Credit Score
& Renting.

The Credit Check Process

Most Toronto landlords run a credit check as a standard part of the rental application process. When a landlord or property manager pulls your credit report, they're evaluating several key factors that help them assess your financial reliability as a potential tenant.

The primary factors landlords examine include:

• Overall credit score: Your three-digit score is the first thing they see. In Canada, credit scores range from 300 to 900, with higher being better. Most landlords want to see a score of at least 650, and ideally 680 or above.
• Payment history: This is the single biggest factor in your credit score. Landlords want to see a consistent track record of paying bills on time — credit cards, loans, phone plans, and any other reported obligations.
• Outstanding debts: High levels of existing debt signal financial strain. If you're carrying large balances on credit cards or have multiple loans, a landlord may worry about your ability to pay rent consistently.
• Collections and judgments: Accounts that have gone to collections are a major red flag. Even small amounts — an unpaid phone bill or gym membership — can end up in collections and appear on your credit report for up to six years.
• Credit utilization: This measures how much of your available credit you're actually using. Using more than 30% of your available credit can lower your score and concern landlords. If you have a $5,000 credit limit and carry a $4,000 balance, that's 80% utilization — and it signals risk.

A score above 680 is considered strong and will make you competitive for most Toronto rentals. Scores between 600 and 680 are borderline — you may get approved, but you'll likely face more questions and may need to provide additional documentation. Below 600 will be challenging without additional support like a guarantor or prepaid rent.

Beyond the Credit Score

Here's the good news: your credit score isn't everything. Landlords look at the full picture, and a strong overall application can compensate for a mediocre score. The credit check is just one piece of a much larger puzzle.

Other factors that landlords weigh heavily include:

• Income level: The general rule is that your gross monthly income should be at least 3x the monthly rent. If the unit is $2,500/month, landlords typically want to see income of $7,500 or more per month. Some landlords may accept 2.5x for applicants with strong credit.
• Employment stability: A permanent, full-time position carries more weight than contract or freelance work. Landlords want to know you'll have consistent income throughout the lease term. A letter of employment from your employer can make a significant difference.
• Rental references: A glowing reference from a previous landlord — confirming you paid rent on time, kept the unit clean, and were a respectful neighbour — can tip the scales in your favour even if your credit isn't perfect.
• Application quality: A well-organized, complete application with all documents ready signals professionalism and reliability. Landlords see dozens of applications — the ones that stand out are thorough, honest, and easy to review.

A strong application package can offset a mediocre credit score in many situations. If you're not sure how to put together a competitive application, our team walks every client through the process — from document preparation to submission strategy. See how we work with renters.

The Toronto rental market is competitive, but being strategic about your application gives you an edge. Landlords are people too — most of them are willing to work with applicants who are transparent about their situation and demonstrate financial responsibility through other means.

Managed Buildings & Luxury Rentals

If you're looking at luxury condos or purpose-built rental buildings managed by major REITs and institutional landlords — companies like CAPREIT, Minto, Boardwalk, Greenwin, and Killam — expect strict credit requirements. These organizations typically require a minimum score of 680, and some set the bar even higher for premium units.

These landlords use automated screening systems that process applications through standardized criteria. The screening is largely algorithmic — your application is scored against a set of predetermined thresholds, and there's very little room for negotiation or exceptions. If your credit score doesn't meet the cutoff, your application is typically declined automatically.

Purpose-built rental buildings also tend to have more comprehensive screening processes that go beyond just the credit check. Many require:

• Proof of income: Recent pay stubs, a letter of employment, and sometimes bank statements or tax returns to verify income
• Employment verification: Direct confirmation from your employer, including your position, salary, and length of employment
• Rental history: Contact information for previous landlords so they can verify your tenancy record
• Government ID: Two forms of identification, though they cannot require your Social Insurance Number (SIN)

The upside to these buildings is that the process is transparent and predictable. You know what's expected, and the screening criteria are applied consistently to all applicants. If your credit score meets the threshold and your income is sufficient, you're in a strong position.

Private Landlords & Smaller Buildings

Private landlords — individuals renting out their condo, a basement apartment, or units in a small residential building — are often far more flexible when it comes to credit requirements. This is where renters with lower or no credit have the best chance of getting approved.

A private landlord renting out their investment condo in downtown Toronto or Mississauga may weigh your income and references more heavily than your credit score alone. They're making a personal judgment call, not running your application through an automated system. This means there's much more room for conversation, explanation, and negotiation.

With private landlords, you may be able to offset a lower credit score by:

• Offering a personal meeting: Many private landlords want to meet their tenants. Making a strong impression in person goes a long way.
• Providing detailed references: A previous landlord who can vouch for your reliability carries tremendous weight in a private rental scenario.
• Showing strong bank statements: If you have significant savings, sharing bank statements (with sensitive details redacted) demonstrates financial stability.
• Being transparent: If your credit has a blemish — a missed payment during a difficult period, student debt in repayment — explain the context. Most private landlords appreciate honesty.

Basement apartments, laneway houses, and units in smaller residential buildings (triplexes, fourplexes) are also generally more flexible. These landlords are often more relationship-driven and less process-driven than large management companies.

