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They bought their home in March 2022. Why this Ontario couple calls the purchase a nightmare

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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:

Graphic shows the cost Fernanda Santos and Gustavo Pereira of London, Ont., pay every month, and what they make.
Graphic shows the monthly salary total and homeownership and other costs for London, Ont., couple Fernanda Santos and Gustavo Pereira. (CBC News)

“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.

Advice for homeowners feeling the pinch

Housing analyst John Pasalis, president and a broker at Toronto’s Realosophy Realty Inc., said the couple should go back to their lender (in this case, RMG Mortgages) to see if they can negotiate a lower payment.

One option may be to lengthen the amortization — the amount of time it takes to pay the mortgage off in full — which can come with smaller monthly payment options.  

“I think people are reluctant to do that [negotiate], but they need to push,” said Pasalis, adding that lenders seem interested right now in “dampening the shock” of ballooning mortgage payments.

Pereira and Santos are now paying $4,400 a month for their mortgage, which amounts to 60 per cent of their salary.
Pereira and Santos now pay $4,400 a month for their mortgage, which amounts to 60 per cent of their salary. (Submitted by Fernanda Santos)

According to Pasalis, many variable-rate mortgage holders are not actually paying more each month.

“The majority of banks do not really increase your payments on your variable mortgage as rates go up,” he said. “Most of them have fixed payments.”

In those cases, more of a person’s mortgage payment goes toward the interest and not the principal, which effectively extends the life of the mortgage.

For now, Santos and Pereira have put their plans to grow their family on pause.

“We had plans in the next couple years, but I can’t go on maternity leave right now,” she said. “If I go on maternity leave, we won’t pay the bills.”

 

London Morning7:44Are you on a variable mortgage?

If you own a home with a variable rate mortgage, chances are you’re feeling the pinch from rising interest rates.. Fernanda Santos and her husband bought their first home in 2022 and calls the jump in their payments a nightmare.

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Statistics Canada reports wholesale sales higher in July

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OTTAWA – Statistics Canada says wholesale sales, excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain, rose 0.4 per cent to $82.7 billion in July.

The increase came as sales in the miscellaneous subsector gained three per cent to reach $10.5 billion in July, helped by strength in the agriculture supplies industry group, which rose 9.2 per cent.

The food, beverage and tobacco subsector added 1.7 per cent to total $15 billion in July.

The personal and household goods subsector fell 2.5 per cent to $12.1 billion.

In volume terms, overall wholesale sales rose 0.5 per cent in July.

Statistics Canada started including oilseed and grain as well as the petroleum and petroleum products subsector as part of wholesale trade last year, but is excluding the data from monthly analysis until there is enough historical data.

This report by The Canadian Press was first published Sept. 13, 2024.

The Canadian Press. All rights reserved.



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Dolphins’ Tua Tagovailoa sustains third concussion of his career after hitting head on turf

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MIAMI GARDENS, Fla. (AP) — Miami Dolphins quarterback Tua Tagovailoa sustained a concussion for the third time in his NFL career, leaving his team’s game Thursday night against Buffalo after running into defensive back Damar Hamlin and hitting the back of his head against the turf.

Tagovailoa remained down for about two minutes before getting to his feet and walking to the sideline after the play in the third quarter. He made his way to the tunnel not long afterward, looking into the stands before smiling and departing toward the locker room.

The Dolphins needed almost no time before announcing it was a concussion. The team said he had two during the 2022 season, and Tagovailoa was diagnosed with another concussion when he was a college player at Alabama.

Dolphins coach Mike McDaniel said Tagovailoa would get “proper procedural evaluation” and “appropriate care” on Friday.

“The furthest thing from my mind is, ‘What is the timeline?’ We just need to evaluate and just worry about my teammate, like the rest of the guys are,” McDaniel said. “We’ll get more information tomorrow and take it day by day from here.”

Some players saw Tagovailoa in the locker room after the game and said they were encouraged. Tagovailoa spoke with some players and then went home after the game, McDaniel said.

“I have a lot of love for Tua, built a great relationship with him,” said quarterback Skylar Thompson, who replaced Tagovailoa after the injury. “You care about the person more than the player and everybody in the organization would say the same thing. Just really praying for Tua and hopefully everything will come out all right.”

Tagovailoa signed a four-year, $212 million extension before this season — a deal that makes him one of the highest-paid players in the NFL — and was the NFL’s leading passer in Week 1 this season. Tagovailoa left with the Dolphins trailing 31-10, and that was the final score.

“If you know Tua outside of football, you can’t help but feel for him,” Bills quarterback Josh Allen said on Amazon following the game. “He’s a great football player but he’s an even greater human being. He’s one of the best humans on the planet. I’ve got a lot of love for him and I’m just praying for him and his family, hoping everything’s OK. But it’s tough, man. This game of football that we play, it’s got its highs and it’s got its lows — and this is one of the lows.”

Tagovailoa’s college years and first three NFL seasons were marred by injury, though he positioned himself for a big pay bump with an injury-free and productive 2023 as he led the Dolphins into the playoffs. He threw for 29 touchdowns and a league-best 4,624 yards last year.

When, or if, he can come back this season is anyone’s guess. Tagovailoa said in April 2023 that the concussions he had in the 2022 season left him contemplating his playing future. “I think I considered it for a time,” he said then, when asked if he considered stepping away from the game to protect himself.

