Rent an Apartment With Bad Credit in Ontario (2026): Deposits and Rights

Finance

October 8, 2026

12 min read

LoanBoys Editorial Team

Updated October 8, 2026. Every figure below is dated and linked to its source.

Short answer: Yes, you can rent an apartment with bad credit in Ontario. In 2026, an Ontario landlord may check your credit with your consent. But the landlord can only collect a rent deposit of up to one month's rent and a refundable key deposit. Damage deposits are not allowed, and post-dated cheques cannot be required.

Key facts, October 2026

An Ontario rent deposit cannot be more than one month's rent and can only be used for the last month, according to the Landlord and Tenant Board (LTB) guide to the Residential Tenancies Act.
The Ontario rent increase guideline is 2.1% for 2026 and 1.9% for 2027, according to the Government of Ontario (June 2026).
The average two-bedroom rent in Toronto was $2,034 in 2025, up 3.5%, according to the Canada Mortgage and Housing Corporation (CMHC) 2025 Rental Market Report.
Ontario landlords may not apply rent-to-income ratios and may not treat having no credit history as bad credit, according to the Ontario Human Rights Commission (OHRC).
Since January 1, 2025, no lender in Canada can charge more than 35% APR, all fees included, under the Criminal Interest Rate Regulations (SOR/2024-114).

Definition. Renting with bad credit in Ontario means applying for a lease with a credit score below about 560, so the landlord leans more on your income, references, rental history or a guarantor.

Can you rent an apartment with bad credit in Ontario?

Yes, you can rent an apartment with bad credit in Ontario, because no law sets a minimum credit score to rent. Each landlord sets its own standard. Large property managers often use a score cut-off, while small private landlords tend to judge the whole application, so strong proof of income and reliability can outweigh the score.

It helps to know where your number sits. A score below 560 is generally poor on the 300 to 900 scale, and 660 to 724 is good, according to Equifax Canada. Our post on the credit score you need to rent an apartment in Canada explains what landlords usually conclude at 500, 550 and 600. For the full national picture, read our complete guide to renting an apartment with bad credit in Canada.

The Ontario market is a little easier for renters than it was. The purpose-built vacancy rate was 3.0% in both Toronto and Ottawa in 2025, according to the CMHC 2025 Rental Market Report. The same report puts the average two-bedroom rent at $1,926 in Ottawa, up 3.4%. More empty units give you more room to ask a landlord for a manual review.

What can an Ontario landlord legally collect up front?

An Ontario landlord can collect a rent deposit of up to one month's rent, plus a refundable key deposit, and nothing else as security. The rent deposit can only be used as rent for the last month before you move out, according to the LTB guide to the Residential Tenancies Act. That limit applies to every tenant, including tenants with bad credit.

The landlord must also pay you interest on that deposit every year. The rate equals the rent increase guideline, according to the same LTB guide. With the 2026 guideline at 2.1%, a $2,034 deposit, the average Toronto two-bedroom rent, earns $42.71 of interest over the year. Many tenants forget to claim it.

Some payments are simply not allowed. Landlords cannot ask for damage deposits. They also cannot require post-dated cheques or another kind of pre-authorized payment, according to Steps to Justice, a service of Community Legal Education Ontario (CLEO). A key deposit is allowed only if it is refundable and no more than the cost of replacing the keys, according to the Advocacy Centre for Tenants Ontario (ACTO).

The table below compares the up-front payments an Ontario landlord may ask for, whether each one is allowed, and what to watch for when your credit is bad.

Up-front payment	Allowed in Ontario?	What to know
Rent deposit (last month's rent)	Yes, up to one month's rent	Used only for your last month; earns yearly interest at the guideline rate (2.1% in 2026)
First month's rent	Yes, when it is due	Normally due on the first day of the tenancy, not weeks before
Key deposit	Yes, if refundable	Cannot be more than the cost of replacing the keys
Damage or security deposit	No	Ontario law does not allow damage deposits, whatever your score
Post-dated cheques or automatic withdrawals	Only if you agree	A landlord cannot require them as a condition of renting
A guarantor (co-signer)	Yes, in some cases	May be asked when credit or references are poor, not because of a Human Rights Code ground

Know the rules before you offer more money. If a landlord will not rent unless you prepay, you might pay and then try to get it back after you move in, according to Steps to Justice. It is usually smarter to offer stronger proof instead: a guarantor, a job letter or bank statements. If debt caused your low score, our guide to bad credit loans in Canada explains the cheapest ways to borrow.

How does the Ontario Human Rights Code limit credit and income checks?

The Ontario Human Rights Code lets landlords use credit checks, income information, rental history and guarantees, but not in a way that screens people out on a protected ground. Ontario Regulation 290/98 sets those limits, according to the OHRC policy on human rights and rental housing. Receiving public assistance, such as Ontario Works or the Ontario Disability Support Program (ODSP), is one of those protected grounds in housing.

