Tag Archives: new immigrants

New to Canada? Three tips to start your finances off right

New to Canada? Three tips to start your finances off right

Moving to a new country can be overwhelming but starting your finances off right can make all the difference as you build your new life.

 

As you begin your new life in Canada, here are three tips can get you headed in the right direction.

  1. Connect with resources that can help your family get settled.

There can be so much to do when you arrive in Canada—find a home, a job, schools, a bank—it can be hard to know where to start.

Scotiabank’s Newcomer Handbook gives you quick and easy access to things you need to know as you build a new life here. It’s available for free online and includes advice on:

  • 10 Things You Need to Know About Banking in Canada
  • Top 10 Tips for Settling in More Easily
  • Government Information and Assistance
  • Jobs and Careers
  • Health, Safety and Your Rights
  • Education and Training
  • Entrepreneurship
  • Embassies in Canada

After friends and family, a good place to begin when looking for a job is the Service Canada website as well as online job boards. If you need Canadian work experience, consider volunteering in your community.

The federal government also offers other newcomer support, to help get a language assessment and finding a language class, finding a place to live, signing up kids for school and learning about community services.

Your province is responsible for providing services like health care. All Canadian citizens and permanent residents are eligible for public health insurance, which provides most services free of charge (health care in Canada is paid for through taxes). Information about your province’s health care program is available through the government of Canada website.

  1. Learn how to manage your money.

Building a relationship with a financial advisor at a bank in Canada is an important step in creating your new life. Start by visiting your local branch to open chequing and savings accounts and consider applying for a credit card. Your advisor can help you understand your needs and suggest the products that are right for you and your family. Check out the popular credit cards that the Scotiabank StartRightprogram has to offer. With more rewards than any other bank, you’ll be sure to find a card that meets your needs and rewards you in the process.

A credit card not only lets you charge purchases rather than pay cash, it also helps you establish a credit history in Canada. This will be crucial when you need to get a loan to start a business or buy a home. Banks learn a lot about your financial health by accessing your credit history and use it to decide whether they should lend you money.

More important information about credit history:

  • It’s your responsibility to review your credit report and ensure it doesn’t contain any errors
  • Try to pay your bills on time and in full to avoid a negative rating
  • Make sure you understand the terms and conditions
  • Never go over your credit limit
  • Make sure to contact local credit agencies if you need help managing debt
  1. Plan for your future.

Before long, you’ll find that you and your family have settled into your new life in Canada and will start thinking about buying a home or car, putting money aside for your children’s education and investing for your retirement. Having a financial plan is an important element to help you take control of your finances.

One of the first things you can do is evaluate your day-to-day cash flow and think about spending only on things you really need or value. Cutting a few dollars here and there from your daily expenses, even if it’s just $5 a day, can add up to big savings year over year. Where can you start? Cut out your daily luxury coffee, bottles of water, or lunch out once a week. If you saved and invested that daily $5, in 20 years you would have more than $50,000!1

A “Mapping Tomorrow” session with a Scotiabank advisor will go a long way in helping you achieve your unique goals in Canada. Want to learn more? Our expert advisors can offer practical advice and smart solutions to help you have the life you want in Canada.

Source: by Scotiabank  Learn more about Scotiabank’s StartRight Program.

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Commentary: Supply not the main factor in Toronto’s housing woes

Commentary: Supply not the main factor in Toronto’s housing woes

While various quarters have cited supply scarcity as a central driver in Toronto’s long-running housing affordability issues, latest census data actually belies that notion, according to a Bloomberg analyst duo.

In their latest piece, markets observers Erik Hertzberg and Theophilos Argitis argued that “the most important question remains the extent to which speculation is driving demand.”

“Ideally, fundamentals such as demographics and employment are at play, and the price gains reflect natural household growth getting ahead of supply. If that’s true, the market should eventually stabilize once new supply kicks in,” Hertzberg and Argitis wrote. “A situation where speculators are bidding up prices would be much more problematic.”

