If you want to learn general theory and spend a full four years getting a degree then go with B.Eng. If you want to learn theory in a more specialized area then go with B.Tech. If you have already completed a 3 yr college program then a lot of the B.Eng degree will be repeat for you with a little more math. In terms of getting your P.eng from a B.Tech, doing 5 exams versus 1 is not a big deal and you will have satisfied more of your experience requirement along the way (assuming you are working).
In terms of getting into an M.Eng, yes it can be done, not only from B.Tech but also from other departments such as Science (I have met B.Tech's who have gotten M.Eng's from Western, Toronto and Waterloo so far). However, keep in mind that an M.Eng may not add much to your career options or salary.
Also, yes the B.Tech program is accepting B.eng students who are struggling in their courses but as it has lower enrollment numbers due to its relative newness, this is to be expected. That does not mean they will fare better in B.Tech.
I am in B.Tech and did very well in both College and in University. I have friends who are not doing well in University. I have friends who did College and went to Lakehead for a B.Eng who are doing quite well. I have friends who have been B.Eng students the whole time and are doing well and I work with B.Eng's from various universities and programs, some are good at what they do and show aptitude, some are very much in the dark. Success in engineering lies in the person more than the program, as engineering is a hard science and can be learned by anyone with the time and motivation and because industry is VERY different from the class-room.
Personally, I would choose the route of B.Tech because I am advancing my career, making very good money, doing engineering level work and earning my PEO experience requirement time all while getting my degree and satisfying the CEAB/PEO educational requirements (albeit with a few exams required when I graduate). However I can see the uncertainty people have as they are more familiar with the B.eng name. I will say this though, the specialized theory of B.Tech has led to people in my class consistently getting most of the co-op positions with the top companies in the electrical field and has led to many job prospects for them. It has also led to advancement in my own career in the utility sector. Finally, it has led to a request to have our courses cross-listed so B.Eng's can take them.
In summary, both are good options as they are both good degrees leading to solid career options. Don't count out the B.tech based on uninformed and possibly insecure posters on this site. And yes the B.Eng takes 4 years in University, but the B.Tech takes 3 years in College and another 2 years in University, so please recognize the commitment as such, and note that many on this site have never attended both an engineering program at the College and University levels, so they may be tempted to brush off anything with the word College in it.
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