Finding a place to live is one of the first big steps when settling in Canada, and renting is often the starting point for many newcomers.
Whether you’re looking for a short-term place to settle or laying the groundwork for a more permanent future, understanding how the rental process works here can help you feel more prepared and confident.
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This guide walks through five key areas, ranging from budgeting to understanding your rights, which may help you navigate your rental journey. Let’s get started.
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Planning: What to Consider Before You Rent
Renting may be a major financial commitment, especially if you’re a newcomer to Canada. Planning ahead may help ensure you choose a home that fits your needs and budget.[1]
Before starting your search, prepare a budget that factors in more than just monthly rent. Other common costs faced by renters in Canada may include:
- Utility bills (heat, water, electricity)
- A security deposit or advance rent payment (often equal to or more than one month’s rent)
- Furnishings, if the unit is unfurnished
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These additional costs can add up. Housing experts often recommend keeping your total housing costs below 35% of your gross monthly income. To stay on top of your spending, you may use helpful tools like the TD Personal Cash Flow Calculator[2]an online tool that helps budget your spending for the coming months.
You’ll also want to consider the location and type of rental that works best for you.[3] Would an apartment, condo, or house suit your lifestyle? Is the place close to public transportation, work, or schools? All these considerations may help you make a more confident rental decision.
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Credit Rating: Why Your Credit Report Matters
In many cases, landlords may ask to check your credit report before approving your rental application. This helps them assess how reliably you’ve managed financial responsibilities in the past.
If you don’t yet have a Canadian credit history, or if your credit score is low[4]you may be asked to provide a guarantorsuch as a family member or friend who agrees to co-sign the lease and take legal responsibility for the rent if you are unable to pay. Alternatively, landlords may accept references from employers or settlement agencies.[5]
As you build your financial footprint in Canada, regularly checking your credit report can be helpful. With TD, eligible customers can use the TransUnion CreditView® Dashboard through the TD app to view their score and monitor changes.[6]
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Rental Agreements: What to Know Before You Sign
Once you’ve found a place and your application is approved, you’ll be asked to sign a rental agreementalso known as a lease. This is a legal contract, so it’s important to review it thoroughly and understand what you’re agreeing to.[7]
A lease typically outlines:
- Monthly rent and due date
- Lease duration (e.g., one year or month-to-month)
- What’s included (utilities, parking, appliances)
- Rules around pets, smoking, and guests
- Responsibilities for repairs or maintenance
You may want to document the condition of the property (with photos) before moving in. This can help avoid disputes later.[8]
Tenant insurance is another important consideration. While it’s not always mandatory, it can help protect your personal belongings from theft, fire, or water damage.[9]
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Rental Scams: How to Protect Yourself
Unfortunately, newcomers can be targeted by rental scams. It’s important to stay alert and cautious during your housing search.[1]
Be wary of listings that:
- Ask for money upfront without letting you see the unit
- Pressure you to act quickly or request payment by wire transfer
- Don’t include a formal lease agreement
Never share personal or banking information unless you’ve verified that the property and landlord are legitimate. If something feels “off,” trust your instincts and consider contacting a local newcomer support organization or legal clinic for guidance.[6]
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Tenant Rights: Know The Rules
Renters in Canada are protected by housing laws, but rules vary by province and territory. It’s helpful to review the regulations where you live through your local landlord-tenant board or housing office.[9]
In general, landlords must:
- Maintain the property in good condition
- Provide written notice before increasing rent or ending a lease
- Follow privacy laws when collecting your personal information (such as under Piped
As a tenant, you also have the right to:
- Live in a safe and secure home
- Receive receipts for rent payments
- Be protected from unlawful eviction[10]
In some provinces, there are rules that limit how much a landlord can raise the rent each yearoften tied to an annual guideline set by the provincial government. For example, Ontario and British Columbia publish maximum rent increase percentages annually. Landlords are usually required to give at least 90 days’ written notice before raising the rent. You may wish to check the rules for your province or territory.[11]
How TD Can Help Newcomers Who Are Renting
At TD, we understand that finding your first home in Canada, whether temporary or long-term, is a meaningful milestone. That’s why we offer support designed for newcomers, including tools to help you manage your money, build credit, and understand your financial options.
