The pursuit of homeownership has paradoxically become a source of financial instability. What we have in Canada is a generational crisis.
In today’s Canada, the cradle you’re born into increasingly dictates whether you’ll ever hold the keys to your own home. This isn’t just a market fluctuation. It’s a boiled frog phenomenon.
The most recent government initiatives to assist Canadian homebuyers, such as increasing amortizations to 30 years and bumping up the price limit from $1-million to $1.5-million for insured mortgages, have been met with divided reactions. One thing is clear: These measures make it possible to get into more debt and for a longer time.
The average gift amount for first-time buyers nationally has soared to $115,000, a 73 per cent increase since 2019. In the more expensive provinces of Ontario and British Columbia, average gifts for first-time homebuyers are $128,000 and $204,000, respectively. As housing prices boil, Canadians are taking on staggering levels of debt. A report from Statistics Canada earlier this year showed Canada’s household debt to disposable income ratio at 185 per cent, the highest in the G7 . Mortgages make up a significant portion, reflecting the lengths people go to secure housing. This debt isn’t just a statistic; it’s a source of stress affecting mental health and delaying life milestones.
The cumulative effect is a generational crisis. Younger Canadians find it increasingly difficult to achieve the financial milestones their parents took for granted. The traditional path of education, stable employment and homeownership is fraught with obstacles often insurmountable without familial wealth.
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