Ontario Security Deposits Laws (2026)
About this article
Sourced from Canadian federal statutes and official sources. Provincial information reflects each province's own legislation and court rulings. Written in plain language for general understanding — this is educational content, not legal advice. Our editorial standards
What is this right?
This is the area where Canadian rules diverge the hardest. What a landlord can take, what they have to return, and the deadline for returning it depend entirely on which side of a provincial border you live on.
- British Columbia: half a month's rent maximum, returned within 15 days of move-out.
- Ontario: last month's rent only — straight damage deposits are banned.
- Alberta: one month's rent cap, returned within 10 days.
- Quebec: security deposits are illegal — a landlord can't collect one at all.
One rule does carry across the country: a landlord can only deduct for actual damage beyond normal wear and tear. Faded paint, light scuffs, worn carpet from years of walking on it — none of that is yours to pay for.
When does it apply?
- At lease signing, when the deposit is collected.
- At move-out, when it should come back or deductions get itemised.
- Covers all residential tenancies in the province whose rules apply.
What to Do If Your Canadian Landlord Won't Return Your Security Deposit
Photos win deposit cases. Take them before you do anything else.
- Photograph and video everything at move-in and move-out — date-stamped, every room, every defect.
- Request a condition inspection with the landlord at both ends of the tenancy.
- If the deposit isn't returned on time, send a written request by email or registered mail.
- Wrongful withholding goes to the provincial tribunal. Filing fees are low and the process is built for tenants without lawyers.
What should you NOT do?
- Don't skip the move-in inspection. No baseline, no proof.
- Don't withhold rent to "use up" the deposit. It's a lease breach and a fast track to eviction.
- Don't pay more than the provincial cap. If a landlord asks, point them to the statute and walk if they push back.
- In Quebec, don't pay a deposit at all. It's illegal for them to ask, full stop.
How Ontario differs from federal law
Ontario has Canada's strictest rules on security deposits. Under the Residential Tenancies Act, 2006, landlords are severely limited in what they can collect upfront.
- A landlord can collect a last month's rent deposit — this can only equal one month's rent and can only be used for the last month of tenancy. It cannot be used for damages.
- A landlord cannot collect a damage deposit, cleaning deposit, or key deposit beyond the actual cost of replacing a key. Any such charge is illegal under section 105 of the RTA.
- The landlord must pay you annual interest on your last month's rent deposit, equal to the rent increase guideline percentage set by the province each year.
- If a landlord collects an illegal deposit, you can file a T1 application with the LTB to get the money back.
- Post-dated cheques: a landlord cannot require post-dated cheques or automatic payment, though you may agree to provide them voluntarily (section 108 of the RTA).
Additional Steps in Ontario
If your landlord has collected an illegal deposit (damage deposit, excessive key deposit, or last month's rent exceeding one month), file a T1 application (Tenant Application for a Rebate) with the Landlord and Tenant Board. The LTB can order the landlord to repay the money. Contact a Community Legal Clinic for free help with your application.
Relevant Law: Residential Tenancies Act, 2006, S.O. 2006, c. 17, ss. 105–107 (Security of Rent and Charges), s. 108 (Post-dated Cheques)
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What is the security deposits right in Canada?
This is the area where Canadian rules diverge the hardest. What a landlord can take, what they have to return, and the deadline for returning it depend entirely on which side of a provincial border you live on.British Columbia: half a month's rent maximum, returned within 15 days of move-out.Ontario: last month's rent only — straight damage deposits are banned.Alberta: one month's rent cap, returned within 10 days.Quebec: security deposits are illegal — a landlord can't collect one at all.One rule does carry across the country: a landlord can only deduct for actual damage beyond normal wear...
When does security deposits apply?
At lease signing, when the deposit is collected.At move-out, when it should come back or deductions get itemised.Covers all residential tenancies in the province whose rules apply.
What should I do if my landlord in Canada is refusing to return my security deposit?
Photos win deposit cases. Take them before you do anything else.Photograph and video everything at move-in and move-out — date-stamped, every room, every defect.Request a condition inspection with the landlord at both ends of the tenancy.If the deposit isn't returned on time, send a written request by email or registered mail.Wrongful withholding goes to the provincial tribunal. Filing fees are low and the process is built for tenants without lawyers.
What mistakes should I avoid with security deposits?
Don't skip the move-in inspection. No baseline, no proof.Don't withhold rent to "use up" the deposit. It's a lease breach and a fast track to eviction.Don't pay more than the provincial cap. If a landlord asks, point them to the statute and walk if they push back.In Quebec, don't pay a deposit at all. It's illegal for them to ask, full stop.
Security Deposits in other states
Same topic, different jurisdiction. Pick the one that applies to you.