Searching for an apartment in Ontario often means facing credit checks. Many renters wonder what score landlords actually require - and what happens if your credit history is limited or non-existent.
Here's the good news: Ontario has strong legal protections for renters. Under the Ontario Human Rights Code, a lack of credit history should not count against you. Landlords must consider your complete application, not just your credit score.
This guide explains what credit score landlords typically look for, what they legally can and cannot do, and practical strategies for securing an apartment even without established credit.
Quick Answer: Most Ontario landlords prefer credit scores of 660 or higher. In competitive markets like Toronto and Vancouver, scores of 700+ are often expected. However, there is no legal minimum in Ontario, and landlords cannot reject you solely for lacking credit history. Alternatives like strong references, proof of savings, or a co-signer can help secure approval.
Your credit score is a three-digit number between 300 and 900 that represents your creditworthiness. Two credit bureaus calculate these scores in Canada: Equifax and TransUnion. Each uses slightly different models, so your scores may vary between them.
Credit scores are based on several factors from your credit report, including payment history, amounts owed, length of credit history, types of credit used, and recent credit applications.
The average credit score in Canada is approximately 760, according to FICO data from late 2024. However, many renters - especially young adults and newcomers - have scores well below this average or no credit history at all.
Your credit score matters for renting because landlords use it to predict whether you will pay rent reliably. A higher score suggests you have a track record of paying bills on time and managing debt responsibly.
There is no legal minimum credit score for renting in Ontario. Each landlord sets their own requirements based on the property, location, and their risk tolerance.
That said, here are general benchmarks across different Ontario markets:
Toronto and the GTA: The rental market here is highly competitive, with vacancy rates hovering around 1-2%. Property management companies typically prefer scores of 700 or higher. Some luxury buildings require 725+. Private landlords may be more flexible.
Ottawa, Hamilton, and mid-sized cities: Landlords generally look for scores of 660-700. Competition is less intense than Toronto, creating more room for negotiation.
Smaller cities and towns: Credit requirements tend to be more relaxed. Scores of 600-660 may be acceptable, especially with private landlords who own smaller properties.
Private landlords vs. property management: Individual landlords who own a few units are often more flexible than large property management companies. They may place greater emphasis on references and personal impression than strict credit score thresholds.
Remember that credit score is just one factor. Landlords also consider income, employment stability, rental history, and references when evaluating applications.
When landlords check your credit, they see more than just a number. Here's what they typically review:
Payment history is the most important factor. Landlords want to see that you pay bills on time. Late payments, accounts sent to collections, or charged-off debts raise red flags about your reliability as a tenant.
Outstanding debt matters because high debt levels relative to your income may suggest you will struggle to afford rent. Landlords look at credit card balances, car loans, student loans, and other obligations.
Bankruptcies and consumer proposals appear on credit reports for six to seven years. While not automatic disqualifiers, they prompt landlords to look more closely at your current financial situation.
Eviction-related judgments can appear if a previous landlord obtained a court order against you for unpaid rent. This is a serious concern for prospective landlords.
Recent credit inquiries show how often you have applied for new credit. Multiple recent applications may suggest financial stress, though landlords typically focus more on payment history than inquiries.
Landlords are looking for evidence that you will pay rent on time and take care of the property. A strong payment history - even with a modest score - can work in your favor.
Ontario provides significant protections for renters during the application process. Understanding these rights helps you push back against unfair treatment.
Lack of credit history cannot count against you. Regulation 290/98 under the Ontario Human Rights Code explicitly states that "a lack of rental or credit history should not be viewed negatively." This protection is especially important for newcomers to Canada, young adults, and anyone who has not used traditional credit products.
Rent-to-income ratios are illegal. Landlords cannot apply a blanket rule like "rent must be less than 30% of income" to reject applicants. This practice has been found discriminatory because it disproportionately affects people receiving social assistance, women, young people, and newcomers - all groups protected under the Code.
Income can only confirm ability to pay. Landlords can ask about income, but they must also request and consider rental history, credit references, and credit checks together. They cannot use income as the sole basis for rejection.
Written consent is required for credit checks. Landlords must obtain your permission before pulling your credit report. You have the right to know what information they are collecting and how it will be used.
Discrimination is prohibited. Landlords cannot reject applicants based on race, ancestry, place of origin, colour, ethnic origin, citizenship, creed, sex, sexual orientation, gender identity, age, marital status, family status, disability, or receipt of public assistance.
