Toronto boosts rent bank funding by 30 per cent for 2026, mayor says
City increases rent bank by $2.6 million to $10.8 million, aiming to help roughly 600 more households and prevent more evictions in 2026.
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By Torontoer Staff
Toronto will add $2.6 million to its rent bank in 2026, bringing total funding to $10.8 million, Mayor Olivia Chow announced. The increase represents about a 30 per cent boost from last year and is intended to prevent evictions by helping eligible residents pay rent arrears or secure a deposit.
Chow said the additional money will allow the city to help roughly 600 more households than in 2025, and that more than 3,000 households will avoid eviction or homelessness because of the expanded program.
What the increase covers
The rent bank provides interest-free loans or forgivable grants to cover outstanding rent or a rent deposit for people at immediate risk of eviction. The city uses the funds to intervene early in eviction processes, with the goal of keeping households housed and avoiding shelter stays.
More than 3,000 households will not face evictions and become homeless because of this investment.
Mayor Olivia Chow
Chow announced the funding at the Parliament Street Branch of the Toronto Public Library and said she has nearly doubled the city’s investment in the rent bank since taking office in 2023. Last year she increased the program by $1 million; this year she added $1.6 million on top of that to help attract additional donor support.
Numbers at a glance
- $10.8 million: total rent bank budget for 2026
- $2.6 million: year-over-year increase, about 30 per cent
- Approximately 600: additional households expected to be helped in 2026
- More than 3,000: households estimated to avoid eviction because of the program
Health and homelessness perspectives
Chow cited a news story she read over the holidays and said she reached out to Dr. Naheed Boozary to align the city budget with clinical work that connects housing and health. Hospitals and health leaders have been increasingly vocal about housing as a determinant of health.
People who are chronically unhoused live half as long as the general public. Housing is the most powerful social determinant of health that we see in the clinical and population health realm.
Dr. Naheed Boozary
Boozary has argued that evictions create a pipeline to the health risks of homelessness, and that stabilising housing can reduce hospital visits and save public dollars. The mayor framed the rent bank as one preventive tool that keeps people out of crisis and emergency care.
Budget context and line-item changes
The rent bank increase sits alongside broader shifts in the city’s shelter and housing budget for 2026. City staff note an operating budget decrease of roughly $126 million, a drop of about 14 per cent in gross expenditures. Officials say that reflects the winding down of temporary pandemic-era hotel shelters and fewer newcomer-specific programs as demand from refugees and asylum seekers eases.
At the same time, the budget shows net expenditures rising by about 6.9 per cent, or $15.3 million. That rise reflects expected declines in revenue, including roughly $97 million less from the federal government tied to sheltering refugee claimants.
Chow pushed back on media reports that suggested shelter funding was being cut across the board, and emphasised the city has increased funding for many tenant-related programs under her leadership.
What this means for tenants and donors
The expanded rent bank aims to reach households facing imminent eviction or those who need help coming up with a deposit to move into housing. The mayor said the additional $1.6 million is also meant to prompt generous donors to match or supplement municipal funding for the program.
I reached out to support the good work that the doctors are doing.
Mayor Olivia Chow
City staff will administer the rent bank through existing channels. Eligible residents should consult the City of Toronto website or contact local settlement and housing agencies for application details and eligibility criteria.
The increase to the rent bank reflects a municipal approach that pairs prevention with longer-term housing and health priorities. For now, the funding should allow the city to intervene more often before eviction leads to homelessness, while budget lines elsewhere adjust to changing shelter demand and revenue realities.
housingrentOlivia Chowhomelessnesscity budget
