Ontario Rent Deposit Interest Calculation

When you rent a property in Ontario, your landlord is required by law to pay interest on your security deposit. This calculator helps you determine how much interest you should receive on your deposit, based on the Ontario Residential Tenancies Act.

How Ontario Rent Deposit Interest Works

The Ontario Residential Tenancies Act (ORTA) requires landlords to pay interest on security deposits held for more than 30 days. The interest rate is set by the Ontario government and is typically calculated daily.

Key Points:

Interest must be paid within 14 days of the tenant moving out
Interest is calculated on the daily balance of the deposit
Interest is paid separately from the deposit refund

When Interest is Required

Interest is required when:

The deposit is held for more than 30 days
The tenant has vacated the property
The landlord has not yet returned the deposit

When Interest is Not Required

Interest is not required when:

The deposit is returned within 30 days
The tenant has not vacated the property
The deposit is being held for a legitimate reason (e.g., repairs)

Calculation Method

The interest on your Ontario rent deposit is calculated using the following formula:

Daily Interest = (Deposit Amount × Daily Interest Rate) / 365

Total Interest = Daily Interest × Number of Days Held

The daily interest rate is set by the Ontario government. As of 2023, the current rate is 5% per annum, which converts to approximately 0.0137% per day.

Step-by-Step Calculation

Determine the number of days the deposit was held beyond 30 days
Calculate the daily interest using the formula above
Multiply the daily interest by the number of days to get the total interest
Add the interest to your deposit refund

Worked Example

Let's calculate the interest for a deposit of $1,500 held for 45 days (15 days over the 30-day limit).

Daily Interest = ($1,500 × 0.000137) / 365 ≈ $0.054

Total Interest = $0.054 × 15 ≈ $0.81

In this example, the tenant would receive approximately $0.81 in interest on their $1,500 deposit.

Your Rights as a Tenant

As a tenant in Ontario, you have specific rights regarding your security deposit:

You must receive a written statement of your deposit amount within 3 days of signing the lease
You have the right to inspect your deposit before it's returned
You must be notified in writing if any portion of your deposit is being withheld
You have the right to dispute any deductions from your deposit

If you believe your landlord has violated your rights regarding your security deposit, you can file a complaint with the Ontario Tenant Ombudsman.

FAQ

How long does a landlord have to return my security deposit?

In Ontario, landlords must return your security deposit within 30 days of you moving out, unless they have a legitimate reason to hold it longer. If they do hold it, they must pay interest on the deposit for each day it's held beyond 30 days.

What happens if my landlord doesn't pay the required interest?

If your landlord fails to pay the required interest on your security deposit, you can file a complaint with the Ontario Tenant Ombudsman. They can investigate and help resolve the issue.

Can my landlord deduct money from my security deposit?

Yes, your landlord can deduct money from your security deposit for legitimate reasons such as unpaid rent, damage to the property, or unpaid utilities. However, they must provide you with a written statement explaining the deductions.

What if I disagree with a deduction from my deposit?

If you disagree with a deduction, you have the right to dispute it. You should request a meeting with your landlord to discuss the issue. If you can't resolve it, you can file a complaint with the Ontario Tenant Ombudsman.