As Canada’s housing crisis intensifies, more and more families find themselves unable to negotiate the tough real estate market. Among those impacted are the Indian diaspora, who are contending with excessive pricing, severe competition, and the responsibility of homeownership. The account of one family’s journey shines light on the hard reality experienced by many.
The Plight of an Indian Family: In 2014, a young Indian couple acquired their first house in Canada, expecting a good future for their family. However, when their family expanded and their housing demands altered, they went on a daunting quest for a bigger home in 2020. Despite their best efforts, they continuously encountered stiff competition and were consistently overbid.
A Costly Purchase and Financial Strain: After a diligent hunt, they eventually obtained a property that fit their requirements but at a much greater cost. They outbid others by $60,000, well knowing that the home needed extra modifications. Unfortunately, unplanned costs paired with variable interest rates resulted in their monthly mortgage payment soaring by $1,000, devouring a startling 45% of their net income.
Buyer’s Remorse and Overcoming the Challenge: The pair now finds themselves saddled with buyer’s remorse and a financial position that controls their life. They seek to explain their actions, emphasising the property’s unique attributes and financial prospects. However, they concede feeling silly for overpaying, investing in improvements, and choosing for a variable loan rate.
A Wider Housing issue: This family’s struggle is symbolic of a bigger housing issue facing Canada. First-time homeowners, particularly those aged 25 to 40, are being priced out of major cities. Simultaneously, increasing interest rates have driven many homeowners into interest-only payments, without making any progress on their principle debt. The situation looks intolerable, driving desperate homeowners to prolong their amortization terms.