Irina Marchenkova · RE/MAX Realtron Realty
Is leasing the same as renting in Ontario? Compare the real costs of renting vs. buying in Toronto, tenant rights and rent increase rules for 2026.
By Irina Marchenkova, Sales Representative, RE/MAX Realtron Realty · Last updated October 2026
Should you lease or buy your next home in Toronto? And is “leasing” a house any different from “renting” one? This guide answers both questions, compares the real costs of renting and owning, explains your rights as a tenant in Ontario, and helps you decide which makes sense for you right now.
For a home in Ontario, no. “Leasing” and “renting” describe the same arrangement: you (the tenant) agree with a landlord to live in the home and pay rent. The lease is the written agreement. For most residential tenancies, Ontario requires landlords to use the province’s Standard Form of Lease.
What does differ is the type of lease:
In Ontario, when a one-year lease ends, you don’t have to sign a new one. The tenancy simply continues month to month, with the same rights. A tenant who wants to leave usually gives at least 60 days’ written notice, timed for the end of a rental period.
Renting a house usually means more space and privacy, but often more responsibility: tenants commonly pay all utilities, and the lease may make them responsible for lawn care and snow removal. In a condo or apartment, heat, water and building maintenance are often included, and you’ll follow the building’s rules. Read the lease carefully to see who pays for what.
| Renting | Buying | |
|---|---|---|
| Money up front | First and last month’s rent | Down payment (5% or more) plus closing costs of roughly 1.5% to 4% |
| Monthly costs | Rent (plus utilities and tenant insurance) | Mortgage, property tax, insurance, maintenance, and condo fees if applicable |
| Equity | None | Part of every mortgage payment builds ownership, plus any increase in value |
| Flexibility | High: move with proper notice | Lower: selling takes time and costs money |
| Repairs | Landlord’s responsibility (mostly) | Yours |
| Rent or cost increases | Capped for many older units (see below) | Payments set for your mortgage term; rates can change at renewal |
Suppose you are choosing between renting a one-bedroom condo and buying a similar unit for $650,000 with 10% down. With a 25-year mortgage at around 4.5%, the mortgage alone would be roughly $3,300 a month once mortgage insurance is included, before property tax and condo fees. If similar units rent for much less than that total, renting may cost less month to month. But part of each mortgage payment builds equity you keep, while rent is gone. That is why the answer depends on how long you’ll stay, your savings, and the market. I’m happy to run real numbers for the homes you’re looking at.
For more help as a renter, see my rental checklist and how to write an introduction letter to a landlord.
If you’re leaning toward buying, start with my first-time buyer guide and mortgage pre-approval guide. New to Canada? See my newcomer buyer guide. Or get in touch and I’ll help you compare renting and buying for your situation.
Yes, for homes. Leasing and renting both mean living in a home owned by a landlord and paying rent under a tenancy agreement. The lease is the written agreement.
Your tenancy usually continues month to month on the same terms. You don’t have to sign a new lease, and the landlord can’t end the tenancy just because the term is over.
It depends on how long you’ll stay, your savings and income, and prices in the areas you like. Buying usually makes more sense for people staying five years or more.
For most units first occupied before November 15, 2018, the maximum is 2.1% in 2026. Newer units aren’t covered by the guideline cap.
General information, not legal or financial advice. For tenancy questions, see the Landlord and Tenant Board; for your situation, speak with a professional.
