Moving out of a rental home in Ontario can raise big questions about when you'll get your deposit back. Understanding deposit refund timelines under Ontario law helps protect your finances and reduces end-of-tenancy stress. This guide walks you through the process, key timelines, and what your rights are when your lease ends.
Rental Deposits in Ontario: The Basics
In Ontario, most landlords require a deposit before you move in. This deposit is usually for the last month's rent (not a standard damage or security deposit). The rules for handling and refunding deposits are set out in the Residential Tenancies Act, 2006[1].
- Landlords can only ask for a rent deposit, typically equal to one month's rent, to apply to your last month of tenancy.
- They can't require a separate security or damage deposit, unlike some other provinces.
- If you paid a deposit for keys, unused portions must be refunded when you return the keys at the end of your lease.
For more details about deposits, review Understanding Rental Deposits: What Tenants Need to Know.
When Should Tenants Expect a Deposit Refund?
Ontario tenants are often concerned about how quickly they'll receive their deposit back after moving out. The situation depends on the type of deposit—last month's rent or key deposit:
- Last month's rent deposit: This deposit is applied to your final month of rent. It is not refunded in cash, unless your rent increased and the deposit exceeded your last month's rent. In that case, the landlord must return the extra amount with interest.
- Key deposit: Must be refunded promptly, ideally within a few days, after you return the keys.
What Does the Law Say About Deposit Refund Timelines?
The Residential Tenancies Act, 2006 requires that any portion of the deposit not lawfully withheld must be returned "forthwith," meaning without unreasonable delay[1]. Typically, this means you should receive your key deposit refund within a few business days after your tenancy ends and the keys are returned. There is no legal entitlement to a damage or cleaning deposit in Ontario.
Interest on Rent Deposits
Ontario landlords must pay interest on your last month's rent deposit every 12 months. The Landlord and Tenant Board of Ontario sets the interest rate, typically aligned with government guidelines.
- If your landlord does not pay this interest annually, you can request it or file an application with the Landlord and Tenant Board.
- If your rent increased during your tenancy but the last month's deposit remained the same, your landlord may ask you to top it up.
End of Tenancy: Steps to Secure Your Deposit Refund
Take these actions as your tenancy ends to make sure you receive your key deposit refund quickly and that your rent deposit is handled properly:
- Give proper written notice to your landlord using the official Form N9: Tenant's Notice to End the Tenancy (see below).
- Do a final walkthrough, documenting the unit's condition and returning all keys.
- If owed a key deposit refund, request it in writing and include your forwarding address.
- Request annual interest on your rent deposit if you have not received it.
What If the Landlord Refuses to Refund a Deposit?
If your landlord doesn't return your key deposit or pay the correct interest on your rent deposit:
- Contact your landlord in writing to request the refund.
- If unresolved, apply to the Landlord and Tenant Board of Ontario using the appropriate form (see below for details).
Key Forms for Ontario Deposit Issues
- Form N9 – Tenant’s Notice to End the Tenancy: Use when you are ending your tenancy and want to make your move-out date official. Find it and instructions at the Landlord and Tenant Board – Tenant Forms page. Example: Submit Form N9 at least 60 days before your move-out date.[2]
- Form T1 – Tenant Application for a Rebate: Use if you believe your landlord owes you money (for example, an unreturned deposit or interest). Download it from the Landlord and Tenant Board – Tenant Forms. Example: If your landlord hasn't refunded a key deposit or paid required interest, file a T1 application.[3]
Action Steps for Getting Your Deposit Back in Ontario
Follow these steps to help ensure you receive any refundable deposits as quickly as possible at the end of your tenancy.
Frequently Asked Questions: Deposits and Refund Timelines in Ontario
- How long does my landlord have to refund my key deposit in Ontario?
By law, landlords must refund the key deposit "forthwith" (without unreasonable delay) after you return the keys, typically within a few days. - Is my last month's rent deposit ever refunded in cash?
Generally, your last month's rent deposit is applied to your final rent payment. Only any excess (for example, because your rent decreased or you topped up the deposit) is refunded in cash, along with interest. - What can I do if my landlord refuses to refund my deposit?
If written requests don't work, you can file Form T1 with the Landlord and Tenant Board of Ontario to request a rebate or payment for unreturned deposits or unpaid interest. - Can a landlord withhold my deposit for damages in Ontario?
No, in Ontario, landlords cannot legally require a damage or security deposit for residential tenancies, so your last month's rent deposit cannot be withheld for damage to the unit. - Where can I find rental homes and resources if I need a new place?
Find rental homes across Canada on Houseme for an easy, map-based rental search experience.
Need Help? Resources for Tenants
- Landlord and Tenant Board of Ontario (submit forms, get legal information, check legislation)
- Ontario Government Tenant Information
- Local tenant advocacy services (such as the Advocacy Centre for Tenants Ontario) can provide support and guidance
- For more facts on renting: Tenant Rights in Ontario
