Why a Thin Credit File Is Not a Negative Finding
Canada’s two main credit bureaus, Equifax and TransUnion, collect information only about credit activity in Canada, and a credit report is created when someone first borrows or applies for credit here.1 A person who arrived last year, or a student who has never borrowed, will come back with no file or a very short one. That says nothing about how they paid bills abroad or at home.
The OHRC is direct about it: newcomers, young people and others may have little or no credit history; tribunals have found that refusing applicants for that reason can have a disparate impact on Code grounds; landlords cannot equate the absence of a credit rating with a bad credit rating; and they should not reject applications based on a lack of credit history.2 The same applies to rental history. Recent immigrants and refugees may have no rental history in Canada, and a lack of history should not be treated as a negative one.2
Ontario’s regulation already anticipates the gap. If a landlord asks for credit references, rental history and a credit check and gets back only income information, the landlord may consider income alone.3
What Evidence to Use Instead
Ask every applicant for the same package, and accept substitutes where the standard item doesn’t exist.
| Missing | Substitute | What it shows |
|---|---|---|
| Canadian credit report | A credit report from the applicant’s previous country | Payment record elsewhere. The FCAC notes some lenders look at credit history from another country.1 |
| Canadian credit report | A connected Canadian bank account | Bills and rent already being paid here, and the balance carried |
| Pay stubs from a Canadian employer | A signed offer letter plus first deposits, or payroll once it starts | A job that exists and is paying |
| Any income, for students | Bank balance, scholarship or funding letters, or family transfers into a connected account | Money available to pay the rent |
| Canadian landlord reference | A reference from a landlord abroad, or a host family or residence office here | How they have kept a tenancy before |
A connected bank account is often the strongest single piece. It shows money arriving and leaving without anyone retyping a statement. PropTx Verify reads income from connected bank accounts, and uses bank data when there is no payroll to connect.
Read the funding source neutrally. The OHRC says landlords may verify that an applicant has a source of income but may not judge the source type, and may only assess whether there is enough to pay the rent.2 Family support, a scholarship and savings all count.
Guarantors and Deposits
Ontario lets a landlord require a guarantee for the rent.3 The OHRC says a co-signer may be appropriate where a tenant has poor references, a poor credit history or a history of default, but landlords are not allowed to require one simply because the applicant belongs to a Code-protected group, and it names newcomers to Canada and youth among its examples.2
The practical test: would you ask for a guarantor from a Canadian-born applicant with the same verified income, the same funds and the same references? If yes, the requirement rests on the file. If the only difference is where the applicant is from, it doesn’t. More in guarantors and co-signers on Ontario leases.
Deposits follow the Residential Tenancies Act for everyone: the only security deposit allowed is a rent deposit of no more than one month’s rent or one rent period, whichever is less.5 The OHRC warns that asking newcomers or permanent residents for cash sums larger than the Act allows can breach both the Act and the Code.2 Some applicants offer to prepay several months on their own initiative; whether and how a landlord may accept that is a question for a lawyer or paralegal, and it should never be a condition offered only to newcomers.
What the Human Rights Code Rules Out
Citizenship, place of origin, ancestry and ethnic origin are among the grounds on which the Human Rights Code protects equal treatment in the occupancy of accommodation.4 For newcomer and international applicants, that means:
- Don’t ask for citizenship, immigration status, a permit or visa type, or country of birth on the application.
- Don’t require a Social Insurance Number. The OHRC notes a SIN can reveal that an applicant is a refugee and says housing providers should run credit checks by other means; the Privacy Commissioner says a SIN is not needed for a credit check.2,6
- Don’t require a guarantor, a larger deposit or direct payment from newcomers or students alone.2
- Don’t screen by name, accent or how an applicant sounds on the phone. The OHRC describes this as linguistic profiling.2
- Do apply the same written criteria to every applicant and record why the chosen one was chosen.2
Lease length is a common sticking point with students and people on fixed-term permits. Ask what term the applicant wants, not why. The full list of what a form may ask is in What Can a Landlord Ask on a Rental Application in Ontario?, and the Code in more depth is in the Human Rights Code and tenant selection.
This page is general information about Ontario law, not legal advice. Where a situation turns on its facts, get advice from a lawyer or paralegal.
Questions
Can a Landlord Reject an Applicant for Having No Credit History?
Not on that basis alone. The OHRC says landlords cannot equate no credit rating with a bad one and should not reject applications based on a lack of credit history.2
Can a Landlord Ask a Newcomer for a Guarantor?
Only for a reason tied to the file, such as poor references or a history of default, that would apply to any applicant. The OHRC says landlords may not require one simply because the applicant is a newcomer.2
Can a Landlord Ask for Several Months of Rent Upfront?
A landlord may require a rent deposit of no more than one month’s rent or one rent period, whichever is less.5 Requiring more from newcomers can also raise a human rights issue.2
Does a Foreign Credit Report Count?
It can be useful evidence. Canadian bureaus record only Canadian credit activity, and the Financial Consumer Agency of Canada notes that some lenders look at credit history from another country.1
Sources
- Credit report and score basics
Financial Consumer Agency of Canada, Who creates your credit report and score. Accessed October 22, 2026.
- Policy on human rights and rental housing, V. Identifying discrimination in rental housing
Ontario Human Rights Commission, ss. 4.1.2.2, 4.1.2.3, 4.2.1, 4.2.2, 4.2.4, 4.2.5, 4.2.6 and 4.2.7. Accessed October 22, 2026.
- O. Reg. 290/98: Business Practices Permissible to Landlords in Selecting Prospective Tenants for Residential Accommodation
Government of Ontario, e-Laws, ss. 1(5) and 2(1). Accessed October 22, 2026.
- Human Rights Code, R.S.O. 1990, c. H.19
Government of Ontario, e-Laws, s. 2(1), consolidated to July 1, 2025. Accessed October 22, 2026.
- Residential Tenancies Act, 2006, S.O. 2006, c. 17
Government of Ontario, e-Laws, ss. 105(1) and 106(1) to (2), consolidated to September 21, 2026. Accessed October 22, 2026.
- Privacy in the landlord and tenant relationship
Office of the Privacy Commissioner of Canada, Does a landlord require my Social Insurance Number (SIN)?. Accessed October 22, 2026.
