Ontario’s 2027 rent increase limit: 1.9%

For most rental homes in Ontario, a rent increase that starts in 2027 can be no more than 1.9% of your current rent. For increases that started in 2026, the limit was 2.1%.

Three rules every rent increase must follow

1. No more than the yearly limit, called the rent increase guideline, unless one of the exceptions below applies.
2. Only once every 12 months. At least 12 months must pass since your last increase, or since you moved in.
3. At least 90 days’ written notice on the official form (Form N1, or Form N2 for some homes). A letter, email or text may not count. A notice sent by mail counts from 5 days after it was mailed. Without proper notice, the increase doesn’t count, and your landlord has to give you a new notice.

An example

If your rent is $2,000 a month and the increase starts in 2027, the most it can go up is 1.9%, which is $38. Your new rent can be up to $2,038 a month.

When the limit doesn’t apply

• Newer buildings. Units in buildings, additions or most basement apartments first lived in after November 15, 2018 usually don’t have a yearly limit. The 12-month rule and the 90-day notice still apply. If this goes to the Board, the landlord has to prove the exemption.
• The Board approves more. A landlord can apply to the Landlord and Tenant Board for an above-guideline increase, for example after major repairs. Until the Board decides, you only have to pay up to the usual limit. If the Board approves more, you may have to pay the difference back to the start date.
• You sign an agreement for more (Form N10) in return for a renovation, an improvement or a new service. It can be up to 3% above the limit, and you can cancel it in writing within 5 days of signing.
• You agree to pay for something added, like parking or a locker. That amount can be added on top.
• Most social, public and non-profit housing, and housing your school provides, follow different rules.

If your increase doesn’t follow the rules

Talk to a free legal clinic before you pay less than the new rent. If you’ve already paid an increase that wasn’t allowed, you can ask the Board to order your money back with Form T1. Apply within one year. Usually, if an increase isn’t challenged within one year, the law treats it as legal, so don’t wait.

Based on: Residential Tenancies Act, 2006, ss. 6.1, 7, 116, 119, 120, 121, 123, 126, 135, 136 and 191. Sources: Residential Tenancies Act, 2006 · Ontario: residential rent increases · Landlord and Tenant Board forms.