Top 5 Challenges When Renting in Canada as a Newcomer

Finding rentals for newcomers in Canada can be challenging. Depending on where you are financially and where you live (or plan to live), those challenges might range from finding affordable housing to submitting a successful rental application. But, with the right information, some time, and a pinch of luck, you can be well-placed to rent your dream home in Canada.

We’ve put together this detailed guide to share the information you need to secure your rental property, from the start of your house hunt through to when you grab the keys.  

1. Lack of Canadian Credit History 

It’s quite common in many parts of Canada for your prospective landlord to ask to see a credit report. This can present a challenge for newcomers, who tend to have a limited credit history – or even none at all – in Canada.  

What really matters to your landlord or property manager is whether you have the financial means to pay rent on time. The credit report is only one way to show that you’ll be a reliable tenant.

How to overcome the lack of a Canadian credit history

• Offer more upfront
  • Offer to pay first and last month’s rent (standard in Canada) plus an additional month as a show of good faith
  • Propose a larger security deposit if allowed in your province
• Provide alternative proof of financial reliability
  • Show bank statements proving stable savings or income
  • Provide a letter from your employer confirming your salary and job status
  • Share proof of international credit history or a credit report from your home country
  • Offer reference letters from previous landlords abroad
• Leverage your network
  • Ask a Canadian citizen or permanent resident to co-sign your lease
  • Reach out to newcomer communities, settlement agencies, or Facebook groups for leads on landlord-friendly rentals
  • Look for rentals from private landlords rather than large property management companies — they tend to have more flexibility
• Use newcomer-friendly services and tools
  • Some banks offer newcomer credit cards with no credit history required — getting one early helps you start building credit right away
  • Look into platforms or programs specifically designed to help newcomers rent without Canadian credit
• Be transparent and proactive
  • Write a short cover letter explaining your situation, your background, and why you’d be a reliable tenant
  • Offer to set up pre-authorized payments to show you’re serious and organized
• Start building credit immediately
  • Open a Canadian bank account as soon as you arrive
  • Apply for a secured credit card
  • Pay all bills on time — even small ones count

2. Difficulty Securing Local References 

Most landlords or property managers will ask you to provide references. This can be challenging if your rental history is entirely from outside of Canada.  

How to overcome the lack of local references

• Offer international references instead
  • Requesting references from previous landlords or employers in your home country can still carry weight, especially if you provide a translated copy and contact details.
  • Ask your previous landlords to provide a written reference, in English, alongside email contact details to make it as convenient as possible for your prospective landlord in Canada to feel certain you’ll treat their home with respect.  
• Get a co-signer or guarantor
  • A Canadian resident who vouches for you financially can give landlords the security they’re looking for. This could be a friend, colleague, or community contact you’ve made since arriving.
• Show proof of financial stability
  • Bank statements, an employment offer letter, or proof of a steady income can compensate for the absence of references by showing you’re a low-risk tenant.
• Offer a larger upfront deposit
  • Proposing to pay first and last month’s rent — or in some cases more, where legally permitted — can ease a landlord’s concerns and signal that you’re serious and financially prepared.
• Tap into newcomer networks and community organizations
  • Settlement agencies, newcomer Facebook groups, and immigrant community organizations sometimes have connections to landlord-friendly listings or can provide a letter of support that serves as a soft reference.

3. High Demand and Limited Inventory 

Canada is facing a housing shortage, resulting in very low rental vacancy rates, high rent costs, and intense competition for available rental housing. This can mean that many people are applying for a property, which makes it very important to submit a strong, compelling application.  

How to overcome the high demand and limited inventory

• Start your search before you arrive
  • Use online platforms and communities to find housing. Canadian rental platforms like Rentals.ca let you browse listings remotely, so you can get a feel for the market and even reach out to landlords before you land. The earlier you start, the better your chances of securing something before competing with local applicants.
• Be flexible on location
  • High demand is often concentrated in city centres. Looking slightly outside your target area — in nearby suburbs or smaller municipalities — can open up more options at lower price points, especially when you’re still getting settled.
• Have your documents ready to go
  • In a competitive market, speed matters. Having your ID, proof of income, reference letters, and bank statements prepared in advance means you can submit a complete application the moment a good listing appears.
• Look beyond the big platforms
  • While major listing sites are a good starting point, some rentals never make it online. Joining local Facebook groups, checking community boards, and asking within newcomer networks can surface listings that most applicants never see.
• Consider short-term rentals as a bridge
  • If you can’t find a long-term rental right away, a furnished short-term rental buys you time to search properly without the pressure of being between homes. It also gives you a local address, which can help with other applications.

