How to Get Out of a Water Heater Rental Contract in Ontario

Short answer: Most Ontario homeowners can leave a water heater rental by paying the buyout or early-termination amount set in their contract, then having the tank replaced or bought out. Since June 6, 2024, rental companies in Ontario can no longer register a Notice of Security Interest on your home for a water heater, and older ones are deemed expired.

Step 1: Find your contract

Everything depends on what you signed. Before you call anyone, gather:

• Your rental agreement, or at least the account number from a recent bill
• The name of the company that bills you now (contracts are often sold between companies, so it may not be the one that installed the tank)
• The install date, which is usually on a sticker on the tank itself

If you can't find the paper contract, call the company that bills you and ask for a copy and a written buyout quote. Ask for it in writing so you can compare it against the terms later.

Step 2: Understand what you'll owe

Rental contracts usually set out one or more of these costs for ending early:

• Buyout price: you pay a set amount and the tank becomes yours. The amount often drops the longer you've rented.
• Early termination or removal fee: you return the tank and pay a fee to close the account.
• Return requirements: some contracts require the tank to be returned, or charge you if it isn't.

Check your contract for each of these. If something in the quote doesn't match what you signed, ask the company to explain the difference.

Step 3: Choose buyout or replacement

If your rental tank is old, paying to buy it out and then replacing it a year or two later can cost more than replacing it now. Ask for the buyout figure and a replacement quote side by side before you decide.

Step 4: Book the install and arrange the return

If you're replacing, we install your new heater and disconnect the rental unit safely. Rental tanks are left on site for the rental company to collect, since they belong to the rental company. You call the rental company to arrange pickup and close the account. Keep the pickup confirmation and your final bill.

Standard tank installs start at $2,195 installed, before HST, and Rinnai RX condensing tankless installs start at $5,495. See what replacement costs across the GTA and Southern Ontario for the full breakdown.

What Ontario's 2024 NOSI ban changed

A Notice of Security Interest (NOSI) is a notice registered on a property's title. Some rental and financing companies used them on water heaters, furnaces and air conditioners, and homeowners often found out only when selling or refinancing.

Under the Homeowner Protection Act, 2024, which became law on June 6, 2024:

• Companies can no longer register NOSIs for consumer goods installed in a home, such as a water heater, furnace or air conditioning equipment.
• Consumer NOSIs already on title were deemed expired. They may still appear on title, but they no longer affect the land.
• To have an expired NOSI removed from title, the province says you can file an Application to Amend the Register with the Land Registry Office through a lawyer.

The ban does not cancel your contract. You still owe what your rental agreement says. It changes how a company can secure that debt, not whether it exists.

The province also warns homeowners not to pay anyone who offers to remove an expired NOSI for a fee, since scammers have targeted people this way.

Tips before you call the rental company

• Ask for the buyout amount and any fees in writing, with the date the quote expires.
• Confirm whether they want the tank back and how pickup works.
• Stop any automatic payments only after the account is closed and the final amount is settled.
• If the tank is failing, ask whether a repair visit is due under your contract before you pay to end it.

Frequently asked questions

Can I cancel my water heater rental in Ontario?

Usually yes. You'll likely pay a buyout or early-termination amount set in your contract. Get the figure in writing from the company that bills you, then decide whether to buy the tank or replace it.

Is there still a lien on my house from my water heater rental?

Consumer NOSIs for goods like water heaters were deemed expired when the Homeowner Protection Act, 2024 took effect on June 6, 2024. They may still show on title, and a lawyer can apply to have them removed. Don't pay third parties who cold-call offering to remove them.

Will you take away my rental tank?

No. Rental tanks belong to the rental company, so we disconnect it and leave it ready for their pickup. If you own your old tank, removal and haul-away are included in our standard install.

Is it worth buying out an old rental tank?

Often not. If the tank is past 10 years, you may pay a buyout and then replace it soon after anyway. Compare the buyout quote with the cost of a new tank before you decide. Our buy vs rent guide runs the numbers.

Shop tank water heaters · Shop tankless water heaters · Get a quote or call 905-418-2629

NOSI information from the Government of Ontario's Notices of Security Interest page, checked September 2026. This is general information, not legal advice. Check your contract for the terms that apply to you.