{"id":69009,"date":"2026-08-28T11:04:14","date_gmt":"2026-08-28T18:04:14","guid":{"rendered":"https:\/\/liv.rent\/blog\/?p=69009"},"modified":"2026-08-28T11:04:20","modified_gmt":"2026-08-28T18:04:20","slug":"buy-vs-rent-ottawa-ontario","status":"publish","type":"post","link":"https:\/\/liv.rent\/blog\/renters\/buy-vs-rent-ottawa-ontario\/","title":{"rendered":"Buy vs rent in Ottawa, Ontario: what renters need to know in 2026"},"content":{"rendered":"\n

What does it actually cost to rent vs buy in Ottawa right now?<\/h2>\n

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In Ottawa, Ontario, renting remains the cheaper month-to-month choice for many renters heading into fall 2026. liv.rent’s August 2026 Ontario Rent Report put Ottawa’s average unfurnished one-bedroom asking rent at $1,849. Buying a home at Ottawa’s composite resale price of $634,000 requires roughly $38,400 in minimum down payment plus $9,155 in provincial land transfer tax, or about $47,500 combined, before legal fees, a home inspection, and moving costs are added.<\/p>\n

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Current Ottawa rent prices (2026 data)<\/h3>\n

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Ottawa’s $1,849 average unfurnished one-bedroom asking rent places the city in the middle of the pack among the 20 Ontario markets liv.rent tracks, below Oakville’s $2,172 and above London’s $1,547. That figure has been trending lower rather than higher: the Canada Mortgage and Housing Corporation’s mid-year 2026 update<\/a> notes that Ottawa’s asking rents have been declining since the second quarter of 2025, alongside higher vacancy across most rent tiers.<\/p>\n

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What buying an entry home actually costs upfront<\/h3>\n

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Ottawa’s composite home price sat at $634,000 in July 2026, according to the Ottawa Real Estate Board’s data published through the Canadian Real Estate Association<\/a>, with the average sale price slightly higher at $683,308. The apartment and condo segment specifically was softer, with a composite price of $385,500, down 5.2% from a year earlier, the weakest performing property type in the city.<\/p>\n

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On a $634,000 purchase, Canada’s federal minimum down payment rules<\/a> require 5% on the first $500,000 and 10% on the remainder, for a minimum down payment of about $38,400. Ontario’s land transfer tax<\/a> on that same purchase works out to roughly $9,155. Unlike Toronto, Ottawa does not levy a separate municipal land transfer tax, so the provincial tax is the only transfer tax buyers need to budget for. Legal fees, a home inspection, and moving costs add further cost. Buyers putting down less than 20% also pay a mortgage default insurance premium, though that cost is typically rolled into the mortgage rather than paid upfront in cash.<\/p>\n

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Monthly carrying costs: renting vs owning<\/h3>\n

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A monthly rent payment is usually the main housing cost a tenant carries, alongside variable costs like utilities or parking. An owner’s monthly bill typically stacks a mortgage payment on top of property tax, home insurance, and, for a condo, a monthly maintenance fee, plus a reserve for repairs that a landlord would otherwise handle. The table below shows the monthly and upfront gap.<\/p>\n

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Cost factor<\/strong><\/td>Renting (unfurnished one-bedroom)<\/strong><\/td>Buying (composite-priced home)<\/strong><\/td><\/tr><\/thead>
Monthly baseline<\/td>$1,849 (August 2026)<\/td>Mortgage payment (varies by rate and term) plus property tax, insurance, and any condo fees<\/td><\/tr>\n
Reference price<\/td>Not applicable<\/td>$634,000 (July 2026 composite price)<\/td><\/tr>\n
Minimum cash needed upfront<\/td>First month’s rent, plus a rent deposit applied to the last rental period<\/td>About $47,500 combined ($38,400 minimum down payment plus $9,155 land transfer tax)<\/td><\/tr>\n
Repairs and maintenance<\/td>Landlord generally covers property maintenance and repairs; tenants remain responsible for cleanliness and any damage they cause<\/td>Owner’s responsibility<\/td><\/tr>\n
Cost to exit<\/td>60 days’ notice on a monthly tenancy<\/td>Selling costs vary and can include commission, legal fees, discharge fees, and moving costs<\/td><\/tr>\n<\/tbody><\/table><\/figure>\n

