Renting Your First Home in Canada: 5 Things Newcomers Should Know About Costs, Lease, Credit, and Scams

couple moving into new rental apartment

A new home may be one of the first priorities for you and your family after arriving in Canada. For many newcomers, renting is the first step. It may offer flexibility while you get to know your community.

For some, a short-term rental may be a good option. For others, a longer stay rental may be preferable while they plan ahead. Whichever you choose, understanding how the rental process in Canada works may help you feel more comfortable as you move forward.

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This article highlights five key areas of the rental process. It covers budgeting and your rights as a renter. This timely information may help you make decisions with greater clarity as you begin your new life in Canada.

Getting Ready to Rent: Costs to Think About

Choosing a rental may be one of your first financial decisions in Canada. A bit of planning can help you find a place that fits your needs and your budget.

Remember to look beyond the monthly rent amount when adding up all the costs. Many renters also plan for:

A security deposit or advance rent payment (often equal to one month’s rent or more)
Utility bills such as heat, water, and electricity
Tenant insurance
Internet and phone services
Moving costs
Furniture, if the unit is not furnished

Where you live may also shape your daily routine and costs. You might think about the type of home that suits you, such as an apartment, condo, or house. It is also helpful to look at nearby public transit, work, and schools. How close will you be to work or school – and how much will it cost you to travel back and forth?

Once you have a sense of location, you can look more closely at your budget. Rent is one part of the cost. Other expenses may also come up over time.

These may include utilities, insurance, and other monthly bills. Together, they may increase your total housing costs. Many experts suggest keeping these costs within about 35% of your gross monthly income.

To help you plan, you may choose to use a tool like the TD Personal Cash Flow Calculator. It can give you a better idea of your spending in the months ahead.

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Your Credit History: What Landlords May Look For

When you apply for a rental, a landlord may review your credit report. This gives them a sense of how you have handled payments in the past.

If you are new to Canada, you may not yet have a credit history here. In some cases, you may be asked for a guarantor. This is someone who agrees to support your application and take responsibility for the rent if needed. Some landlords may also accept references from an employer or a settlement agency.

As you settle in, you may choose to check your credit report from time to time. This helps you understand your current standing. TD customers who are eligible can use the TransUnion CreditView® Dashboard in the TD app to view their score and follow any changes.

Understanding Your Lease: What to Review

After your application is accepted, you may be asked to sign a lease. This is a legal agreement between you and the landlord. It sets out the terms of your rental.

It is helpful to read the document carefully before signing. Take time to understand what is included and what is expected.

A lease in Canada may cover:

The amount of rent and when it is due
The length of the rental period (for example, a year or month-to-month)
What is included, such as utilities, parking, or appliances
Rules about pets, smoking, and guests
Who looks after repairs and maintenance

Before you move in, you may want to take photos of the unit. This will be helpful if questions come up later about its condition.

You might also think about tenant insurance. It is not always required. However, it may help protect your belongings in case of theft, fire, or water damage.

Your Rights as a Renter: What to Expect

Rules for renting are set by each Canadian province and territory. They may differ depending on where you live. It may help to check your local landlord and tenant authority for details.

Many regions in Canada also have limits on rent increases. These are often set each year by the provincial government. In provinces like Ontario and British Columbia, maximum increases are published annually. Landlords are usually required to give written notice in advance, often at least 90 days. You may wish to confirm the rules that apply to your geographic area.

In general, landlords may be expected to:

Follow privacy laws when handling your personal information
Keep the property in good condition
Provide written notice before raising rent or ending a lease

As a tenant, you may have the right to:

Be protected from eviction that does not follow the law
Live in a safe and secure home
Receive receipts for rent payments

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Spotting Rental Scams: Steps to Help You Stay Safe

Some rental listings may not be legitimate. It may help to stay cautious as you search for a place to live.

You might want to take a closer look at listings that:

Do not include a written lease or clear rental terms
Ask for payment before you can view the unit
Create urgency or request payment by wire transfer

It may be a good idea to confirm that both the property and landlord are real before sharing personal or banking details. If something does not feel right, you can choose to pause. You might also reach out to a local newcomer support group or legal clinic for guidance.

Support for Newcomers to Canada Who Rent

Finding a place to live is one of the early steps as you settle in Canada. TD offers support that may help you manage your finances during this time.

You can use the TD app to track your spending, view your credit score, and explore tools that support everyday banking decisions.

If you prefer to speak with someone, TD advisors can help you open a chequing account, set up automatic payments, and look at savings and insurance options.

To learn more, you may visit td.com/newtocanada.

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Why Choose TD?

More than 160 years of helping Canadians:

TD has a proud history of delivering financial solutions to Canadians for more than 160 years. TD also brings a century of experience helping newcomers navigate the unique challenges of the Canadian banking system.

With over a thousand branches, and the ability to also serve you in more than 80 different languages, TD has become one of the largest and most trusted banks in Canada, now serving 16 million Canadians.

TD offers online support and resources of interest to newcomers on topics such as banking basics, moving to Canada, credit score essentials, and more. TD is open longer hours for your convenience and has thousands of ATMs across Canada to help you take care of your everyday banking needs quickly and easily.

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Book an appointment to talk with a TD Personal Banking Associate about the TD New to Canada Banking Package. You can book online right away, or visit the TD website to learn more.

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