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

Ontario's rental rules are about to change again.

On September 21, 2026, a major group of amendments under Bill 60 will take effect, changing how rent arrears, late payments, certain N12 evictions, tenant issues at Landlord and Tenant Board hearings, and some eviction orders are handled.

For landlords, some timelines will become shorter and certain procedures more structured. For tenants, the changes make it especially important to understand deadlines, payment requirements, and the difference between receiving a notice and actually being evicted.

There is also plenty of outdated information circulating online. Bill 60 received Royal Assent in November 2025, but its rental changes did not all take effect at once. The first group came into force on July 1, 2026. Additional provisions were formally scheduled for September 21 through Ontario Orders in Council issued in April and July 2026.

Here is what Ontario landlords and renters need to know before Phase 2 begins.

What Is Ontario Bill 60 Phase 2?

Bill 60, officially called the Fighting Delays, Building Faster Act, 2025, made several amendments to Ontario's Residential Tenancies Act. The term "Phase 2" is a convenient way to describe the major second wave of rental changes taking effect on September 21, 2026.

The first wave took effect July 1, 2026. Among the Bill 60 changes already in force, the deadline to request a review of an LTB order was shortened from 30 days to 15 days. The Landlord and Tenant Board's legislative update explains the changes already implemented.

Phase 2 goes further, particularly when a tenant owes rent or an eviction proceeding is underway.

Importantly, these September rules are not in force yet as of August 29, 2026. Landlords should continue using the rules currently in force until September 21.

The N4 Notice Period for Unpaid Rent Is Getting Shorter

One of the most significant Bill 60 changes affects the N4, the notice landlords can give when rent has not been paid.

Under the rules currently in effect, daily and weekly tenancies can already have a termination date seven days after an N4 is given. For most other tenancies, including typical monthly rentals, the termination date cannot be earlier than 14 days after the notice is given.

Beginning September 21, 2026, the Residential Tenancies Act rules for non-payment of rent will allow the termination date to be as early as the seventh day after the notice is given for all tenancy types.

For a monthly tenant, that effectively cuts the N4 notice period in half.

A Seven-Day N4 Does Not Mean a Seven-Day Eviction

This distinction matters.

An N4 is a notice of termination, not an eviction order. A landlord cannot simply change the locks or remove a tenant after seven days.

The landlord still has to follow the LTB process if the arrears are not resolved. The Residential Tenancies Act also continues to provide ways for a non-payment notice or eviction proceeding to become void when the required rent and other applicable amounts are paid within the statutory timelines.

For landlords, the shorter notice period can allow an arrears case to move to the next stage sooner.

For tenants, it means there will be less time between receiving an N4 and reaching the earliest termination date. Ignoring an N4 becomes even riskier.

Persistent Late Rent Will Have a Clearer Benchmark

Bill 60 also changes how persistent late payment can be assessed.

Starting September 21, new rules under Ontario Regulation 241/26 provide that persistent failure to pay rent on time includes situations where a tenant has failed to pay within seven days of the due date at least three times within a six-month period.

There is an important detail in the wording: this is not necessarily the only situation that can qualify as persistent late payment. The regulation specifically says circumstances outside that example may also amount to persistent failure to pay on time.

That means tenants should not assume that paying rent eventually makes repeated lateness irrelevant.

For landlords, keeping accurate rent records becomes even more important. Dates matter. If rent is due on the first of the month but repeatedly arrives well after that date, proper records can become important evidence in an LTB proceeding.

This rule also does not mean three late payments automatically result in eviction. Persistent late payment is a ground on which a landlord may seek termination, but an eviction still requires the proper notice, application, and LTB process.

Tenants Raising Their Own Issues at an Arrears Hearing Face a New Requirement

This may be one of the most important Phase 2 changes for tenants involved in an LTB non-payment case.

Ontario's Residential Tenancies Act allows a tenant facing a landlord's non-payment application to raise certain issues that could otherwise be the subject of their own tenant application. That might include qualifying maintenance or landlord-conduct issues.

Starting September 21, Bill 60 adds another condition.

A tenant who wants to raise those issues within the landlord's non-payment proceeding will generally have to pay half of the rent arrears claimed in the landlord's application.

Ontario Regulation 241/26 sets the payment deadline at no later than seven days before the hearing.

This does not erase a tenant's ability to bring a separate application about an alleged breach of the Residential Tenancies Act. The change specifically affects the ability to raise those issues within the landlord's rent-arrears hearing under section 82.

