Searching for an apartment in Ontario when your credit score is low can feel like every door is already shut before you knock. Most landlords ask for a credit check, and if yours shows missed payments, collections, or a consumer proposal, it is easy to assume you have no chance. The good news is that bad credit does not legally bar you from renting in Ontario. It just means you have to walk in prepared, with the right paperwork and a clear story.
This guide walks you through what landlords can and cannot do under Ontario law, what they actually look for beyond the credit score, and seven practical steps you can take to get approved, even if your file looks rough. The goal is to help you secure a place to live while you work on the underlying debt that pulled your score down in the first place.
What Bad Credit Means for an Ontario Rental Application
In Ontario, landlord screening is governed by the Residential Tenancies Act, 2006 and Regulation 290/98 under the Ontario Human Rights Code. Together, these rules say a landlord can request credit references, rental history, credit checks, income information, and a guarantor when choosing a tenant. They cannot, however, use any of those tools to discriminate based on protected grounds like race, family status, disability, or receipt of social assistance.
One important detail many renters miss: under Regulation 290/98, landlords can ask for income information only if they also request rental and credit information, and they must consider all of it together. They also cannot legally apply a strict rent-to-income ratio (like a 30 percent cut-off) to deny you, according to the Ontario Human Rights Commission. A low credit score is one data point. Stable income, a long employment history, strong references, and a willing guarantor can absolutely outweigh it.
Bad credit usually means a score under about 600, recent late payments, accounts in collections, an active or recently completed consumer proposal, or a discharged bankruptcy still on file. Each of those things is fixable over time, but in the short term you need housing. The trick is showing the landlord that the number on the screen does not tell the whole story of how you handle your money today.
Pros of Applying with Bad Credit
You have legal protection
Landlords cannot deny you for protected grounds, and a lack of credit history alone is not supposed to be viewed negatively under Ontario human rights guidance.
Many landlords are flexible
Individual owners, smaller buildings, and basement apartments often weigh references and income more heavily than the credit score itself.
Honesty is rewarded
Bringing a calm, prepared explanation of past money problems often impresses landlords more than hiding the issue and getting caught later.
You get a chance to rebuild
Once you are paying rent on time, you can ask the landlord for a positive reference and slowly repair your credit alongside it.
Cons and Honest Risks
More applications, more rejection
You may need to apply to many more units than someone with strong credit. Plan for this emotionally and time-wise.
Fewer luxury or corporate options
Large property management companies often use rigid screening software that filters out low scores automatically, regardless of context.
Risk of predatory landlords
Some unscrupulous landlords target tenants with bad credit and demand illegal extra deposits or cash side-payments. Know your rights and walk away from these.
Underlying debt is still there
Getting an apartment does not solve the debt that hurt your credit. You still need a real plan for credit cards, collections, or payday loans.
Who This Guide Is Best For
- Renters with credit scores under 650 who have steady employment or self-employment income
- People recovering from a consumer proposal, debt management plan, or discharged bankruptcy
- Newcomers to Canada with thin or no Canadian credit history
- Tenants who had one rough patch (job loss, illness, separation) but are stable now
- Anyone who has a parent or family member willing to act as a guarantor
Who Should Take a Different Path First
- People with active wage garnishments or unpaid judgments that are eating their take-home pay
- Renters whose total monthly debt payments exceed roughly 50 percent of their income
- Anyone facing imminent collections lawsuits where housing money is at risk
- Tenants with multiple recent eviction filings on record (a separate, harder problem than credit)
- People whose only path to qualifying is to take on a high-interest payday or installment loan to “pad” their bank balance, which usually backfires
A Real-World Cost Example
To make the numbers concrete, here is a realistic budget for a Toronto-area renter with a 580 credit score applying for a one-bedroom apartment at $2,100 per month.
Notice what is missing: there is no legal “damage deposit” in Ontario, no “bad credit surcharge,” and no requirement to pay six months upfront. If a landlord asks for any of those things, they are violating the Residential Tenancies Act. You can confirm the rules directly on the Government of Ontario tenant rights page or contact the Landlord and Tenant Board at 1-888-332-3234.
Step-by-Step: How to Get Approved
Pull your own credit report first
Before any landlord sees it, you should know exactly what is on your file. Order a free copy from Equifax Canada or TransUnion. Look for errors (wrong balances, accounts that are not yours), old items that should have aged off, and anything that needs disputing. The Canada Mortgage and Housing Corporation recommends checking your file regularly because mistakes do happen and can be corrected.