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Is Ottawa’s rental market shifting in renters’ favour in 2026?<\/h2>\n

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Ottawa’s rental market is rebalancing, though it has not flipped fully into renters’ hands. Urbanation’s first quarter 2026 survey<\/a> of Ottawa’s stabilized, post-2000 rental buildings found a 3.2% vacancy rate, up from 2.6% a year earlier and nearly double the 1.7% recorded two years earlier, with a broader availability rate of 6.5%, its highest level since the pandemic.<\/p>\n

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Why vacancy is rising after years of tightness<\/h3>\n

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A wave of new purpose-built rental supply has been reaching the Ottawa market over the past two years, a major driver behind the loosening vacancy numbers Urbanation reported for the first quarter of 2026. The Canada Mortgage and Housing Corporation’s mid-year update adds that Ottawa’s asking rents have softened since the second quarter of 2025 as vacancies rose across most rent quartiles, not just in the newest buildings.<\/p>\n

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What incentives mean for renters right now<\/h3>\n

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Urbanation found that 57% of Ottawa’s post-2000 rental projects were offering incentives in the first quarter of 2026, with the average incentive cutting face rent by about 11%, or $272 a month, and 39% of projects offering two free months on a new lease. For a renter negotiating a new lease in one of these buildings, asking directly about move-in incentives or free months is now a realistic position. Renters can compare what is currently available and find a rental on liv.rent<\/a>.<\/p>\n

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Real relief, but not equal negotiating power everywhere<\/h3>\n

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A 3.2% vacancy rate is real relief after years of tightness, but it does not automatically mean every renter has equal negotiating power, and the loosening is concentrated in newer buildings rather than the entire rental stock. Ottawa’s federal government employment base, discussed in more detail below, adds a layer of demand uncertainty that could push the market in either direction over the next year.<\/p>\n

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What does Ontario’s 2026 rent increase guideline mean for Ottawa renters?<\/h2>\n

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Ontario’s rent increase guideline for 2026 is 2.1%<\/a>, down from 2.5% in 2025, and the province has already set the 2027 guideline at 1.9%. The guideline caps how much a landlord can raise rent on an eligible unit without seeking above-guideline approval from the Landlord and Tenant Board.<\/p>\n

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The 2.1% cap: what it covers and what it does not<\/h3>\n

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The guideline applies to most rental units first occupied on or before November 15, 2018, and covers an estimated 1.4 million rental households<\/a> under Ontario’s Residential Tenancies Act. It does not apply to vacant units, community housing, long-term care homes, or commercial properties. On a $2,000 monthly rent, the maximum legal increase under the 2026 guideline works out to $42.<\/p>\n

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The post-November 2018 exemption every Ottawa renter should know<\/h3>\n

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Units first occupied for residential purposes after November 15, 2018 fall outside the guideline entirely. In these newer Ottawa buildings, a landlord can raise rent by any amount, but must still give at least 90 days’ written notice and cannot raise rent more than once every 12 months. When a unit turns over, Ontario landlords can generally set a new starting rent for the next tenant; while the same tenant stays in place, rent remains capped by the guideline if their unit qualifies. Renters can check the current Ontario rent increase rules<\/a> for the specific forms and notice periods that apply to their situation.<\/p>\n

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What to do about a rent increase that looks illegal<\/h3>\n

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A rent increase must be delivered on the correct form, typically an N1 for a guideline increase or an N2 for a unit exempt from the guideline amount, with at least 90 days’ notice. A tenant who believes an increase was delivered improperly, or exceeds what the law allows, can raise the issue with the Landlord and Tenant Board<\/a>. This is general information, not legal advice. Tenants with a specific dispute should confirm their situation directly with the board.<\/p>\n