“Canada’s 2016 census, which the statistics agency is releasing piecemeal this year, is providing some insight into the debate. The results: supply may not be the big problem many people thought it was.”

The data revealed that between 2011 and 2016, the total number of Toronto households increased by 146,200 (up to 2.14 million). To compare, the number of newly completed homes stood at 175,825 projects.

“In other words, supply of new houses exceeded real household demand by almost 30,000 over those five years,” the duo stated. “That throws cold water on the argument — voiced particularly by the industry — that the city’s affordability crisis won’t be resolved unless the government introduces measures to help increase supply.”

More importantly, Toronto is rapidly running out of buildable space, “evident in census data that show its population density has surpassed 1,000 people per square kilometre for the first time ever, another factor that should continue supporting prices for detached homes.”

Source: Mortgage Broker News – by Ephraim Vecina15 Aug 2017

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Solving the enigma of Canada’s housing bubble

A real estate sold sign hangs in front of a west-end Toronto property Friday, Nov. 4, 2016. THE CANADIAN PRESS/Graeme Roy (Graeme Roy/THE CANADIAN PRESS)

If Yogi Berra were alive today, he’d probably describe the Toronto housing market like this: Things are so good, they’re bad. And if they get any better, that’ll be worse.

In February, the Teranet-National Bank house price index showed prices in Greater Toronto rising 23 per cent over the previous year – or about 21 per cent faster than the rate of inflation. Homes in neighbouring Hamilton were up 19.7 per cent. Even in Metro Vancouver, long the hottest market but which recent policy changes have somewhat cooled, prices are up 14.3 per cent. Most of the rest of the country, however, looks relatively calm.

But not Toronto. It’s become such a sellers’ market that – another Berraism – nobody wants to sell.

In response to surging demand, the number of properties offered for sale has dropped. Potential sellers are holding off putting houses and condos on the market, because they assume the longer they wait, the higher prices will go.

“In the first two months of 2017,” writes Simon Fraser University public-policy professor Josh Gordon in a recent report on Toronto housing, “new listings dropped despite rapidly rising prices, likely because even more sellers now expect prices to climb higher. That has sent the sales-to-new-listing ratio soaring, which is a good proximate indicator for future house price increases.”

In other words, prices in Toronto appear to be feeding on themselves. Why? It’s the psychology of FOMO – the fear of missing out. Purchasers fear that, unless they buy now, they’ll miss out on ever owning a home. Potential sellers fear that, if they sell now, they’ll miss out on windfall profits from inevitable price jumps. Based on the past few years, these have become rationally held beliefs. Speculation is now wisdom.

If you’re already a homeowner, it’s wonderful. If you’re a young person, an immigrant or middle-class, it’s depressing. If you’re an economist or a banking regulator, it’s terrifying.

Toronto has long shown signs of a classic bubble, and so has Vancouver. And when housing bubbles burst, they send tsunamis rushing through the financial system, and the entire economy. Just look at what happened in the United States in 2008.

That’s the danger. And the best way to address it is to try to carefully let some air out, before the balloon pops.

A real estate sold sign hangs in front of a west-end Toronto property Friday, Nov. 4, 2016. THE CANADIAN PRESS/Graeme Roy (Graeme Roy/THE CANADIAN PRESS)

So what’s been driving prices in Toronto and Vancouver? A lot of things – some of which can’t be changed, or shouldn’t be.

There are the Bank of Canada’s record low short-term interest rates, a response to weak domestic and global economic conditions. Should Ottawa be agitating for higher borrowing costs, across the entire economy? Obviously not.

The Bank itself is also reflecting a worldwide savings glut, which has pushed global bond yields and mortgage rates to the floor, while pushing up the value of a lot of investment assets. Can Ottawa or the provinces address that? Not really.

Some of the price increases are a reflection of population growth, with the Greater Toronto Area adding nearly 400,000 people between 2011 and 2016, and Greater Vancouver growing by 150,000. Should government policy aim to stop people from moving to these successful cities? Absolutely not.

