Tough spot - but as an engineer I'd suggest you go for the masters degree.
Couple of reasons
One pilot hiring in Canada is very cyclical - you never can predict where it will be.
Engineers are always in demand at some level - the education is well regarded and will get you into a lot of non-engineering jobs. (Most engineers stop doing engineering within a few years and become managers at some level - Unemployed ATP's do valet parking etc - harsh but true)
- Looking at the recent posts re Air Canada hiring having a degree is regarded very favorably a masters will only help
(When I was at Concordia they had a guy come round once a year to give a talk - AC 767 pilot - he had a Masters Mech Eng from Stanford!!!)
- If you do some homework there is a very sweet scenario that will piss off everyone here.
_Get your self some sort of aviation related post - ideally as contractor or consultant
-Get your employer/client to write a letter requiring you to get a CPL , APT etc saying this will enhance your job prospects etc (This becomes so much easier if you are self employed all you need say is hey it will get me more business better rates etc)
Your training is tax deductible - and remember you now have a job therefore you have money so a deduction is worth something.
(Check with a tax advisor but the general rule is training required by an employer is deductible if it is to qualify you for new work, promotion etc. It is not deductible to get you a current opening. Certainly true here is the states used to be roughly the same in Canada)
Best of all hate to say this the engineering degree will get you a TN into the states and then you could get into test flying etc. Also the tax deductible training described above becomes a fact.
Also to fly as a carrer can mean a lot more than flying the line - I would say a CPL/ATP with a masters in engineering, PE etc could have a very nice time indeed. Do some flying without being stuck in some senority system with 10 years of Christmas in Rimouski etc etc. There is a huge market in upgrading, retrofitting big iron and all those planes need to be test flown.
The big downside I see is all engineering jobs in North America are under attack and a great many of them are headed to Munbai or Bejing.
Good luck
20 driver
PS - Did both McGill and Concordia - either can be a good choice - suggest you sit in on a few classes at each before you commit.