Renting in Canada: the deposit, the rent increase and Ontario's new-build gap

Yes, you can rent in Canada as soon as you arrive, but the rules are not Canadian: they are provincial, and they differ a great deal. In Ontario a landlord may not ask for a damage deposit, only a deposit towards the last month. In British Columbia the deposit is at most half a month's rent, in Alberta a full month. The finding at the source is in Ontario: the legal rent cap does not apply to homes first occupied after 15 November 2018. Rent a new-build flat in Toronto, and the rent may go up every year without a ceiling.

What can a landlord ask as a deposit?

That depends on the province. Three large provinces side by side:

	Ontario	British Columbia	Alberta
Deposit	no damage deposit; only a rent deposit of at most one month, for the last month	at most half a month's rent	at most one month's rent
Pet deposit	not allowed	at most half a month's rent on top	—
Interest on the deposit	every year, on the rent deposit	0% in 2026 (0.95% in 2025)	at least 0.0% in 2026 (0.5% in 2025)
Rent increase 2026	at most 2.1%	at most 2.3%	no cap
Rent increase 2027	at most 1.9%	at most 2.2%	no cap
How often	once a year, 90 days' written notice	once every 12 months, three full months' notice	once every 365 days, three full months' notice for monthly rent

Ontario has no deposit for damage. What is allowed is a rent deposit: at most one month's rent, which is meant for the last month of your tenancy and may not be used for anything else, not even damage. The landlord pays you interest on it every year. A pet deposit or damage deposit in the lease is not allowed.

British Columbia allows a security deposit of at most half a month's rent, plus possibly half a month's rent as a pet damage deposit. So at most one month together. Fees for processing your application are prohibited. Once the tenancy ends and the landlord has your forwarding address in writing, they have 15 days to return the deposit with interest. If they let that deadline pass, the tenant can file a request with the Residential Tenancy Branch, and the landlord can be ordered to pay back double.

Alberta allows a deposit of at most one month's rent, which the landlord must place in an interest-bearing trust account in Alberta within two banking days. An inspection report at move-in and move-out is mandatory; without it the landlord may not deduct anything for damage or cleaning. If there are no deductions, you get the deposit back with interest within 10 days.

How much can the rent go up each year?

In Ontario the province sets a guideline every year, linked to inflation and capped at 2.5%. For 2026 it is 2.1%, for 2027 1.9%. The landlord may raise the rent once a year, and must give at least 90 days' written notice on the proper form. The guideline applies during your tenancy; with a new tenant, landlord and tenant agree the starting rent freely.

British Columbia works in a similar way: 2.3% in 2026 and 2.2% in 2027, once every twelve months, with three full months' written notice.

Alberta is the exception. There the rent may go up once every 365 days and not during a fixed-term lease, but the province itself writes: there is no limit on how much. A low starting rent says little about your second year in Alberta.

Ontario's new-build gap. The rent guideline does not apply to new buildings, additions and most new basement units first occupied for residential purposes after 15 November 2018. For such homes the landlord may still raise the rent only once a year, but without a cap. The landlord can include the exemption in the lease; with a new-build flat, always ask about it yourself before you sign, and budget your second year with a sizeable increase.

Which lease do you sign?

In Ontario most landlords must use the province's standard lease, written in plain language, setting out the rent, what is included and which rules apply. If you do not get it, ask for it in writing: the landlord has 21 calendar days. If they fail to provide it, you may withhold one month's rent. The standard lease also lists what a landlord may not include, such as a ban on guests or pets. And a landlord may not insist that you pay by post-dated cheques or automatic debit.

In Alberta a fixed-term tenancy ends automatically on its end date, without anyone having to give notice. If you want to stay, agree a new lease in good time.

What should you watch as a newcomer?

You start without a Canadian rental history and without a credit history. How to build the latter is covered in your first weeks in Canada.

Record the condition of the home when you move in, with photos. In British Columbia a tenant who does not take part in the joint inspection loses the right to the deposit; in Alberta the landlord may not deduct anything for damage or cleaning without an inspection report.

Buying comes later: read why your residency status is the key to buying. The order of the arrival phase is at /canada.

In Vertrekklaar this is phase 5 of 5 of the journey, step 5.5: the same steps, but for your situation — in your order, tickable, and with the deadlines watched. See the whole journey to Canada or go straight to step 5.5 in the open plan.