Can You Break A Lease In Ontario?

by | Feb 21, 2025 | legal guidance, Real Estate Law | 0 comments

A cover about the ins and outs of breaking a lease.

Breaking a lease in Ontario is possible, but there may be consequences. Of course, the consequences will depend on the type of tenancy and how much time is left before the agreed ending term.

Whether you want to move out early because of family issues or other reasons, learning about can you break a lease in Ontario can help you.

So let’s look at the ins and outs of breaking a lease and what is the penalty for breaking a lease in Ontario.

Can You Break A Lease In Ontario?

A graphic explaining details of breaking a lease in Ontario.

You can break a lease in Ontario if you wish to vacate a rental space early. However, you will have to speak to your landlord or check your lease agreement.

Breaking the lease early may have consequences if you don’t have a valid reason. You will also face penalties if you move out and stop paying rent without informing the landlord.

What Is The Penalty For Breaking A Lease In Ontario?

An illustration of consequences of breaking a lease in Ontario.

You may wonder what is the penalty for breaking a lease in Ontario. Remember the consequences will depend on whether the lease is broken by you or the landlord. 

Here’s what you must know about the penalty according to real estate law:

Penalty For Tenants

1. Rent Payment Until Lease Ends

Breaking a lease early without informing the landlord will cause you to suffer a penalty. This is also true if you don’t offer a notice to the landlord or they have rejected your request for breaking a lease.

In such cases, you will be required to pay the rent until the agreed ending term of your lease. You will have to pay monthly or quarterly, depending on your lease type.

2. Loss Of Security Deposit

A security deposit is a fixed payment that a tenant has to pay their landlord when renting a space. It is usually the value of one month’s rent, but may be more or less.

The deposit is a security for landlords against tenants who violate their lease agreements. If you break your lease without valid reasons, you may lose the security deposit to the landlord.

If the landlord files a lawsuit against you, there may be other legal consequences. For example, you may be required to compensate the landlord for ending the lease early.

Penalty For Landlords

1. Fine

Landlords cannot break a lease early unless they meet the set criteria by the Landlord and Tenant Board (LTB). If your landlord tries to evict you without any valid reason, you can file a case against them.

The court may order the landlord to continue the lease agreement and let you stay until the contract expires. They may also fine the landlord to ensure they don’t violate lease agreement terms again.

This is especially true if the landlord breaks the lease by locking you out of your unit. The Provincial Court can fine the landlord between $25,000 to $100,000 for the act.

2. Other Legal Consequences

The landlord may be asked to compensate you by returning your future rent amount or security deposit if they break the lease. 

Sometimes the court may also tell the landlord to cover your moving costs to a new place as a punishment for breaking the lease.

The exact penalty in some cases will depend on the circumstances under which the lease was broken. It will also depend on whether you agreed to break the contract but then backed out.

What Is The Penalty For Breaking A Lease In Ontario If You Mutually Agreed With Landlord But Changed Your Mind About Leaving?

Imagine you got a job outside your country and negotiated with your landlord to break your lease early. However, a few days later you may change your mind about taking the new job and moving out of your rental unit.

In such cases, you will have to ask the landlord to form a new tenancy agreement with you. 

If the landlord does not agree, you will have to move out of the unit according to your previous agreement to break the lease early.

The landlord can also apply to the LTB for an eviction order if you refuse to leave the space. So changing your mind about breaking the lease doesn’t mean you can continue living in the unit if your landlord doesn’t agree.

Can Landlord Keep Security Deposit For Breaking Lease Ontario?

A landlord can keep your security deposit if you break the lease without meeting the legal criteria. This is also true if you don’t offer a notice to the landlord before ending the lease.

Sometimes the landlord may also be allowed to keep the security deposit even if you break the lease legally.

However, in all conditions, it is necessary that you have caused damage to the rental unit. If you didn’t damage the property but broke the lease early, the landlord cannot keep your security deposit.

How Can You Break A Lease In Ontario Without Penalty?

If you break a lease without following legal guidelines, you will always face a penalty. However, you can also break a lease without consequences if your reasons match the legal criteria set by the Residential Tenancies Act (RTA).

1. Mutual Agreement With Landlord

The top way to avoid a penalty when breaking a lease in Ontario is to negotiate with your landlord. Every landlord doesn’t have strict rules about ending tenancies.

You may also have put a clause in your lease agreement that any party can break the contract upon proper notice and negotiations. 

If your landlord agrees to let you end the tenancy early, you can leave the property without fines or having to pay future rent payments.

2. Prove Unsafe Living Environment

A tenant can also break a lease early if they can prove an unsafe living environment. For example, a stalker may be harassing you at your rental unit.

If you’re facing fear of sexual abuse or harm in the rental unit, you may end the tenancy early to relocate and ensure the stalker cannot find you. In such a case you will have to offer two documents:

  • A notice of ending tenancy to your landlord with the reason as fear of abuse
  • A court order copy such as a restraining order against the stalker or a statement about the harassment

You will not have to worry about losing your security deposit or completing rent payments when breaking a lease for this reason.

