Security Deposits in Ontario
Reviewed by the Commoner Law Editorial Team. 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?
Security deposit rules vary significantly across Canada. What your landlord can collect — and what they must return — depends entirely on your province.
- British Columbia: Maximum of half a month's rent. Must be returned within 15 days of move-out.
- Ontario: Landlords can only collect a last month's rent deposit. Damage deposits are not allowed.
- Alberta: Maximum of one month's rent. Must be returned within 10 days.
- Quebec: Security deposits are illegal. Landlords cannot collect any deposit at all.
In all provinces, landlords can only deduct for actual damages beyond normal wear and tear. Faded paint, minor scuffs, and worn carpet from regular use are not your responsibility.
When does it apply?
- At lease signing — when your landlord collects the deposit.
- At move-out — when the deposit should be returned or deductions applied.
- Applies to all residential tenancies in the province where the rules are set.
What to Do If Your Canadian Landlord Won't Return Your Security Deposit
- Take detailed photos and videos of the unit at move-in and move-out. Date-stamp everything.
- Request a condition inspection with your landlord before you move in and before you move out.
- If your deposit is not returned on time, send a written request to your landlord by email or registered mail.
- If your deposit is wrongfully withheld, file a claim with your provincial tribunal.
What should you NOT do?
- Don't skip the move-in inspection — without it, you have no proof of the unit's original condition.
- Don't withhold rent to "use up" your deposit. That is a lease violation and can lead to eviction.
- Don't pay more than the legal maximum for your province.
- In Quebec, don't pay any deposit at all — it is illegal for your landlord to ask for one.
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)
Common Questions
When does security deposits apply?
At lease signing — when your landlord collects the deposit.At move-out — when the deposit should be returned or deductions applied.Applies to all residential tenancies in the province where the rules are set.
What should I do if my landlord in Canada is refusing to return my security deposit?
Take detailed photos and videos of the unit at move-in and move-out. Date-stamp everything.Request a condition inspection with your landlord before you move in and before you move out.If your deposit is not returned on time, send a written request to your landlord by email or registered mail.If your deposit is wrongfully withheld, file a claim with your provincial tribunal.
What mistakes should I avoid with security deposits?
Don't skip the move-in inspection — without it, you have no proof of the unit's original condition.Don't withhold rent to "use up" your deposit. That is a lease violation and can lead to eviction.Don't pay more than the legal maximum for your province.In Quebec, don't pay any deposit at all — it is illegal for your landlord to ask for one.
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