However, housing in Toronto and Vancouver has also been driven skyward by other factors. Greater Montreal, Canada’s second-largest market, has the same low interest rates, and over the last five years, it’s added twice as many people as Vancouver. But Montreal prices have not been bubbling.

The price boom in Toronto and Vancouver has been far beyond what population and income growth would suggest. For example, there tends to be a long-run relationship between average incomes and average housing prices. That’s because, as Yogi Berra might have put it, people can’t afford what they can’t afford – except when they can. In Toronto and Vancouver, the unaffordable is now the norm.

Average home prices are normally expected to be about three times median family incomes. As of last summer, that’s roughly where things were in Montreal, Ottawa and Calgary. But in Toronto, prices were more than eight times family income. Vancouver? Nearly 12.

Last year, the situation finally pushed British Columbia to act. The government introduced a 15 per cent tax on foreign buyers, which appears to have had an impact. Vancouver prices actually dipped late last year, reversing steep gains earlier in 2016.

The levy, which doesn’t apply to immigrants, had a dual effect. It discouraged non-resident speculators, while also signalling to the entire market that prices might not go up forever.

(Unfortunately, B.C. recently undermined the measure, by watering down its application, and creating a price-inflating program of interest-free loans for first-time homebuyers.)

Ontario Finance Minister Charles Sousa is now also musing about a foreign-buyers tax for Toronto. As in Vancouver, it might calm the market, and it’s hard to see how it could hurt. Non-resident investors are likely only a small part of the picture – the data is still poor – but they may be having a significant impact on prices and psychology.

Economists keep sounding alarms about a Canadian housing bubble; the latest comes from the Bank of International Settlements. A popped bubble will harm the entire country, but the entire country is not in a bubble. There’s no need for a national plan to throw cold water on buyers from Halifax to Ottawa to Edmonton. Policy has to go after the problem where it makes its home, in Southern Ontario and B.C.’s Lower Mainland.

Source: The Globe and Mail – Published Friday, Mar. 17, 2017

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Census 2016: Canada’s population surpasses 35 million

Canada’s population increased to 35,151,728 last year largely driven by growth in the West, according to 2016 census data released Wednesday by Statistics Canada.

The country’s population has grown five per cent since the last census in 2011, when it was at 33.5 million, the highest rate of growth among G7 countries. However, the growth rate declined from the 5.9 per cent increase recorded in 2011.

About two-thirds of the increase recorded in 2016 was due to net immigration into the country, while the rest was from new births.

The majority, or 66 per cent, of Canadians still live within 100 kilometres of the southern border with the U.S.

The number of private dwellings grew nationwide by 5.6 per cent to 14.1 million.

The population continued to boom in Western Canada. The quickest pace of growth was recorded in Alberta (11.6 per cent), Saskatchewan (6.3 per cent) and Manitoba (5.8 per cent). The three prairie provinces recorded the most growth in the country for the first time since Confederation, according to Statistics Canada.

Alberta had been the fastest-growing province in the 2006 and 2011 censuses as well.

The rate of growth was higher than in 2011 in both Alberta and Manitoba, the only two provinces that registered an increased rate of growth from the last census.

It is important to note that the census was collected in May 2016, so does not fully take into account the recent economic slump in Alberta.

“The census compares 2011 to 2016, and we’ve seen 15 strong years of growth in Alberta,” says Karen Mihorean, director general of the education, labour and income statistics branch of Statistics Canada.

Mihorean said Alberta is unique among Canadian provinces for having strong numbers in all three factors that contribute to population growth: immigration, interprovincial migration and new births.

British Columbia also grew faster than the national average, by 5.6 per cent. Just under 32 per cent of Canadians now live in the four western provinces, compared to 38.3 per cent in Ontario, 23.2 per cent in Quebec and 6.6 per cent in Atlantic Canada.

Low growth in Atlantic Canada

The four Atlantic provinces recorded the lowest growth in the country: 1.9 per cent in Prince Edward Island, one per cent in Newfoundland and Labrador (where more deaths than births occurred in some years) and 0.2 per cent in Nova Scotia. New Brunswick’s population decreased by 0.5 per cent, the only province with a decline since 2011.

