Security Deposits Across Canada: Limits, Interest and Who Holds the Money

Security deposits look simple: the tenant pays an amount up front, and it comes back at the end, less anything owed. In practice, every province sets its own maximum, its own interest rule, its own deadline for returning the money and sometimes its own idea of who should hold it. A landlord with units in two provinces, or a property manager taking over a building, can easily get one of these wrong.

Three models across Canada

The landlord holds the deposit. This is the most common model. Some provinces add conditions, such as a trust account or a deadline for depositing the money.
A government office holds the deposit. In New Brunswick, deposits go to the province's Tenant and Landlord Relations Office (formerly the Residential Tenancies Tribunal), not into the landlord's bank account.
Security deposits aren't permitted. In Quebec, a landlord can't require a security deposit. Ontario allows only a rent deposit for the last rental period, plus a refundable key deposit.

Selected provinces at a glance

This table summarizes rules we checked against official sources in September 2026. Rules change, so follow the link to each province's page for details and current interest rates.

Province	Maximum	Who holds it	Worth knowing
British Columbia	Half a month's rent, plus an optional pet damage deposit of up to half a month's rent	Landlord	Interest is set by the government (0% for 2026). Return within 15 days of the tenancy ending and receiving the tenant's forwarding address in writing, or apply to keep it.
Alberta	One month's rent at the start of the tenancy	Landlord, in an interest-bearing trust account at an Alberta institution within 2 banking days	Can't be increased when rent goes up. Minimum interest is set by regulation.
Manitoba	Half of the first month's rent; a pet damage deposit of up to one month's rent	Landlord, for the length of the tenancy	Return with interest within 14 days of the end of the tenancy if there's no claim.
Ontario	A rent deposit of no more than one rental period	Landlord	Can only be used for the last month's (or week's) rent, not damage. Interest is owed every year at the rent increase guideline rate.
Quebec	Security deposits can't be required	Not applicable	Disputes about damage are decided by the Tribunal administratif du logement.
New Brunswick	One month's rent (one week for week-to-week)	Tenant and Landlord Relations Office	A landlord who receives the deposit must deliver it to the province within 15 days. Landlord claims are due within seven days after the tenancy ends.
Nova Scotia	Half a month's rent	Landlord	No extra deposit when rent increases. The deposit interest rate has been 0% since 2013.
Newfoundland and Labrador	Three-quarters of a month's rent (two weeks for week-to-week)	Landlord, in a separate interest-earning trust account if they have more than three units	Return with interest within 10 days of the end of the agreement unless agreed otherwise or a claim is filed.

For Saskatchewan, Prince Edward Island, Yukon, the Northwest Territories and Nunavut, see each province or territory's page.

What "who holds it" means in practice

When the landlord holds it

Treat the deposit as the tenant's money that you're keeping safe. Where a province requires a trust account, the deposit can't sit in your operating account, and you need to be able to show which deposit belongs to which tenant. Even where no trust account is required, a separate account makes interest calculations and move-out much simpler.

When a government office holds it

In New Brunswick the tenant can pay the deposit directly to the Tribunal through Service New Brunswick, pay the landlord, or split it. If the landlord receives any of it, they must deliver it with a remittance form within 15 days; failing to do so is an offence under the Act. The landlord's proof is the filing date and reference. Keep both on the tenancy record, because a new manager or a buyer will need them.

Interest

Several provinces require interest on deposits, at a rate set by the government that changes from year to year and can be zero. The safest approach is to record the date the deposit was received and the amount, then calculate interest at move-out using the official rate tables or calculators, which some provinces publish. Ontario is different: interest on a rent deposit is owed every year, at the rent increase guideline rate.

Pet deposits

Some provinces allow a separate pet damage deposit (British Columbia and Manitoba, for example) and some don't. Where pet deposits are allowed, they usually can't be charged for guide or service animals.

Return deadlines are short

Seven days in New Brunswick for a landlord to file a claim, ten in Newfoundland and Labrador, fourteen in Manitoba, fifteen in British Columbia. These deadlines don't leave time to look for move-in photos. Have the evidence ready before the tenant moves out: the move-in report, the move-out inspection and any repair invoices. Our inspection photo checklist covers how to build that record.

The record to keep for every deposit

Amount, date received and how it was paid.
The rent at the start of the tenancy (some maximums are tied to it).
Where it's held: the trust account, or the provincial holder with the filing date and reference number.
Any pet deposit, recorded separately.
Interest owed, calculated with the official rate for each period.
At move-out: the inspection report, any agreement with the tenant, any claim filed and the amount returned.

Tracking deposits in Propvara

Propvara records each deposit on the tenancy, including the date and reference when it's filed with a provincial holder, and flags deposits not yet marked as filed. The rent roll shows the deposit held for every unit, and the record stays with the property if the manager changes.

Sources

This article is general information for Canadian landlords and managers, not legal, tax or financial advice. Rules vary by province and change over time.