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How long do you need to stay in Ottawa before buying makes financial sense?<\/h2>\n

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Transaction costs, including land transfer tax, legal fees, and the commission paid on an eventual sale, are difficult to recover if a home sells within a year or two, so buying tends to make more financial sense the longer a household plans to stay in place.<\/p>\n

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Why transaction costs are the hidden trap for short-term buyers<\/h3>\n

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On a $634,000 purchase, Ontario’s land transfer tax alone comes to about $9,155, with no municipal top-up since Ottawa, unlike Toronto, does not levy its own land transfer tax. Add legal fees, a home inspection, and a mortgage default insurance premium for buyers putting down less than 20%, and the fixed costs of getting into a home add up well before a single mortgage payment is made.<\/p>\n

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Why a short hold carries more risk in today’s market<\/h3>\n

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Ottawa’s apartment and condo segment, the entry point for many first-time buyers, saw its composite price fall 5.2% year over year to $385,500 in July 2026, the softest performance of any property type the Ottawa Real Estate Board tracks. Active listings were up 11.2% year over year, and months of supply widened to 3.5, which the Ottawa housing market report from WOWA.ca<\/a> describes as balanced territory rather than either extreme. A buyer entering a still-adjusting condo segment carries more short-term price risk than one buying into a stable market, on top of the transaction costs that apply regardless of how long a home is held.<\/p>\n

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Why federal job uncertainty is worth weighing<\/h3>\n

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Ottawa’s economy has significant exposure to federal government employment, which historically has buffered the city from swings seen in Toronto or Vancouver. Federal budget planning<\/a> aims to reduce the public service from about 369,000 employees in 2023 and 2024 to roughly 330,000, with about 16,000 full-time equivalent positions targeted for reduction over three years and about 9,800 already reduced in 2024 and 2025. That uncertainty is worth factoring into a purchase decision alongside personal job security, savings, and how long a buyer realistically expects to stay, rather than treating it as a reason on its own to delay buying.<\/p>\n

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Ottawa or Gatineau: does crossing the river actually save money?<\/h2>\n

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Renters working at federal offices in downtown Ottawa sometimes consider Gatineau, Quebec, on the other side of the river, as a lower-cost alternative. Based on the Canada Mortgage and Housing Corporation’s October 2025 Rental Market Survey, Gatineau’s average rent across all unit types was $1,413, compared with $1,741 in Ottawa, a gap of about 19%, with Gatineau’s vacancy rate at 3.8% against 2.9% in Ottawa. The comparison below lines up the rent, vacancy, and legal differences between the two cities.<\/p>\n

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Metric<\/strong><\/td>Ottawa<\/strong><\/td>Gatineau<\/strong><\/td><\/tr><\/thead>
Average rent, all unit types (CMHC, October 2025)<\/td>$1,741<\/td>$1,413<\/td><\/tr>\n
Vacancy rate (CMHC, October 2025)<\/td>2.9%<\/td>3.8%<\/td><\/tr>\n
Governing tenancy law<\/td>Ontario Residential Tenancies Act, Landlord and Tenant Board<\/td>Quebec tenancy rules, Tribunal administratif du logement<\/td><\/tr>\n
2026 rent increase guideline<\/td>2.1% (most units occupied before November 15, 2018)<\/td>Set annually by Quebec’s tribunal on a different formula<\/td><\/tr>\n<\/tbody><\/table><\/figure>\n

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What the Gatineau option actually trades away<\/h3>\n

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The savings come with a genuine change in governing law. Gatineau tenancies fall under Quebec’s rules, administered by the Tribunal administratif du logement, not Ontario’s Landlord and Tenant Board, so lease renewal rules, notice periods, and dispute processes differ from what an Ottawa renter is used to. Transit and road connections can make the cross-river commute workable for some renters, but routes, schedules, and commute times are worth checking before signing. Renters weighing the two cities in more detail can read liv.rent’s dedicated comparison of buying vs renting in Gatineau, Quebec<\/a>.<\/p>\n

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Why the neighbourhood question does not have one fixed answer<\/h3>\n

