Published June 25, 2026 by Adel

Ontario's 2027 Rent Increase Guideline Drops to 1.9%

The Ontario government has set the 2027 rent increase guideline at 1.9%, down from 2.1% in 2026 and 2.5% in 2025. This is the maximum amount most landlords can raise rent without approval from the Landlord and Tenant Board.

In real numbers: if you pay $1,800 per month, the most your landlord can add in 2027 is $34.20. At $2,200 per month, the cap is $41.80. Not nothing, but the lowest increase in five years.

How the Number Is Calculated

The guideline tracks the Ontario Consumer Price Index over a 12-month period ending in May of the previous year. Inflation has been cooling since the 2022 peak, which is why the guideline keeps dropping. The provincial cap of 2.5% has not been hit since 2025, and at current inflation trends, 2028's guideline could drop further.

Who the 1.9% Applies To

The guideline covers most private rental units in Ontario, including rented houses, apartments, basement apartments, and condos. It applies to most tenants whose unit was first occupied for residential purposes before November 15, 2018.

The key word is "most." There is a large and growing group of tenants who are not protected by this cap.

Who Is Exempt

Units first occupied for residential purposes after November 15, 2018 are exempt from rent control entirely. This includes most newer condo buildings, purpose-built rental towers constructed in the last 7 years, and newly converted residential units. If your building is relatively new, your landlord can raise your rent by any amount with 90 days notice. There is no cap.

This exemption was introduced under the More Homes, More Choice Act, 2019. It was designed to encourage new rental construction by giving landlords more flexibility on pricing. Whether it has actually increased supply is a separate debate, but the exemption is still in effect and there is no sign it will be removed.

If you are not sure whether your unit is exempt, check your lease. If it includes a clause under Section 15 stating the unit is exempt from the rent increase guideline, you are not covered by the 1.9% cap. If you are still unsure, contact the Landlord and Tenant Board at 1-888-332-1975.

What Your Landlord Must Do

Even with the guideline in place, your landlord cannot just announce a rent increase by text or email. They must give you at least 90 days written notice using the official N1 form from the Landlord and Tenant Board. The notice must state the exact new rent amount and the date it takes effect. Anything less is not a legal rent increase.

Your landlord can also only raise rent once every 12 months. If your rent went up in March 2027, the next increase cannot take effect until March 2028 at the earliest.

What to Do If Your Landlord Charges More Than 1.9%

If your landlord raises your rent by more than the guideline without LTB approval, you have options. File a T1 application with the Landlord and Tenant Board to recover the overpayment. The filing fee is $53 and you can submit it online at the Tribunals Ontario portal. You generally have one year from the date of the illegal charge to file.

Some landlords apply for Above Guideline Increases (AGIs) for capital improvements like elevator replacements, balcony repairs, or security upgrades. An AGI can add up to 3% per year on top of the guideline, for a maximum of 3 years. If your landlord applies for an AGI, you have the right to attend the LTB hearing and dispute the increase.

Looking Ahead

If inflation continues to moderate, the 2028 guideline could drop below 1.9%. That would be welcome news for tenants, but the underlying issue remains: the exemption for post-2018 units means a growing share of Ontario's rental stock is not covered by any cap at all. For tenants in newer buildings, the guideline is just a number that does not apply to them.

For a full breakdown of tenant rights in Ontario, including eviction rules, illegal deposits, Bill 60 changes, and how to file with the LTB, read our complete tenant rights guide.

Written by Adel. Independently researched. Not affiliated with the Government of Ontario.