Rental issues! Help! We live in Ontario. Canada

Hello all. I'm in a pickle and I desperately need advice.

We are currently renting from a first time landlord. We pay $2,200/month for the main floor of the house and pay 50% of the utilities, do garden maintenance and snow removal. When we met him, we told him we were looking for a long term place and signed a 1 year lease with the verbal agreement of renewing upon closer to the date. The first 6 months he was renovating the basement to make it a second unit. Turns out, he hadn't made the house a duplex at the time. He got approvals. No issues there. Here is my issue now.

When we told him that we want to renew he said he couldn't because he's considering selling the place. He got in a lot of debt is currently playing $1,500/month out of pocket because his mortgage went up (duhhh). Turns out, the two rentals can't pay the mortgage anymore and he's covering the rest with those additional $1,500. He gave me two options:

1. Leave

2. Pay $2,500/month when my lease is up.

I told him that was straight up illegal to increase rent that high. He's aware, but said he has no choice. His partner was telling him to increase it more but he thought that $2,500 was fair because we've been good tenants. I don't want to because it's illegal however we don't have any money to do a move!!! I straight up only have $1,500 in savings for emergencies and everything else in TFSAs and RSSP. I don't want to liquidize all my savings to move again! Do I just take the deal? How the hell can I come up with $5,000 for another move???

My spouse isn't helpful with finances, so it's always been up to me. We have a 2 year old and I can't not have a place for us to live.

Help 😩