Working with a rental agent who knows the market helps you target the right properties — landlords and buildings where your specific situation is more likely to be accepted. We match every client with properties that align with their financial profile. Start your rental profile and let us find the right fit.

Options That Work

A low credit score doesn't mean you can't find a rental in Toronto — it just means you need to be more strategic. There are several proven approaches that tenants with lower credit scores use to get approved for quality rentals across the GTA.

Here are your strongest options:

• Offer a guarantor or co-signer: A guarantor is someone — typically a parent, family member, or close friend — who agrees to be financially responsible for the rent if you can't pay. Having a guarantor with strong credit and stable income can completely offset a low credit score. The guarantor doesn't live in the unit, but they're legally on the hook if you default. Read our full guarantor guide.
• Offer additional months of rent upfront: In Ontario, it's legal to offer additional months of rent upfront — as long as the payments are for actual rent and not disguised as a security deposit (Ontario does not allow security deposits beyond last month's rent). Offering first and last month's rent plus two or three additional months demonstrates commitment and reduces the landlord's perceived risk.
• Provide strong proof of income and employment stability: If your credit score is low but your income is solid, lean into that strength. Provide recent pay stubs (at least three months), a detailed letter of employment on company letterhead, and bank statements showing consistent deposits and savings.
• Get a detailed reference letter from a previous landlord: A written reference that specifically mentions timely rent payments, respect for the property, and positive tenancy behaviour is incredibly valuable. Ask your previous landlord to include specific details — how long you lived there, whether rent was ever late, and whether they would rent to you again.
• Write a cover letter for your application: A brief, honest cover letter explaining your situation, what caused the credit issue, and what you're doing to improve it shows maturity and accountability. Landlords appreciate transparency.

What NOT to Do

When you're dealing with a low credit score, it can be tempting to take shortcuts. Don't. These common mistakes will make your situation worse, not better.

• Don't lie about your credit: Landlords will find out. They run the credit check themselves, and if the number on your application doesn't match the report, you'll be rejected immediately — and you'll lose any deposit you've paid. Dishonesty is the fastest way to lose a rental opportunity.
• Don't pay for "credit repair" scams: There's an entire industry of companies promising to fix your credit quickly for a fee. Most of them are scams or, at best, do nothing you couldn't do yourself for free. No company can legally remove accurate negative information from your credit report. The only way to improve your credit is through time and responsible financial behaviour.
• Don't skip the credit check: Some renters try to avoid the credit check altogether by asking landlords to skip it. This almost always backfires. A landlord who's willing to skip a credit check may also be cutting other corners — and reputable landlords will simply reject you if you refuse to authorize a check. It's better to be upfront about your score and offer compensating factors.
• Don't apply blindly to dozens of listings: Every time a landlord runs a credit check, it creates a "hard inquiry" on your credit file. Multiple hard inquiries in a short period can further lower your score. Be strategic about where you apply — target properties where you have the best chance of approval.
• Don't ignore existing debts: If you have outstanding collections or debts, try to negotiate settlements or payment plans before you start apartment hunting. Even a partial payment on a collection can show a landlord you're taking steps to address the situation.

Be upfront with your agent about your situation so they can target landlord-friendly properties and help you present the strongest possible application. Our agents work with renters across the credit spectrum every day — we know which landlords are flexible and which properties are the best fit for your situation. Learn more about using a guarantor.

No Credit Is Different From Bad Credit

Having no credit history is one of the most common challenges in the Toronto rental market — and it's fundamentally different from having bad credit. No credit means the reporting agencies (Equifax and TransUnion) simply don't have enough data to generate a score for you. It doesn't mean you're irresponsible — it means you haven't yet established a Canadian credit file.

This situation is extremely common for:

• Newcomers to Canada: If you've recently immigrated or moved to Canada on a work permit or permanent residency, your credit history from your home country does not automatically transfer to Canada. You're starting from zero, regardless of how strong your financial history was back home.
• International students: Students arriving in Canada for post-secondary education typically have no Canadian credit history. Even students who have been in Canada for a few years may have a thin file if they haven't used credit products. Read our student rental guide.
• Young first-time renters: Canadians in their late teens and early twenties who are renting for the first time often have minimal or no credit history. If you've never had a credit card, car loan, or other credit product, you won't have a score.

Many landlords understand the difference between no credit and bad credit, especially in a multicultural city like Toronto where a significant percentage of the population was born outside Canada. Private landlords in particular are often willing to work with applicants who have no credit history if the rest of their application is strong.

If you're a newcomer, you can use services like Nova Credit to transfer your credit history from your home country. Nova Credit works with credit bureaus in dozens of countries and can provide Canadian landlords with a "Credit Passport" that translates your international credit data into a format they can understand. This can be a game-changer for newcomers with strong financial histories abroad. Read our complete newcomer guide.

Another strong option is to provide bank statements showing sufficient savings. If you can demonstrate that you have several months of rent saved up — even six to twelve months — it gives landlords significant confidence in your ability to pay, even without a credit score.