There are also transition rules. Applications started before the new section 82 provisions come into force can continue under the previous rules even if the hearing takes place later.

For tenants facing an arrears case, waiting until the hearing date to figure out what evidence or payment is required could therefore create a serious problem.

Some N12 Landlord-Own-Use Evictions Will No Longer Require One Month's Compensation

Ontario's N12 rules are also changing, but this provision needs to be explained carefully.

Currently, when a landlord uses section 48 of the Residential Tenancies Act to end a tenancy because the landlord, certain close family members, or an eligible caregiver genuinely needs the property for residential occupation, the landlord must generally pay the tenant one month's rent or offer another acceptable rental unit.

Beginning September 21, a new exception applies.

The compensation requirement will not apply when all of the following conditions are met: the section 48 notice is given on or after September 21, the termination date is at least 120 days after the notice is given, and that termination date is at the end of a tenancy period or, for a fixed-term tenancy, at the end of the term.

In practical terms, a landlord using the qualifying landlord-own-use process can choose to provide substantially more notice instead of paying the one month's compensation.

The 120-Day Rule Does Not Apply to Every N12

This is an area where landlords, tenants, buyers, and sellers need to be especially careful.

Bill 60's new compensation exception is tied specifically to section 48, which deals with a landlord requiring the property for their own use or the use of certain qualifying people.

Ontario has a separate N12 process under section 49 when a property has been sold and a purchaser requires possession for themselves or certain family members.

The new section 48.1 compensation exception does not rewrite the separate purchaser-use compensation requirement.

It also should not be confused with an N13 for demolition, conversion, or major renovations. The September 21 compensation change discussed here is not a general exemption from N13 compensation.

For anyone buying or selling a tenanted property, that distinction can be extremely important.

A New 60-Day Occupancy Rule Will Strengthen Scrutiny of Some N12 Evictions

Another major change arrives on September 21, but technically this one comes from Bill 97, not Bill 60.

It is worth including because the legislation is being implemented alongside the Phase 2 changes and directly affects N12 landlord-own-use cases.

Under Ontario Regulation 240/26, if the person who was supposed to occupy the property following a section 48 N12 does not move in within the prescribed 60-day period, a new presumption can arise that the notice was given in bad faith.

If the tenant moved out on or before the N12 termination date, the 60 days are measured from the termination date. If the tenant stayed beyond that date, the period is measured from the day the tenant actually vacated.

This is a rebuttable presumption, not an automatic finding that the landlord acted in bad faith. Evidence and the circumstances can still matter.

For landlords planning a genuine own-use move, the practical lesson is simple: have a realistic occupancy plan before serving the notice.

For tenants, it creates another factor that may be relevant if an own-use eviction appears not to have been carried out as represented.

The LTB Will Face New Limits When Postponing Eviction Orders

Bill 60 also changes when the LTB can postpone enforcement of an eviction order.

Starting September 21, the updated regulation says postponement can occur if the landlord agrees or if specific conditions are met.

For applications based on sections 48, 49, or 50, which include certain own-use, purchaser-use, demolition, conversion, and renovation cases, the Board must be satisfied that postponement would not be unfair to the landlord or other tenants.

For other eviction applications, the Board must be satisfied that postponement would not be unfair and that there are compelling grounds to delay enforcement.

The distinction is important because this amendment deals specifically with the Board's power to postpone enforcement. It does not simply remove every other form of discretion the LTB has when deciding whether an eviction should be ordered.

Rules for Setting Aside Certain Eviction Orders Are Changing Too

A more technical Bill 60 amendment affects section 77 cases.

Section 77 can apply where a tenant gave notice that they were leaving or the landlord and tenant agreed to terminate the tenancy, but the tenant did not leave as agreed. In certain circumstances, a landlord can obtain an eviction order without the normal hearing process.

A tenant can ask for that order to be set aside.

Starting September 21, Ontario Regulation 241/26 provides that the Board must set aside the order if, after considering the permitted circumstances, it would not be unfair to do so. However, the Board cannot consider changes in the tenant's circumstances that happened after the tenant entered into the termination agreement or gave the relevant notice.

For both parties, this is another reason to take an agreement to terminate a tenancy seriously before signing it.

Renovation Eviction Rules Are Also Changing on September 21

Landlords and renters should also know about separate Bill 97 amendments involving a tenant's right to return after qualifying renovations.

