Ontario’s 2027 Rent Increase Guideline (1.9%) and the N1 Notice

Ontario has set the **2027 rent increase guideline at 1.9%**, down from 2.1% in 2026. If you plan to raise the rent on an Ontario unit next year, the guideline, the 90-day notice and the 12-month rule decide what you can charge and when.

## Who the 1.9% guideline applies to

The guideline is the most you can raise the rent in 2027 for most occupied units without applying to the Landlord and Tenant Board (LTB). Units in buildings or additions first occupied for residential purposes after November 15, 2018 — and most new basement apartments first occupied after that date — are exempt from the guideline. Exempt units still need the proper notice and the 12-month wait.

The guideline applies to increases that take effect during 2027, whatever date you serve the notice.

## The notice: Form N1, at least 90 days ahead

You must give the tenant written notice on the LTB’s form (Form N1, *Notice of Rent Increase*) at least **90 days before** the increase takes effect. For an increase starting **January 1, 2027**, the 90th day before is **October 3, 2026** — and if you mail the notice, allow extra days for delivery, because the notice counts from when it is served, not when you write it.

A notice that is late, on the wrong form, or missing details can make the increase void, so check the form’s instructions before you send it.

## At least 12 months apart

Rent can go up only if at least 12 months have passed since the last increase or since the tenancy began. If a tenant moved in on March 1, 2026, the earliest guideline increase is March 1, 2027.

## Working out the new rent

Multiply the current monthly rent by 1.019. On $1,850 rent, the 2027 maximum is $1,885.15 — an increase of $35.15 a month. You can always raise it by less than the guideline.

## The rent deposit and its interest

Ontario only allows a rent deposit (usually last month’s rent) — no damage deposit. Each year you must pay the tenant interest on that deposit at the **guideline rate in effect when the interest is due**: 1.9% for payments due in 2027. When the rent rises, you may keep that interest to top up the deposit so it matches the new monthly rent, instead of paying it out.

## Keep the paper trail

Save a copy of the signed N1, how and when you served it, and the new rent with its start date. In RentMouse, add the rent change to the lease record so January’s invoice uses the new amount and the notice sits with the tenancy.

**Sources:** [Ontario: Residential rent increases](https://www.ontario.ca/page/residential-rent-increases) · [Tribunals Ontario: LTB forms](https://tribunalsontario.ca/ltb/forms/). See also the [Ontario landlord guide](/ca/on). General information, not legal advice.