How to Get Your Rental Deposit Back in Ontario

There's a lot of confusion about rental deposits in Ontario — much of it borrowed from other provinces and the U.S. The reality is simpler than most renters expect: Ontario landlords can collect a rent deposit, but not a damage deposit. This guide explains how your deposit works, what you're owed, and how to recover it if a landlord won't pay up.

Key takeaways

• Ontario allows a rent deposit of one rental period — not a damage or security deposit.
• Your rent deposit is applied to your last month's rent, not refunded in cash.
• Landlords must pay you interest on your deposit each year.
• You cannot be charged for normal wear and tear when you move out.
• If a landlord withholds money illegally, the Landlord and Tenant Board can order it returned.

Ontario doesn't allow damage deposits

This is the single most important thing to understand: under the Residential Tenancies Act (RTA), a landlord in Ontario cannot collect a damage deposit, security deposit, key deposit beyond actual cost, or any other up-front charge to cover possible damage. The only permitted deposit is a rent deposit equal to one rental period — usually one month's rent for a monthly tenancy.

It's a rent deposit, not a damage deposit

Because the only legal deposit is a rent deposit, there is no "damage deposit" to argue over at move-out. The deposit you paid is applied to your final month of rent.

How your rent deposit works

Your rent deposit isn't returned as a cheque when you leave — it's applied to your last month's rent. So in your final month, you typically don't pay rent again, because the deposit covers it.

• Applied to last month — the deposit pays your final rental period; you don't pay that month separately.
• Interest is owed — landlords must pay you interest on your deposit every 12 months, and that interest can be applied to keep the deposit topped up to current rent.
• It can't be used for damage — a landlord cannot dip into your rent deposit to cover cleaning or repairs.

Don't skip the deposit-month logic

Some renters mistakenly pay rent for the last month and expect a refund of the deposit. Confirm in writing that the deposit is being applied to your final month so you aren't double-paying.

Normal wear and tear vs damage

You cannot be charged for ordinary wear and tear — the gradual, expected aging of a unit from normal living. A landlord may pursue you for genuine damage you caused, but they can't simply withhold money; they'd have to apply to the Landlord and Tenant Board.

Protect yourself by documenting the unit's condition with dated photos at move-in and move-out — the same advice in our guide on what to look for in a rental.

If a landlord won't return what you're owed

If a landlord illegally collected a deposit they shouldn't have, failed to apply your rent deposit to your last month, or didn't pay the interest you're owed, you can apply to the Landlord and Tenant Board (LTB). The LTB resolves disputes under the RTA and can order the landlord to return money owed.

Keep records: your lease, proof of payment, and any written communication. For the broader set of protections behind all of this, read our pillar guide to tenant rights in Ontario, and our explainer on what the Landlord and Tenant Board is.

Putting that money toward a home

Getting your deposit handled correctly is one less cost on moving day. If your next move is toward ownership, our guide on renting vs buying in Canada can help you plan.

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When you move from renting to owning, eligible HOMEH buyers receive the industry's highest Cashback Rebate — money that can go straight toward your down payment or closing costs. Compare your options with the rent vs buy calculator.