What Is the Minimum Credit Score for Renting an Apartment in Canada

There is no universal minimum credit score for renting an apartment in Canada. While most landlords prefer a good credit score of at least 660, a lower score won’t automatically disqualify you. The minimum credit requirements vary widely among landlords as well as rental markets across the country. In this article, we’ll explore everything you need to know about the recommended minimum credit score for renting an apartment in Canada.

Recommended Minimum Credit Score For Hot Rental Markets

In hot rental markets like Toronto, Vancouver, and Montreal, the competition for a place to live is intense. There are not enough rental properties to satisfy demand. So landlords have an abundance of tenants to choose from which naturally leads to stricter requirements, like a higher minimum credit score required to rent an apartment. Here’s a general idea of the credit score you’ll need in the three hottest markets:

Toronto

Toronto is by far Canada’s most expensive rental market, with an average rent of $2,600 for a one-bedroom apartment. Landlords tend to prefer tenants with a very good credit score of around 700 and up. Remember this is not set in stone, but it will increase your chances of getting approved for an apartment.

Vancouver

Similar to Toronto, Vancouver’s rental market is also very competitive. Here, landlords generally look for credit scores in the 700 range as well. Again, a slightly lower score might be acceptable, but the higher the better.

Montreal

While Montreal’s rental market is also competitive, it is somewhat less intense than Toronto or Vancouver. Landlords in Montreal are more likely to consider tenants with credit scores in the 660-700 range. The market here can be more flexible, and landlords may place more emphasis on other factors like employment and references.

Recommended Credit Score For Smaller or Cooler Markets

Cooler rental markets typically have looser credit requirements. In these areas, the minimum credit score to rent an apartment is generally around 660 with more rural areas accepting scores as low as 600. Again, I cannot stress enough that this is not a universal standard. Credit requirements vary from one landlord to the next.

Some landlords do not even perform rental credit checks on potential tenants. This is especially true for private landlords in smaller cities and towns. They tend to rely more heavily on personal references, proof of income, and rental history to assess your financial reliability.

How Landlords Perform a Credit Check

The primary risk for landlords is the non-payment or late payment of rent. Your credit score acts as a predictive tool. It offers insights into the likelihood you’ll pay rent on time and in full each month. Landlords have several options to perform a rental credit check on prospective tenants.

How Credit Scores Affect Rental Applications

In most cases, landlords will check a potential tenant’s credit score as part of the rental application process. If your credit score is low, it could make it more difficult for you to find a landlord willing to rent to you. Alternatively, you may be required to pay a higher security deposit or provide a co-signer or guarantor to secure the rental.

Remember, having a low credit score doesn’t necessarily mean that you won’t be able to rent an apartment. Some landlords may be willing to overlook a low credit score if you have a good rental history or a steady income. However, it’s always best to work on improving your credit score to increase your chances of being approved for a rental.

Final Thoughts

There is no one-size-fits-all answer to the question of what the minimum credit score requirement is for renting an apartment in Canada. However, by understanding how credit scores impact your application and taking steps to improve your creditworthiness, you can increase your chances of securing the rental you want.?

This article is the shortened version of an article originally published on Hardbacon.ca by Heidi Unrau under the title What Is the Minimum Credit Score for Renting an Apartment in Canada.