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.
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.
I understand what it is. I said make it illegal. It largely contributed to the housing collapse.
I don’t think there was really much of a housing collapse in Canada…
Well it caused a worldwide recession.