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Fixed-Term Leases in Ontario: 2025 Rules and Updates

Understanding the security and limitations of fixed-term leases in 2025. What Bill 60 means for lease breaks, assignments, and standard forms.

7 min readPublished: February 2026

The "Fixed" Nature of Ontario Leases

A fixed-term lease (usually for one year) provides stability for both landlords and tenants. For the landlord, it guarantees rental income for the term. For the tenant, it guarantees housing security—they generally cannot be evicted for "no fault" reasons (like landlord's own use) effective before the end of the term.

However, confusion often arises about when and how these leases can be ended legally.Bill 60 and recent RTA updates have clarified these rules, reinforcing the binding nature of the agreement while protecting tenant assignment rights.

Bill 60 and Ending Leases Early

The 2025 legislation brought several nuances to lease terminations:

  • Stricter Enforcement: The LTB is taking a firmer stance on tenants who simply walk away from fixed-term leases. Landlords can pursue damages for lost rent and re-rental costs more effectively.
  • Clarified "Hardship" Rules: While tenants can apply to end a tenancy for hardship, the bar remains high. General financial changes usually do not void the lease contract.
  • N11 Agreements: The use of N11 (Agreement to End the Tenancy) forms is being scrutinized to ensure tenants aren't coerced. Always ensure N11s are signed voluntarily.

Automatic Conversion

Remember: In Ontario, a fixed-term lease never simply ends. When the date on the contract passes (e.g., the 1-year mark), it automatically converts to a month-to-month tenancy with all the same terms. You cannot force a tenant to sign a new lease or leave just because the year is up.

How Tenants Can Legally "Break" a Lease

Tenants often think they can end a lease with 60 days notice at any time. This is incorrect during a fixed term. However, there are specific legal "outs":

1. Lease Assignment (The "Loophole")

This is the most common legal way tenants end a fixed term early.

  • The Request: A tenant requests permission (in writing) to assign their lease to a new person.
  • Landlord's Choice: You can accept the request, refuse specific assignees (with valid reason), or refuse assignment principally (say "no" to the idea entirely).
  • The Consequence: If you refuse the assignment generally, or don't reply within 7 days, the tenant is then allowed to serve an N9 notice to end the tenancy with just 30 days notice.

Pro Tip: If you are paying below-market rent, tenants are unlikely to assign (since the assignee inherits the low rent). But if you refuse, they can leave, allowing you to re-rent at current market rates.

2. Mutual Agreement (Form N11)

You and the tenant can agree to end the lease at any time for any reason. This must be documented on the N11 Form. Both parties must sign willingly. This is often used when a tenant gets a job transfer or buys a home and the landlord is happy to find a new tenant.

3. Victims of Violence (Form N15)

Tenants experiencing domestic or sexual violence can end a tenancy with 28 days notice using Form N15, regardless of the fixed term. This is a crucial safety protection.

4. Landlord Breach of Obligations

If a landlord substantially fails to maintain the property or interferes with reasonable enjoyment, a tenant can apply to the LTB to end the tenancy.

Standard Lease Requirement

Landlords MUST use the Ontario Standard Form of Lease. If you don't use it, the tenant can demand one. If you don't provide it within 21 days of the demand, they can withhold one month's rent (and potentially keep it if not provided), and they gain the right to end the tenancy early.

Landlord Rights: When Can YOU End the Fixed Term?

Landlords are much more restricted. You generally cannot end a tenancy simply because the fixed term is over.

"For Cause" Eviction (Any Time)

You can evict during a fixed term for specific bad behaviors:

  • Non-payment of rent (N4)
  • Illegal acts (N6)
  • Damage to property (N5/N7)
  • Interference with others (N5/N7)
  • Impacting safety (N7)
  • Persistently late rent (N8 - effectively ends at term)

"No Fault" Eviction (End of Term Only)

Notices for personal use (N12), purchaser's use (N12), or demolition/renovation (N13)cannot take effect before the end of the fixed term.

Example: If a lease runs from Jan 1 to Dec 31, and you sell the house in June, the purchaser cannot move in until Jan 1 of the following year (assuming you give proper 60 days notice). The tenant is entitled to finish their fixed term.

Updates to the Standard Lease Form

The government periodically updates the mandatory Standard Form of Lease. 2025 updates likely include:

  • New checkboxes or sections for Bill 64 cooling requirements
  • Clearer language on electronic communication consent
  • Updated appendices with current LTB contact info

Always download the latest version from the official government repository before signing a new tenant.

Frequently Asked Questions About Fixed-Term Leases

Generally, no. A fixed-term lease is a binding contract for the specified period (usually one year). However, exceptions exist: by mutual agreement (N11), if the landlord refuses a lease assignment, or if the LTB issues an order ending the tenancy (e.g., for domestic violence situations).
Bill 60 reinforces the security of fixed-term leases but clarifies stricter penalties for tenants who abuse "bad faith" notices to break leases. It implies that tenants are financially liable for the entire term unless they legally assign the unit or have valid grounds to terminate.
Assignment is when a tenant transfers their lease to a new person for the remainder of the term. If a tenant asks to assign the unit and the landlord refuses (or doesn't reply within 7 days), the tenant can then end the lease with 30 days notice using an N9 form.
Only for specific "for cause" reasons (non-payment, illegal acts, damage, etc.) by serving the appropriate notice (N4, N5, N6, N7, N8). Landlords typically cannot end a fixed-term lease early for "no fault" reasons like personal use (N12) or renovation (N13)—these generally must align with the end of the term.
In Ontario, fixed-term leases automatically convert to month-to-month tenancies when the term expires. The terms and conditions of the original lease remain in effect. The tenant does not need to sign a new lease, and the landlord cannot force them to.
Yes, but you must follow the rent increase guidelines (2.1% for 2026) and serve an N1 form with 90 days notice. The increase normally takes effect on the first day after the fixed term ends (or later).
Yes. The Ontario Standard Form of Lease is updated periodically. Landlords must use the version currently in effect when signing a new tenancy agreement. Using an old or incorrect form can give tenants the right to end the tenancy early.
If you serve an N12 (Personal Use) notice, the termination date must be at least 60 days away AND must be the last day of the fixed term (or a rental period if month-to-month). You cannot use an N12 to shorten a fixed term.

Related Resources

N12 Personal Use Guide

Ending tenancy for landlord/purchaser use

Bill 64 Cooling Alert

New lease terms for AC/temperatures

N4 Notice Guide

Eviction for non-payment of rent

Bill 60 Guide

Comprehensive 2025 RTA summary

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