this post was submitted on 15 Aug 2024
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B.C. landlords allowed to impose massive rent hikes after mortgage payments spike (bc.ctvnews.ca)
submitted 1 month ago by girlfreddy@lemmy.ca to c/canada@lemmy.ca
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Two B.C. landlords whose costs have skyrocketed – due to their variable-rate mortgage – have been allowed to impose huge rent hikes on their tenants to offset their financial losses.

In a recent ruling, an arbitrator with the province's Residential Tenancy Branch approved increases totalling 23.5 per cent over two years for each of the landlords' four rental units.

That's on top of the 3.5 per cent annual increase previously approved by the B.C. government for 2024.

"The landlords experienced dramatic interest rate increases which have made managing the property unsustainable," reads the ruling, which was published in May.

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[–] xmunk@sh.itjust.works 10 points 1 month ago (1 children)

It'll sell at some price point. Property isn't a guaranteed growth investment and we should stop treating it like one.

Also, only a fucking idiot gets a variable rate mortgage.

[–] GaMEChld@lemmy.world 3 points 1 month ago (2 children)

Or variable rate interest should be illegal? That's kinda where I was going. People keep yelling about landlords when everything in general follows the path of least resistance. Cut the problem off as near to the source as possible.

[–] xmunk@sh.itjust.works 4 points 1 month ago

That's not unreasonable sounding... I'm not certain if there are any second order effects but it feels like a good consumer protection change.

[–] bob_omb_battlefield@sh.itjust.works 1 points 1 month ago (1 children)

Variable rate let's me take on the rate risk and pay (on average) less interest. Fixed interest means the bank prices in the rate risk and you pay for that in a higher rate.

[–] GaMEChld@lemmy.world 1 points 1 month ago (1 children)

I understand what it is. I said make it illegal. It largely contributed to the housing collapse.

[–] bob_omb_battlefield@sh.itjust.works 1 points 1 month ago (1 children)

I don't think there was really much of a housing collapse in Canada...

[–] GaMEChld@lemmy.world 1 points 4 weeks ago

Well it caused a worldwide recession.