Millennials and immigrants bear the brunt of aggressive interest\u002Drate hikes, but baby boomer homeowners aren\u0027t feeling the pain. Read on.
Governor Tiff Macklem is counting on a 425-basis-point jolt to interest rates, delivered in less than a year, to slow consumption and rein in soaring inflation. But differences in the impact of the hikes between the two camps are creating uncertainty around how and when the economy will cool.
They moved to Canada’s financial capital from Mumbai in September 2020, when house prices started rising rapidly as emergency low interest rates spurred demand amid limited supply. Fearing missing out after after seeing their immigrant friends getting into the housing market during that run-up, they bought their first home in February 2022, spending nearly $1 million on a place an hour away from downtown.
“I definitely regret the decision. There’s really nothing we can do. We’re just waiting for the rates to drop.” “We feel sorry for people who just entered the housing market, especially in Vancouver and Toronto. How dreadful and dramatic it can be if you have to pay significantly more and it’s really out of your control,” Limawan said.
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