Rental security deposits in Canada: what landlords can and cannot do

In short: In Canada there is no single rule on security deposits — it is decided province by province. Two provinces are outliers you should know first: Quebec bans security deposits entirely (art. 1904 CCQ), and Ontario allows no damage or pet deposit at all, only a last-month's-rent deposit. Everywhere else a deposit is legal but capped (often half a month's to one month's rent), and many provinces make the landlord pay interest and return it within 10–15 days. CourtStairs answers questions like these in plain language, with citations to the actual statute for your province.

When you sign a lease, "how much can they hold, and when do I get it back?" is one of the most common — and most misunderstood — questions in Canadian renting. Because housing is provincial, the honest answer changes at the border between Ontario and Quebec, or between Alberta and BC. This post maps who can charge a deposit, how big it can be, whether interest is owed, and the deadline to return it.

Two provinces where the "deposit" barely exists

Start with the exceptions, because they trip people up most.

• Quebec flatly prohibits security deposits. Under article 1904 of the Civil Code of Québec, a landlord may not demand any sum beyond the first month's rent, "in the form of a deposit or otherwise." Asking for a damage or key deposit as a condition of the lease is not allowed, even if it is offered as one "option" among several.
• Ontario allows no damage, cleaning, or pet deposit. The only lawful deposit is a rent deposit (Residential Tenancies Act, 2006, ss. 105–106), and it can only ever be applied to the last month's rent — never to damage.

Which provinces allow a security deposit, and how much?

Most provinces allow a capped security deposit — usually half a month's to one month's rent — while Quebec bans deposits entirely and Ontario permits only a last-month's-rent deposit. The figures below are the general rules as of 2026. Exact amounts, interest rates, and timing can turn on the type of tenancy, so treat this as a map, not the final word.

How big can the deposit be?

Notice the pattern: provinces cluster around half a month (BC, Manitoba, Nova Scotia) or one month (Alberta, Saskatchewan, PEI). British Columbia is unusual in allowing a second deposit — a pet damage deposit of up to half a month's rent — so a BC tenant with a pet can face up to a full month split across two capped deposits. New Brunswick is unusual in a different way: the deposit is not held by the landlord at all but paid to the provincial tenancies office, which returns it directly.

Does my landlord have to pay interest on my deposit?

In several provinces, yes. BC, Alberta, Manitoba, Nova Scotia, Saskatchewan, Newfoundland and Ontario (on the last-month deposit) all require the landlord to pay interest on the money they hold, though the rate can fall to 0% in a given year. Ontario ties interest on the rent deposit to the annual rent-increase guideline (2.1% for 2026). BC sets it at the prime lending rate minus 4.5%, compounded annually. Alberta and Nova Scotia use a prescribed rate that is reset yearly — and in lean years it can fall to 0%. In fact, for 2026 both Alberta and BC are at 0%: BC's formula (prime minus 4.5%) went negative when the January 1, 2026 prime rate sat below 4.5%, so no interest accrues this year. The amounts are usually modest, but the entitlement is real, and it should appear when the deposit is returned.

For a deeper dive on refunds, deductions, and how to fight an unfair "damage" claim, see our companion guide, how to get your security deposit back in Canada.

How long does a landlord have to return your deposit?

Most provinces give the landlord a short window — commonly 10 to 15 days after the tenancy ends — to either return the deposit with interest or account for lawful deductions. The return deadline is where disputes concentrate, and missing it can carry penalties.

1. Give notice and a forwarding addressIn BC the 15-day clock only starts once the landlord has your forwarding address in writing. Provide it clearly at move-out.
2. Do a move-out inspectionSeveral provinces require a joint condition inspection report. It is your best evidence against unfair "damage" claims.
3. Landlord returns it or itemizes deductionsA deposit covers unpaid rent and damage beyond normal wear — not routine cleaning or ordinary aging. Deductions should be itemized.
4. If it's late or wrong, apply to the tribunalTake it to the provincial body — the RTB in BC, the LTB in Ontario, the TAL in Quebec, or your province's residential tenancies office.

Why the variation exists

The differences are not random. Housing falls squarely within provincial jurisdiction, so each legislature has drawn its own line between protecting a landlord against damage and protecting a tenant against having cash tied up or lost. Quebec's civil-law tradition took the most protective route and banned the deposit outright; Ontario allowed only a rent deposit; the western and Atlantic provinces settled on capped deposits with interest and firm return deadlines. The practical lesson is the recurring one across Canadian law: the answer is provincial, so confirm the rule for your address before you pay — or try to keep — a dollar. The same province-by-province pattern shapes tenant rights across Canada and how much rent can rise each year.

Where CourtStairs fits

CourtStairs answers everyday renting questions like "can my landlord keep my deposit?" with citations to the primary source for your province — the Civil Code of Québec, the Residential Tenancies Act, or your province's tenancy statute — so you can read the rule in the law itself before you act on it.

This post is general information, not legal advice. Deposit caps, interest rates, and return deadlines vary by province and change over time, so confirm the current rule against the official statute, your provincial tenancy office, or a lawyer or tenant advocate before relying on it.