When a tenant has properly preserved their right of first refusal following certain N13 renovation or repair situations, new rules will require the landlord to provide written updates about when the unit is expected to be ready.

The landlord must provide an estimated completion date, communicate changes to that estimate, and notify the former tenant when the rental unit is ready. The tenant must then be given at least 60 days after the unit is ready to exercise the right of first refusal.

The limitation period for certain applications alleging that the landlord failed to honour the tenant's right of first refusal is also changing. Beginning September 21, the deadline will extend to the later of two years after the tenant vacated or six months after the renovations were completed.

These are Bill 97 changes, not Bill 60 changes, but anyone dealing with an N13 around September 21 should understand both sets of amendments.

What Ontario Landlords Should Do Before September 21, 2026

Landlords should review any notices they plan to serve around the implementation date rather than assuming the new timelines already apply.

An N4 served before the September 21 changes takes effect under the rules that apply to that notice. Likewise, the new 120-day N12 compensation exception requires the qualifying notice itself to be given on or after the amendment comes into force.

Good record keeping will also become even more important. Rent-payment dates, written notices, termination agreements, N12 occupancy plans, and communications with tenants can all become relevant if a dispute reaches the LTB.

Landlords should use the current LTB forms and confirm the rules immediately before serving any notice. Small procedural errors can delay an application or, in some circumstances, make a notice ineffective.

What Ontario Tenants Should Do Before September 21, 2026

Tenants should pay close attention to dates on any N4, N12, N13, LTB application, or hearing notice they receive.

The shorter N4 timeline does not allow a landlord to evict a tenant personally, but it does mean a typical monthly tenant will have less time before a landlord can move to the next stage of the non-payment process.

Tenants involved in an arrears hearing should also understand the new section 82 requirement well before the hearing. If they intend to raise their own landlord-and-tenant issues within that proceeding, the requirement to pay half of the arrears claimed and the seven-day pre-hearing deadline could be critical.

If a notice or dispute could result in the loss of your housing, consider getting advice from a lawyer, licensed paralegal, or appropriate tenant legal service rather than relying only on general information online.

What Bill 60 Means for Buyers and Sellers of Tenanted Homes

Bill 60 is not only important to people who think of themselves as professional landlords.

It can also affect homeowners selling a property with a tenant and buyers purchasing a tenanted house or condo.

For example, the new 120-day compensation option applies to qualifying landlord-own-use notices under section 48, but a seller serving an N12 on behalf of a purchaser is dealing with the separate section 49 process.

That difference can affect notice periods, compensation, possession dates, and how a purchase agreement should be structured.

Buyers should therefore understand whether a property will be vacant on closing, whether there is an existing tenancy, what type of notice has been served, and whether vacant possession is actually guaranteed before making assumptions about when they can move in.

Sellers should be equally careful about promising vacant possession when a tenant's legal rights and the LTB process could affect timing.

Understanding Ontario's New Rental Rules Before Your Next Move

Bill 60 Phase 2 does not rewrite every landlord-and-tenant rule in Ontario, but the September 21 changes are significant.

For many monthly tenants, the N4 timeline will fall from 14 days to seven. A clearer persistent-late-payment benchmark is being introduced. Tenants who want to raise their own issues during certain arrears proceedings will face a new payment requirement. Some qualifying landlord-own-use N12 notices can avoid one month's compensation when at least 120 days' notice is provided, and the LTB will operate under new rules when considering some postponements and set-aside requests.

At the same time, related Bill 97 changes will strengthen certain protections around own-use and renovation evictions.

Whether you are renting, investing in a rental property, selling a tenanted home, or hoping to move from renting into a place of your own, understanding the rules can help you make better decisions before a problem arises.

If buying a home is your next step, The Johnson Team can help you navigate the Toronto and Greater Toronto Area market with a clearer understanding of the property, the neighbourhood, and the circumstances surrounding the sale. Our buyer's agents can help you determine your budget, identify suitable homes, compare recent sales, evaluate potential properties, and negotiate on your behalf.

Ready to move from renting toward homeownership? Contact The Johnson Team today to get connected with a buyer's agent right away and start planning your next move.

This article provides general information about Ontario residential tenancy rules and is not legal advice. Legislation, regulations, LTB forms, and procedures can change. Anyone dealing with an active eviction, tenancy dispute, or legal deadline should confirm the current rules and consider obtaining advice from a qualified Ontario legal professional.