A group of buyers in an Oakville subdivision say they have been trapped in a unique period in the Toronto-area housing market that has left them in an “impossible” situation.
A group of Oakville homebuyers, struggling to finance the pre-construction houses they bought in February 2017 at the height of last year’s real estate frenzy, are blaming “reckless” provincial housing policy and new mortgage rules for putting them on the brink of financial ruin.
The desperate buyers say they have been trapped in a unique period in the Toronto-area housing market — one engineered by provincial policy designed to cool the soaring costs of housing. The problem has been compounded by new mortgage rules that they believe have the potential to drive desperate buyers deeper in debt by sending them to alternative lenders that offer higher-interest loans.
Declining real estate sales in the Toronto region have meant the buyers have not been able to sell their existing homes for the amounts they anticipated when they contracted to buy new houses in Mattamy’s Preserve development near Dundas St. W. and Fourth Line. After they failed to sell when the market plunged or they took lower-than-expected prices, they say they couldn’t get larger loans to cover the difference.
“This impacts your health. Financially it breaks families,” said Zahir Bashiruddin. He and his wife bought a new house with a single-car garage so they would have fewer stairs to contend with while caring for their infant and toddler.
Price drop crushes pre-construction home buyers’ dreams
GTA home sales down 40 per cent in March compared to last year, report shows