Can a Landlord Refuse to Rent Due to Bad Credit in Newfoundland and Labrador?

Looking for a new place to rent in Newfoundland and Labrador? Worrying about how your credit score might impact your chances? Many tenants across the province have questions about what a landlord can and cannot consider when selecting a renter. In this article, we break down your rights around credit checks, what the law says, and the steps you can take if you feel unfairly denied housing based on your credit history.

Can a Landlord Check or Deny You for Bad Credit?

In Newfoundland and Labrador, landlords are allowed to request a credit check as part of the rental application process. This means they can ask for your consent to verify your credit history. If you refuse, a landlord may decide not to consider your application. While there is no law that strictly prevents a landlord from denying housing based on poor credit, they must follow provincial tenancy and human rights legislation during this process.

Credit Checks and Rental Applications

  • Landlords must get your permission in writing before checking your credit.
  • Landlords often look for eviction history, missed payments, or heavy debt loads.
  • Lack of credit history is not the same as bad credit, but it might still be used as a deciding factor.

It's important to know what else landlords often request during the tenant screening process, such as references and verification of employment.

Is Denying Housing for Bad Credit Considered Discrimination?

Under Newfoundland and Labrador’s Human Rights Act, it is illegal for a landlord to discriminate based on protected grounds, such as race, religion, age, family status, disability, or source of income. However, credit history is not a protected ground. This means that, on its own, denying someone housing for bad credit is not considered discrimination under current provincial law1.

If, however, a landlord is using credit as a pretext to discriminate against tenants on one of the protected grounds, you may file a complaint with the Newfoundland and Labrador Human Rights Commission.

Your Rights Under Provincial Law

The main law covering rental housing in this province is the Residential Tenancies Act (NL). This law outlines the rights of both landlords and tenants. For more details about other tenant protections, visit the Tenant Rights and Landlord Rights in Newfoundland and Labrador fact page.

If You’re Denied for Bad Credit—What Can You Do?

If a landlord denies your rental application due to your credit, you cannot usually appeal the decision through the provincial tribunal as it is within their rights. However, you may:

  • Explain your situation to the landlord and offer other forms of proof, such as pay stubs or letters from employers.
  • Offer a qualified guarantor, or co-signer.
  • Suggest a longer-term lease or higher rental deposit within what is legally allowed (learn more from Understanding Rental Deposits: What Tenants Need to Know).

Landlords in Newfoundland and Labrador can only request a rental deposit equal to a maximum of three-quarters of one month’s rent.

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Relevant Forms and the Official Tribunal

If you suspect discrimination based on a protected ground (for example, if your application was denied due to your source of income, age, or disability), you can file a complaint with the Newfoundland and Labrador Human Rights Commission. The primary tribunal handling residential tenancies is the Residential Tenancies Section, Service NL.

  • Human Rights Complaint Form: Use this online process if you believe a landlord has discriminated against you.
    File a human rights complaint (NL Human Rights Commission)
    Example: If you are told your "income assistance" is not acceptable as a source of rent payment, you could file a complaint.
  • Application for Dispute Resolution (Residential Tenancies): Use this if a tenancy-related issue arises after you are a tenant, not usually for application denials.
    Rental forms and applications
    Example: If you are already a tenant and a landlord acts outside the law (such as retaining your deposit unlawfully), you would use this form.

Tips to Strengthen Your Rental Application With Poor Credit

  • Gather positive references from prior landlords or employers.
  • Prepare proof of stable income, such as recent pay stubs or bank statements.
  • If possible, offer to pay a legal rental deposit or the first month’s rent upfront.
  • Write a short letter explaining your credit situation if there are recent improvements or special circumstances.
Remember: Always get any promises or agreements from the landlord in writing before moving in.

If you are looking for alternative options, you can Browse apartments for rent in Canada quickly and easily online.

Learn More About Your Rights

For more information on your overall rights as a tenant in this province, visit the Tenant Rights and Landlord Rights in Newfoundland and Labrador page for clear and accessible facts.

Frequently Asked Questions

  1. Can a landlord refuse to rent to me just because I have bad credit?
    Yes, landlords in Newfoundland and Labrador may lawfully deny your application for bad credit, as long as it is not being used to discriminate on a protected ground under the Human Rights Act.
  2. What if my lack of credit history is the issue?
    A landlord can decline an applicant for lack of credit history. Offering alternative proof, like references or employment letters, may help your chances.
  3. Is there a maximum deposit a landlord can ask for with poor credit?
    Yes, the maximum allowed rental deposit in Newfoundland and Labrador is three-quarters of one month's rent. To learn more about deposits, see Understanding Rental Deposits: What Tenants Need to Know.
  4. Can a landlord deny my application because I receive social assistance?
    No. Denying tenancy due to "source of income" is prohibited discrimination under the Human Rights Act. You can file a complaint with the Human Rights Commission if this happens.
  5. Can I challenge a rental denial for credit reasons at the Residential Tenancies Section?
    Generally, no. The Residential Tenancies Section handles disputes for current tenants but does not oversee landlord selection decisions based solely on credit.

Key Takeaways for Tenants

  • Landlords in Newfoundland and Labrador may lawfully deny a rental application due to bad credit, so long as they are not breaching Human Rights Act protections.
  • If you are refused for bad credit, consider offering additional assurances, like references or a guarantor.
  • If you believe discrimination has occurred on protected grounds, contact the Human Rights Commission.

By understanding your rights and being prepared, you can improve your chances of finding a suitable rental home, even if your credit is less than perfect.

Need Help? Resources for Tenants

  1. See Section 6 of the Human Rights Act, SNL 2010, c H-13.1 for protected grounds.
  2. Provincial rental law referenced: Residential Tenancies Act (NL).

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