Rent control & tenancy rules by province.
CMHC financing is federal, but the properties it insures sit under provincial rent control and landlord-tenant frameworks that directly affect pro forma rent growth, turnover economics, and long-term cash flow. The four largest rental markets — Ontario, BC, Alberta, and Quebec — each have materially different regimes.
Ontario and Quebec exempt new construction from rent control (Ontario for buildings first occupied after November 15, 2018; Quebec for the first 5 years). BC has no new-construction exemption. Alberta has no rent control at all.
Four provinces at a glance.
| Province | Summary |
|---|---|
| Ontario | Exempt — strong for new builds |
| British Columbia | Full rent control — no exemption |
| Alberta | No rent control |
| Quebec | 5-year exemption for new construction |
Province-by-province detail.
What the rule actually says and how it interacts with CMHC-financed new construction.
Buildings first occupied after Nov 15, 2018 are exempt from rent control — critical for new CMHC-financed developments. 2026 guideline for controlled units is 2.1% (capped at 2.5%). Vacancy decontrol: any rent allowed between tenancies. Bill 60 (Nov 2025) shortened arrears timelines and introduced fast-track LTB processes.
Rent control applies to all existing tenancies with no new-construction exemption. 2026 cap: 2.3% (CPI-based). Creates stability but less attractive for investors seeking unrestricted rent growth.
No rent control — landlords can increase rents by any amount with 3 months' notice. Most investor-friendly but introduces revenue uncertainty for tenants.
Tribunal administratif du logement publishes recommended increases annually; tenants can contest. New-construction rents exempt from TAL review for first 5 years.
How rent control interacts with CMHC underwriting.
CMHC underwrites rent growth assumptions against historical market data — not theoretical guideline caps. But a controlled-province pro forma needs sensitivity testing against guideline-capped scenarios, especially in BC where no new-construction exemption exists.
MLI Select affordability commitments apply independently of provincial rent control. Even in Ontario (where new construction is exempt), the MLI Select affordable units are capped at 30% of median renter income — a tighter constraint than any guideline rate.
Ontario and Alberta allow landlords to reset rent at any level between tenancies. BC and Quebec restrict turnover pricing. The turnover effect can be a material multi-year IRR factor — especially in BC where tenure is typically longer.
Ontario's Bill 60 (November 2025) introduced fast-track Landlord and Tenant Board processes and shortened arrears timelines — reducing bad-debt drag. BC's Residential Tenancy Branch runs slower but with broader mediation options.