Key Takeaways:
- Immigrant parents and adult children co-own homes more frequently, especially in Toronto and Vancouver, due to high property values.
- High homeownership among immigrants reflects cultural emphasis and strategic financial prioritization in competitive real estate markets.
- Canada’s immigration system, via Express Entry and Provincial Nominee Programs, facilitates immigrant pathways to permanent residency and homeownership.
Why Are Immigrant Parents and Their Adult Children More Likely to Own Homes in Canada?
A 2021 Statistics Canada study reveals that immigrant parents and their adult children are more likely to co-own homes than other Canadians. Researchers Aisha Khalid, Joshua Gordon, and Michael Mirdamadi found this trend particularly pronounced in Canada’s largest cities.
“Looking at all provinces and territories combined, almost half of co-owning parents were immigrants,” they wrote. This is especially notable in areas with higher property prices, such as Toronto and Vancouver, which also have significant immigrant populations.
Is Co-Ownership Among Immigrant Families Prominent in Major Cities?
In cities like Toronto and Vancouver, the trend of immigrant homeownership is distinctly visible.
- Toronto: Around 80.9% of co-owning parents were immigrants. In contrast, immigrants made up 64.4% of all homeowning parents in Toronto, where immigrants constitute 41.8% of the general population.
- Vancouver: In Vancouver, 76.9% of co-owning parents were immigrants. Comparatively, immigrants made up 59.9% of all homeowning parents with adult children born in the 1990s, and 46.6% of the city’s population.
Such statistics underline the cultural emphasis on homeownership within immigrant families in Canada.
Why Do Immigrant Families Emphasize Home Ownership?
Immigrants in Canada appear to place a high value on homeownership compared to other Canadians. According to previous research by Statistics Canada, immigrant populations in high-priced areas like Toronto and Vancouver are more likely to allocate significant portions of their wealth or spending toward buying homes instead of other investments.
Statistics Canada also defines a high-ratio property as one where the property’s assessed value is more than 30 times the owner’s income. In Toronto, about 52.1% of such high-ratio properties included at least one adult child who was a first-generation immigrant, compared to 35.2% of all properties analyzed. In Vancouver, 65.4% of high-ratio properties had at least one first-generation immigrant adult child, as opposed to 37.3% for all properties owned by adult children.
How Does Canada’s Immigration System Facilitate Homeownership?
Canada’s two-tier immigration system enables foreign nationals to obtain permanent residency, opening paths to homeownership.
Express Entry System:
Immigrants can apply for permanent residency online through the Express Entry system, which encompasses:
1. Federal Skilled Worker Program (FSW)
2. Federal Skilled Trades Program (FST)
3. Canada Experience Class Program (CEC)
Candidates are ranked using the Comprehensive Ranking System (CRS). The highest-ranked receive Invitations to Apply (ITA) for permanent residency. Those who receive an ITA must submit a complete application within 90 days.
Provincial Nominee Programs (PNP):
Almost all of Canada’s provinces and territories participate in PNPs, nominating individuals with the skills needed by local economies. Once nominated, these candidates can apply for permanent residence through federal authorities.
For more detailed guidelines on immigration programs, visit the Government of Canada’s official immigration page.
What Are the Employment Routes for Immigrants?
Canadian employers can hire foreign nationals through programs like:
– Temporary Foreign Worker Program (TFWP)
– International Mobility Program (IMP)
The Global Talent Stream (GTS), part of the TFWP, accelerates the process by granting Canadian work permits and processing visas within two weeks under normal conditions.
How Common Is Co-Ownership in Canada?
Across the country, most homes are co-owned by an adult child with a parent or another person. Only less than 40% of homes are solely owned by a single adult.
Conclusion
The emphasis on intergenerational housing and immigrant homeownership in Canada’s major cities highlights cultural values and financial strategies within immigrant communities. By leveraging Canada’s comprehensive immigration system, immigrant families can achieve homeownership, adding stability and economic growth to their new homeland.
Learn Today:
- Co-Ownership: Refers to the joint ownership of a property by two or more individuals, in this case, typically involving immigrant parents and their adult children owning a home together. Co-ownership can have financial, cultural, or practical motivations among immigrant families.
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High-Ratio Property: A term used by Statistics Canada to describe real estate where the assessed value of the property is significantly higher (more than 30 times) than the owner’s income. This term is significant in understanding the housing dynamics of immigrant families in high-priced areas like Toronto and Vancouver, where a high percentage of such properties are owned by immigrant parents and their adult children.
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Express Entry System: A streamlined and efficient online system implemented by the Canadian government for managing applications for permanent residency from skilled workers. Under this system, applicants are assessed based on factors like education, work experience, language proficiency, and other criteria, using the Comprehensive Ranking System (CRS). The highest-ranked candidates receive Invitations to Apply (ITA) for permanent residency.
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Provincial Nominee Programs (PNP): Programs established by Canadian provinces and territories to nominate individuals with the skills and qualifications needed by their local economies for permanent residency. Candidates who receive a nomination through a PNP can then apply for permanent residence through federal authorities, providing pathways to settlement in specific regions of Canada.
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Temporary Foreign Worker Program (TFWP): A program that allows Canadian employers to hire foreign nationals to fill temporary labor shortages when qualified Canadians or permanent residents are not available. It permits employers to employ foreign workers for specific positions for a limited duration and requires obtaining a Labour Market Impact Assessment (LMIA) in most cases.
By defining and understanding these specialized terms in the context of immigration and homeownership in Canada, individuals can grasp the dynamics and strategies employed by immigrant families in accessing housing and contributing to the country’s economy.
This Article In A Nutshell:
Understanding Immigrant Homeownership in Canada
Statistics show immigrant families in Toronto and Vancouver co-own homes more. Cultural value, cost-efficiency, and Canada’s immigration pathways play key roles. Programs such as Express Entry and Provincial Nominee facilitate permanent residency, aiding in achieving homeownership. Immigrant employment routes like TFWP are also important. By embracing these opportunities, diverse communities contribute to housing stability and economic growth in Canada.
— By VisaVerge.com
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