Building Credit Fast

The fastest way to build credit in Canada is with a secured credit card. A secured card works like a regular credit card, but you provide a cash deposit (typically $300 to $500) as collateral. Your credit limit equals your deposit, and every purchase and payment you make is reported to the credit bureaus.

Here's a step-by-step strategy for building credit quickly:

• Get a secured credit card: Available from most major Canadian banks including TD, RBC, BMO, Scotiabank, and CIBC. Some alternative financial companies like Capital One and Home Trust also offer secured cards with lower barriers to entry. Apply as soon as you arrive in Canada.
• Use it for small, recurring purchases: Put a small subscription or regular purchase on the card — a streaming service, your phone bill, or a weekly grocery run. The key is consistency and keeping your balance low relative to your limit.
• Pay your balance in full every month: This is the most important rule. Paying in full and on time every single month builds a positive payment history, which is the largest factor in your credit score. Set up automatic payments so you never miss a due date.
• Keep utilization below 30%: If your secured card has a $500 limit, try to keep your balance below $150 at any given time. Low utilization signals to the credit bureaus that you're using credit responsibly, not relying on it out of necessity.

Beyond secured credit cards, there are now several fintech apps in Canada that help you build credit:

• KOHO: KOHO's Credit Building feature reports your spending activity to Equifax, helping you build a credit history without a traditional credit card. It's popular with newcomers and young Canadians.
• Neo Financial: Neo offers a secured credit card and a high-interest savings account. Both products report to the credit bureaus, and the app makes it easy to track your score as it grows.
• Borrowell: While primarily a credit monitoring service (free Equifax score), Borrowell also offers a Credit Builder product that reports regular payments to Equifax.

With consistent effort, you can establish a basic credit score within 3 to 6 months. A competitive score of 680+ typically takes 12 to 18 months. In the meantime, your best path to securing a rental is through a guarantor or prepaid rent. Read our guide to moving to the GTA for more tips on getting settled.

What Landlords CAN Do

Under Ontario law, landlords have the right to screen prospective tenants — and credit checks are a legitimate and widely used part of that screening process. Here's what you need to know about what landlords can legally do when it comes to credit and rental applications.

• Request a credit check: Landlords can ask to run a credit check on you as part of the application process. However, they must obtain your written consent before pulling your credit report. You have the right to decline, but declining will likely result in your application being rejected.
• Consider your credit score: Your credit score and credit history are legitimate screening criteria. A landlord can decide not to rent to you based on a low score or negative items on your credit report, as long as the decision is applied consistently to all applicants.
• Verify your income: Landlords can request proof of income, including pay stubs, a letter of employment, bank statements, or tax returns. Verifying that a tenant can afford the rent is a standard and legal part of the screening process.
• Contact references: Landlords can contact previous landlords, employers, and personal references that you provide on your application. Good references can significantly strengthen your application.
• Apply screening criteria consistently: Under the Ontario Human Rights Code, landlords must apply the same screening criteria to every applicant. They can set a minimum credit score threshold, but that threshold must be the same for everyone — they can't raise it for certain applicants based on protected characteristics.

It's worth noting that while credit checks are common and legal, landlords are also entitled to weigh other factors in their decision. A landlord who sets a minimum score of 650 could still choose to accept an applicant scoring 620 if the rest of the application is exceptionally strong. The screening criteria are guidelines, not rigid rules — especially for private landlords.

What Landlords CANNOT Do

Ontario has strong tenant protection laws, and there are clear limits on what landlords can and cannot do during the screening process. Knowing your rights protects you from illegal practices and discrimination.

• Charge you for the credit check: Under Ontario law, landlords must pay for the credit check themselves. They cannot charge you a fee to run your credit report or pass the cost on to you as part of the application process. If a landlord asks you to pay for the credit check, that's a red flag.
• Require your Social Insurance Number (SIN): Your SIN is not required for a credit check. Landlords can pull your credit report using your name, date of birth, and address. Never provide your SIN to a landlord. It's sensitive personal information that could be misused, and no legitimate landlord needs it.
• Use credit as a pretext for discrimination: Under the Ontario Human Rights Code, landlords cannot refuse to rent to you based on a protected ground — including race, place of origin, ethnic origin, citizenship, ancestry, colour, age, sex, gender identity, sexual orientation, marital status, family status, disability, or receipt of public assistance. If a landlord uses "bad credit" as an excuse but the real reason is one of these protected characteristics, it's illegal discrimination.
• Refuse tenants receiving social assistance: Specifically, landlords cannot discriminate against applicants because they receive social assistance or disability benefits. Rejecting someone solely because their income comes from ODSP, Ontario Works, or other government assistance programs is a violation of the Human Rights Code.
• Apply credit criteria inconsistently: If a landlord approves a tenant with a score of 620 but rejects you with a score of 640, and the only difference is a protected characteristic, that's discrimination. Screening criteria must be applied uniformly.

If you believe you've been discriminated against during the rental process, you have the right to file a complaint with the Ontario Human Rights Tribunal. The process is free, and you don't need a lawyer to file. The Tribunal investigates complaints and can order remedies including compensation for lost dignity, out-of-pocket expenses, and changes to the landlord's practices. Learn more about your rights as a tenant in Ontario.