Key Findings
Housing affordability — both to buy and to rent — is a significant problem
- 1 in 10 new immigrants to Canada (11.9%) experience trouble when trying to rent or buy a home
While the reasons for the difficulties in trying to rent or buy differ, there were a few common factors that hindered immigrants from finding suitable, affordable housing. For instance, respondents said their lack of credit history in Canada — and low or no credit score — was a significant factor that prevented them from finding suitable housing.
Common complaints included: Reliance on a guarantor, high rental prices, racial discrimination and the need for a large upfront payment. Some struggled with a language barrier and the complexity of the rental process, while a few faced issues with the lack of adequate Canadian employment references.
Money management skills and tools inaccessible to most new immigrants
- 31% of new immigrants to Canada rated their money management skills as average or poor
The Money.ca: New Immigrants New Money Skills survey revealed that while half of new immigrants felt confident in their money management skills in Canada, approximately a third felt their skills were average and the rest felt their skills weren’t adequate.
When asked to rate their financial management skills:
- Very Good: 23.42%
- Good: 39.25%
- Average: a concerning 31.67%
- Poor: 4.08%
- Very Poor: 1.58%
Credit scores hinder new immigrants from cost-effective financial products
- 1 in 4 new immigrants have a poor or bad credit score
A good credit score is critical for finding cost-effective financial tools — and, in some cases, to finding employment and housing. Unfortunately, 1 in 4 new immigrants (25.23%) report having a credit score below 670 — the cut-off for most creditors for determining a good credit score versus a poor or bad credit score.
According to the Money.ca: New Immigrants New Money Skills survey, new immigrants credit scores varied:
- Below 300: 3.00%
- 300 to 579: 7.41%
- 580 to 669: 14.82%
- 670 to 739: 18.40%
- 740 to 799: 21.15%
- 800 to 850: 14.57%
- Do not know: 14.40%
Lack of financial knowledge can hurt the majority of new immigrants
- Just over 1 in 10 (12.48%) of new immigrants know that credit scores affect renting in Canada
Money.ca: New Immigrants New Money Skills survey uncovered gaps in financial knowledge among immigrants, with 24.4% being somewhat knowledgeable about debt repayment, 16.6% not very knowledgeable about investing and 14.4% not very knowledgeable about taxation.
Only 12.48% of respondents were aware that credit scores can influence their ability to rent an apartment.
“Financial literacy is not just about numbers; it is about making informed decisions, building financial stability and improving quality of life,” says Romana King, senior finance editor at Money.ca. “This data highlights the lack of accessible and comprehensive financial education for new immigrants, across the country.”
New immigrants face unique challenges, explains King. “Achieving milestone goals, like finding housing in a new home country, requires access to helpful financial tools and products. From our research, it’s clear that new immigrants don’t have uniform access to these products or to information that can help them make informed decisions. This is a problem for all Canadians and a reason why we need to prioritize financial education to bridge gaps and foster a financially inclusive society.”
Bottom line
Money.ca: New Immigrants New Money Skills survey highlights the critical financial challenges and credit reliance among immigrants in Canada. The data highlights areas where financial education and resources are urgently needed to support this vital segment of the population. Money.ca remains committed to providing the necessary tools and information to help immigrants successfully navigate the Canadian financial landscape.
Survey methodology
The Money.ca: New Immigrants New Money Skills survey was conducted through an online survey between May 27 and July 19, 2024. Responses from 1,200 new immigrants to Canada were collected with participants selected based on a representative sample of the Canadian immigrant population. Respondents were asked a series of questions designed to assess financial challenges, money management skills, and access to credit and housing. Results were weighted to reflect the demographic composition of the new immigrant population, ensuring that the findings are both accurate and reflective of the broader immigrant community in Canada. The margin of error is +/- 3%, 95% of the time.
About Money.ca
Money.ca is a leading financial platform committed to providing individuals with comprehensive financial education and resources. As part of Wise Publishing, Money.ca is a trusted source of reliable financial news, expert advice, comparison tools and practical tips. Canadians get insight on a variety of personal financial topics, including investing, retirement planning, real estate, insurance, debt management and business finance.
