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Ontario Rent Increase 2027: The Official 1.9% Guideline
Ontario has set the 2027 rent increase guideline at 1.9% — the maximum most landlords can raise rent next year without Landlord and Tenant Board approval.
Updated July 2026 · 9 min read · Source: Government of Ontario, Landlord and Tenant Board
Applies to rent increases taking effect on or after January 1, 2027, for most residential units covered by the Residential Tenancies Act, 2006. Down from 2.1% in 2026. The guideline is tied to the Ontario Consumer Price Index and is capped at a legislated maximum of 2.5%.
What the 1.9% Actually Means for Your Rent
The guideline is a percentage of your current rent — not a flat dollar cap. Here is exactly what a 1.9% increase looks like at common Ontario rent levels.
| Current Monthly Rent | Max Increase (1.9%) | New Maximum Rent |
|---|---|---|
| $1,500 | $28.50 | $1,528.50 |
| $2,000 | $38.00 | $2,038.00 |
| $2,500 | $47.50 | $2,547.50 |
| $3,000 | $57.00 | $3,057.00 |
| $3,500 | $66.50 | $3,566.50 |
The increase is calculated on your current lawful rent. If your landlord also charges separately for parking or storage, those can each rise by the guideline too.
The Three Rules Every Increase Must Follow
The Big Exception: Units Built After November 15, 2018
This exemption was introduced by the Ontario government in 2018 to encourage new rental construction. It covers new buildings, new basement apartments, and previously non-residential spaces converted to residential use after that date. The landlord must still give 90 days written notice (using Form N2 for exempt units) and can still only increase once per 12 months — but there is no percentage limit.
Above Guideline Increases (AGI)
Even on a covered unit, a landlord can apply to the Landlord and Tenant Board to raise rent above 1.9% in three specific situations. An AGI is not automatic — the landlord must file an application and the LTB must approve it before you owe the higher amount.
An AGI for capital work is capped at 3% above the guideline per year and can be applied over up to three years. You have the right to dispute the application at the LTB hearing, and rent increases for ordinary maintenance or cosmetic upgrades do not qualify.
Ontario Rent Increase Guideline — Recent History
The guideline follows the Ontario CPI and is capped at 2.5% by law. Both 2026 and 2027 came in below that cap as inflation eased.
| Year | Guideline | Notes |
|---|---|---|
| 2027 | 1.9% | Current — effective Jan 1, 2027 |
| 2026 | 2.1% | Below the 2.5% cap as inflation eased |
| 2025 | 2.5% | Capped at the legislated maximum |
| 2024 | 2.5% | Capped at the legislated maximum |
| 2023 | 2.5% | Capped at the legislated maximum |
What to Do If Your Increase Is Illegal
An increase that breaks the rules is legally void — you do not owe it. Common problems on covered units include an increase above 1.9%, less than 90 days notice, an increase within 12 months of the last one, or notice given on the wrong form.
Frequently Asked Questions
1.9%, effective for increases on or after January 1, 2027. It applies to most units covered by the Residential Tenancies Act and is down from 2.1% in 2026.
A maximum of 1.9% on a covered unit. On $2,000 rent that is $38/month, taking rent to $2,038. Newer units first occupied after November 15, 2018 have no cap.
At least 90 days written notice on the official Form N1 (or N2 for exempt units), and only once every 12 months.
Only with an Above Guideline Increase approved by the LTB (for major capital work, extraordinary tax increases, or new security costs), or if your unit is exempt because it was first occupied after November 15, 2018.
Most condos first occupied after November 15, 2018 are exempt from the guideline. Always check the date the unit was first occupied for residential use — that date, not the building age, is what matters.
Ontario has vacancy decontrol. When a unit becomes vacant, the landlord can set any starting rent for the next tenant. The guideline only limits increases during an ongoing tenancy.