Does my landlord have to pay interest on my deposit in Ontario?

Yes. In Ontario the last month's rent (LMR) deposit must earn interest each year at the rent increase guideline rate. The landlord owes you this interest annually, whether they pay it out or apply it to top up the deposit.

How is the interest rate set?

The interest rate equals Ontario's rent increase guideline for the same 12-month period. For example, the guideline was 2.5% in 2023–2025, 2.1% in 2026, and 1.9% in 2027. In 2021 it was 0% because of the legislated rent freeze.

What if I've never been paid the interest?

You can ask your landlord in writing to pay the accumulated interest (or apply it to your deposit). If they refuse, you can file a T1 application with the Landlord and Tenant Board to recover money the landlord owes you, including unpaid deposit interest.

Can the landlord use the interest to increase my deposit?

Yes. A landlord can require your LMR deposit to always equal one month's current rent. In practice they often apply the annual interest toward that top-up instead of paying it to you — which is allowed, and means you're not separately owed a cheque.

Last Month's Rent Deposit Interest Calculator

In Ontario, your landlord owes you interest on your last month's rent (LMR) deposit every year, at the rent increase guideline rate. See how much has built up.

LMR Deposit Paid

Year You Paid It

Estimate, not legal advice.This calculator uses Ontario's published rent increase guidelines and compounds annually as a simplification. Your exact entitlement depends on when your deposit was paid and how your landlord has handled it over the years.

Never received your deposit interest? Send a clear, dated request.

Deposit Interest Request Letter

Last Month's Rent Deposit Interest Calculator

Frequently Asked Questions