“From East to West, population growth gets stronger and that’s a trend we’ve seen for the last few censuses,” says Mihorean. “In Atlantic Canada, it’s a case of seeing people leaving these provinces for other parts of the country.”

– 2011: Canada census shows people moving west

Ontario remained Canada’s most populous province at 13.4 million, an increase of 4.6 per cent from 2011. But Ontario’s growth rate was lower than the national average for the second consecutive census period, the first time that has happened in more than half a century.

Quebec’s population grew 3.3 per cent to 8.2 million, followed by British Columbia at 4.6 million, Alberta at 4.1 million, Manitoba at 1.3 million and Saskatchewan at 1.1 million. The population in Atlantic Canada was 2.3 million, with just under 924,000 residing in Nova Scotia.

The North was home to nearly 114,000, led by the Northwest Territories. The population of Nunavut, which at 12.7 per cent had the highest growth rate of any province or territory due to its high fertility rate, moved ahead of Yukon.

Western cities record greatest growth

While the rate of growth slowed in Canada’s three largest metropolitan areas, 35.5 per cent of Canadians now call Toronto, Montreal and Vancouver home.

Toronto remains the country’s largest metropolitan area at 5.9 million, increasing by 6.2 per cent since 2011. Montreal’s population has surged past the four million mark to 4.1 million, while Vancouver’s population now stands at 2.5 million, up 6.5 per cent.

With growth of 14.6 per cent, the highest of any metropolitan area in the country, Calgary is now Canada’s fourth largest city at 1.4 million, moving ahead of Ottawa-Gatineau (1.3 million). Also at 1.3 million, Edmonton is the only other Canadian city with more than a million residents.

The six fastest metropolitan areas were all in Western Canada: Calgary, Edmonton, Saskatoon, Regina, Lethbridge, Alta., and Kelowna, B.C., with all but the last posting growth of more than 10 per cent.

At the other end of the country, however, all of Atlantic Canada’s metropolitan areas recorded a slower rate of growth than in 2011, while the population of Saint John fell by 2.2 per cent — largely due to residents moving to other parts of Canada.

Sylvan Lake, Alta., was the fastest-growing census agglomeration, growing by 19.6 per cent since 2011, while Campbellton (mostly in New Brunswick but partly in Quebec) had the greatest decrease at 9.3 per cent.

Among municipalities with at least 5,000 residents, Warman, Sask., had the highest rate of growth since 2011 at 55.1 per cent, followed by the Alberta communities of Blackfalds (48.1 per cent) and Cochrane (47.1 per cent). Bonnyville, Alta., had the fastest rate of decrease at 12.9 per cent.

The population and dwelling counts mark the first set of data from the mandatory short-form 2016 census to be released by Statistics Canada. Further releases, including those related to gender, language, immigration and labour, will follow throughout 2017.

The data will assist decision-making across all levels of government and provide sociologists, demographers, urban planners and businesses with a wealth of information.

Source: CBC.ca – Éric Grenier

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These figures suggest just how much immigration drives Canadian housing demand

canadian-housing-immigration

Canadian immigration is set to reach its highest annual rate in a century this year as at least 300,000 newcomers are expected, a fact Scotiabank says is a tailwind for Canada’s housing market.

While those new to Canada don’t generally make the leap into homeownership right away, notes Scotiabank Economist Adrienne Warner, sooner or later most do.

“New immigrants typically first choose rental accommodations, but eventually have homeownership rates similar to Canadian-born residents,” Warren explains in the bank’s latest Global Real Estate Trends Report.

The Canadian homeownership rate was 69 per cent in 2011, the most recent year Statistics Canada provides this census data for.

Canada’s hottest major housing market is also the country’s leading migrant destination, according to the Conference Board of Canada, a non-for-profit research organization.

Nearly a third of those 300,000 expected to settle in Canada are Toronto bound, notes Alan Arcand, the associate director of the board’s Centre for Municipal Studies.

