Late Rent and NSF Fees in Ontario

Almost certainly not, and the reason matters. The Residential Tenancies Act, 2006 (the Act) says a landlord cannot collect or require a fee, penalty or like amount of money, even if refundable, unless a regulation allows it (section 134(1)(a)). The ban also binds a superintendent, property manager or anyone else acting for the landlord (section 134(2)).

No page reviewed says "late fees are banned" in those words. The conclusion comes from reading the fee ban together with the regulation's exemption list (O. Reg. 516/06, section 17), which does not include late fees. That is a reading of the Act and the regulation, not an official statement by the Landlord and Tenant Board (LTB).

A lease clause that conflicts with the Act is void (section 4(1)). A tenant may apply for money collected illegally (section 135), and charging contrary to section 134 is an offence (section 234(l)). The full text is on the Ontario e-Laws page for the Act.

Rent itself is a different matter: a tenant who does not pay rent can be served a notice, covered in the guide to a tenant who is not paying rent in Ontario.

The regulation does allow two NSF items (O. Reg. 516/06, section 17). See O. Reg. 516/06.

• The NSF charges that your financial institution charged you.
• An administration charge, not greater than $20, for an NSF cheque.

You can claim NSF and administration charges on an L1 application, limited to the prescribed exempt amount (section 87(5)).

What the sources do not say: the regulation's wording is "NSF cheque". The sources reviewed contain no rule on failed e-transfers or other non-cheque payments, so the $20 administration charge should not be assumed to apply to them. Ask the LTB about those cases. The sources also do not state interest on arrears.

Rent that is repeatedly late is a ground to end a tenancy. The Act lists a tenant who has persistently failed to pay rent on the date it becomes due (section 58(1)). Since September 21, 2026, a regulation defines it: failing to pay rent within seven days of the due date on at least three occasions within any six month period (O. Reg. 516/06, section 8.1). That list is not limiting, and it excludes a failure that is not solely attributable to the landlord applying a rent payment to another amount owing.

1. Serve an N8. The notice period is at least 60 days for monthly, yearly or fixed term tenancies, and 28 days for daily or weekly tenancies (section 58(2) with section 44).
2. Apply on L2. The application must be filed no later than 30 days after the termination date. The tenant does not have to owe rent.
3. Know the limit. The LTB cannot issue an order for rent owing if the application is only based on persistent late rent.

The LTB's guidance is in How a Landlord Can End a Tenancy. For a wider look at notices, see the guide to forms and required wording in Ontario.

If rent is not paid at all, the path is the N4 and an L1 application. Recent changes matter, so check the dates.

Step	What the LTB guidance and the Act say
N4 notice	For notices given on or after September 21, 2026, the termination date must be at least 7 days after the notice is given, for all tenancies (section 59(1)). Before that date, monthly or annual rent was 14 days and daily or weekly was 7 days.
N4 is void if	The tenant pays the arrears and additional rent before the landlord applies (section 59(3)).
L1 filing	The earliest day to file is the day after the termination date in the N4. There is no 30 day limit on these applications (section 69(3)).
Half the arrears	For L1 applications filed on or after September 21, 2026, a tenant must pay at least half of the arrears at least seven days before the hearing to raise other issues.
Payment Agreement Form	The LTB brochure says this form is mandatory.

If a tenant breaks a payment agreement they agreed to, L4 can be used. L10 applies only if the tenant moved out on or after September 1, 2021, and within one year. The details are in the LTB brochure on a tenant who does not pay rent. The sources reviewed did not confirm the filing fees for L1, L2 or L4.

• Adding a late fee to the lease. It is void if it conflicts with the Act, and charging it can be an offence.
• Passing on more than the NSF limits. Only the bank's NSF charge and up to $20 are listed.
• Counting a payment the landlord misapplied. The persistent late test excludes a failure not solely attributable to the landlord applying payment to another amount owing.
• Using an N8 when you want rent owing. The LTB cannot order rent owing on a persistent late rent application alone.
• Using the old N4 period. Notices given on or after September 21, 2026 use the 7 day rule.

For the general question, see what to do if a tenant doesn't pay rent.

1. Keep a dated log of each rent payment and the date it was received.
2. Remove any late fee wording from your lease and rent receipts.
3. For a bounced cheque, record the bank's charge and keep the proof.
4. Check the current forms and fees on the Tribunals Ontario site before filing.

This guide explains the rules in general terms; for a specific case, ask the tribunal or a licensed legal professional.