Credit checks need your permission. The regulation permits landlords to request credit references and run credit checks with the applicant's consent, according to the OHRC. The OHRC also says landlords cannot equate the absence of a credit rating with a bad credit rating. Having no credit file is not the same as having a bad one.

Income rules are stricter in Ontario than in most provinces. The OHRC says the regulation does not permit landlords to apply income ratios, such as a rule that rent must be under 30% of your income. A landlord may check the amount, source and steadiness of your income, but only together with credit references or rental history. The real question is whether you have enough income to pay the rent.

Guarantors are allowed in some cases. The OHRC says a co-signer may be appropriate when a tenant has poor references, poor credit or a history of default. A landlord cannot require a guarantor just because you belong to a Code-protected group. A landlord also cannot demand that your guarantor meet a rent-to-income ratio that could not be imposed on you.

What is the Ontario Standard Lease and how does it protect you?

The Ontario Standard Lease is a government template that landlords must use for most new residential leases. Care homes, mobile home park sites and land lease communities are excluded, according to the Government of Ontario (September 2026). The template spells out the rent, the deposit and the services included, so you can check that nothing illegal was added for bad-credit applicants.

You have a remedy if a landlord skips it. If you ask in writing, the landlord must give you a standard lease within 21 calendar days, according to the same Ontario page. If they do not, you can withhold one month's rent. If you still have no standard lease 30 days after that, you can keep the withheld rent. You cannot withhold more than one month's rent.

Rent control rules also shape your budget. Most rents cannot rise more than the guideline each year, which is 2.1% for 2026 and 1.9% for 2027, according to the Government of Ontario (June 2026). The landlord must give at least 90 days' written notice. Units first occupied after November 15, 2018 are exempt from rent control, so a newer building can raise rent by more.

How to rent an apartment with bad credit in Ontario: 8 steps

You can raise your odds of approval in Ontario by preparing the proof a landlord needs before the viewing. Loan Boys is a Canadian loan-matching service: one short application is reviewed by several lenders, with no hard credit check and repayment over 3 to 6 months. Follow these steps in order, and start a week before you plan to apply.

Pull your own reports. Get your free credit reports from Equifax Canada and TransUnion Canada and fix any errors before a landlord sees them.
Unlock your Equifax file if you locked it. Ontario residents can lock their Equifax credit file for free since July 1, 2026, according to Equifax Canada (June 2026). Lift the lock while you apply, then turn it back on.
Prove your income. Bring your last two or three pay stubs, a job letter, or your Ontario Works, ODSP or Canada Child Benefit statements.
Show your rent history. Bank statements or e-Transfer records with 6 to 12 months of on-time rent are strong evidence.
Write a short credit note. In three sentences, say what happened, what changed and what proof you have. Our post on private landlords that accept bad credit has a sample script and a full renter resume checklist.
Line up a guarantor. A family member with good credit and steady income can sign as a guarantor if the landlord asks.
Check local help for move-in costs. In Toronto, people on Ontario Works or ODSP can ask their caseworker about the Housing Stabilization Fund, which can cover last month's rent. The City says decisions come within 4 business days of receiving all documents.
Cover the gap only if you must. If you are still short on the rent deposit, you can apply online and compare instalment loan offers before you sign the lease.

A rental credit check does not hurt your score. TransUnion Canada says tenancy application checks do not affect your credit score. So you can apply for several Ontario apartments in the same month without lowering your number.

What does it cost to borrow a rent deposit in Ontario at 35% APR?

Borrowing $2,034, one month's average Toronto rent, costs at most $119.79 in interest over 3 months at 35% APR, the legal maximum in Canada. That cap comes from Criminal Code s. 347 and the Criminal Interest Rate Regulations (SOR/2024-114), in force since January 1, 2025, and it includes all fees. Many lenders charge less, so treat these figures as a ceiling.

The table below compares the monthly payment and total interest on four Ontario move-in amounts over 3 and 6 months at the 35% APR legal maximum. The $1,926 and $2,034 rows use the 2025 average two-bedroom rents in Ottawa and Toronto from the CMHC, and $4,068 is first and last month in Toronto. Figures are Loan Boys calculations dated October 8, 2026, assuming equal monthly payments and no other fees, rounded to the cent.

Amount borrowed	Term	Monthly payment	Total interest
$1,000	3 months	$352.96	$58.88
$1,000	6 months	$184.09	$104.54
$1,926 (Ottawa deposit)	3 months	$679.81	$113.43
$1,926 (Ottawa deposit)	6 months	$354.55	$201.30
$2,034 (Toronto deposit)	3 months	$717.93	$119.79
$2,034 (Toronto deposit)	6 months	$374.43	$212.58
$4,068 (Toronto first and last)	3 months	$1,435.86	$239.58
$4,068 (Toronto first and last)	6 months	$748.87	$425.22

Most short-term lenders cap loans well below $4,068, so borrow only the gap. If you have saved $1,000 toward a $2,034 deposit, borrow only the remaining $1,034, and check that the payment plus your new rent fits your budget every month.

