A wave of LOSS

A Mississauga family recently lost their home of 20 years when mortgage payments soared. They're just one of thousands suddenly finding themselves at risk

- CLARRIE FEINSTEIN

Patty and Nader’s toughest burden to bear has been hearing their teenage daughter cry herself to sleep at night.

Over the past decade, one incident after another has spiralled into what feels like a never-ending series of unfortunate events. After experiencing life-changing health issues, the couple’s joint income was reduced by 80 per cent. Their debts piled up and recently, as interest rates soared, they found themselves unable to pay the mortgage on their Mississauga home. It led to one of the toughest choices they’ve ever faced: Should they sell their home or risk having the bank foreclose?

Eventually the couple (the Star has agreed to not share their last name due to the sensitive nature of their financial situation) made the painful decision to sell their home of 20 years — the home they raised their daughter in, one full of cherished memories.

“Our daughter is about to start high school and we had to pull her out because we can’t afford to live in Mississauga anymore,” Patty, 53, said.

The family ended up couch surfing with friends, unsure where they would live next. “She had to start fresh in a totally new school without her friends.”

Experts say the unprecedented rise in mortgage rates has led to more and more Canadians falling behind on mortgage payments, resulting in an uptick of distressed sales. According to Equifax, mortgage delinquencies, where a payment is at least 90 days late, shot up by more than 50 per cent in the last 12 months. But larger mortgage payments are usually only one contributing factor.

A perfect storm of pressures — high-interest rates combined with job loss, illness, credit debt and the rising cost of living from inflation — is forcing some households to make unbearable decisions about their homes.