Sometimes life throws you a curveball — a new job in another city, a sudden breakup, or unexpected family changes. Whatever the reason, you might find yourself needing to move out before your lease is up. But in Ontario, walking away from your rental agreement isn’t always straightforward. There are rules, potential penalties, and a few ways to do it properly.
In this guide, we’ll explain your legal options, what penalties you might face, and how to exit your lease with as little stress as possible in 2025.
Can You Break a Lease Early in Ontario?
Yes — but there’s a catch. A lease is a legally binding contract under the Residential Tenancies Act (RTA). That means breaking it without a valid reason or the landlord’s agreement can lead to financial consequences. Still, there are several legal ways to end your lease early, and understanding those options can save you a lot of trouble.
Legal Ways to Break a Lease in Ontario
Here are the main routes tenants can take to end a lease early:
| Option | Description | Risk of Penalties | Landlord Consent Needed |
|---|---|---|---|
| Mutual Agreement | You and your landlord agree in writing to end the lease | Low | Yes |
| Assigning the Lease | Another tenant takes over your lease | Low | Yes (but can’t be refused without reason) |
| Subletting | You find someone to live there temporarily | Moderate | Yes |
| Legal Justification | Special cases like domestic violence or unsafe housing | None | No |
| Breaking Without Consent | Leaving without agreement or valid reason | High | No |
When You Can Break a Lease Without Penalty
In some situations, Ontario law allows tenants to walk away from a lease early with no penalties. These include:
- Domestic or sexual violence: You can end your lease with 28 days’ written notice and proper documentation.
- Unsafe or unlivable conditions: This includes major repairs left unattended or serious health and safety issues.
- Landlord harassment: Repeated privacy violations or threatening behavior can be grounds for early termination.
- Failure to provide essential services: Lack of heat, water, or electricity.
- Job relocation (rare): Sometimes covered in employment contracts, though this isn’t common.
Steps to Take if You Need to Break Your Lease
- Read Your Lease First
Check for any early termination clauses or rules about subletting and lease assignments. - Talk to Your Landlord
Many landlords are open to working something out — especially if the rental market is strong. - Request to Assign the Lease
If you find someone reliable to take over your lease, submit a written request. The landlord must reply within 7 days. - Give Notice in Writing
If an agreement is reached or you have legal grounds, provide written notice (usually 60 days unless otherwise allowed). - Document Everything
Keep a paper trail of emails, agreements, and notices to protect yourself if any issues come up later.
What Happens If You Break the Lease Without Cause?
Leaving early without a legal reason or agreement with your landlord can lead to:
- Paying Rent Until the Unit Is Re-Rented
You could still be on the hook for monthly rent until someone else moves in. - Losing Your Security Deposit
The landlord may deduct charges for unpaid rent or damages. - Legal Action
Your landlord could file a claim with the Landlord and Tenant Board (LTB). - A Bad Rental Reference
This could affect your chances of getting approved for another rental in the future.
Assigning vs. Subletting: Know the Difference
| Feature | Assigning Your Lease | Subletting Your Unit |
|---|---|---|
| Who Pays the Landlord | New tenant | You (the original tenant) |
| Who Is Legally Liable | New tenant assumes full responsibility | You remain legally responsible |
| Lease Type | Transferred permanently | Temporary handover |
| Consent Needed? | Yes (must be reasonable) | Yes |
| LTB Involvement | Rare | More likely if disputes arise |
Frequently Asked Questions (FAQ)
1. Can my landlord refuse a lease assignment?
Only if they have a valid reason — like bad references or poor credit. If they say no without good cause, you may give 30 days’ notice and leave.
2. How much notice do I need to give?
Usually 60 days in writing, unless your lease or agreement says otherwise.
3. Can I find a replacement tenant myself?
Absolutely. You’re allowed to find someone to sublet or take over your lease. Your landlord can screen them but can’t charge unreasonable fees.
4. What if the landlord ignores my request to assign?
If they don’t respond within 7 days, the law treats it as a refusal — and that gives you the right to end the lease with 30 days’ notice.
5. Will breaking my lease hurt my credit score?
Not directly. But if unpaid rent goes to collections or court, it could show up on your credit report.
Final Thoughts
Breaking a lease in Ontario isn’t something to take lightly — but it’s also not the end of the world. Whether you’re moving for work, going through a breakup, or just need a change, the key is to know your rights and act responsibly.
Talk to your landlord, know your legal options, and keep everything in writing. When handled properly, you can move forward without damage to your record — or your wallet.
