Ontario Last-Month-Rent Interest Demand — RTA 2006 s.106(6)

Demand to an Ontario landlord under Residential Tenancies Act, 2006 (S.O. 2006, c.17) s.106(6) for unpaid annual interest on the LMR (last-month-rent) deposit at the s.120 guideline rate (2026 guideline: 2.1%; statutory cap 2.5% under s.120(2.1)). Landlord may apply interest to top-up the LMR to the current legal maximum under s.106(7), with proper accounting under s.106(8). Stage-2: LTB Form T1 (Tenant Application — Rebate of Money) at tribunalsontario.ca/ltb. $53 filing fee (2025-2026); fee-waiver available for low income. UPL-safe under LSO By-Law 4. Provincial — Ontario.

Statute of Limitations Warning

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  • Cites the exact law: Automatically applies the correct state and federal statutes to your situation.
  • Sets a firm deadline: Legally compels a response within the required statutory timeframe.
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Your Action Plan

This is the final formal demand before litigation.

1
Send this letter today.

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2
Wait the statutory response period for them to reply.

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3
Escalate to a lawyer if ignored.

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Your Ontario tenancy + LMR deposit

Ontario landlords must pay LMR interest annually at the rent-increase guideline rate (s.106(6)). The 2026 guideline is 2.1% (statutory cap 2.5% under s.120(2.1)). Where the LMR is less than the current legal maximum (one month's rent), the landlord may deduct the top-up amount under s.106(7) — but must still account for and pay any excess as interest or credit.

This letter will cite

Ontario Residential Tenancies Act, 2006, S.O. 2006, c.17, s.106 (rent deposits), s.106(6) (annual interest at guideline), s.106(7) (top-up deduction), s.106(8) (credit-against-rent accounting), s.120 (annual rent-increase guideline; statutory cap 2.5% under s.120(2.1)); 2026 guideline 2.1% (Ministry of Municipal Affairs and Housing, ontario.ca/page/residential-rent-increases); LSO By-Law 4 (UPL framing).

Stage-2: LTB Form T1 (Tenant Application — Rebate of Money) at tribunalsontario.ca/ltb, $53 filing fee (2025-2026; fee-waiver available for low income).

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Compare to LMR — if LMR < current rent, landlord may have a top-up entitlement under s.106(7) that nets against the interest owed.

If interest has never been paid, write 'never'. Otherwise format YYYY-MM-DD.

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