Through the TD appyou can monitor your budget, check your credit score, and explore resources to help you make informed financial decisions. Our advisors are also available to help you open your first Canadian chequing account, set up automatic payments, and explore saving and insurance options.
Learn more about TD services for newcomers at td.com/newtocanada.
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Why Choose TD?
170 years helping Canadians:
TD has a proud history of delivering financial solutions to Canadians for more than 170 years. TD also brings a century of experience helping newcomers navigate the unique challenges of the Canadian banking system.
With over a thousand branches, and the ability to also serve you in more than 80 different languages, TD has become one of the largest and most trusted banks in Canada, now serving 16 million Canadians.
TD offers online support and resources of interest to newcomers on topics such as banking basics, moving to Canada, credit score essentials, and more. TD is open longer hours for your convenience and has thousands of ATMs across Canada to help you take care of your everyday banking needs quickly and easily.
Ready to Bank?
Learn more about TD New to Canada Banking Package today. Book an appointment to talk with a TD Personal Banking Associate about the TD New to Canada Banking Package. You can book online right away, or visit the TD website to learn more.
Legal Disclaimer:
Information provided by TD Bank Group and other sources in this article is believed to be accurate and reliable when placed on this site, but we cannot guarantee it is accurate or complete or current at all times. The information in this article is for informational purposes only and is not intended to provide financial, legal, accounting or tax advice, and should not be relied upon in that regard. This information is not to be construed as a solicitation to buy. Products and services of the TD Bank Group are only offered in jurisdictions where they may be lawfully offered for sale. All products and services are subject to the terms of the applicable agreement. The information in this article is subject to change without notice.
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[1] Financial Consumer Agency of Canada, Renting an Apartment or House, Canada.caGovernment of Canada, https://www.canada.ca/en/financial-consumer-agency/services/renting-first-apartment.html (accessed 11 July 2025).
[2] TD Bank Group, Cash Flow Calculator, https://ix0.apps.td.com/en/cash-flow-calculator (accessed 11 July 2025).
[3] Immigration, Refugees and Citizenship Canada, Renting a Place to Live, Canada.caGovernment of Canada, https://www.canada.ca/en/immigration-refugees-citizenship/services/settle-canada/housing/renting.html (accessed 11 July 2025).
[4] Canada Mortgage and Housing Corporation, Credit Checks and Bad Credit, CMHC, https://www.cmhc-schl.gc.ca/consumers/renting-a-home/i-want-to-rent/credit-checks-and-bad-credit (accessed 11 July 2025).
[5] Financial Consumer Agency of Canada, Renting an Apartment or House, Canada.caGovernment of Canada, https://www.canada.ca/en/financial-consumer-agency/services/renting-first-apartment.html (accessed 11 July 2025).
[6] TD Bank Group, Check Your Credit Score, https://www.td.com/ca/en/personal-banking/products/borrowing/check-your-credit-score (accessed 11 July 2025).
[7] Canada Mortgage and Housing Corporation, Lease and Rental Agreements, CMHC, https://www.cmhc-schl.gc.ca/consumers/renting-a-home/i-want-to-rent/lease-and-rental-agreements (accessed 11 July 2025).
[8] Innovation, Science and Economic Development Canada, Landlord and Tenant Relations, Canada.caGovernment of Canada, https://ised-isde.canada.ca/site/office-consumer-affairs/en/buying-and-leasing-big-ticket-items/landlord-and-tenant-relations (accessed 11 July 2025).
[9] Financial Consumer Agency of Canada, Home Insurance, Canada.caGovernment of Canada, https://www.canada.ca/en/financial-consumer-agency/services/insurance/home.html#toc2 (accessed 11 July 2025).
[10] Canada Mortgage and Housing Corporation, Living in a Rental Property, CMHC, https://www.cmhc-schl.gc.ca/consumers/renting-a-home/i-am-renting
[11] Canada Mortgage and Housing Corporation, Rent Increases, CMHC, https://www.cmhc-schl.gc.ca/consumers/renting-a-home/i-am-renting/rent-increases (accessed 11 July 2025).