4. Unfamiliarity with renters’ rights and rental processes.  

Renting a home in Canada is likely not the same as renting in the country you lived in previously. Canada has its own processes, customs and rights for both landlords and tenants, and it’s definitely worth spending some time getting to know them.   

How to overcome the unfamiliarity with renters’ rights and rental processes

• Learn the basics of provincial tenancy law before you sign anything
  • Rental rules in Canada vary significantly by province. Before committing to a lease, take time to understand the rules that apply where you’re renting — including what landlords can and can’t ask for, how rent increases work, and what your rights are if something goes wrong.
• Read your lease carefully — and ask questions before signing
  • A lease is a legally binding document, and unfamiliar terminology can lead to costly misunderstandings. If something isn’t clear, ask the landlord to explain it or have someone you trust review it before you sign. Read our article about the most important questions to ask your landlord.
• Use free settlement and legal aid services
  • Many provinces have tenant support organizations and legal aid clinics that offer free advice to newcomers. These services can help you understand your rights, review a lease, or navigate a dispute without needing to hire a lawyer.
• Know what landlords are not allowed to do
  • In Canada, landlords cannot discriminate based on country of origin, ethnicity, or immigration status. Knowing your rights under the Canadian Human Rights Act and provincial human rights codes can help you recognize and respond to unfair treatment.
• Keep records of everything
  • From the condition of the unit on move-in day to every communication with your landlord, documentation protects you if a dispute arises. Take photos, save messages, and request that any agreements made verbally are confirmed in writing.

5. Rental scams are a real risk  

Canada’s police departments receive daily reports of rental scams. They’re an unfortunate part of Canada’s rental market, and they come at a high cost to their victims. 

How to avoid rental scams as a newcomer

• Never send money before seeing the property
  • Whether in person or via a verified video call, always view a rental before making any payment. Scammers often create urgency by claiming multiple interested applicants, but a legitimate landlord will always allow you to see the unit first.
• Be cautious of deals that seem too good to be true
  • If a listing offers a spacious, well-located apartment at a price significantly below market rate, treat it as a red flag. Research average rental prices in the area so you have a realistic benchmark and can spot when something is off.
• Verify the landlord’s identity and ownership
  • Before signing anything or handing over money, confirm that the person you’re dealing with actually owns or manages the property. You can cross-reference the address on public property records or ask for identification and proof of ownership.
• Use secure and traceable payment methods
  • Avoid paying a deposit or first month’s rent via wire transfer, cryptocurrency, or gift cards. These methods are nearly impossible to recover if you’ve been scammed. Credit cards or certified cheques leave a paper trail and offer more protection.
• Learn to recognize the most common scam tactics before you start your search
  • The best defence against rental fraud is knowing what to look for before you encounter it. From cloned listings to fake landlords, the schemes targeting newcomers are more sophisticated than ever. Read our full guide on how to spot fake listings and rental scams to make sure you’re prepared.

How to Create a Standout Rental Application 

Remember that as a newcomer, you possess a certain skill: the ability to prepare an application that pre-empts questions and concerns. You did this with IRCC when you applied to immigrate to Canada. And you’ll need to do it now, from the perspective of the landlord.  

Putting together a standout application means thinking from the landlord’s point of view. You can start your draft application at this point by gathering all the essential documents they expect, including proof of identity, proof of income, your credit report from Canada and your home country if you can find one), reference letters in English and/or French (as appropriate), and a cover letter providing details about your family, lifestyle, work stability, commitment to being a respectful tenant, and explaining away any concerns the landlord may have.  

Here are some quick tips to make your application stand out: 

1. Organize all papers neatly in a folder or digital file. Make it super easy to review. 
2. Clearly show consistent income or savings, and state exactly how you’ll pay rent on time (e.g., automatic transfer). This is especially important if you don’t have credit history in Canada or a secure/consistent job.  
3. Offer Extra Assurances: volunteer to set up pre-authorized payments, share your current bank statement, and note that you’ll secure tenant insurance before moving in. Mentioning these proactive steps builds trust. 

By covering documentation, personal background, and financial reliability, you’ll present a complete package that answers every landlord’s question before they ask it. 

Yes, that’s right – we suggest getting a draft application together before you start to tour potential homes. This is so you can move quickly if you find a property that meets your needs. It puts you in a better position to apply early, instead of lagging behind other possible applicants.  

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