Ontario’s 2027 rent increase guideline is 1.9%, giving eligible tenants some relief from rising housing costs. However, the rules differ depending on when a rental unit was first occupied, the type of tenancy, and whether an above-guideline increase has been approved. Understanding the Ontario rent increase rules for 2027 can help tenants protect their rights and plan their household budgets.
1. What Is the Ontario Rent Increase Limit for 2027?
The Ontario government has set the 2027 rent increase guideline at 1.9% for most rent-controlled residential units. This guideline applies to eligible rent increases taking effect between January 1 and December 31, 2027.
Here is how the increase could affect your monthly rent:
| Current monthly rent | Maximum 1.9% increase | New monthly rent |
|---|---|---|
| $1,400 | $26.60 | $1,426.60 |
| $1,700 | $32.30 | $1,732.30 |
| $2,000 | $38.00 | $2,038.00 |
| $2,500 | $47.50 | $2,547.50 |
| $3,000 | $57.00 | $3,057.00 |
These calculations assume the unit is covered by rent control and no other lawful adjustment applies. A landlord cannot automatically increase rent simply because a new annual guideline has been announced.
2. When Can a Landlord Legally Increase Rent?
For most rent-controlled properties, Ontario law requires landlords to follow these rules:
- 12-month rule: At least 12 months must pass since the tenancy began or the last lawful rent increase took effect, as applicable.
- 90-day notice: Tenants must receive at least 90 days’ written notice before the increase takes effect.
- Correct LTB form: Landlords must generally use Form N1 for rent-controlled units and Form N2 for units partially exempt from the rent-increase limits.
3. Which Ontario Rental Units Are Exempt From Rent Control?
One of the most important exceptions involves rental units first occupied for residential purposes after November 15, 2018.
Qualifying new buildings, additions and certain newly created secondary units may be exempt from the annual rent increase guideline. Where the exemption applies, the landlord may increase rent by more than 1.9%, provided the applicable legal requirements are met, including proper notice.
However, not every basement apartment or newer-looking property automatically qualifies. The specific circumstances of the building or unit matter.
Tenants should verify their rent-control status by reviewing their lease, requesting supporting information from their landlord and consulting the official Ontario guidance.
4. Can Rent Increase by More Than 1.9%?
Yes, in certain circumstances.
A landlord may apply to the Landlord and Tenant Board (LTB) for an above-guideline rent increase (AGI). Eligible reasons can include extraordinary increases in municipal taxes, qualifying capital expenditures for major work, and certain security-service costs.
A voluntary agreement using Form N10 may also permit an above-guideline increase when the statutory conditions are satisfied.
Tenants should not assume that every increase above 1.9% is illegal—or that every increase requested by a landlord is valid. Review the notice and obtain advice when necessary.
5. What Should Tenants Do About an Illegal Rent Increase?
If you believe your landlord has imposed an unlawful increase, take these steps:
- Compare the proposed rent with the applicable guideline.
- Check the notice form and effective date.
- Confirm that the required 12-month interval and 90-day notice rules have been met.
- Keep your lease, payment records and communications.
- Contact the LTB or a community legal clinic to understand your options.
Depending on the circumstances, tenants may be able to apply to the LTB for a remedy or reimbursement. Act promptly, because application deadlines and procedures vary by issue.
6. How ICC Immigration Can Help You Plan Your Future in Canada
Understanding housing costs is one part of building a stable life in Canada. For newcomers, international students, workers and families, choosing an appropriate immigration pathway can also be an important long-term decision.
ICC Immigration helps clients explore available immigration options and prepare applications based on their circumstances. Our services include:
- Permanent Residency (PR): Guidance on Express Entry, Provincial Nominee Programs (PNPs) and other eligible pathways.
- Work Permits and Study Permits: Assistance with temporary residence applications and understanding potential future PR options.
- Family Sponsorship: Support with eligible applications to reunite family members in Canada.
- Immigration Application Guidance: Help understanding eligibility requirements, documentation and applicable government procedures.
Rather than relying on an uncertain immigration route, explore lawful options that fit your situation. Asylum is intended for people who meet Canada’s protection requirements and should not be treated as a substitute for ordinary immigration pathways.
Whether you already live in Canada or are planning your move, ICC Immigration can help you understand your options and take informed next steps.