Securing a rental home in Ontario often means sharing financial information with prospective landlords. But what happens if you have bad credit? This guide will help you understand whether landlords can deny your application based on credit history, your rights under Ontario law, and practical tips for securing housing, even if your credit isn't perfect.
Can Landlords Refuse to Rent to Tenants with Bad Credit in Ontario?
In Ontario, landlords have the right to screen tenants, which commonly includes requesting a credit check. While it's legal for a landlord to consider your credit report, they must do so fairly and without discrimination under the Residential Tenancies Act, 2006 and the Ontario Human Rights Code[1].
Key points:
- Landlords can request a credit report as part of the application process
- They can turn you down for bad credit, unless the decision is based on a prohibited ground under the Human Rights Code (e.g., race, disability, family status)
- If you feel your application was denied unfairly for a reason covered by the Code, you may have grounds for a human rights complaint
What Does This Mean for Tenants?
While bad credit alone is not a protected ground, Ontario law strives to ensure that all prospective tenants have a fair chance at housing. Some landlords may be willing to consider alternate proofs of reliability, such as references, proof of income, or offering a guarantor.
Your Rights During the Application Process
Landlords must treat all applicants equally and cannot charge application fees. Screening policies must be consistent for everyone. If a landlord asks for more information from you than from other applicants, and it seems related to a prohibited ground under human rights law, this may be discrimination.
Providing Other Proof of Reliability
- Letter from your employer confirming stable income
- References from previous landlords
- Offering a co-signer or guarantor
If you're asked for a deposit (other than first and last month's rent), check your rights in Understanding Rental Deposits: What Tenants Need to Know.
If You Think You've Been Discriminated Against
Discrimination can happen if a landlord hides their real reason for denial behind credit history. For example, if a landlord asks about your family status or disability and later says bad credit is the reason you were denied, you may have a case for discrimination.
How to Address Bad Credit and Improve Your Rental Application
It's common to feel discouraged if your credit history isn't ideal. Here are some practical ways to strengthen your application:
- Be upfront with the landlord about your credit report and explain any issues
- Provide alternative financial documents (pay stubs, employment letter, bank statements)
- Request a chance to prove reliability with a shorter-term or month-to-month rental
- Offer first and last month's rent on time
If you're offered a lease and want to better understand your rights and responsibilities, check out What Tenants Need to Know After Signing the Rental Agreement.
Official Forms and Complaint Process
Currently, there is no official form specifically for appealing a denied rental application due to bad credit. However, if you believe you were discriminated against based on a protected ground, you can file a complaint with the Human Rights Tribunal of Ontario:
- Form: Form 1 – Application to the Human Rights Tribunal of Ontario
- When to use: If you suspect your rental denial was due to discrimination on a protected ground (e.g., disability, family status).
- How to use: Fill out Form 1 and submit it online, by mail, or in person. The form requires details about your complaint, supporting evidence, and desired resolution.
The Human Rights Tribunal of Ontario is responsible for handling these complaints. Visit their official website for more information.
Your Rights Are Protected
Ontario's Tenant Rights in Ontario offer guidance on many aspects of the rental process and can help you understand what landlords can (and can't) consider.
For more tips on renting confidently, you can Find rental homes across Canada on Houseme quickly and easily.
Frequently Asked Questions
- Can landlords in Ontario ask for a credit report before renting to me?
Yes, landlords can legally request a credit report when screening rental applications. You must provide consent for them to obtain it. - What can I do if I have no credit history?
If you have no credit, offer alternative proof of income, reference letters, or a guarantor. Many landlords are open to this, especially for newcomers or students. - Is it discrimination if I am denied housing because of my bad credit?
It is only considered discrimination if the denial is based on a prohibited ground under the Human Rights Code, not simply due to a poor credit score itself. - Can a landlord ask for more than first and last month's rent as a deposit?
No. In Ontario, landlords can only require first and last month's rent, not extra deposits for credit issues. Learn more in Understanding Rental Deposits: What Tenants Need to Know. - Where do I file a complaint if I feel I was discriminated against?
File an application with the Human Rights Tribunal of Ontario using their official forms.
Key Takeaways
- Landlords in Ontario can use credit checks but cannot discriminate on protected grounds.
- Bad credit may impact your application, but you can strengthen it with income proof or guarantors.
- Use Form 1 at the Human Rights Tribunal if you believe your denial was discriminatory under Ontario law.
Summing up: Fair rental screening is legal, but you are protected against discrimination. Be proactive with documentation and seek help if necessary.
Need Help? Resources for Tenants
- Human Rights Tribunal of Ontario: File discrimination complaints or ask about your rights
- Ontario Tenants Rights: Advocacy and tenant information
- Ontario Government – Renting in Ontario: Official guidance on tenant rights
- Tenant Rights in Ontario: Easy summary of key tenant protections and law
