Two sisters were shocked when a Toronto landlord raised their rent by $7,000 per month.

The landlord had told them he wanted to raise the rent to $3,500 and when they complained he decided to raise it to $9,500.

“We know that our building is not rent controlled and this was something we were always worried about happening and there is no way we can afford $9,500 per month," Yumna Farooq said.

  • @[email protected]
    45•1 year ago

    I can pay someone elses mortgage, but when I apply to a bank for one myself, I can’t afford it.

    But when you can’t afford it any longer, the landlord is free to replace you with someone who temporarily can. That’s the difference!

      • Bleeping LobsterEnglish
        7•1 year ago

        This is what I don’t get. Where’s the risk for the lender? If I can’t pay, they get the house and can sell it. I guess there’s a potential cashflow issue but the underlying asset isn’t going anywhere.

        • @[email protected]
          3•1 year ago

          Typically it’s pretty low risk in comparison to other loans which is why home loans are relatively low but there’s a risk that both the property value declines and the outstanding loan and selling costs is more than property value.