Ontario Bill 60 Phase 2: What Landlords and Tenants Need To Know

Ontario’s rental housing rules are set for another major change on September 21, 2026, when Phase 2 of Bill 60 takes effect. The changes introduce new rules around unpaid rent, persistent late payments, Landlord and Tenant Board (LTB) hearings, and N12 own-use evictions.

Key Changes

• N4 notice period: Reduced from 14 days to 7 days for applicable tenancies.
• Persistent late payments: Three late payments within six months may qualify under the new definition.
• LTB hearings: In certain rent-arrears cases, tenants may have to pay 50% of the claimed arrears before the hearing.
• N12 own-use evictions: The compensation requirement may be waived in specified circumstances when landlords provide at least 120 days’ notice.

One of the biggest changes is the reduction of the N4 notice period from 14 days to 7 days for applicable tenancies. This means landlords may have a shorter statutory timeline when rent remains unpaid. However, receiving an N4 does not automatically result in eviction; the required LTB process still applies.

The new rules also provide a clearer definition of persistent late payment. A tenant may fall under this definition if they fail to pay rent within seven days of the due date on at least three occasions within a six-month period, subject to the applicable conditions.

Another important change concerns certain rent-arrears cases at the LTB. Tenants seeking to raise certain issues during a non-payment hearing may, unless regulations provide otherwise, be required to pay 50% of the rent arrears claimed before the hearing and within the prescribed timelines.

There are also changes to N12 own-use evictions. In specified circumstances, landlords who provide at least 120 days’ notice may be able to have the usual one-month compensation requirement waived, provided the legislative requirements are met. Landlords must still act in good faith.

What Landlords Should Take Away

• Understand the new 7-day N4 timeline.
• Keep accurate records of rent payments and late payments.
• Familiarize yourself with the new LTB hearing requirements.
• Make sure N12 notices meet all applicable legal requirements.

What Tenants Should Take Away

• Pay rent on time and keep records of payments.
• Understand what an N4 notice means and the deadlines involved.
• Be aware of the new requirements surrounding rent arrears at LTB hearings.
• Seek appropriate advice if facing an eviction notice.

For both landlords and tenants, the message is simple: know the new timelines, keep accurate records, and understand your rights and responsibilities as the September 21 changes come into effect.