Per the current Citizenship Act (Canada), a person born outside Canada (after 1977) is a Canadian citizen if, at the time of birth, one of the birth parents is a Canadian citizen (by birth in Canada or by naturalization). Please complete information for both parents on the application form.
Eligibility for Citizenship: http://www.cic.gc.ca/english/helpcentre/answer.asp?q=365&t=5
We have attached a link to our citizenship website which will answer many of the questions you may have (fees, supporting documentation, etc.) and to allow you to download application forms. Please note that the Citizenship application does not require a guarantor nor references. As well, please note that the 2 pieces of identification are for the parent or legal guardian who is signing the application form for child under 14 years of age.
same case as u. u r naturalized citizen, not citizen by decent. ur kid is first gen of citizenship by decent, ur grand kid is second gen. They will note it when u get the cert. use application for citizenship certificate form. they said it will take up to 12 months, but i got it in only 3 months! good luck.