Verified November 12, 2026 against the Government of Ontario’s residential rent increases page, the Landlord and Tenant Board (LTB) forms page, the LTB’s guide to above-guideline increases and Interpretation Guideline 14, CLEO’s rent increase guide, and 2027 guideline bulletins from Durham Region and the County of Wellington.
The short answer: Ontario’s rent increase guideline for 2027 is 1.9%. It applies to rent increases that take effect from January 1 to December 31, 2027. For a tenant paying $2,200 a month, that is a maximum of $41.80 more per month. A landlord can only raise the rent once every 12 months and must give at least 90 days’ written notice on the proper form. The guideline does not cover every unit. Most units first occupied for residential purposes after November 15, 2018 are exempt, and so is the rent a landlord and a new tenant agree on when a unit turns over.
What the 2027 guideline means
The rent increase guideline is the most a landlord can raise the rent for most sitting tenants in Ontario without approval from the Landlord and Tenant Board. The province’s page on residential rent increases states: “The rent increase guideline for 2027 is 1.9%.” Durham Region’s August 2026 housing directive and the County of Wellington’s bulletin both confirm that the 1.9% figure covers the period from January 1, 2027 to December 31, 2027.
The guideline is set by the Ministry of Municipal Affairs and Housing. The province says it is calculated using the Ontario Consumer Price Index, with data from June to May used to set the guideline for the following year. It is also capped at 2.5%, which the province says is there “to prevent significant one-time rent increases to tenants.” With inflation easing, the 2027 figure lands below that cap for the second year in a row.
The rule is the same across the GTA. Toronto, Mississauga, Brampton, Vaughan, Markham, Oakville and every other Ontario municipality follow the Residential Tenancies Act, so there is no separate city rate.
The guideline applies to the date the increase takes effect, not the date the notice is given. An increase that takes effect on February 1, 2027 is capped at 1.9%, even if the notice went out in the fall of 2026.
Ontario rent increase guideline by year
| Year | Guideline | Note |
|---|---|---|
| 2027 | 1.9% | Applies to increases taking effect Jan 1 to Dec 31, 2027 |
| 2026 | 2.1% | Below the 2.5% cap |
| 2025 | 2.5% | At the cap |
| 2024 | 2.5% | At the cap |
| 2023 | 2.5% | At the cap |
| 2021 | 0% | Rent freeze set by the province |
Source: Government of Ontario, Residential rent increases page (updated June 23, 2026).
What 1.9% looks like in dollars
| Current monthly rent | New maximum rent | Extra per month | Extra per year |
|---|---|---|---|
| $1,800 | $1,834.20 | $34.20 | $410.40 |
| $2,200 | $2,241.80 | $41.80 | $501.60 |
| $2,600 | $2,649.40 | $49.40 | $592.80 |
| $3,000 | $3,057.00 | $57.00 | $684.00 |
The rents above are examples to show the math, not market figures. The guideline is a maximum. A landlord can raise the rent by less, or not at all.
Rent increase calculator
Enter the current monthly rent and the date of the last increase (or the date the tenancy began). The calculator shows the maximum 2027 guideline rent, the earliest date it can take effect and the latest date the notice should be given.
For units covered by the guideline only. Uses 1.9%, which applies to increases taking effect in 2027. The 90-day count is a guide; check the dates on the LTB form.
The 12-month and 90-day rules
Two timing rules apply to almost every rent increase in Ontario, whether or not the unit is covered by the guideline.
- Once every 12 months. The province says the rent can be increased “if at least 12 months have passed since the last rent increase, or date the tenancy began.”
- 90 days’ written notice. “The landlord must give a tenant written notice of a rent increase in the proper form at least 90 days before it takes effect.”
The province gives its own example: a tenant paying $1,000 a month whose tenancy started on June 1, 2026 could see the rent rise to $1,019.00 on June 1, 2027.
Which form is used
| Form | Name on the LTB forms page | Used for |
|---|---|---|
| N1 | Notice of Rent Increase | The standard notice for a regular increase |
| N2 | Notice of Rent Increase (Unit Partially Exempt) | Units that are partly exempt from the rules |
| N3 | Notice to Increase the Rent and/or Charges for Care Services and Meals | Care homes |
| N10 | Agreement to Increase the Rent Above the Guideline | A written agreement between landlord and tenant |
| L5 | Application for a Rent Increase Above the Guideline | A landlord’s application to the LTB |
CLEO notes that a notice not on the LTB form “might still be valid” if it includes all the information the form asks for. Using the current LTB form avoids that question. The LTB said in September 2026 that it is updating some of its processes, forms and rules after Bill 60 and Bill 97, so download the form fresh from the LTB rather than reusing an old copy.
The guideline also sets the interest a landlord owes on a last month’s rent deposit. The County of Wellington’s bulletin states that “The 2027 Last Month Rent Deposit Interest Rate is 1.9 per cent.”
Units the guideline does not cover
The province lists the cases where the guideline does not apply:
- New buildings, additions to existing buildings and most new basement apartments that are occupied for the first time for residential purposes after November 15, 2018.
- Rental units on turnover of a tenancy, where the landlord and the new tenant agree on the rent.
- Community housing units, which have their own rules.
- Long-term care homes, and commercial properties.
In an exempt unit, the landlord can raise the rent by any amount. CLEO is clear that “the 12-month and 90-day rules still apply,” so the landlord still needs to wait a year between increases and give 90 days’ written notice.
The exemption matters a lot in the GTA, where many tenants rent in condos completed after 2018 or in newer basement suites. If there is a dispute, the province says the landlord must prove the building or addition was first occupied for residential purposes after November 15, 2018. For a new unit in an existing house, the landlord must prove it was completed after that date and that it was built in previously unfinished space or that the owner lived elsewhere in the house. A tenant can contact the LTB to find out whether a unit is exempt.
