For newcomers, the Canadian banking system can sometimes be unclear – and nowhere is this more true than when purchasing a home. While many newcomers believe they understand the process for securing a mortgage and closing a deal on a new home, many are dismayed to find how complicated the process can be.
RBC surveyed Chinese and South Asian newcomers who have been in Canada for less than a year, and compared their findings to those who have been here for between 2 and 5 years. The poll unveiled some rather interesting results – including a number of myths and realities about home ownership and what it means to newcomers.
The Buying Process
What they thought: Buying a house in Canada will be similar to buying a house in my home country
Reality: As they become more tenured, newcomers are more inclined to agree that it is more complicated to buy a home in Canada than in their home country (57% of 2-5 year tenure group vs. 44% among less than 1 year tenure)
Buying in the Suburbs
What they thought: Despite high gas and transportation costs, buying a house on the suburbs will save you money
Reality: 52% of newcomers who have been in Canada for 2 – 5 years believe that gas and transportation costs can cost more than the prices savings of buying a home in the suburbs.
What they thought: Buying a home in Canada is a good investment
Reality: This statement held true for newcomers of all tenures. While the majority of newcomers believe this statement to be true, the longer they’ve been here, the more they believe it. 73% of 2-5 year tenure group vs. 58% less than 1 year tenure)
What they thought: Getting the best interest rate is important, but not THE most important thing to consider when buying a house
Reality: In reality, 77% newcomers who have been in Canada between 2 and 5 years believe that getting the best interest rate is the MOST IMPORTANT consideration when buying a home vs. 52% of those who have been here <1 year.
“It was great to understand what the perception is of home ownership in Canada by newcomers,” said Christine Shisler, director, cultural markets, RBC. “The more that we know about the needs of newcomers, the better able we are to provide guidance and advice as they start to settle themselves in Canada. The best advice is to come into a branch and speak to someone for tailor-made advice, get in touch with a mobile mortgage specialist, or to visit our online Advice Centre to help answer any questions you may have.”
To learn about banking and starting your life in Canada, visit rbc.com/canada. – CINEWS