New LTB Rule from July 1, 2026: Rent-Arrears Payment Agreements Must Use an Approved Form

If you are a tenant who has fallen behind on rent — or a landlord trying to recover arrears without a drawn-out hearing — a small but important change at Ontario's Landlord and Tenant Board (LTB) takes effect July 1, 2026. From that date, the written payment agreement that landlords and tenants use to settle rent arrears must be made on a form approved by the Board, rather than on any home-made document the parties happen to draft.

It sounds like a paperwork detail, and in one sense it is. But payment agreements are one of the most common ways rent-arrears cases actually get resolved, so it is worth understanding what they are and what is changing.

What a payment agreement is

When a landlord files an application over unpaid rent (often after serving an N4 notice), the case does not always go to a contested hearing. Frequently the parties reach a deal: the tenant agrees to pay off the arrears over time while keeping current on ongoing rent, and in exchange they get to stay in the home. When both sides sign a written agreement covering the arrears claimed in the application, the LTB can issue an order on those terms without holding a hearing.

These agreements typically address:

• the arrears owed,
• any NSF or administrative charges and the landlord's filing fee,
• the ongoing rent the tenant must keep paying, and
• a schedule for catching up.

Crucially, this kind of order cannot itself order an eviction. It can, however, include what is known as a section 78 clause — a provision that lets the landlord go back to the LTB for an eviction order if the tenant breaks the agreement. That is why these documents matter so much: signing one has real consequences down the road.

What changes on July 1, 2026

The change comes from amendments to the Residential Tenancies Act, 2006 brought in by Bill 97 (the Helping Homebuyers, Protecting Tenants Act, 2023), with this particular provision coming into force on July 1, 2026. In plain terms, subsection 206(1) of the Act is being updated so that a payment agreement the Board relies on must be in a Board-approved form.

Before this date, the law required a written, signed agreement filed with the Board — but not a specific official form. After July 1, the agreement is expected to be on the LTB's standard approved form to be accepted on this streamlined basis. At the time of writing, the Board had signalled it would publish the approved form; always check the official LTB site for the current version rather than relying on an old template.

Why the form matters more than it looks

A standardized form does two useful things. It makes sure the essential terms are actually written down — amounts, dates, and what happens on a breach — so neither side can later claim they did not understand the deal. And it gives the LTB a consistent document to turn into an order quickly.

For tenants, the practical takeaway is unchanged but worth repeating: a payment agreement is a binding commitment, often with an eviction trigger built in. Before you sign, make sure the numbers are right and the monthly amount is something you can realistically pay on top of your ongoing rent. If you miss a payment under a section 78 clause, the landlord may be able to seek eviction without a fresh hearing on the merits. You usually have a limited window — generally 30 days — to ask the Board to reopen the matter if you say the agreement resulted from coercion or a serious misunderstanding, or to raise a breach issue, but that is a remedy you do not want to rely on.

For landlords, using the correct approved form from July 1 onward is simply part of doing it right. An agreement that is not in the required form risks being rejected or slowing the file down — the opposite of why people use payment agreements in the first place.

What to do before you sign anything

• Read every line. Confirm the arrears figure, the catch-up schedule, and the

ongoing rent are all accurate.

• Be realistic about the schedule. A plan you cannot keep is worse than no

plan, because of the breach consequences.

• Use the current official form on or after July 1, 2026 — check the LTB site

for the latest version.

• Get advice if the stakes are high. A licensed paralegal or lawyer can tell

you whether the terms are fair and what a section 78 clause really means for you.

Where to confirm the rules

• The Landlord and Tenant Board — forms, rules and decisions:

tribunalsontario.ca/ltb.

• Bill 97 and its in-force provisions:

ola.org Bill 97.

• Ontario's renting pages — your rights and responsibilities:

ontario.ca/page/renting-ontario-your-rights.

Get in touch

Whether you are a tenant being asked to sign a repayment deal or a landlord trying to settle arrears the right way, the terms you agree to now can decide whether a tenancy survives. If you would like help understanding a payment agreement or your options at the LTB, JSR Legals is here to help. Reach us at info@jsrlegals.ca.

This article is general information about Ontario law, current as of June 2026, and is not legal advice for any specific situation. Rules, forms and in-force dates can change — confirm the current requirements with the LTB before you act.