Yes — you can rent an apartment or house after filing bankruptcy or a consumer proposal.
Will it sometimes be harder? Yes.
Is it impossible? Absolutely not.
Many landlords check credit reports. But your credit score is only one part of the decision. Landlords are looking for:
- Someone who pays rent on time
- Someone stable
- Someone respectful and reliable
- Someone who won’t cause problems
Your job is to show them that person is you. This guide explains exactly how to do that.
Set Your Budget First
Do not start with the listing. Start with what you can safely afford.
A good rule: Aim to keep rent around 30% of your gross income if possible.
Look for a realistic price that you can afford, and stick to it.
Choose the Right Type of Rental
If stability matters to you (and for most people rebuilding after insolvency it does), where you rent matters just as much as your credit score.
Look for stability and realistic pricing. Be cautious of houses or condos listed for both rent and sale on MLS or Realtor.ca — if the owner is trying to sell, you may be forced to move within a year. Many large listing sites also include investor units and short-term rentals (like Airbnb), which can distort pricing and create the impression that rents are higher than they really are. Don’t hesitate to ask how long the landlord has owned the property — it can help you assess whether the unit is likely to be a long-term rental or a short-term investment.
To help you find an affordable unit better websites to check are:
Understand What Landlords Can Legally Check
Under section 10 of Ontario’s Residential Tenancies Act, landlords can ask for:
- Income verification
- Credit checks
- Rental history
- References
- Guarantors
You should assume they will check your credit.
So instead of hoping they won’t, prepare for it. We give you some tips below to improve your chances of success.
A word of caution: your prospective landlord may ask for you to prepay for many months rent; don’t do it; it’s illegal. Section 106 of the Ontario Residential Tenancies Act says that the maximum you can pay as a security deposit is one month’s rent. So when you rent a place you are only legally obligated to pay first and last month’s rent (with the security deposit being last month’s rent), but your landlord can’t ask you to “pay six months in advance”. While a landlord can’t ask for more, they can legally accept a voluntary offer to pre-pay several months rent. However, be sure you have the savings before offering, and don’t take on debt to do so.
How to Increase Your Chances of Being Approved
If you have filed bankruptcy or a consumer proposal, you may need to work a little harder to stand out.
Here are practical steps that can improve your chances:
1. Get your credit report first.
- Obtain your free credit report from both Equifax and TransUnion.
- Check for errors and correct them before applying.
- Check both Equifax and TransUnion for your credit score and submit whichever score is higher!
2. Provide positive references.
- A reference from a previous landlord is ideal.
- If that’s not available, an employer or professional reference can help.
3. Show stable, sufficient income.
- Include recent pay stubs and employer contact information.
- Landlords want to know you can afford the rent.
4. Be early, organized, and professional.
- Arrive on time for viewings.
- Have your documents ready.
- Follow up politely.
5. Be honest about your situation.
- Do not try to hide your insolvency.
- A short, factual explanation builds trust.
- Show them you intend to take care of the place, will be clean and quiet, and will pay your rent on time.
6. Consider a guarantor or co-signer.
- This often is your parents or another family member.
- This works for the landlord, because the co-signer is fully liable for any missed payments or other costs.
- But beware: if there are any problems, the landlord can sue both you and your co-signer, so only get a co-signer if you are sure you can make all of the payments.
7. Consider a roommate with good credit.
- Having both names on the lease can improve your odds of being approved.
- However, your roommate becomes fully liable for any missed payments (and you become liable if they miss payments).
8. Wait until your credit score improves.
- If possible, staying where you are for a few months while you rebuild credit may make renting easier later.
Here’s the bottom line: with damaged credit it may be more difficult to rent a place, but if you follow the steps above you increase your chances of finding a place to rent. Remember: a landlord wants a good tenant, so if you can show that you are a good tenant, you increase your chances of finding a great place to live.