A payday loan is usually the costliest way to pay a deposit. In Ontario, a payday lender can charge no more than $14 per $100 borrowed, according to Consumer Protection Ontario. The lender cannot lend more than 50% of your net pay per loan and must give you two business days to cancel. A $1,000 payday loan at that cap costs $140 for a term of up to 62 days, more than double the $58.88 of interest on a 3-month instalment loan at 35% APR.

What should you do if an Ontario landlord refuses you or asks for an illegal payment?

Start by explaining the rule calmly, because many small landlords do not know Ontario's deposit limits. Steps to Justice suggests telling the landlord the payment is not allowed before taking any other step. A landlord who wants a reliable tenant will often accept a guarantor instead of an illegal deposit.

If you already paid something you should not have, you can ask for it back. The Landlord and Tenant Board handles these claims, and Steps to Justice says tenants use Form T1 to ask for money owed by a landlord. Keep receipts, e-Transfer records and texts that show what you paid and why. Written proof makes the LTB process much simpler.

A refusal based on a protected ground is a human rights issue, not a tenancy one. Suppose a landlord turned you down because you receive social assistance or because of another Code ground. You can then apply to the Human Rights Tribunal of Ontario (HRTO). You must apply within one year of the discrimination, according to the HRTO. A refusal for bad credit alone is not usually a Code violation.

How can you build credit before your next Ontario lease?

You can build credit before your next lease by adding on-time payments to your file every month. Pay every bill by its due date, keep card balances well under the limit and check your Equifax Canada and TransUnion Canada reports twice a year.

Two tools can help. A secured credit card, used for one small bill a month and paid in full, adds a positive account. A credit-building membership can also report a monthly tradeline to Equifax Canada. For example, AvenaCredit's Ontario credit-building page describes plans that report payments to Equifax Canada, including rent reporting on some plans. Compare costs before you join any program.

Keep your own rent record too. Pay rent by e-Transfer, save every receipt and ask your current landlord for a reference letter before you give notice. Never pay a deposit before you see the unit in person and sign the Ontario Standard Lease.

FAQ

Can I rent an apartment with bad credit in Ontario in 2026?

Yes, you can rent an apartment with bad credit in Ontario in 2026, because no Ontario law sets a minimum credit score to rent. Each landlord sets its own standard. Strong proof of income, on-time rent records, references and a guarantor can outweigh a score below 560, especially with small private landlords who review each application personally.

How much deposit can a landlord ask for in Ontario?

An Ontario landlord can ask for a rent deposit of up to one month's rent, which can only be used for your last month, plus a refundable key deposit. Damage deposits are not allowed. The landlord must pay yearly interest on the rent deposit at the rent increase guideline, which is 2.1% in 2026.

Can a landlord in Ontario run a credit check on me?

Yes, an Ontario landlord can run a credit check, but only with your consent. Ontario Regulation 290/98 allows credit checks and credit references. The Ontario Human Rights Commission says landlords cannot treat having no credit history as bad credit. A tenancy credit check does not lower your score, according to TransUnion Canada.

Can an Ontario landlord ask for more than first and last month's rent?

No, an Ontario landlord cannot require more than the first month's rent when it is due and a last month's rent deposit of up to one month's rent. Asking for several months of prepaid rent or a damage deposit as a condition of renting is not allowed. A refundable key deposit is the only other permitted deposit.

Can a landlord require post-dated cheques in Ontario?

No, a landlord in Ontario cannot require post-dated cheques or automatic withdrawals as a condition of renting. You can choose to pay that way if you agree, but the landlord must accept another payment method if you do not. This rule is in the Residential Tenancies Act and is explained by the Landlord and Tenant Board.

Can a landlord ask for a guarantor or co-signer in Ontario?

Yes, an Ontario landlord can ask for a guarantor when you have poor credit, poor references or a history of default. The Ontario Human Rights Commission says a landlord cannot require a guarantor only because you belong to a Code-protected group, and cannot demand that the guarantor meet a rent-to-income ratio.

Can a landlord refuse to rent to me because I am on ODSP or Ontario Works?

No, an Ontario landlord cannot refuse you because you receive public assistance such as ODSP or Ontario Works, a protected ground under the Ontario Human Rights Code. Landlords also cannot use rent-to-income ratios. You can apply to the Human Rights Tribunal of Ontario within one year of the discrimination.

How much does it cost to borrow first and last month's rent in Ontario?

Borrowing $4,068, first and last month at the 2025 average Toronto two-bedroom rent of $2,034, costs at most $239.58 in interest over 3 months at 35% APR, the legal maximum in Canada since January 1, 2025. Over 6 months it costs $425.22. Most short-term lenders lend less, so borrow only the gap.