Canada just released findings on wealth patterns between immigrant and Canadian-born families ranging from 2016 to 2023. It's fascinating to see how wealth evolves differently for those new to Canada versus those who have settled for longer. Especially interesting is how recent versus established immigrants fare compared to Canadian-born families. Let's dive into these wealth shifts and see what it means for immigrants planning their financial future here.
🎯 What Happened Today — Explained Simply
The study examines the years 2016 to 2023.
For all groups, equity in principal residences is key.
Established immigrant families surpass Canadian-born families in wealth by 2023.
If you're here in Canada recently or have been settling in for a decade, your wealth story might look different from others. In 2023, new immigrants held less wealth, with a median net worth of $132,300 compared to the $751,500 of more established families. This means established immigrants are catching up and even surpassing Canadian-born families in some cases!
📊 What Does a Wealth Gap Mean?
The numbers show that more established immigrant families have effectively increased their wealth over the years. Recent immigrants still struggle to close the wealth gap with Canadian-born families, especially those without a university degree. While the journey might seem long, each step towards more stability counts. Having a university degree can significantly reduce this gap, showcasing the importance of education.
🌍 Key Wealth Changes Over Time
🚨 The most important numbers in immigrant wealth:
Established families' wealth 2023
Canadian-born wealth 2023
Equity in the principal residence is the biggest contributor to wealth across all family groups. However, recent immigrants hold less of this equity compared to immigrants or Canadian-borns.
For many, owning a home is crucial. In 2023, only 40% of recent immigrants owned compared to 59% of Canadian-borns. Yet, established immigrants had stronger equity, supporting more wealth building.
Improving over years is evident with recent immigrants increasing their wealth more rapidly than their Canadian peers. However, a wealth gap still exists, especially notable with non-university graduates.
- → If you're a recent immigrant, focusing on accumulating housing equity can boost your family's wealth.
- → Established immigrants have shown that with time in Canada, surpassing local wealth averages is possible.
- → Diversify your wealth through business equity and pensions to close existing gaps more effectively.
If you are planning to apply for permanent residency or any financial planning involving housing, be sure to understand deadlines and requirements. Building wealth takes time, and adhering to legal timelines is crucial.
❓ Frequently Asked Questions
About Author
