They bought their home in March 2022. Why this Ontario couple calls the purchase a nightmare
CBC
Fernanda Santos and Gustavo Pereira of London, Ont., knew the housing market was wildly overpriced in March 2022, but felt pressured to become owners, so they bought a three-bedroom home in the east end for $730,000.
"Everybody said to us you should buy as soon as you can — doesn't matter if you like it or not, just buy and get into the market," Santos, 34, recalled in an interview with Rebecca Zandbergen, host of CBC Radio's London Morning.
The couple moved to Canada from Brazil in 2019 for a better life. Today, they're sitting on a mortgage with a variable rate (currently at 5.6 per cent) on a house that has fallen in value by an estimated $150,000, and paying $4,400 a month — $1,600 more than they had anticipated.
"That's not what we dreamed about," said Santos. "It's just been a nightmare for us."
In an attempt to tackle inflation, the Bank of Canada has raised interest rates eight times since the start of 2022. The central bank's rate is now at 4.5 per cent.
As well, housing prices have dropped considerably since the couple bought their home. In fact, sales in January were the lowest for that month since 2009, down 37.1 per cent compared with a year ago, the Canadian Real Estate Association (CREA) said this week.
How the books of Fernanda Santos and Gustavo Pereira look each month:
"They're just going to raise the rates until they reach a point that they are comfortable with," said Santos. "But they don't think about all the people that they are impacting with that."
Despite both having good jobs, with a combined annual salary of $140,000, Santos and Pereira are struggling to keep up. Both worked as engineers in Brazil. Santos is now a senior estimator with a construction company in London and Pereira is an engineer in training.
"It's not only the mortgage," said Santos. "We have property taxes. It's a huge chunk every single month. We have insurance for the house, insurance for ourselves. So there is a lot of hidden costs."
The couple are also paying $500 a month towards the cost of home renovations.
On the weekends, the couple's work isn't done. Both drive for UberEats and Instacart in an effort to offset their bills.
"When you have like 60 per cent of your full income going toward your mortgage, you pretty much don't have anything left, plus we have to eat, right?" said Santos.
Santos and Pereira are also using their savings — money they diligently set aside for a rainy day — to buy their groceries.
Shopping local may be the desire, but affordability might decide where shoppers spend their money this Christmas season.
As classes across New Brunswick pause for the holidays, it’s not yet clear which schools are making a dent in chronic absenteeism — a stubborn post-pandemic trend that mostly afflicts the high school cohort, especially in the Anglophone West school district.
CBC Quebec has launched its Make the Season Kind campaign. It's our annual campaign that focuses on food insecurity, while also celebrating kindness, generosity and community spirit around the province.
Premier Wab Kinew says Manitoba will hold a public inquiry as soon as 2026 into the former Progressive Conservative government’s post-election efforts to approve an environmental licence for sand-mining company Sio Silica.
Premier Scott Moe has led the Saskatchewan Party through two straight elections, winning majority governments each time.
Eight weeks after adding a GM BrightDrop van to the fleet of his plumbing and heating business, Marty Salliss has no complaints, only praise.
Nearly half of Alberta’s Grade 6 students failed the provincewide math test in 2024, three years after the province started rolling out its new elementary school curriculum.
Toronto could get new cars on the road whose drivers will never get frustrated by gridlock — because the cars would be driving themselves.
Amidst a cost-of-living crisis, some London-area organizations say they have noticed a decline in donations this holiday season.
Prominent northern leaders have been touting the Arctic economic and security corridor as a "nation-building" project that will bring economic benefits to the two territories it straddles, but others are split on how much good will come out of it.
When the federal government tabled its 2025 budget last month, it included a proposal that tax fraud experts say is long overdue — if also a belated acknowledgement that the Canada Revenue Agency has been repeatedly duped into paying out untold millions in bogus tax refunds to scammers.
Talking with an AI chatbot can successfully convince people to change their votes and could affect the outcome of future elections, according to a new study.
While some are writing wishlists for Santa Claus, a group of Newfoundland and Labrador youth are writing their wishlist for the provincial government.