85% of immigrants faced at least one financial barrier that hurt their security
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About six in 10 newcomers to Canada are optimistic about their financial future upon arrival, but that confidence dwindles as the economic realities of living here become apparent, according to a new survey.
Immigrants face many financial hurdles upon arriving, which helps explain why their financial confidence falls to just 31 per cent after settling in the country, Interac Corp. said.
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The survey said 85 per cent of immigrants faced at least one financial barrier that hurt their security, compared to 58 per cent of the general population.
“This disparity underscores the importance of providing targeted support and resources to help newcomers build their financial confidence and successfully navigate the Canadian financial system,” the report said.
To navigate the banking system, about a third of immigrants are relying on mentors since they believe the financial resources available to them do not reflect the financial realities of living in Canada, but younger newcomers are most likely to deal with confusion surrounding the financial system and practices.
Mentorship has played a crucial role in getting newcomers financially situated, the survey said. Almost 90 per cent of newcomers said mentors helped them with language barriers, 86 per cent in understanding Canadian money and 83 per cent in avoiding scams.
There are plenty of other challenges immigrants face in Canada, including difficulty with their professional credentials being recognized here and gaining Canadian work experience, not to mention the weather, language and social challenges, according to Alberta Business and Educational Services.
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The federal government is trying to rein in some of the costs of living by decreasing the number of immigrants it allows per year. Last month, it reduced its immigration targets to 395,000 for 2024 and 2025, down from the previous plan for 500,000 newcomers. From there, the government plans to further reduce immigration levels down to 380,000 and 365,000 newcomers in 2026 and 2027, respectively.
The previously higher immigration targets were meant to address labour shortages and keep population growth accelerating, but Prime Minister Justin Trudeau has since admitted the targets may have been a step too far.
“In the tumultuous times as we emerged from the pandemic, between addressing labour needs and maintaining population growth, we didn’t get the balance right,” he said last month. “Immigration is essential for Canada’s future, but it must be controlled and it must be sustainable.”
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Donald Trump’s U.S. election win has been bad news so far for gold investors.
The precious metal is trading at a seven-week low since Trump’s triumph. Over the past two days, the U.S. dollar has climbed to its highest level in a year, and bullion has fallen more than three per cent.
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- 12 p.m. MT: Financial Post/Calgary Herald Q&A on the recent developments at AIMCo. Register here.
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Want to learn more about mortgages? Mortgage strategist Robert McLister’s Financial Post column can help navigate the complex sector, from the latest trends to financing opportunities you won’t want to miss. Plus check his mortgage rate page for Canada’s lowest national mortgage rates, updated daily.
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Today’s Posthaste was written by Ben Cousins, with additional reporting from Financial Post staff, The Canadian Press and Bloomberg.
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