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Central Ottawa neighbourhoods generally command higher rents and higher purchase prices than suburban areas farther from downtown, while suburban living typically trades a lower cost for a longer commute. Because asking prices shift block by block and month by month, the fastest way to check current asking rents for a specific street or building is to search active listings directly rather than rely on a citywide average.<\/p>\n

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What renting in Ottawa protects you from that buying does not<\/h2>\n

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Renting shields a household from three risks that ownership carries: exposure to a still-adjusting resale market, general responsibility for maintenance and repairs, and the illiquidity of an asset that takes months and thousands of dollars in commission to sell.<\/p>\n

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No exposure to a softening resale market<\/h3>\n

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With Ottawa’s apartment and condo price down 5.2% year over year and months of supply at a balanced 3.5<\/a> as of July 2026, a buyer entering the market today carries more downside price risk than a renter watching from the sidelines.<\/p>\n

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Mobility during career uncertainty<\/h3>\n

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A tenant on a monthly tenancy in Ontario can end it with at least 60 days’ notice, timed to the last day of a rental period, a flexibility worth having given the federal employment uncertainty discussed above. Landlords face a change of their own under Bill 60, the Fighting Delays, Building Faster Act, 2025, passed in November 2025. As of this article’s August 26, 2026 publication date, a landlord or purchaser filing an N12 notice to move in personally must still pay one month’s compensation, or offer a comparable unit, regardless of how much notice they give. That has not changed yet: a new exception is scheduled to take effect September 21, 2026, and will apply only to qualifying N12 own-use notices that give at least 120 days’ notice ending on the last day of a rental period. Renters served with an N12 today should confirm which rule applies to their notice date with the Landlord and Tenant Board<\/a>. Renters can find a full walkthrough of managing a tenancy, including notices like these, in liv.rent’s renter’s guide to using liv.rent<\/a>.<\/p>\n

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Maintenance and repair risk generally stays with the landlord<\/h3>\n

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A leaking roof, an aging furnace, or a failing appliance is generally the landlord’s financial responsibility to fix under a residential tenancy. Tenants remain responsible for keeping the unit reasonably clean and for repairing any damage they cause, while an owner absorbs ordinary wear-and-tear costs directly, on top of whatever reserve fund a condo corporation requires.<\/p>\n

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What should Ottawa renters do right now: a practical checklist<\/h2>\n

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Renters weighing their next move in 2026 should start by confirming their unit’s first occupancy date, since that single fact determines whether the 2.1% guideline or the post-2018 exemption applies, then weigh their own timeline and finances against the numbers above.<\/p>\n

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If you are leaning toward staying a renter in 2026<\/h3>\n

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Confirm whether your unit was first occupied on or before November 15, 2018, since that determines your rent control status. You are entitled to at least 90 days’ written notice before any rent increase takes effect. With more than half of newer buildings offering incentives as of early 2026, it is a reasonable time to ask a landlord directly about free months or other move-in terms on a new lease.<\/p>\n

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If you are seriously considering buying in the next 12 months<\/h3>\n

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Get a mortgage pre-approval so you know your real ceiling, then calculate the full upfront cost, not just the down payment. On a composite-priced Ottawa home, budget for land transfer tax, legal fees, and a home inspection on top of the down payment itself. Stress test that budget against a condo segment still down 5.2% year over year, and weigh how long you realistically expect to stay against the transaction costs involved in buying and eventually selling.<\/p>\n

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How liv.rent fits either path<\/h3>\n

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Whether you are staying a renter or weighing a purchase, liv.rent’s monthly rent reports track average asking rents across Ottawa<\/a> and comparable Ontario markets, giving renters a first-party reference point that updates every month. This is general information, not financial or legal advice. Anyone with a specific dispute or a major purchase decision ahead of them should speak with a licensed professional.<\/p>\n

