Finding Housing in Canada: Rental Guide for Newcomers

A common rule of thumb is to keep housing costs (rent + utilities) below 30% of gross income. In Toronto and Vancouver, this is extremely difficult for newcomers, many pay 40–50% of income on housing initially. Cities like Montreal, Edmonton, and Winnipeg offer significantly more affordable options. Budget for first and last month's rent upfront, plus moving costs.

Most Canadian landlords require payment of the first month's rent plus a "last month's rent deposit" before you move in. The last month's deposit is held and applied to your final month of tenancy when you move out. In Ontario, this deposit cannot exceed one month's rent. It is not a security/damage deposit, it specifically covers your last month, not damage.

Landlords can decline to rent to you based on financial criteria (including lack of credit history), but they cannot discriminate based on grounds protected by human rights legislation (race, national or ethnic origin, colour, religion, age, sex, sexual orientation, gender identity, marital status, family status, or disability under the Canadian Human Rights Act and provincial equivalents). Lack of credit history is a legitimate business consideration, not discrimination.

Rent control varies by province. Quebec has strong rent control. Ontario caps annual increases by a guideline (2.1% for 2026) on units first occupied before November 15, 2018, but not on most newer units. BC links rent increases to inflation, with a maximum allowable increase of 2.3% for 2026 (down from 3% in 2025). Alberta has no rent control at all, though increases there are limited to once every 12 months with 3 months' notice. These percentages change yearly, so always check the current rule for your province and unit before signing.

Provincial tenancy law requires landlords to maintain rental units in a good state of repair and comply with health, safety, and maintenance standards. If your landlord refuses, you can file an application with your provincial tenancy tribunal (Ontario's LTB, BC's RTB, etc.). Keeping written records of all requests and responses is important if a dispute arises.

Tenant insurance (also called renters insurance) covers your personal belongings against theft, fire, and water damage, plus personal liability if someone is injured in your unit. The landlord's insurance covers the building but not your possessions. Tenant insurance costs $15–$40/month and is strongly recommended. Many landlords now require it as a lease condition.

Many newcomers find it safer to book short-term or furnished accommodation (a few weeks to a couple of months) for the first stretch, then search for a long-term unit once they can view places in person. Signing a long-term lease and paying deposits from abroad, sight unseen, is exactly the situation rental scammers exploit. If you must arrange something in advance, prefer reputable corporate or furnished-rental operators, use traceable payment methods, and never send irreversible payments before a signed lease. There is no immigration rule requiring you to have permanent housing arranged before you arrive.

There is no fixed timeline, and it varies by person. Generally, opening a Canadian bank account, getting a secured or newcomer credit card, and paying bills on time begin building a credit file within a few months, but a strong score typically takes longer. In the meantime, landlords often accept alternatives such as an employment letter, proof of savings, a co-signer, or several months of rent in advance. For details on building credit, see our banking and credit guide. Verify current product options with your bank.

It depends entirely on the unit, so always confirm before signing. Some apartments include heat and water in the rent; others make the tenant responsible for electricity, gas, internet, and sometimes water. Houses and basement suites more often have separate utility bills. Ask the landlord in writing which utilities are included and roughly what the others cost, and factor those amounts into your monthly budget alongside tenant insurance and any parking fee.

It depends on the province. In Ontario, the rent deposit cannot exceed one month's rent (or one rental period) and is applied to your last month, not damage. BC allows a security (damage) deposit of up to half a month's rent plus, in some cases, a pet damage deposit. Alberta allows a security deposit of up to one month's rent. Rules on additional or advance payments differ widely, so confirm what is legal in your province before paying anything beyond what the law allows.