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.
Here's the link to the article we're referencing in this video:
So who's responsible for the "Financial Ruin" of those who were caught-up in the market transition?
Are the home buyers to blame for being blind to potential market shifts? Should the home builders chip in to relieve some of the financial stress? Or should the policy makes start writing cheques to those caught up in it all?
What's your opinion?