For the first few months and even years, most newcomers to Canada consider renting accommodation rather than buying real estate. Because this is an important and high-priority task, this is often difficult because landlords typically require proof of employment, credit reports, and letters of recommendation in addition to the rental deposit.
However, newcomers are often unable to meet these additional requirements because they have just immigrated to Canada. So how can a newcomer with no credit history or offer letter find a permanent home in Canada?P
In this article, we’ll help you find the right apartment for you and your family. Here are some tips and workarounds on how to position yourself as a trusted tenant.
Are you moving to Canada soon and looking for tips on renting an apartment? Reach out to us on the Next Stop Toronto homepage, and fill out the contact form.
To establish yourself as a reliable renter, try combining as many of these tips listed below.
Tips for finding a rental apartment in Toronto without a credit history or a job letter
- Provide proof of savings: You can establish your dependability as a renter by displaying proof of funds sufficient to cover a few months’ rent. You do not need to furnish a complete bank statement to do this. Speak with your banking advisor to learn about your alternatives; you may be able to receive a document confirming that you have the cash to pay the rent.
- Provide a local guarantor or co-signer: A guarantor or co-signer is someone who agrees to pay rent on your behalf if you are unable to pay it. The guarantor or co-signer position is legally binding, and typically only a close friend or relative will act as a guarantor. You should also consider the impact on your relationship with them if you don’t keep your end of the bargain.
- Search for shared apartments or shared apartment arrangements: There are several ways to search for shared apartments.
- Sign a rental agreement with a roommate with good credit.
- Rent from a landlord who lives in the same apartment or house.
- Sublease from the existing tenant.
What is a sublease agreement?
By signing a sublease agreement, you can rent a room from the original tenant of the apartment. Rent is paid to the existing tenant, who in turn pays it to the landlord. Generally, a credit report or employment verification is not required for units sublet by a tenant. This may vary by location and depends on the urgency of the tenant’s sublease.
In Toronto, there are many people looking for roommates to live with. Instead of entering into a sublease agreement with an existing tenant, you may also consider the possibility of co-signing a lease agreement with a roommate who meets your credit history requirements and has a good credit history.
Landlords who rent out rooms in their homes or apartments may be able to ignore credit and employment history requirements. You can start your search by searching for shared housing properties on his websites such as Kijiji and Craigslist.
There are also some popular options within the province of Ontario, such as Facebook’s Home Zone (for properties in Toronto and the Greater Toronto Area).
Tip: Sites like Kijiji and Craigslist tend to be full of scammers. If a listing seems too good to be true, it’s probably a scam. Do not make any payment until you have inspected the location in person and signed the appropriate paperwork.
- If possible, provide a higher deposit than expected: All Canadian provinces have legal guidelines regarding the payment of rent deposits that tenants must pay before occupancy. For example, in Ontario, tenants are required to pay the first and last month’s rent. There is no deposit required. However, in British Columbia, you will be required to pay a deposit equal to half of your monthly rent. If you don’t have a credit report or employment letter, you can offer to pay your landlord a few more months’ rent upfront. This can be a huge incentive for landlords to choose your application over others. Please note that by law, the landlord cannot ask you for additional amounts beyond the specified threshold. Be sure to check the guidelines for the state you’re moving to and make an offer to your landlord accordingly.
- Discover condos and basement apartments rented by private owners: It is relatively easy to find condos and basement apartments owned by private landlords, as opposed to condos and basement apartments owned by property management companies or large institutional investors. The application process for apartments in rental buildings is usually very strict, with little flexibility when it comes to credit and employment checks. However, individual landlords may see your particular situation as unique and, assuming you are trustworthy, may make exceptions and accept you as a tenant.
- Consider areas away from prime locations: Finding housing in urban centres and city centres is usually difficult, even for people with credit history and employment verification. Expanding your search to the suburbs and outskirts of town can help you find the right location. If you don’t have a car, be aware of public transport and commute times to the city center.
- Book temporary accommodation for the first few months: If you have friends or relatives who already live in Canada and are willing to host you, stay with them for the first few months. It would be best to make a reservation. If this option isn’t available, try booking an extended stay in an Airbnb, hotel, or hostel. Hostels in Canada are clean, safe, and very affordable. Some offer free breakfast. In most cases, you can choose between a mixed dormitory or a male- or female-only dormitory. Some hostels offer private rooms at higher rates. Find great deals by exploring websites like HostelWorld, HI Hostels, Booking.com, and Kayak. Some landlords are willing to rent to tenants with 2-3 months of credit history. Booking or arranging temporary accommodation for the first few months can help you build up your credit over the next few months.
- Take a Survival Job or Volunteer: Survival jobs are typically low-skill jobs that don’t require extensive training or extensive work experience. Examples include rideshare drivers, warehouse and factory workers, grocery store cashiers, coffee shop baristas, food delivery workers, salespeople, telemarketers, janitors, and restaurant waiters. Volunteerism is an integral part of Canadian culture, and contributions to the community are generally valued and valued in Canadian society. This includes donating your personal time for free to another person, group, or cause. Both survival jobs and volunteer work are good ways to gain experience in Canada, practice language skills, build local networks, and gather references for rental applications. With Survival Jobs, you will also receive an employment letter and have your basic living expenses covered while you continue your search for the job you want.
Finding your first long-term permanent residence in Canada can be stressful and difficult. Following the advice in this article will guarantee that you have a place to live while you develop your credit history and look for work. And, in time, you’ll be in a good position to choose a place to call home!