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Is it cheaper to rent or buy in Ottawa in 2026?<\/h2>\t\t\t\t
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Month to month, renting is cheaper. liv.rent’s August 2026 Ontario Rent Report put Ottawa’s average unfurnished one-bedroom asking rent at $1,849, while buying at the city’s $634,000 composite price requires about $47,500 upfront in down payment and land transfer tax alone, before a single mortgage payment. Buying can build equity over time, but the up-front transaction costs are easier to recover the longer a household stays in the home.<\/p>\n\n\t\t\t<\/div>\n\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\n\t\t\t\t

What is the Ontario rent increase guideline for 2026?<\/h2>\t\t\t\t
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Ontario’s 2026 rent increase guideline is 2.1%, down from 2.5% in 2025, and the province has already set 2027’s guideline at 1.9%. Landlords must give at least 90 days’ written notice on the correct form before an increase takes effect, and can only raise rent once every 12 months on an eligible unit.<\/p>\n\n\t\t\t<\/div>\n\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\n\t\t\t\t

My Ottawa condo was built in 2021. Does rent control apply?<\/h2>\t\t\t\t
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Probably not, if it was first occupied for residential purposes after November 15, 2018. Units occupied after that date are exempt from Ontario’s annual rent increase guideline. Your landlord can raise rent by any amount, but still needs to give at least 90 days’ written notice and cannot raise rent more than once every 12 months. Confirm the unit’s actual first occupancy date if you are unsure.<\/p>\n\n\t\t\t<\/div>\n\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\n\t\t\t\t

Is Ottawa's rental market improving for renters in 2026?<\/h2>\t\t\t\t
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Moderately, yes. Urbanation’s first quarter 2026 survey found vacancy in Ottawa’s newer, stabilized rental buildings at 3.2%, up from 1.7% two years earlier, with 57% of those buildings offering incentives such as free months. It is a rebalancing rather than a full swing toward renters, since the loosening is concentrated in newer buildings rather than the entire rental stock.<\/p>\n\n\t\t\t<\/div>\n\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\n\t\t\t\t

Is Gatineau actually cheaper than Ottawa?<\/h2>\t\t\t\t
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Based on the Canada Mortgage and Housing Corporation’s October 2025 survey, Gatineau’s average rent across all unit types was about 19% lower than Ottawa’s. The trade-off is jurisdiction: Gatineau tenancies fall under Quebec’s Tribunal administratif du logement rather than Ontario’s Landlord and Tenant Board, so lease rules and notice periods differ from what an Ottawa renter is used to.<\/p>\n\n\t\t\t<\/div>\n\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\n\t\t\t\t

How much do I need for a down payment to buy in Ottawa?<\/h2>\t\t\t\t
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On Ottawa’s composite price of $634,000 as of July 2026, Canada’s federal minimum down payment rules require 5% on the first $500,000 and 10% on the remainder, for a minimum of about $38,400. Add Ontario’s land transfer tax of roughly $9,155 on the same purchase, and a buyer should plan on close to $47,500 combined, before legal fees, a home inspection, or any mortgage default insurance premium.<\/p>\n\n\t\t\t<\/div>\n\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\n\t\t\t\t

Can my Ottawa landlord evict me to sell the unit?<\/h2>\t\t\t\t
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Not just because the unit is being sold. A sale on its own does not end a tenancy, and in most cases a new owner takes over as landlord under the existing lease. A landlord, a qualifying family member, or an eligible purchaser can only serve an N12 notice to end a tenancy if they genuinely intend to move into the unit personally, not simply to sell it with vacant possession. As of this article’s August 26, 2026 publication date, an N12 must still come with one month’s compensation (or a comparable unit offered), regardless of the notice period given. That has not changed yet: a new exception is scheduled to take effect September 21, 2026, under Bill 60, the Fighting Delays, Building Faster Act, 2025, and will apply only to qualifying N12 own-use notices giving at least 120 days’ notice ending on the last day of a rental period. This is general information, not legal advice. Tenants facing an N12 should confirm their specific situation with the Landlord and Tenant Board.<\/p>\n\n\t\t\t<\/div>\n\t\t<\/div>\n\t\t<\/section>\n\t\t\n