Key Factors Affecting Canadian Immigrants

We all know that today we are living in a ‘Global Village’; it means the smallest changes in the economy of any area in the world will affect, although small, on the global economy. In the past 50 years, the world economy has grown continuously except in the Great Recession Period, which saw a slight reduction in real global GDP. Globalization provides a significant benefit to each economy around the world, by making markets more productive, increasing competition and spreading wealth more equally around the world. This means more people in the world and of course, Canada has a better financial situation and become richer and has more power to invest in real estate. Below, we are reviewing some of the key factors which affecting the Canadian
The Government of Canada immigration policy and especially new Investor Immigrants Plan has led to entering wealthier immigrant to Canada. The federal government announced that this immigration policy will be continued in the next five years and that means more demand for real estate and especially residential properties in Canada. Add 300,000 permanent residents a year to a country with a small population, raising the demand for homes and boosting prices for shelter. As a well-developed and safe country, Canada was an important destination for foreigner investors and based on this reason many of them came to Canada and invest in real estate market. Studies show the key factor in this scenario is that many new immigrants arrive in Canada’s large cities with a great amount of cash money and roughly 52% of newly arrived immigrants, bought homes in first five-year of their
As it said earlier with more immigrants entering the country this price rising is going to be continued and put more pressure on the shoulder of buyers. Also, Toronto Real Estate Board (TREB) indicate a similar shortage exists on the resale market. People are not listing their homes because they worry about what they will be able to afford in the region’s soaring prices.
• Low interest/mortgage rates On the other side, the historically low-interest rate for mortgages, which is at the lowest level for a couple of years in a row, encouraged more people to buy a real estate and this rise the demand for residential properties in Canada. More people try to borrow as much as possible money from the banks and invest in real estate. Extended low-interest rates have created a false affordability that has only raised demand, enabling more people to push themselves financially to buy into the GTA housing market, even in the face of skyrocketing prices.
• Employment