As we approach 2026, many tenants are beginning to think about lease renewals and whether renting still makes sense compared to buying. Understanding your options before making a decision can have a lasting impact on your finances and long-term housing stability.
The 2026 Rent Increase Guideline
For tenants in Ontario, the maximum allowable rent increase in 2026 has been set at 2.1%. This is a slight decrease from 2025, which was capped at 2.5%. The guideline applies only to units first occupied before November 15, 2018. For newer properties, landlords are not restricted by these controls and can increase rent as they see fit.
Notice Periods You Should Be Aware Of
Landlords must provide at least 90 days’ notice before raising rent. For example, if your lease renews on January 1, the notice must be given by October 1. On the tenant side, if you plan to move out, you are required to provide 60 days’ notice before the end of a fixed-term lease or rental period.
Introducing the Rent vs. Buy Calculator
One of the biggest questions tenants face is whether it’s smarter to continue renting or transition to homeownership. To make this decision easier, a rent vs. buy calculator has been created to help tenants compare costs. By entering your rent, utilities, and insurance, and comparing that to the expenses of owning a property—mortgage payments, taxes, condo fees, and insurance—you can see the real monthly difference.
Real-Life Example: Downtown Toronto Condo
Let’s take a look at a one-bedroom-plus-den condo at 75 Portland in Toronto. A unit recently sold for $725,000. Using the calculator, with a minimum down payment, the monthly ownership cost comes in at approximately $4,300, including mortgage, taxes, insurance, utilities, and condo fees.
Meanwhile, comparable units in the same building are renting for around $3,000 a month. That’s a difference of about $1,100 per month. The gap narrows if interest rates fall or if you put down a larger down payment, but it highlights the importance of running the numbers carefully.
Factoring in Long-Term Equity
Renting may look cheaper in the short term, but ownership builds equity over time. The calculator allows you to project how rising rent, home price appreciation, and mortgage paydown can affect your financial picture over 5, 10, or even 25 years. This is especially useful if you want to compare not just monthly costs but the wealth-building potential of buying.
Closing Costs and Budgeting
It’s also important to factor in closing costs, which can range from 1.5% to 2% of the purchase price, as well as Toronto’s additional land transfer tax. The calculator includes estimates for these expenses, along with first-time buyer rebates. You can also input your monthly income to see what portion of your budget homeownership would require.
The Bottom Line
Deciding whether to rent or buy is a personal choice, influenced by your financial situation, lifestyle, and long-term goals. Tools like the rent vs. buy calculator make the process clearer by giving tenants the ability to compare real numbers side by side.
Before signing your next lease renewal, take the time to run the calculations. The insight you gain could help you make a more confident and informed decision about your next move.
The 2026 Rent Increase Guideline
For tenants in Ontario, the maximum allowable rent increase in 2026 has been set at 2.1%. This is a slight decrease from 2025, which was capped at 2.5%. The guideline applies only to units first occupied before November 15, 2018. For newer properties, landlords are not restricted by these controls and can increase rent as they see fit.
Notice Periods You Should Be Aware Of
Landlords must provide at least 90 days’ notice before raising rent. For example, if your lease renews on January 1, the notice must be given by October 1. On the tenant side, if you plan to move out, you are required to provide 60 days’ notice before the end of a fixed-term lease or rental period.
Introducing the Rent vs. Buy Calculator
One of the biggest questions tenants face is whether it’s smarter to continue renting or transition to homeownership. To make this decision easier, a rent vs. buy calculator has been created to help tenants compare costs. By entering your rent, utilities, and insurance, and comparing that to the expenses of owning a property—mortgage payments, taxes, condo fees, and insurance—you can see the real monthly difference.
Real-Life Example: Downtown Toronto Condo
Let’s take a look at a one-bedroom-plus-den condo at 75 Portland in Toronto. A unit recently sold for $725,000. Using the calculator, with a minimum down payment, the monthly ownership cost comes in at approximately $4,300, including mortgage, taxes, insurance, utilities, and condo fees.
Meanwhile, comparable units in the same building are renting for around $3,000 a month. That’s a difference of about $1,100 per month. The gap narrows if interest rates fall or if you put down a larger down payment, but it highlights the importance of running the numbers carefully.
Factoring in Long-Term Equity
Renting may look cheaper in the short term, but ownership builds equity over time. The calculator allows you to project how rising rent, home price appreciation, and mortgage paydown can affect your financial picture over 5, 10, or even 25 years. This is especially useful if you want to compare not just monthly costs but the wealth-building potential of buying.
Closing Costs and Budgeting
It’s also important to factor in closing costs, which can range from 1.5% to 2% of the purchase price, as well as Toronto’s additional land transfer tax. The calculator includes estimates for these expenses, along with first-time buyer rebates. You can also input your monthly income to see what portion of your budget homeownership would require.
The Bottom Line
Deciding whether to rent or buy is a personal choice, influenced by your financial situation, lifestyle, and long-term goals. Tools like the rent vs. buy calculator make the process clearer by giving tenants the ability to compare real numbers side by side.
Before signing your next lease renewal, take the time to run the calculations. The insight you gain could help you make a more confident and informed decision about your next move.