If you believe a landlord has discriminated against you, you can file a complaint with the Human Rights Tribunal of Ontario. For more information, visit the Ontario Human Rights Commission's rental housing policy.
Credit checks come in two types, and the difference matters for your credit score.
Soft inquiries do not affect your credit score. These occur when you check your own credit, when a company pre-screens you for offers, or when landlords conduct background checks through certain screening services. Soft inquiries are only visible to you on your credit report.
Hard inquiries can temporarily lower your credit score by a few points. These occur when you formally apply for credit - including some rental applications. Hard inquiries remain on your Equifax report for three years and your TransUnion report for up to six years.
Most landlords conduct soft credit checks for rental applications. However, some may request a hard pull, particularly property management companies with strict screening processes.
How to avoid hard inquiries when apartment hunting:
You can offer to provide your own credit report instead of having the landlord run one. Services like Borrowell and Credit Karma provide free credit reports that you can download and share. Checking your own credit is always a soft inquiry.
If a landlord insists on running their own check, ask whether it will be a hard or soft inquiry. If they require a hard check, limit how many applications you submit to avoid multiple hits on your credit.
Unlike mortgage shopping, where multiple inquiries within a short window count as one, rental application inquiries are counted separately. Each hard check from a landlord affects your score individually.
Not having a credit history is different from having bad credit. You simply have not used credit products that report to the bureaus. Many newcomers to Canada, young adults, and people who prefer to pay cash face this situation.
Ontario law protects you here. Landlords cannot reject you solely because you lack credit history. However, you may need to strengthen your application in other ways.
Provide proof of savings. Bank statements showing three to six months of rent in savings demonstrate financial stability. You do not need to provide full account details - a summary showing available funds is sufficient.
Gather strong references. Previous landlords (even from another country), employers, and professional contacts can vouch for your reliability. Written reference letters carry more weight than just contact information.
Offer a co-signer or guarantor. A co-signer with established credit agrees to be responsible for rent if you cannot pay. This is legally binding, so choose someone you trust and who trusts you. Parents, relatives, or close friends with good credit often fill this role.
Be transparent about your situation. Write a brief cover letter explaining why you lack credit history - whether you are new to Canada, recently graduated, or simply have not used credit cards. Landlords appreciate honesty and context.
Target private landlords. Individual property owners tend to be more flexible than large property management companies. They can make judgment calls based on your overall application rather than rigid scoring thresholds.
Start building credit now. Even if it does not help your current search, establishing credit will make future applications easier. More on this below.
If you recently arrived in Canada, you are starting with no credit file - not a low score, but no score at all. Your credit history from your home country does not transfer.
Bring documentation from your home country. Some landlords will consider international credit reports, bank statements, and landlord references. Having these documents translated and ready shows preparation and reliability.
Consider newcomer banking packages. Major Canadian banks offer programs for newcomers that include credit cards designed for people without Canadian credit history. RBC, Scotiabank, TD, and BMO all have newcomer packages that can help you start building credit immediately.
Phone plans build credit. Post-paid cell phone contracts (not prepaid) report to credit bureaus. Setting up a phone plan in your name and paying on time each month contributes to your credit history.
Use rent to build credit. Services like Neobanc allow you to report rent payments to Equifax without needing landlord involvement. Since rent is likely your largest monthly expense, having it count toward your credit score accelerates the building process.
Timeline expectations: With responsible credit use, you can generate your first credit score within three to six months. Building good credit (660+) typically takes 12-24 months of consistent positive behavior.
Traditionally, paying rent on time did nothing for your credit score. Your largest monthly expense was invisible to credit bureaus. That has changed with rent reporting services.
How rent reporting works: You sign up with a service that reports your rent payments to Equifax (currently the only Canadian bureau accepting rent data). Each on-time payment is recorded on your credit report, contributing to your payment history, credit mix, and credit history length.
These factors represent 60% of your credit score calculation. That makes rent reporting one of the most effective ways to build credit without taking on debt.
Reported results from rent reporting:
Key advantage: You do not need landlord involvement with services like Neobanc rent reporting. You can start building credit through rent payments immediately.
Important note: Rent payments currently report only to Equifax, not TransUnion. Your Equifax score may differ from your TransUnion score as a result. However, many landlords and lenders check Equifax, making this coverage valuable.