Increases above the guideline
A landlord can apply to the LTB for an above-guideline increase (AGI) on an L5 application. The LTB’s guide lists three grounds:
- An extraordinary increase in municipal taxes and charges. The LTB’s guide treats an increase as extraordinary when it is greater than the guideline plus 50% of the guideline. Applying that formula to the 2027 guideline of 1.9% gives a threshold of 2.85%.
- Eligible capital expenditures. CLEO describes these as major repairs, renovations, replacements or additions expected to last at least 5 years, not normal ongoing maintenance.
- Security services that were added for the first time or that cost more.
The 3% limit
LTB Interpretation Guideline 14 says: “The maximum annual increase allowed in an application based on capital expenditures or security services or both is 3% above the guideline.” If the work justifies more, the rest can be taken over up to two more years, at up to 3% above the guideline each year. The 3% limit does not apply to an increase based on municipal taxes and charges.
As an illustration only, a tenant paying $2,200 a month in a building with an approved capital expenditure AGI could face up to 1.9% plus 3%, or 4.9%, in 2027. That is a maximum of $2,307.80 a month. The actual amount depends on the LTB’s order.
Paying while an AGI is pending
The landlord must file the application at least 90 days before the first increase it asks for. The LTB’s guideline says the tenant “does not have to pay this higher amount unless it is approved and the order is issued.” A tenant can choose to pay the higher amount early. If the application is refused, the landlord must refund what was paid above the guideline. If the order comes late and the tenant owes back rent, the LTB can allow it to be paid in instalments.
Agreeing to an increase
A tenant and landlord can agree in writing to an increase above the guideline using form N10. CLEO says the tenant can refuse, and if they agree, the landlord “must give you something in exchange” and the agreement has to follow the LTB’s rules.
If an increase looks wrong
Start with the basics. Check the effective date, the amount and whether 12 months have passed since the last increase. Then check whether the unit is covered by the guideline.
The province says: “If your landlord has not provided the proper notice, or you believe that your rent has been raised by an improper amount, you can dispute it at the Landlord and Tenant Board within 12 months after the amount was first charged.” CLEO gives the same one-year limit for getting back an illegal rent increase.
The LTB can be reached at 1-888-332-3234 toll-free or 416-645-8080 in the Toronto area. Community legal clinics also help tenants with rent increase questions.
What it means for GTA landlords and buyers
Many Local Toronto readers rent out a basement suite or a condo. A few practical points for 2027:
- Diarize the dates. Work back 90 days from the anniversary of the last increase. A late notice usually means a late increase.
- Know your exemption status. A suite first occupied after November 15, 2018 may be exempt, but you need records to prove it. Our guide to renting out a basement in Toronto covers the legal secondary suite rules, and Peel owners can read how to register a second unit in Mississauga.
- Remember interest on deposits. The 1.9% guideline also sets the 2027 interest rate on last month’s rent deposits.
- Keep the rest of the tenancy in order. Entry and heat are the two other topics that cause most friction. See when a landlord can enter a rental unit and how warm a landlord has to keep a home.
If you are buying a home with a tenant in place, the current rent is the rent you inherit. With a guideline of 1.9%, it can take years for a below-market rent in a covered unit to catch up, so build that into your numbers. Our overview of owning a rental property in Ontario walks through the costs.
Thinking about buying an income property, or selling one with tenants? Start on our home buying page, or get a free home evaluation to see what your property could sell for.
FAQ
What is the rent increase guideline for 2027 in Ontario?
It is 1.9%. It applies to rent increases that take effect between January 1 and December 31, 2027, for units covered by rent control.
How much notice does a landlord need to give for a rent increase in Ontario?
At least 90 days’ written notice in the proper form, and at least 12 months must have passed since the last increase or since the tenancy began.
Does the 1.9% guideline apply to my condo or basement apartment?
Not if the unit was first occupied for residential purposes after November 15, 2018 and meets the exemption rules. In that case the landlord can raise the rent by any amount, but the 12-month and 90-day rules still apply.
Can a landlord raise the rent more than 1.9% in 2027?
Only in an exempt unit, with a written agreement on form N10, or with LTB approval for an above-guideline increase. For capital expenditures or security services, an approved increase is limited to 3% above the guideline per year, for up to three years.
Do I have to pay an above-guideline increase before the LTB decides?
No. The tenant does not have to pay the higher amount unless it is approved and the order is issued. If the tenant pays early and the application fails, the landlord must refund the extra.
How long do I have to challenge an improper rent increase?
You can dispute it at the Landlord and Tenant Board within 12 months after the amount was first charged.
Sources
- Government of Ontario, Residential rent increases (updated June 23, 2026).
- Durham Region Housing Services Division, Durham Community Housing Directive INF 05-03, Rent Increase Guideline for 2027 (August 2026).
- County of Wellington Housing Services, Information Bulletin 2026-04, 2027 Rent Increase Guideline and Last Month Rent Deposit Interest (effective August 1, 2026).
- Landlord and Tenant Board, Forms, Filing and Fees (accessed November 12, 2026).
- Landlord and Tenant Board, Information about Applications for a Rent Increase Above the Guideline (updated April 2, 2025).
- Landlord and Tenant Board, Interpretation Guideline 14: Applications for Rent Increases above the Guideline.
- Community Legal Education Ontario (CLEO), Rent increases (January 2026).
- Government of Ontario, Residential Tenancies Act, 2006.
Images: AI-generated illustrations created for this guide. They do not show real properties.
Rules change; confirm with the Landlord and Tenant Board before you rely on them. Local Toronto, HomeLife Landmark Realty Inc., Brokerage.