Reviewed September 11, 2026 · Toronto and Ontario
Build a rental plan
Compare actual available homes by total monthly cost: rent, utilities, insurance, parking, internet and commuting. Keep moving costs and an emergency buffer separate. Neighbourhood price ranges are not quotes or guarantees of availability.
Budget for what is actually due at the start of a tenancy. In Ontario that is normally first month’s rent plus a rent deposit, and the rent deposit is capped, see below. Plan separately for tenant insurance, which many leases require, and for any move-in booking or elevator deposit a condominium corporation charges.
What a landlord can and cannot collect
For tenancies covered by the Residential Tenancies Act, a rent deposit “cannot be more than one month’s rent, or if rent is paid weekly, one week’s rent,” and it “must be used as the rent payment for the last month or week of your tenancy. It cannot be used for any other reason, such as to pay for damages.” Your landlord must also pay interest on that deposit every year. Landlord and Tenant Board, information for new tenants
So there is no lawful damage deposit, pet deposit or cleaning deposit in an RTA tenancy. First month’s rent is rent, not a deposit. A refundable key deposit is permitted, but only up to the reasonable cost of replacing the key. If you are asked for several months up front, that is not a normal requirement, and agreeing to it does not create a right the landlord otherwise has.
Screening: what is fair and what is not
This is where newcomers most often get bad information. Under the Human Rights Code a landlord cannot refuse you because of race, colour or ethnic background, place of origin, citizenship including refugee status, or receipt of public assistance. And specifically: “A lack of rental or credit history should not count against you.” Ontario Human Rights Commission, human rights for tenants
A landlord may ask about income, and may ask for credit checks, rental history and references. But income can only be the deciding factor “when no other information is made available” otherwise it must be weighed together with your rental history, credit references and credit rating. One rule is worth knowing by name: unless you are applying for subsidised housing, “it is illegal for landlords to apply a rent-to-income ratio such as a 30% cut-off rule.” If you are told you must earn some multiple of the rent to be considered, that screen is not lawful on its own.
A guarantor may be requested, but only if the landlord has “the same requirements for all tenants.” A guarantor demanded of newcomers but not of other applicants is a different thing entirely.
Present your situation clearly
Ask what information is needed and why. Relevant income evidence, rental references and credit information may help. Do not assume a newcomer needs a Canadian job, a particular credit score, or a large advance payment to be considered.
What tends to work is a complete, organised package offered up front: proof of income in whatever form you have it, identification, references someone can actually reach, and a short written explanation of your situation. Missing Canadian credit history is not a poor payment record, and saying so plainly, with evidence attached, is usually more effective than leaving the gap unexplained.
Understand the agreement before signing
An accepted agreement to lease can create binding obligations. Review rent, dates, included services, conditions, additional terms and any brokerage fees before signing.
Most Ontario private residential tenancies require the Ontario standard lease, the form titled Residential Tenancy Agreement (Standard Form of Lease), and you are entitled to a copy of your signed agreement within 21 days of signing it. Landlord and Tenant Board, information for new tenants Read any additional terms carefully: terms that conflict with the Act are generally unenforceable even if you signed them. Keep your signed documents and every receipt.
Know your tenancy rights
These rules generally concern tenancies covered by Ontario’s Residential Tenancies Act; arrangements sharing a kitchen or bathroom with the owner or certain family members can be exempt.
Entry. In most cases your landlord must give 24 hours’ written notice before entering. Statutory exceptions include emergencies and your consent. Landlord and Tenant Board, information for new tenants
Rent increases. For units the guideline covers, the increase is capped at 2.1% for 2026 and 1.9% for 2027 (it was 2.5% in 2025). Rent can only be increased if at least 12 months have passed since the last increase or the start of the tenancy, and the landlord must give written notice in the proper form at least 90 days before it takes effect. Ontario: residential rent increases
The exemption that catches people out. The guideline does not apply to new buildings, additions, and most new basement apartments “occupied for the first time for residential purposes after November 15, 2018.” A great deal of newer Toronto condo rental stock sits on the uncapped side of that date, so ask when the unit was first occupied before assuming your rent is capped.
If something goes wrong. Applying to the Landlord and Tenant Board is not free. Tenant applications such as the T1, T2 and T6 cost $53, or $48 filed through the Tribunals Ontario Portal, and LTB fees are non-refundable. A fee waiver request is available where paying would be a hardship. LTB forms, filing and fees Get advice before withholding rent. It is one of the few moves that can put your own tenancy at risk rather than protect it.
