Ontario’s 2027 Rent Increase Guideline: What Tenants Should Know Before Signing or Renewing
Renting, By Province — Ontario’s 2027 guideline is 1.9%, but legality also depends on timing, written notice, unit exemptions, and current LTB procedures; this edition helps tenants organize records before questioning a proposed increase.
A reader asks: “My landlord says my rent will go up next year. How do I tell whether the increase is legal in Ontario?” This Ontario-only edition answers that question using the province’s residential-rent-increases page, updated June 23, 2026, and the Landlord and Tenant Board (LTB) forms page, which carries a process notice dated September 21, 2026. It covers the confirmed 2027 rule, its limits, and a practical way to preserve your records. It is general information, not legal advice.
The confirmed 2027 rule
Ontario’s 2027 rent increase guideline is 1.9%. For most tenants in covered private residential units, that is the maximum annual increase without LTB approval. This is the confirmed 2027 rule, not a forecast.
A landlord generally may increase rent only after at least 12 months have passed since the last increase or since the tenancy began. The landlord must give written notice, using the proper form, at least 90 days before the increase takes effect.
The province’s example is straightforward: with $1,000 monthly rent and a June 1, 2027 increase, 1.9% adds $19, making the new rent $1,019. The notice still must be given at least 90 days before June 1. Recent context: the guideline was 2.1% in 2026, 2.5% in 2025 and 2024, and 1.2% in 2022. The 2021 guideline was 0% because of a government-imposed COVID-19 rent freeze; the province says it otherwise would have been 1.5%.
Where the guideline applies
The guideline applies to most private residential units covered by the Residential Tenancies Act, 2006, including houses, apartments, basement apartments, condos, care homes, mobile homes, and land lease communities. For care homes, it applies to the rent portion, not services such as nursing, food, or cleaning.
The province says the guideline does not apply to:
- New buildings, additions to existing buildings, and most new basement apartments first occupied for residential purposes after November 15, 2018.
- A rental unit on turnover, when a landlord and new tenant agree on the starting rent.
- Community housing, long-term care homes, and commercial properties.
Social housing is covered by the Act but has different rent-control and notice rules. In some circumstances a landlord can ask the LTB to approve an increase above the guideline. A unit’s exemption can depend on facts. For a disputed new building or addition, the landlord must prove first residential occupancy after November 15, 2018. For a new unit in an existing house, the landlord must prove completion after that date and either construction in previously unfinished space or that the owner lived in another part of the house when the unit was first occupied.
What the status means for a tenant
If your covered unit is not exempt, compare the proposed annual increase with the guideline for the year it takes effect. If your unit is exempt, the guideline is not the cap, but you should still confirm the exemption rather than relying only on an assumption about the building’s age. If you are starting a new tenancy, the guideline does not limit the agreed starting rent.
The province says the guideline is calculated from the Ontario Consumer Price Index using June-to-May data for the following year, with a 2.5% cap intended to prevent significant one-time increases. That explains how the number is set; it does not turn a 2028 figure into something that can be predicted from this issue. The 2028 guideline is not published in the sources used here.
Preparation before you pay the new amount
When a notice arrives, save the notice and your lease, then check:
- Timing: at least 12 months since the last increase or the start of the tenancy.
- Notice: written notice in the proper form, at least 90 days before the effective date.
- Amount: the applicable guideline for that year, unless the unit is exempt or the LTB has approved more.
- Unit status: whether the landlord has identified a claimed exemption and whether the facts support it.
Keep the date the notice was given or received, the date the increase starts, the old and proposed rent, and copies of messages or attachments. Do not use the 1.9% figure for an increase taking effect in a different year without checking that year’s official guideline.
If the timing, form, amount, or exemption claim looks wrong, the province says a tenant can dispute the increase at the LTB within 12 months after the amount was first charged. The LTB forms page lists tenant routes including T1, a tenant application for a rebate, and T2, an application about tenant rights. It also lists the N1 notice of rent increase and directs many applications to the Tribunals Ontario Portal. LTB fees are non-refundable; a fee-waiver request form is available.
Official help and process limits
Before filing, check the LTB’s current forms, instructions, portal information, and operational updates. The LTB says it was updating processes, forms, and rules effective September 21, 2026 because of amendments associated with Bill 60 and Bill 97, in addition to changes introduced July 1, 2026. Older guides may not reflect current procedure.
For help determining whether a unit is exempt, the province says tenants and landlords can contact the LTB. The listed contact details are ltb@ontario.ca, 416-645-8080, or 1-888-332-3234. A legal clinic or licensed paralegal may help with a specific dispute. This issue does not decide whether your unit is exempt or provide individualized legal advice.
