests that while the influx of newcomers could push housing prices higher, efforts to increase supply could offset the rise in cost. Housing starts would need to rise to their highest level in Canadian history. Either way, Canada benefits from an increase in immigrants.
A mortgage designed for new residents
Here’s the thing—when a person first moves to Canada, they may not meet the credit history requirements for the big banks, but that does not mean they are not a good credit risk. That’s why Bridgewater Bank introduced the Gateway Canadian Newcomers Mortgage. It’s a home mortgage for newcomers to Canada with a limited credit history. This solution provides the best mortgage option for clients with permanent resident immigration status or non-permanent residents on a valid work permit that may not fit traditional prime bank eligibility requirements.
Learn more about newcomers to Canada
If you’re working with newcomers to Canada, there are resources that can help.
- #ImmigrationMatters: The Canadian government’s resource for and about immigration
- Learn more about Canada’s Express Entry system to attract skilled workers to Canada.
- REALTORS® Share Tips for Communicating Through Cultural Nuances and Language Barriers: An article from the Canadian Real Estate Association on doing your work in a multicultural Canada.
We are here to help
If you have questions about how our mortgages can help your clients buy a home in Canada, contact us and talk to one of our business development managers.