Check purchase eligibility before making an offer
A work permit does not automatically make every purchase permissible. The federal prohibition on the purchase of residential property by non-Canadians runs to January 1, 2027, and the exceptions are specific. CMHC on the prohibition
Permanent residents are not subject to the prohibition, and people given refugee protection or who are protected persons are exempt. A work permit holder may purchase if they hold a valid work permit or are otherwise authorised to work in Canada, have “183 days or more of validity remaining on their work permit or work authorization at time of purchase,” and have not already purchased residential property in Canada during the prohibition. International students face a far narrower test: enrolment in authorised study at a designated institution, income tax returns filed for each of the five preceding taxation years, physical presence of at least 244 days in each of those five calendar years, a first purchase only, and a price not exceeding $500,000.
The regulation also turns on where the property is and how title is held. Read the federal regulations Confirm your position with your lawyer before committing, not after.
Get a lender assessment and a closing-cost estimate
Newcomer mortgage approval and down-payment requirements depend on the lender, insurer, residency circumstances, property and evidence of income and funds. Separate foreign-buyer taxes may apply even where the federal purchase restriction does not.
Minimum down payment is set federally by price band: 5% on a purchase price up to $500,000; 5% on the first $500,000 plus 10% on the portion between $500,000 and $1.5 million; and 20% of the whole price at $1.5 million or more. Financial Consumer Agency of Canada: down payment Mortgage loan insurance is generally required below 20% down, and is not available at $1.5 million and above.
Insurance premiums are a percentage of the loan that rises as the down payment falls, for example 2.80% at 85% loan-to-value, 3.10% at 90% and 4.00% at 95%. CMHC mortgage loan insurance cost Two details matter in Ontario: the premium is normally added to the mortgage, but the provincial sales tax on it is not. “The provincial sales tax cannot be added to the loan amount,” so budget to pay that in cash at closing.
Amortisation. Since December 15, 2024 a 30-year amortisation is available on an insured mortgage where the buyer is a first-time buyer or the home is newly built, on a property valued under $1.5 million. Canada Gazette, SOR/2025-55 A longer amortisation lowers the monthly payment and raises total interest paid.
Our affordability calculator excludes foreign-buyer taxes and new-build HST adjustments.
Check programs individually
Each program has its own definition of a first-time buyer. Qualifying for one does not mean qualifying for another.
Home Buyers’ Plan. Eligible RRSP withdrawals up to $60,000 per person, repayable over 15 years. For a first withdrawal made between January 1, 2026 and December 31, 2028, repayment is deferred by three additional years, so the 15-year period begins in the fifth year after the year of withdrawal. CRA: Home Buyers’ Plan
First Home Savings Account. Participation room is $8,000 in the year you open your first FHSA, with a $40,000 lifetime contribution limit and unused room carried forward to a maximum of $8,000. CRA: contributing to your FHSA
Land transfer tax. Ontario refunds up to $4,000 for qualifying first-time purchasers, and no Ontario land transfer tax is payable on the first $368,000 of consideration for an eligible home. You must be at least 18, a Canadian citizen or permanent resident, never have owned an eligible home anywhere in the world, occupy the home as your principal residence within nine months, and apply within 18 months of registration. Ontario: land transfer tax refund for first-time homebuyers In Toronto a separate municipal rebate of up to $4,475 applies on similar conditions. City of Toronto: MLTT rebate opportunities
New homes and HST. The first-time home buyers’ GST/HST rebate covers 100% of the GST or federal part of the HST on a new home valued up to $1 million, with a partial rebate between $1 million and $1.5 million. The agreement of purchase and sale must be entered into on or after March 20, 2025 and before 2031, and you must not have lived in a home you or your spouse owned in the current calendar year or the previous four. CRA: who can apply
Ontario Enhanced New Housing Rebate. On the 8% provincial part of the HST this provides up to $80,000 for qualifying homes valued up to $1 million, a flat $80,000 between $1 million and $1.5 million, a partial rebate to $1.85 million, and nothing above that, where only the standard Ontario rebate of up to $24,000 remains. It applies to agreements entered into on or after April 1, 2026 and on or before March 31, 2027, so it is time-limited. CRA Notice 346
These are eligibility summaries, not advice on your situation, and rebate rules change. Compare buyer programs, and confirm with your lawyer and accountant.
Build a payment history without unnecessary borrowing
Pay accounts on time, keep borrowing manageable, and review your credit report for errors. Ask a bank about suitable newcomer or secured products and their fees. There is no guaranteed score or timeline, and taking out a loan solely to build a score adds cost.