McDaniel said it’s not his place to say if Tagovailoa should return to football. “He’ll be evaluated and we’ll have conversations and progress as appropriate,” McDaniel said.

Tagovailoa was hurt Thursday on a fourth-down keeper with about 4:30 left in the third. He went straight ahead into Hamlin and did not slide, leading with his right shoulder instead.

Hamlin was the player who suffered a cardiac arrest after making a tackle during a Monday night game in January 2023 at Cincinnati, causing the NFL to suspend a pivotal game that quickly lost significance in the aftermath of a scary scene that unfolded in front of a national television audience.

Tagovailoa wound up on his back, both his hands in the air and Bills players immediately pointed at him as if to suggest there was an injury. Dolphins center Aaron Brewer quickly did the same, waving to the sideline.

Tagovailoa appeared to be making a fist with his right hand as he lay on the ground. It was movement consistent with something that is referred to as the “fencing response,” which can be common after a traumatic brain injury.

Tagovailoa eventually got to his feet. McDaniel grabbed the side of his quarterback’s head and gave him a kiss on the cheek as Tagovailoa departed. Thompson came into the game to take Tagovailoa’s spot.

“I love Tua on and off the football field,” Bills edge Von Miller said. “I’m a huge fan of him. I can empathize and sympathize with him because I’ve been there. I wish him the best.”

Tagovailoa’s history with concussions — and how he has since worked to avoid them — is a huge part of the story of his career, and now comes to the forefront once again.

He had at least two concussions during the 2022 season. He was hurt in a Week 3 game against Buffalo and cleared concussion protocol, though he appeared disoriented on that play but returned to the game.

The NFL later changed its concussion protocol to mandate that if a player shows possible concussion symptoms — including a lack of balance or stability — he must sit out the rest of the game.

Less than a week later, in a Thursday night game at Cincinnati, Tagovailoa was concussed on a scary hit that briefly knocked him unconscious and led to him being taken off the field on a stretcher.

His second known concussion of that season came in a December game against Green Bay, and he didn’t play for the rest of the 2022 season. After that, Tagovailoa began studying ways where he may be able to fall more safely and protect himself against further injury — including studying jiu-jitsu.

“I’m not worried about anything that’s out of my hands,” McDaniel said. “I’m just worried about the human being.”

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David Beckham among soccer dignitaries attending ex-England coach Sven-Goran Eriksson’s funeral

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TORSBY, Sweden (AP) — David Beckham and former England coach Roy Hodgson were among the soccer dignitaries who attended the funeral of Sven-Goran Eriksson on Friday in the Swedish manager’s small hometown of Torsby.

Eriksson’s wooden coffin was covered in white flowers and surrounded by six tall candles and other floral wreaths as the ceremony began inside the 600-seat Fryksande church.

“It is a day of grief but also a day of thankfulness,” the priest, Ingela Älvskog, told those in attendance.

Beckham, who arrived by private jet on Thursday, greeted Eriksson’s 95-year-old father Sven and other family members with hugs inside the church before the funeral started.

Eriksson became England’s first foreign-born coach when he led the national team from 2001-06, and made Beckham his captain.

Eriksson, who also won trophies at club level in Italy, Portugal and Sweden, died on Aug. 26 at the age of 76, eight months after he revealed he had been diagnosed with pancreatic cancer and had at most one year to live.

Some 200 seats in the neo-Gothic church from 1898 were reserved for his family, friends and players from his career in the football world, according to his agent. The remaining seats were open for the public, according to Eriksson’s wish, with a big screen set up outside the church where hundreds more gathered to watch the ceremony. The funeral was also broadcast live on some Swedish media websites.

The wooden coffin was wheeled in by pallbearers at the church Friday morning as fog wrapped Torsby — a town of about 4,000 people located about 310 kilometers (193 miles) west of Stockholm. Next to the casket was a photo of Eriksson on a small table. The floral wreaths included ones sent by FIFA and Lazio, the Italian team that Eriksson led to the Serie A title in 2000.

The ceremony began with somber piano and organ music, but later took on a more upbeat note with Swedish singer Charlotta Birgersson performing Elton John’s song “Candle In The Wind” and then “My Way” in a duet with Johan Birgersson, who later intoned the popular Italian song “Volare” after the family had gathered around the casket to lay flowers.

Beckham also visited Eriksson in Sweden in June to say goodbye. Others attending the funeral included the Swedish coach’s longtime partner Nancy Dell’Olio. Eriksson’s agent had said that guests from England, Italy and Spain were expected.

After the funeral, the casket was carried out of the church by eight men to the hearse. The guests then walked in a procession accompanying the coffin to a nearby museum where speeches and eulogies to the coach fondly known as “Svennis” were planned on an outdoor stage. A brass band played during the procession through Torsby, including the tune “You never walk alone” from the musical “Carousel” which has become the anthem of Liverpool, the club Eriksson supported since childhood.

The local soccer club Torsby IF, where Eriksson started his career in the 1960s, wrote on its webpage that “you also showed your greatness by always being yourself, the caring Svennis who talked to everyone and took the time, for big and small, asking how things were and how the football was going. We will miss you.”

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AP soccer:

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