“Toronto is the main… destination for immigrants in Canada and immigrants are the biggest driver of population growth today in Canada,” says Arcand.

“It’s important to realize that Toronto adds about 90,000 people a year to its population. So the whole CMA (census metro area) of Toronto grows by a city every year, a mid-size major city,” he continues, adding, “All those people coming need places to live, so that drives the housing market.”

This is why the Conference Board forecasts housing starts (a measure of how many units construction begins on in a given period) will waver between around 38,000 to 41,000 through the 2016-2020 period. Arcand says this is around the 10-year average.

Population age demographics also fosters housing demand, says Scotiabank’s Warren.

“The number of Canadians in their prime homebuying years is projected to continue to grow through the end of the decade, though at a slower pace than in recent years,” she explains.

Source: BuzzBuzzNewscanada – 

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Did You Know? Mississauga Has the Same Population As…

 

Once a suburb, always a suburb.

Or is it?

Although one could probably concede that Mississauga can still be defined as something of a suburban satellite city, it’s impossible (and inaccurate) to classify it as quaint or quiet or small. With a population of 713,445 people and several grand-scale urbanization projects moving forward (M City, Inspiration Lakeview, etc.), it’s safe to say that Mississauga is, in fact, a big city — albeit one that’s still developing its identity.

If you look at Mississauga’s population, you’ll see what we house almost the same number of people as world famous cities.

In fact, here’s a list of cities with similar populations to ours (often lower!), based on 2015 estimates:

Canada:

1)    Edmonton (812,201)

2)    Winnipeg (663,617)

United States:

1)    Seattle, Washington (684,451)

2)    Denver, Colorado (682,545)

3)    El Paso, Texas (681,124)

4)    Detroit, Michigan (677,116)

5)    Washington, D.C. (672,228)

6)    Boston (667,137)

7)    Memphis (655,770)

8)    Nashville (654,610)

9)    Portland (632,309)

10) Oklahoma City (631,346)

11) Las Vegas (623,747)

12) Baltimore (621,849)

 Europe:

1)    Zagreb, Croatia (790,017)

2)    Valencia, Spain (786,189)

3)    Leeds, U.K. (774,060)

4)    Krakow, Poland (761,069)

5)    Frankfurt, Germany (732,688)

So, there you have it! We may not be as much of a household name as Leeds or Frankfurt or Boston, but we have almost as many (and sometimes more) people.

It really puts things into perspective.

We’re bigger than we think.

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The one market to target in Toronto?

It may be the one market many investors are now overlooking, but one industry veteran argues Toronto is still a great buy for potential landlords.

“Everyone is concerned about all the condos being built in Toronto but every year there are 81,000 new permanent residents coming to the city,” Andrew Adams, vice president of finance and investments for Capital Developments, told Canadian Real Estate Wealth. “Compare that to the 95,000 total new residents in Toronto; prices and rents are growing.”

Prices in Toronto jumped 14.9% year-over-year in February to $685,728. Condos, however, remain a more affordable option at an average of $403,392.

One neighbourhood Adams is bullish on is the Yonge and Eglinton area in mid-town Toronto.
“The Yonge and Eglinton area is one of the strongest markets for investors in Toronto,” Andrew Adams, vice president of finance and investments for Capital Developments, told Canadian Real Estate Wealth. “It’s got the Yonge line and the Eglinton LRT and it’s one of the strongest rental markets in the city.”

According to Adams, there are two types of condo buildings available in the neighbourhood; older, circa 1970 apartment-style condos and new-build condos that boast modern amenities and finishes.
The older condos often yield rents in the $2.60-$3.00 per square-foot range, while the newer units earn investors, on average $3.00-$3.50 per square-foot, Adams says.

“The Yonge and Eglinton neighbourhood has everything you need; the RioCan Centre has recently been updated, it has great access to public transit, and its surrounded by great amenities,” he said.

Source: Canadian Real Estate Wealth by Justin da Rosa 23 Mar 2016

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