Payment history and how much of your available credit you use are the two things most within your control. One account paid on time every month does more than several accounts opened quickly. You can request your credit report from Equifax Canada and TransUnion Canada directly, and correcting an error costs nothing.
A thin file is not a bad file
This distinction matters more than any score-building tactic, because it changes what you are arguing. A newcomer with no Canadian credit history has an absent record, not a negative one, and the Ontario Human Rights Commission is explicit that “a lack of rental or credit history should not count against you.” Ontario Human Rights Commission, human rights for tenants
Nor can a landlord lawfully reduce you to an income multiple. Outside subsidised housing, applying “a rent-to-income ratio such as a 30% cut-off rule” is illegal, and income may decide an application only where no other information is available. If you supply rental references, proof of funds and an employment or offer letter, you have given the landlord exactly the other information the Code expects them to weigh.
International information may help
Ask the specific lender or landlord whether they accept an overseas report or a third-party international credit service before paying for one. Provider coverage, pricing and acceptance vary. Missing Canadian credit history is not the same thing as a poor payment record.
Some lenders run newcomer mortgage programs that consider international credit, a larger down payment or a shorter Canadian residency, on their own terms. Ask what evidence the specific lender accepts before assembling a package for it.
Can I rent without Canadian credit history?
Yes. A lack of Canadian credit or rental history should not count against an applicant. Available income information, references and credit information can be considered together; an employment letter is one possible document, not a universal requirement.
What deposits can an Ontario landlord require?
For tenancies covered by the Residential Tenancies Act, a rent deposit is limited to one rental period, up to one month, and is used for the last rent period. First month’s rent is rent, not a security deposit. A refundable key deposit may be permitted up to replacement cost; damage and pet deposits are not permitted.
Is a work permit required to rent?
This guide does not treat a work permit, PR card or Canadian citizenship as a universal rental requirement. Housing discrimination based on protected grounds, including citizenship and place of origin, is prohibited where the Human Rights Code applies.
Does the rent increase guideline cover every unit?
No. Many units first occupied for residential purposes after November 15, 2018 are exempt from the guideline. For most RTA tenancies, the 12-month timing rule and at least 90 days’ proper written notice still apply. Check the unit’s history and any other exemption.
Can a landlord require me to earn three times the rent?
Outside subsidised housing, the Ontario Human Rights Commission states that “it is illegal for landlords to apply a rent-to-income ratio such as a 30% cut-off rule.” Income may be considered, but where other information is available, rental history, credit references, credit rating, it must be weighed alongside them rather than used as a threshold on its own. OHRC: human rights for tenants
How much can my rent go up each year?
For units the guideline covers, 2.1% in 2026 and 1.9% in 2027 (2.5% in 2025). Rent can only rise once in any 12-month period, with at least 90 days’ written notice in the proper form. Many units first occupied for residential purposes after November 15, 2018 are exempt from the cap altogether, which covers a lot of newer Toronto condo stock. Ontario: residential rent increases
Does it cost anything to apply to the Landlord and Tenant Board?
Yes. Common tenant applications, T1, T2 and T6, cost $53, or $48 when filed through the Tribunals Ontario Portal, and LTB fees are non-refundable. A fee waiver request is available where paying would cause hardship. LTB forms, filing and fees
I have a work permit. Can I buy instead of renting?
Possibly. The federal prohibition on purchases by non-Canadians runs to January 1, 2027. A work permit holder may be excepted where they are authorised to work in Canada, have 183 days or more of validity remaining on the permit at the time of purchase, and have not already bought residential property in Canada during the prohibition. Permanent residents and protected persons are not subject to it. Confirm your own position with a lawyer before making an offer. CMHC on the prohibition
Official housing resources
Landlord and Tenant Board: information for new tenants
Landlord and Tenant Board: forms, filing and fees
Ontario Human Rights Commission: human rights for tenants
Ontario: residential rent increases and the annual guideline
Federal non-Canadian purchase regulations (SOR/2022-250)
CMHC: prohibition on purchase by non-Canadians
Buyer-program resources
CRA: Home Buyers’ Plan
CRA: contributing to your FHSA
CRA: first-time home buyers’ GST/HST rebate, who can apply
CRA Notice 346: Ontario Enhanced New Housing Rebate
Ontario: land transfer tax refund for first-time homebuyers
City of Toronto: MLTT rebate opportunities
Financial Consumer Agency of Canada: down payment
CMHC: mortgage loan insurance cost
Canada Gazette SOR/2025-55: insured mortgage amortisation rules
Your rental preparation checklist
This is a planning checklist, not a list of mandatory identification or immigration documents. Do not send SINs, passports or banking records through the site’s general lead forms.