Build a “rental application pack”
Put together one folder, digital or paper, you can send to any landlord on request. Include the last two pay stubs or three months of bank statements, an employment letter on company letterhead, two professional references (past landlord, employer, or a long-term professional contact), a clean ID, and a one-page written explanation of your credit situation. Keep the explanation calm and factual: what happened, when, what you have done since.
Be honest with the landlord upfront
When you tour a unit, mention your credit before they pull the report. Something like, “I want to be straight with you. My score is around 580 because of a job loss two years ago. I have been employed full-time since then and I can show you steady income.” Most landlords appreciate honesty far more than they fear bad credit. The ones who do not would have rejected you anyway.
Line up a guarantor or co-signer
A guarantor is the single most powerful thing you can add to a weak application. This is usually a parent, sibling, or close family friend with strong credit who agrees in writing to cover rent if you cannot. Under Regulation 290/98, landlords are explicitly allowed to require a guarantor, and many will accept one as a complete substitute for a high credit score.
Offer first and last month’s rent ready to go
In Ontario, last month’s rent is the only deposit a landlord can legally require, but having both first and last month’s rent in cash, in a certified cheque or e-transfer at signing, signals real financial stability. Do not offer extra months upfront, even if you have the cash. It is illegal for the landlord to accept it and it can backfire if a dispute arises later.
Target the right kinds of landlords
Skip the giant property management corporations on your first round. Focus on individual owners, duplexes, basement apartments, condos rented by their owners, and smaller buildings. The City of Toronto’s tenant guide notes that landlords can choose tenants based on overall financial picture, not just credit, and smaller landlords are usually willing to do exactly that.
Negotiate flexible terms
Offer a six-month lease instead of a full year, or offer to start paying a month earlier than the listed move-in date. A shorter lease lowers the landlord’s perceived risk because they can reassess sooner. If approved, treat that lease as your audition: pay every payment on time, in full, and you will have a strong reference for the next place.
Work on the debt that caused this
Securing the apartment is only step one. The credit problem is still there in the background. Look at the bigger picture by reviewing options like credit counselling, a structured debt consolidation approach, or credit repair services to fix any errors and rebuild your score over the next 12 to 24 months. If your unsecured debt is genuinely unmanageable, a Licensed Insolvency Trustee can walk you through formal options, and our team can help you compare the best ways to pay off debt in Canada based on your situation.
Need help dealing with the debt that hurt your credit? Talk to a Canadian debt expert about your real options, free and confidential.
Can a landlord in Ontario legally refuse me just because of a low credit score?
Yes, a landlord can decline an applicant based on credit alone, as long as the refusal is not tied to a protected ground under the Ontario Human Rights Code (such as race, disability, or family status). However, Ontario human rights guidance is clear that landlords should look at the full picture, including rental history, references, and income, and should not treat a lack of credit history as the same thing as bad credit. If you suspect the real reason for denial was a protected ground, you can file a complaint with the Human Rights Tribunal of Ontario.
How much can a landlord ask for as a deposit in Ontario?
A landlord in Ontario can only legally collect a rent deposit equal to one month’s rent (used for the last month of your tenancy) and a small refundable key deposit. They cannot ask for a “damage deposit,” extra deposits because of bad credit, or several months of rent upfront. If a landlord asks for more than that, you can refuse and report the request to the Landlord and Tenant Board. Keep written proof of any deposits you do pay so you can claim them back later if needed.
Will having a guarantor with good credit really get me approved?
For most landlords, a strong guarantor is the single most effective fix for a weak credit file. The guarantor signs the lease and agrees to pay if you cannot, which substantially lowers the landlord’s risk. Make sure the guarantor understands what they are signing, because they are legally responsible for the rent. Landlords are allowed to require a guarantor, but only if they apply the same requirement consistently to all tenants and not just to people from groups protected under the Human Rights Code.
Should I take out a loan to pay several months of rent upfront and look more attractive?
No. Ontario landlords cannot legally accept several months of rent upfront, so you would be borrowing high-interest money for nothing. Worse, a payday or installment loan often makes your credit picture even harder to repair, since those payments hit your debt-to-income ratio and may show up in collections if you fall behind. Focus instead on a guarantor, strong references, and proof of stable income, and use any extra cash to handle the existing debt that hurt your score.
Will a consumer proposal or recent bankruptcy stop me from renting in Ontario?
Not on its own. A consumer proposal stays on your credit report for three years after completion (or six years from the start, whichever is sooner), and a bankruptcy can remain for six to fourteen years depending on which credit bureau you check and how many filings you have had. Many landlords will still rent to you, especially if you are open about the situation, your insolvency is well underway or completed, and you can show you have been on time with your trustee or counsellor payments. A guarantor and a stable employment letter go a long way in this scenario.