3. Lack Of Standard Lease Form

If you formed a tenancy agreement with a landlord in Ontario after 2018, you must receive a standard lease form. This form is mandatory for all tenancy contracts signed after 30th April 2018.

So if your landlord hasn’t given you the form, you can write an application to get a signed copy of the lease form. If they don’t offer you the form within 21 days of receiving your application, you can break the lease early without penalty.

Remember, you will still have to offer a notice of ending tenancy to them before vacating the unit and stopping rent payments.

4. New Tenant Assignment

Sometimes, breaking the lease early can cause the landlord to suffer from significant financial loss. This is especially true if you have a lot of time left before your lease expires.

In such cases, you can help the landlord get a new tenant assignment to end the contract without consequences. The new tenant will replace you and will be responsible for paying rent and damages that they cause to the unit.

5. Getting Permission From The Landlord And Tenant Board 

If your landlord does not allow you to break the lease early, you can try to get around the contract by receiving permission from the LTB.

Tenants who can prove their landlords are not meeting legal obligations can be allowed to end the lease. Violation of obligations may include:

  • The landlord using your unit keys to enter your property without any valid reason
  • Tenant harassment
  • Failing to maintain the safety standards of the unit

If you can prove any of these things, the LTB will issue an order allowing you to end the lease. Even if the landlord doesn’t agree to let you vacate, they cannot stop you or fine you if you have an LTB order.

What Is The Tenant’s Notice To End Tenancy In Ontario?

A tenant’s notice to end tenancy is a form in Ontario that tenants must fill out and send to their landlord if they’re breaking the lease early. You can send this notice if:

  • You are facing abuse at the rental unit, and you believe continuing to stay at the unit will cause you to get hurt
  • A child living with you is facing harassment, sexual abuse, or domestic violence at the unit, and continuing to live at the unit can cause them to get hurt

You must send this notice at least 30 days before the termination date stated on the form. Otherwise, you may not be able to break the lease early.

What Can You Do If A Landlord Rejects A New Assignment Without Any Valid Reason?

Legal regulations allow tenants to break a lease early if they can get the landlord a new reliable tenant. Your landlord cannot reject the new assignment without any valid reason.

If they refuse the assignment to force you to continue the contract, you can fill out an LTB application about the assignment. Informing the board about the situation can help you get out of the tenancy contract. 

The LTB may:

  • Issue an order of ending tenancy
  • Approve the new assignment and make the landlord agree to take on the new tenant
  • Order your landlord to pay you rent abatement

If the landlord gives a valid reason for not accepting the new assignment, the LTB will require you to continue the lease until you suggest another reliable assignment.

Can A Landlord Break A Lease Without Penalty Ontario?

A landlord can break a lease without penalty in Ontario if they follow legal guidelines set by the RTA. These include:

  • Landlords can break lease with tenants who don’t pay their full rent on the discussed dates
  • A landlord can end a lease if the tenant damages their property
  • Landlords may break a lease with tenants who disturb other tenants
  • Ending a lease agreement early is possible if the tenants are performing illegal activities at the unit

If a landlord states one of these reasons for ending tenancy, the LTB will allow them to break the lease without any penalty.

FAQs

How Long After Signing A Lease Can You Back Out Ontario?

You cannot back out of a lease once you’ve signed it. If you wish to break the contract early, you must meet the legal guidelines or face penalties.

What Is The Best Excuse To Break A Lease?

The best excuse to break a lease is a reason that comes under the legal guidelines set by the RTA. For example, you may use a lack of standard lease form to end a tenancy early.

Can A Landlord Prevent A Tenant From Breaking A Lease Early?

A landlord can prevent tenants from breaking their lease early, especially if the tenant’s reason does not come under RTA guidelines.

What Is The Minimum Notice To End A Tenancy In Ontario?

If you have a daily or weekly tenancy, you must offer a notice at least 28 days before ending the lease. However, if you have another type of tenancy you must send a notice 30 days before the termination date.

Call Our Law Office Today To Get Around Breaking A Lease In Ontario

The answer to can you break a lease in Ontario is yes. However, the process of breaking a tenancy agreement can be complex. This is especially true if you don’t meet the legal criteria for ending the lease early.

Contacting an expert real estate lawyer can help you navigate the complexities of breaking a lease early. So book an appointment with us today to start the process of ending your tenancy in Ontario without facing penalties.

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Barnett Law
Barnett Law
Barnett Law is a trusted and knowledgeable lawyer in Scarborough. Her expertise spans real estate law, family law, adoptions and fertility law. A lawyer by profession and a humanitarian by heart, Athena Narsingh Barnett wants to help people become more familiar with the legal system and be well-informed to make important legal decisions.