If you have time before you need to move, taking steps to improve your credit can make apartment hunting easier.
Pay every bill on time. Payment history is 35% of your credit score and the single most important factor. Set up automatic payments or calendar reminders to never miss a due date.
Reduce credit card balances. Credit utilization - how much of your available credit you use - accounts for 30% of your score. Aim to keep balances below 30% of your limit. Below 10% is even better.
Do not close old accounts. Length of credit history matters. Keeping your oldest credit card open (even if you rarely use it) helps maintain a longer average account age.
Limit new credit applications. Each hard inquiry can temporarily lower your score. Avoid applying for new credit cards or loans in the months before apartment hunting.
Check your credit report for errors. Mistakes happen. Review your Equifax and TransUnion reports for accounts you do not recognize, incorrect late payments, or other errors. Dispute any inaccuracies directly with the bureau.
Consider a secured credit card. If you have no credit or poor credit, a secured card requires a cash deposit as collateral. Use it for small purchases and pay in full each month to build positive history.
A complete, well-organized application demonstrates responsibility and makes the landlord's decision easier.
Standard documents to prepare:
Optional but helpful:
For newcomers:
Having all documents ready before viewings gives you an advantage in competitive markets. When a landlord receives multiple applications, completeness and professionalism stand out.
For a complete walkthrough of the application process, see our guide to Ontario Rental Application Form 410.
Most landlords prefer scores of 660 or higher. In competitive markets like Toronto, scores of 700+ are often expected by property management companies. Private landlords tend to be more flexible, sometimes accepting scores in the 600-660 range with strong references and proof of income.
No. Under Ontario's Human Rights Code, a lack of credit history should not count against you. Landlords must consider your complete application, including rental history, references, and income verification. If you believe you were rejected solely for lacking credit history, you may file a complaint with the Human Rights Tribunal of Ontario.
It depends on the type of check. Most landlords perform soft inquiries, which do not affect your score. However, some may conduct hard inquiries, which can temporarily lower your score by a few points. You can ask landlords whether their check is hard or soft, and offer to provide your own credit report to avoid a hard pull.
Options include finding a co-signer with good credit, providing proof of substantial savings, offering strong landlord and employment references, targeting private landlords who may be more flexible, and being transparent about your situation. Starting rent reporting can also help improve your credit for future applications.
You can generate your first credit score within three to six months of opening a credit account. Building good credit (660+) typically takes 12-24 months of responsible credit use. Consistent on-time payments, low credit utilization, and avoiding new credit applications accelerate the process.
Yes. Rent reporting services like Neobanc report your monthly rent payments to Equifax, contributing to your payment history, credit mix, and credit history length. These factors represent 60% of your credit score calculation. You do not need landlord involvement with most services.
No. Applying rent-to-income ratios as a blanket rule to reject applicants is illegal under Ontario's Human Rights Code. Landlords can consider income, but only to confirm you have enough to pay rent - not as an automatic disqualifier. This protection exists because income ratios disproportionately affect groups protected under the Code.
Credit scores matter when renting in Ontario, but they are not everything. Most landlords look for scores of 660 or higher, with competitive markets like Toronto often expecting 700+. However, Ontario's Human Rights Code provides important protections - landlords cannot reject you solely for lacking credit history, and rent-to-income ratios are illegal.
If your credit is limited or non-existent, focus on strengthening other parts of your application: proof of savings, strong references, transparent communication, and potentially a co-signer. Targeting private landlords often yields more flexibility than large property management companies.
For the long term, building credit through rent reporting turns your largest monthly expense into a credit-building opportunity. Services like Neobanc report payments to Equifax without requiring landlord involvement, helping you establish the credit history that makes future applications easier.
Make your rent payments count. Your monthly rent is likely your biggest expense - but it probably is not building your credit. Neobanc reports your rent payments to Equifax, helping you build credit history while earning cashback on payments you are already making.
Learn how rent reporting works →
Neobanc is a pioneering fintech startup based in Canada, focused on helping renters maximize their cashback on rent payments, and is considered one of the best options for cashback on credit card payments in Canada. With a mission to empower renters, Neobanc leverages cutting-edge technology to provide financial solutions that enhance the rental experience.
The team at Neobanc is composed of industry experts who are passionate about creating value for customers. By offering innovative cashback programs and user-friendly platforms, Neobanc is transforming the way renters manage their finances.
