Ontario’s rent increase guideline for 2027 is 1.9%. For a covered unit, a landlord generally must wait at least 12 months after the tenancy began or the last lawful increase and provide at least 90 days’ written notice. The 1.9% figure is a ceiling—not an automatic increase.
“Landlord” searches jumped in Canada this week, but the useful question is not whether rents are rising somewhere. It is whether your notice follows Ontario’s rules. A $2,000 monthly rent increased by 1.9% becomes $2,038. That is another $456 over a full year.
Ontario’s maximum guideline increase for most rent-controlled units in 2027. A lower increase is allowed. No increase happens automatically.
Calculate your possible 2027 increase
This is an estimate for a rent-controlled unit with no approved above-guideline increase. It does not determine whether the guideline applies to your tenancy.
What 1.9% looks like at common rent levels
| Current monthly rent | Monthly increase | New monthly rent | Extra over 12 months |
|---|---|---|---|
| $1,500 | $28.50 | $1,528.50 | $342 |
| $2,000 | $38.00 | $2,038.00 | $456 |
| $2,500 | $47.50 | $2,547.50 | $570 |
| $3,000 | $57.00 | $3,057.00 | $684 |
The basic calculation is current lawful rent × 0.019. Compare the result with the increase shown on the notice. Parking, utilities, discounts and separate service charges can make an individual tenancy more complicated.
Does the guideline apply to your unit?
The guideline covers most private residential rental units governed by Ontario’s Residential Tenancies Act. A major exception involves units in buildings, mobile-home parks or land-lease communities first occupied for residential purposes after November 15, 2018. Those newer units may be exempt from the guideline.
The landlord normally must still wait 12 months between increases and give proper written notice. Do not decide from the building’s appearance or construction date alone; first residential occupancy is the important fact.
Social housing, nursing homes, commercial tenancies and some living arrangements can follow different rules. If the history or exemption is disputed, the Landlord and Tenant Board or a qualified legal clinic can provide guidance on the particular unit.
The five-minute notice check
- Confirm the effective date. At least 12 months generally must have passed since the tenancy began or the last lawful increase.
- Count the notice period. The landlord generally must provide at least 90 days’ written notice.
- Check the form. Most landlords use the applicable Landlord and Tenant Board notice form, commonly an N1 for covered units.
- Check the percentage. Compare the new lawful rent with the 1.9% guideline unless an exemption or approved above-guideline increase applies.
- Keep the paperwork. Save the lease, prior notice, current notice and payment history together.
Can a landlord charge more than 1.9%?
Sometimes, but not merely by typing a larger number into a notice for a rent-controlled unit. A landlord may apply to the Landlord and Tenant Board for an above-guideline increase for certain eligible costs, including some major capital work, extraordinary municipal tax increases or qualifying security-service expenses. The application and effective-date rules matter.
A unit exempt from the guideline is a different situation: the 1.9% ceiling may not apply, although the notice and timing requirements generally remain. A new tenant can also face a market rent that differs from what the previous tenant paid.
What to do before the notice arrives
Run your current rent through the calculator and transfer that monthly difference into savings for one month. If the increase arrives, you have already tested the cash-flow change. If it does not, you have created a small buffer.
A 1.9% cap is better than an unpredictable jump, but “only 1.9%” can still be misleading. Rent is recurring. The annual figure—not the first month—is the number that belongs in a household budget.
Common questions
Is every Ontario tenant limited to 1.9% in 2027?
No. The guideline covers most rent-controlled units, but important exemptions exist, including certain units first occupied for residential purposes after November 15, 2018.
Can a landlord increase rent twice in one year?
Ordinarily at least 12 months must pass between lawful increases. Special circumstances can require individual review.
Does a text message count as proper notice?
Do not assume it does. Ontario prescribes notice requirements and forms. Check the official guidance or obtain advice for your situation.
Continue with a related guide
- Is GoFundMe taxable in Canada?
- Find the cheapest protein per 30 grams
- Run the Ontario home-cost calculator
Official sources
- Government of Ontario: residential rent increases
- Government of Ontario: renting in Ontario—your rights
- Landlord and Tenant Board: guide to the Residential Tenancies Act
This guide was reviewed and approved by Matelacom Inc. We turn official Canadian information into clear examples and practical next steps. Corrections: info@matelacom.ca.
This article and calculator provide general educational information, not legal advice. Rules, exemptions, above-guideline applications and a specific notice can require individual review.