A recent Money.ca study revealed significant financial challenges immigrants in Canada face, including struggles with credit, money management and access to affordable housing. The survey gathered responses from 1,200 participants, offering an in-depth look at the obstacles new Canadians must navigate as they adapt to the country’s financial landscape.
“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.”
Here are some key findings.
Housing affordability remains a major hurdle
11.9 per cent of new immigrants reported difficulties when trying to rent or buy a home. Contributing factors included lack of credit history (low or no credit scores), high rental prices, dependence on a guarantor and the need for large upfront payments. Many also encountered barriers such as racial discrimination, language challenges and the complexities of the rental process.
Financial management skills lacking for many
Nearly one-third of immigrants rated their money management skills as “average” or “poor,” indicating a knowledge gap. While 62.67 per cent felt confident in their abilities, 31.67 per cent considered their skills “average,” and 5.66 per cent rated them as “poor” or “very poor.”
Credit scores impact access to financial products
A quarter of immigrants have credit scores below 670, hindering their access to affordable financial products, employment and housing.
Additionally, only 12.48 per cent of immigrants knew that their credit score could impact their ability to rent a home. Gaps in understanding debt repayment, investing, and taxation were also prevalent.
“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,” explains King. “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.”
