Many newcomers are asked for deposits that Ontario law does not allow. These are the rules on a rent deposit in Ontario, from the Landlord and Tenant Board’s own guide. Checked October 3, 2026.
The rent deposit (last month’s rent)
- If you pay rent by the month, the deposit cannot be more than one month’s rent. If you pay by the week, not more than one week’s rent.
- It can only be used as the rent for your last month or week before you move out.
- It cannot be used for anything else, such as repairing damage.
- The landlord must pay you interest on it every year, at the same rate as the rent increase guideline.
Example: a $2,000 rent deposit earns $42 of interest for 2026, because the 2026 guideline is 2.1%.
The key deposit
A landlord may ask for a key deposit, and the law limits the amount and how it is handled. Ask what it covers and get a receipt.
What a landlord cannot ask for
- A damage deposit or a pet deposit. Terms like these in a lease are void.
- Payment by post-dated cheques or automatic withdrawal as a requirement. You can agree to pay that way, but the landlord cannot require it.
- A fee for a receipt. The landlord must give you a receipt for rent, a deposit or any other charge if you ask.
More for renters: rent increase rules, ending a tenancy and what a landlord can ask on an application.
Sources (official pages, checked October 3, 2026)
- Landlord and Tenant Board – A Guide to the Residential Tenancies Act (brochure, December 2020)
- Ontario – Guide to Ontario’s standard lease
- Ontario – Residential rent increases (2026 guideline 2.1%)
Programs and limits change, often at budget time. Confirm the current rules on the official page before you rely on them.
Talk to me in English or Arabic: call or text (647) 465-3710, message me on WhatsApp, or email Mohieddinrealtor@gmail.com.
General information only – not financial, legal or mortgage advice. Please consult a licensed professional about your own situation.