Canada’s housing market is more competitive and expensive than ever, and first-time buyers are struggling to get a foothold. Yet immigrants are receiving government-backed programs and banking options that make it easier for them to buy homes — preferential treatment that Canadian-born youth and other first-time buyers do not enjoy.
This begs the question: Why? Shouldn’t all home buyers, especially young Canadians trying to enter the market, be treated equally?
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How the Preferential Treatment Works
Several government and banking programs give newcomers a leg up:
• CMHC “New to Canada” Mortgage Insurance
• Allows immigrants to buy with as little as 5% down, even with limited Canadian credit history.
• Bank-Specific Newcomer Programs
• Programs like Scotiabank StartRight, RBC Newcomer Advantage, and CIBC Welcome to Canada provide mortgages with minimal Canadian credit history, flexible down payments, and assistance with documentation.
• Combination with Federal Incentives
• Immigrants can use these newcomer programs alongside broader supports like the First-Time Home Buyer Incentive (FTHBI) or First Home Savings Account (FHSA), reducing barriers that Canadian-born first-time buyers often face alone.
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The Inequality at the Heart of the System
• Canadian-born youth and first-time buyers must meet standard mortgage requirements: full Canadian credit history, steady employment, and typical down payment thresholds (usually 5–20%).
• Immigrants can access specialized programs and insurance that relax some of these requirements, even if they have been in Canada only a few months or years.
• Recent government actions — such as fast-tracking certain immigrants — show that preferential treatment can even disadvantage other newcomers who have waited years to qualify.
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Why the Preferential Treatment?
The government’s stated reason is often to help newcomers settle. But when fast-tracking programs overlook skilled immigrants and family-connected applicants who are already in the system, the policy appears arbitrary rather than strategic.
Meanwhile, Canadian-born first-time buyers — especially youth — continue to face skyrocketing housing costs, high down payment requirements, and limited options. The system raises a fundamental question:
If fairness matters, shouldn’t every buyer, regardless of birthplace or immigration status, get equal access to government-backed home-buying assistance?
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The Bottom Line
Canada is giving immigrants preferential access to home-buying programs.
• This helps newcomers, yes.
• But it also highlights inequality in a housing market where Canadian-born first-time buyers, particularly youth, struggle the most.
• The current approach raises a key question for policymakers …
Should homeownership assistance be based on need, not nationality or immigration status?
