Never thought I would see it in my lifetime but it has happened. The reality of all the measures the government has taken is now impacting first time home buyers and even people considering moving up to a better home.

I stress tested our area and it will take over 90 k in income with no debt to afford the most basic home in Fergus and Guelph. Well that’s a big problem because our average household income is only $70,000. A good income is around $50,000 and if you are a single income earner forget about buying here.

Honestly, what was the government thinking. There was no reason or pressing issue to bring in all these measures to stop prices from escalating in Toronto and Vancouver. Yes housing is unaffordable there because salaries have not kept pace with rising prices. So now the government is creating the exact same problem across Canada. Still globally Toronto lags other global cities at 48 around the world with Hong Kong being most expensive city to own real estate. So again WHY? Most of us could not afford to buy in Toronto and most of us don’t want to live there anyway.

Here are the statistics you won’t see. 40% of homeowners in Canada are Mortgage free. 33% of households are debt free. And only 25% of households have less than $25,000 in debt. Mortgage deliquencies have never been a problem even during 2008 meltdown. So over-extended households are a very small segment, yet governments (the worst of deficit spenders) keep sounding the alarm of high household debt. (Reminds me of the old weapons of mass destruction) Last time I checked mortgages were a good debt because there is an appreciating asset attached to it.

Most of us who own houses are fine but what are about our kids. Thanks to the government they will not be able to buy here without significant help from us.