Canadians struggling to pay their mortgages


Canadians are struggling to pay their mortgage

Kartik Soni, left ; Anne Leitch, center; Amandeep Singh, right.

Thousands of Canadians who recently took out mortgages are struggling to make ends meet following the Bank of Canada's rate hike. It increased its rate by one percentage point to 2.5% last week.

If I don't get a rate increase salary or if I don't have extra income, it will be really difficult, said Kartik Soni, from London, Ont.

Mr. Soni has an adjustable rate mortgage on the house he bought in London. He and his family moved to Brampton six months ago.

In January of this year I was paying about $1920 and now I'm paying $2500, Mr. Soni said of his monthly mortgage payments.

In January, Mr. Soni's interest rate was 1.54%. Now it's at 3.79% after a series of increases.

Mr. Soni works in banking and hopes his wife will find a job soon.

So I'm crossing my fingers that she gets a good job. Even if she gets a decent job, we can survive. Otherwise, it will be really difficult.

The couple's grocery bill also nearly doubled in six months, Mr. Soni said, from $500 a month to $1,000. $.

Mr. Soni's colleague, Amandeep Singh, is in a similar situation. He took out a fixed rate mortgage, but it's due in six months.

I'm scratching my head at what to do because the worst is yet to come, said Mr. Singh.

He left Manitoba to settle in London he two months ago, because his family didn't like the winters there. However, house prices are much higher in Ontario.

Mr. Singh thinks that once he negotiates the terms of his new mortgage, he'll have to pay an extra $500 a month.

I'm worried about the future , Mr. Singh said.

Like Mr. Soni, he hopes his wife can find a better job. She is working from home, but she is looking for something more important, because we cannot survive in this environment.

Ann Leitch, she has concerns related to the state of the real estate market.

We bought our house during the pandemic, so we benefit from an attractive interest rate, said Ms. Leitch, whose the house is in Kilworth, just outside London.

But Mrs Leitch is worried: At the moment my father has put his house up for sale and it just so happens he put it up for sale at the wrong time.

The house has been on the market for two weeks.

In fact, it puts us a little under stress, because he has an apartment in a residence for the elderly, so this house must be sold.

With the information of CBC's Rebecca Zandbergen


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