For millions of people who pack their lives into suitcases and cross international borders to begin anew in Canada, the ultimate validation of their journey is not just finding a job, settling their children into local schools, or braving their first harsh winter. For an overwhelming majority, it is turning a key in the front door of a home they can finally call their own.
A comprehensive new survey released by real estate firm Royal LePage sheds light on the housing aspirations, formidable challenges, and enduring settlement patterns of newcomers to Canada. The data reveals that an inspiring 76 per cent of newcomers who do not yet own their primary residence are actively planning to buy a home in Canada. For these individuals, homeownership is much more than a mere real estate transaction; it is a profound psychological milestone and a concrete anchor in an unfamiliar land.
The ambition to buy is remarkably urgent for a large segment of this population. Nearly half of the non-owning respondents hope to complete a purchase within the next two years, while an additional 21 per cent expect to enter the housing market further down the road. Even among those who cannot yet pinpoint a timeline—representing 24 per cent of the non-owning group—homeownership remains a top personal priority.
Despite this widespread enthusiasm, the path to property ownership is paved with structural and financial hurdles. Currently, one-third of the newcomers surveyed already own their primary residence, leaving two-thirds—or 66 per cent—without property. Among this non-owning majority, the vast majority rely on the rental market, with 80 per cent renting their living space, while 13 per cent live dependently with family members or friends.
The psychological and financial weight of real estate in the national consciousness is hard to overstate. According to the survey, 90 per cent of newcomers view homeownership as vital to feeling genuinely established in Canada, while 80 per cent recognize it as a sound financial investment for their future.
Phil Soper, president and CEO of Royal LePage, noted the deep cultural and emotional significance attached to property acquisition in the country. Homeownership has long been a defining goal for Canadians, Soper observed, and for newcomers, it carries an added, highly symbolic weight as they work to weave themselves into the fabric of a new country and local community.
Down payments top list of barriers
Yet, good intentions and emotional readiness do not automatically translate into mortgage approvals. When asked about the specific obstacles standing between them and a property deed, newcomers pointed to a familiar set of macroeconomic challenges, chief among them the sheer cost of entry into Canada’s notoriously competitive housing markets.
Among newcomers who do not own a home but intend to buy one, 61 per cent cited saving for a down payment as a primary barrier. The mountain of capital required to clear the minimum down payment threshold in major Canadian urban centers remains a daunting prospect for households that are often starting from scratch financially upon arrival.
Beyond immediate savings, economic integration takes time. Half of the respondents pointed to the challenge of finding more stable or higher-paying employment as a roadblock to homeownership. Furthermore, 28 per cent noted that they needed to learn more about the intricacies of the Canadian homebuying process itself, which can differ vastly from real estate procedures in their countries of origin.
Navigating the financial system presents another layer of complexity. Building a credit score or establishing a recognized Canadian credit history was cited as a barrier by 27 per cent of respondents, while 26 per cent admitted that simply deciding where to settle geographically remained an open question.
Eunice Aranda, a Royal LePage Benchmark sales representative based in Calgary, encounters these systemic hurdles firsthand in her daily practice. She points out that many newcomers arrive in Canada with healthy personal finances and minimal debt, yet still find themselves locked out of traditional mortgage channels because they lack the specific metric Canadian lenders prioritize above all else: a domestic credit history.
Some newcomers come from countries where cash is king, Aranda explained, handling everything from everyday purchases to major transactions like buying homes entirely without credit instruments. Consequently, they may arrive with strong personal finances and little or no debt, but also completely devoid of the credit history that Canadian lenders look for.
At the same time, Aranda noted that the early phase of establishing a life in a new country naturally triggers a cascade of major expenses. Purchasing a vehicle, furnishing a home, securing credit cards, and managing other immediate costs can add up quickly. She cautions that taking on too much consumer debt too soon can ultimately reduce the maximum amount a newcomer qualifies to borrow for a mortgage.
Some newcomers turn to rent-to-own
To bridge the gap between renting and traditional homeownership, a significant portion of the immigrant community is exploring alternative pathways into the market. The Royal LePage survey revealed that rent-to-own arrangements have played an instrumental role for some newcomer buyers.
One in five newcomer homeowners surveyed reported that they purchased their first primary residence in Canada through a rent-to-own program. Moreover, 52 per cent of newcomers overall stated that they were at least somewhat familiar with this alternative financing option, signaling a growing awareness of non-traditional entry points to the housing ladder.
Rent-to-own programs typically operate by allowing prospective buyers to lease a property for a predetermined period while simultaneously working toward an eventual purchase, often with a portion of the monthly rent credited toward a future down payment. For newcomers, this arrangement offers a dual advantage: it provides additional breathing room to accumulate savings and allows them vital time to build a robust Canadian credit and employment history before formally applying for a mortgage.
Ownership rises with time in Canada
As is often the case with economic integration, the data demonstrates that homeownership rates scale upward in direct correlation with the length of time newcomers spend living in the country.
Among survey respondents who have resided in Canada for at least five years but less than a decade, 45 per cent own a home. This stands in stark contrast to those who arrived more recently; among immigrants who have been in the country for less than five years, the ownership rate sits at just 22 per cent.
Norman Xu, a broker with Royal LePage Signature Realty in Toronto, emphasizes that the timeline from arrival to homeownership can vary wildly depending on individual circumstances, starting capital, and occupational trajectory.
Xu has worked with clients who managed to purchase a property within their very first year in Canada, as well as others who waited two decades before taking the plunge. For many, he points out, this is their first-ever property purchase anywhere in the world, meaning they are not only saving money but simultaneously educating themselves on how local financing, competitive offers, and closing costs operate.
What these clients almost universally share, according to Xu, is the profound emotional significance of the transaction. It is the definitive moment when the life they have been working so hard to build in Canada begins to feel permanent.
Many stay where they first settled
The survey results also offer a compelling look at the geography of immigration, suggesting that newcomers tend to establish deep, lasting roots in the very communities where they first touch down upon arrival in Canada.
An impressive 71 per cent of respondents still reside in the exact city or town where they first settled. This localized loyalty extends directly into the housing market: among newcomer homeowners, 68 per cent purchased their primary residence within that same initial community.
Geographically, Ontario remains by far the most common first destination for newcomers, cited by 47 per cent of respondents. Quebec follows as the initial landing spot for 16 per cent, with British Columbia capturing 13 per cent and Alberta drawing 12 per cent.
When navigating the complex terrain of Canadian real estate, newcomers frequently lean on professional guidance. More than half—55 per cent—of newcomer homeowners reported that they turned directly to a real estate agent for information and education about buying a home in Canada.
Raj Gill, a broker and owner of Royal LePage Global Force Realty in Surrey, British Columbia, observes that community familiarity heavily dictates these long-term settlement patterns.
Newcomers often put down roots where they already possess a sense of culture, community, and connection, Gill explained. Being close to family members, familiar businesses, and local services operating in their mother tongue can play an overwhelmingly significant role in determining where they choose to live.
While the geography of their settlement often remains fixed, Gill notes that the physical expectations of what constitutes an ideal home frequently evolve over time. What often changes as they integrate economically is the type of property they are willing to consider, transitioning from initial compromises to homes that better accommodate their long-term family aspirations in Canada.