BMO Report

The Country's 6.7 Million New Canadians Face Unique Challenges-Financial and Cultural

TORONTO, ONTARIO--(Marketwired - Oct. 1, 2014) - According to a new report by the BMO Wealth Institute, newcomers to Canada face a myriad of challenges - including key financial hurdles - after having moved to their new country. The report, Finding the Path to Financial Prosperity for Newcomers to Canada, also outlines key considerations for new Canadians to get their finances in order.

According to Statistics Canada, between 2006 and 2011, about 1,162,900 foreign-born people immigrated to Canada - accounting for 3.5 per cent of the total population of Canada in 2011. Further, as of 2011, 20.6 per cent of Canadian residents - more than 6.7 million people - were born outside of the country. Compared to other G8 countries, Canada has the highest proportion of foreign-born residents.

"Immigration is important to Canada's growth and future prosperity," said Chris Buttigieg, Senior Manager, Wealth Planning Strategy, BMO Financial Group. "Starting a new life in Canada can be an exciting experience, but there are many unknowns and challenges to adapting to a new country. These include key financial considerations."

The report examined the top challenges new immigrants face when arriving in Canada:

• Finding adequate employment (46 per cent of new Canadians)
• Learning a new language (26 per cent)
• Adapting to the weather (16 per cent)
• Missing support from the homeland (13 per cent)
• Financial constraints (11 per cent)

"With all of the obstacles that new Canadians face, it is all the more important to ensure they have their financial house in order," noted Mr. Buttigieg.

The report also examined the top financial priorities of two communities in particular: new Chinese-Canadians and new South Asian-Canadians. The top focus areas identified include:

• Having enough money to cover daily expenses (88 per cent of new Chinese-Canadians, 87 per cent of new South Asian-Canadians)
• Saving for children's education (64 per cent of new Chinese-Canadians, 79 per cent of new South Asian-Canadians)
• Saving for illness (60 per cent of new Chinese-Canadians, 79 per cent of new South Asian-Canadians)
• Saving for retirement (61 per cent of new Chinese-Canadians, 67 per cent of new South Asian-Canadians)
• Saving for parents' retirement (55 per cent of new Chinese-Canadians, 73 per cent of new South Asian-Canadians)

The BMO Wealth Institute offers the following insights to help new Canadians navigate the financial landscape: