Bobby, a 36-year-old software development consultant in Oakville, Ont., earns $220,600 annually including salary, bonuses, and stocks, yet feels financially strained by an $8,000 monthly mortgage payment on a $2.3-million home purchased during the pandemic housing boom.
Mortgage Burden and Family Sacrifices
Bobby and his wife, also a tech worker earning over $200,000, bought the four-bedroom, double-garage house in 2020 to accommodate their growing family and be closer to parents. They used nearly $1-million from condo sales as a down payment but still face a hefty mortgage. The couple has aggressively paid down the principal, reducing monthly payments from $10,000 to $8,000, with about $500,000 remaining. “Saying that out loud is insane,” Bobby says. Their focus on eliminating debt dictates spending: Bobby buys little for himself, and discretionary funds go to their daughter’s activities. A weekly date night is a distant dream. “When we clear our mortgage, I should take my wife out for a nice dinner,” he adds.
Detailed Monthly Budget
Bobby’s monthly expenses total $16,260, including $4,000 toward the mortgage (split with his wife), $3,672 in investments and savings (pension, employer stock, TFSA, RESP), $1,746 for household and transportation (property tax $742, insurance $167, utilities $245, car expenses $322, transit $160), $1,050 on food (groceries $700 at discount chains, restaurants $350), and $5,792 in miscellaneous costs (income tax $3,100, CPP $742, EI $208, streaming $14, clothing $13, sports $320, after-school care $240, child expenses $100, haircuts $15, vacation savings $833, donations $42, gifts $125, life insurance $40).
Financial Concerns and Privilege
Despite their high income, Bobby worries about layoffs in the volatile job market. “A layoff for either of us … would make it quite a challenge to make ends meet,” he says. He acknowledges their privilege but feels the squeeze. “It feels we can struggle sometimes … I struggle to understand how Canadian households are getting by.” The couple, both immigrants who moved to Canada as children, share financial values and plan to live in the home for 30 years. They have $10,000 in a savings account, $275,000 in a TFSA, $550,000 in an RRSP, and $33,000 in an RESP.
