With rental prices shifting dramatically across Ontario—especially in the Greater Toronto Area—tenants are finding themselves in an unfamiliar but advantageous position. If your lease is up for renewal and your rent is above market rates, now might be the time to renegotiate with your landlord.
In some regions, average rents have dropped by hundreds of dollars in the past year. If you’re still locked into a high rate, you’re not alone—but you do have options.
Know Your Rights and Timing
In Ontario, landlords must follow specific rules when increasing rent. For most units, they are only allowed to raise rent once every 12 months, and increases must fall within the provincial rent guideline unless the unit is exempt (such as newer builds).
If your lease is ending soon, you have more leverage. Even if your rent has already gone up within the last year, a landlord may still be willing to negotiate if market rates are falling and they want to keep good tenants.
Do Your Homework
Before starting any negotiations, research the current rental rates in your area. Look up listings in your building and nearby comparable units. Document the differences in rent for similar square footage, amenities, and lease terms.
This information gives you leverage when speaking with your landlord or property manager. If units in your building are listed for $300–$500 less than what you are paying, there is a solid basis for requesting a reduction.
Open a Dialogue
Start by speaking with your landlord or property manager. Express your interest in staying but explain that your current rent no longer reflects market conditions. Keep your tone respectful and collaborative.
For example, you might say:
“I’ve noticed similar units in the building are currently listed at lower rates. I’d love to stay here, but I would need to pay something closer to market to make it feasible. Would you be open to discussing a new rate?”
Be Ready to Walk Away
One of the strongest bargaining tools you have is the ability to leave. If you have found better offers nearby, let the landlord know—politely—that you are exploring other options and may need to give notice.
In one real-world example, a tenant gave notice using Ontario’s N9 form. That same day, the building superintendent called to ask how they could keep the tenant. The end result? A rent reduction of over $500 per month and a free parking spot—concessions that were only offered once the tenant made it clear they were serious about leaving.
You can learn more about what to do before making a major financial change like moving on our Moving Checklist for Canadian Homeowners.
Stay Aware of Market Shifts
Even after an agreement is made, keep an eye on new listings. Rental prices can change fast. If your landlord agrees to a new rate and then further lowers the rent on comparable units, you may still be able to revisit the conversation.
A tenant who negotiated down to $2500/month noticed that new listings in their building had dropped again to $2300. They returned to the landlord to ask for the lower rate. It’s not always successful—but it can be worth trying, especially if your lease has not yet been signed.
What If You Still Can’t Afford the Rent?
If you’ve tried negotiating and your rent is still too high, it may be time to explore other financial solutions. For homeowners, refinancing your mortgage could help lower monthly payments or free up cash for rent or relocation.
Start by exploring your options with our mortgage application page. Refinancing or consolidating debt may give you the breathing room you need.
For those in more complex situations, such as managing payments after separation or dealing with a consumer proposal, we have helpful articles including Refinancing After Separation in Ontario and Getting a Mortgage While in a Consumer Proposal.
Final Thoughts
Tenants have more negotiating power now than they have in recent years. Rents in Ontario are adjusting, and if you’re paying more than market value, it’s fair to ask for a reduction.
Good tenants are hard to find, and most landlords would rather retain someone responsible and respectful than face a vacancy. If you’re informed, polite, and persistent, there’s a good chance you’ll get a better deal.
If you’re unsure what your next financial move should be, reach out to us through our contact page. Whether it’s renting, refinancing, or something in between, we’re here to help.
