The Canadian rental market is known for its high demand and limited supply, especially in major cities like Toronto, Vancouver, and Montreal. For international students, securing housing in Canada is a vital part of the study abroad experience. The type of visa or permit you hold can directly affect your rental eligibility, and with recent changes to Canada's study permit policies, understanding these impacts is essential.

The growing number of international students, combined with a competitive housing market, makes it crucial to be aware of how a study permit may influence your options as a tenant.

Whether you're applying for a rental in Toronto’s busy market or considering on-campus housing options, it’s essential to know how your study permit can shape your experience. In this blog, we’ll explore how your Canadian study permit can influence your rental eligibility, and offer tips to help you secure a place to live.

Understanding Canada’s Study Permit

Positive african guy student holding laptop and Canadian flag

Before diving into rental eligibility, let’s first understand what a study permit entails. A study permit is an official document that allows foreign nationals to study at designated learning institutions (DLIs) across Canada. It is important to note that a study permit is not a visa—students will also need a visitor visa or an Electronic Travel Authorization (eTA) to enter the country.

Once in Canada, you must comply with several conditions to maintain your study permit status, such as remaining enrolled at your DLI and making progress toward completing your program. Additionally, study permits usually come with restrictions on work, limiting the number of hours international students can work off-campus during the academic year. These limitations can influence your rental eligibility because landlords often require proof of income to ensure tenants can afford rent.

The Impact of the Study Permit Cap

In 2024, the Canadian government introduced a cap on the number of study permits issued, a response to concerns about housing shortages and the high demand for rental properties in cities with large international student populations. This cap could reduce the influx of students into major cities, which might slightly ease pressure on the housing market. However, this change also means fewer rental opportunities for those who do receive permits, as they will be competing for limited accommodation.

Landlords in Canada, particularly in areas with housing shortages, are becoming increasingly selective about who they rent to. Some may prefer local tenants or professionals with stable incomes over international students who might only stay for a few years or struggle to meet the financial demands of renting. Therefore, while the cap may relieve some housing pressure, it can create challenges for those with study permits when securing rental accommodation.

How Study Permits Affect Your Rental Application

For international students holding a study permit, several factors can complicate rental applications. Here are some of the most significant hurdles you might face as a prospective tenant:

Lack of Canadian Credit History: Many Canadian landlords expect prospective tenants to have a strong credit history. However, most international students have no credit history in Canada, which can make it difficult to qualify for a rental. Without a local credit report, landlords may ask for additional financial assurances, such as a guarantor or a higher security deposit.
Proof of Income: As a student on a study permit, you may be limited to working part-time, which can affect your ability to provide proof of a stable income. Landlords typically want to see proof that you can afford rent, and if your part-time work doesn’t provide sufficient income, you may face challenges. Even if you’re working 20 hours per week, the income may not be enough to meet the requirements, especially in high-cost cities like Toronto and Vancouver.
Competition with Local Renters: The rental market in Canadian cities is highly competitive. Local residents often have the upper hand because they can offer steady employment records and Canadian credit histories. As an international student, it may feel like you’re at a disadvantage compared to locals who have a more established financial footprint.
Language Barriers: While Canada is officially bilingual, with English and French as its primary languages, navigating the rental market can still be challenging if English is not your first language. Miscommunication can arise during lease negotiations or when reviewing rental agreements, so it's crucial to ensure you fully understand the terms of your lease.

Tips for Improving Your Rental Chances as a Study Permit Holder

Given the challenges associated with renting as an international student, there are several steps you can take to improve your chances of securing accommodation:

Provide a Guarantor: One of the most effective ways to reassure landlords is by having a guarantor. A guarantor is someone—typically a family member or friend with a strong financial history—who agrees to cover the rent if you’re unable to. This adds a layer of security for the landlord and can significantly boost your chances of approval.
Offer a Larger Deposit: While Canadian laws vary by province, offering a larger security deposit or paying several months’ rent upfront can make you a more attractive candidate. In provinces where this is allowed, it shows the landlord that you are serious and financially capable of meeting the rental requirements.
Consider On-Campus Housing: Many universities in Canada offer housing options specifically for international students. These options are often more straightforward to secure, as they do not require credit history or proof of income beyond your tuition payments. On-campus housing can also be a great way to immerse yourself in the student community and avoid the stress of the competitive private rental market.
Seek References from Previous Landlords: If you’ve rented accommodation before—either in Canada or in your home country—providing references from previous landlords can help strengthen your application. Positive references demonstrate that you are a reliable tenant, which can give landlords confidence in renting to you.
Use Rental Platforms for International Students: Some platforms cater specifically to international students looking for housing. These platforms may offer more lenient application processes or connect you with landlords familiar with the needs of international tenants.

Rental Laws and Protections for International Students

Canadian provinces have strong rental laws to protect tenants, and these protections extend to international students. Some key laws include:

Rental Price Increases: In many provinces, landlords cannot increase rent more than once a year, and there is often a cap on how much they can raise the rent. This helps ensure that your rent remains affordable during your stay.
Eviction Protections: If you are unable to pay rent due to unforeseen circumstances, Canadian rental laws typically require landlords to provide adequate notice before evicting tenants. Additionally, tenants have the right to challenge unfair evictions through provincial rental tribunals or tenant boards.
Discrimination Protections: Canadian law prohibits landlords from discriminating against tenants based on their nationality, race, religion, or immigration status. If you feel you have been discriminated against during the rental application process, there are legal avenues available to challenge this behavior.

The Takeaway

Finding rental accommodation as an international student in Canada can be challenging, but understanding the rental market and the impact of your study permit can help you prepare. By exploring all your options—whether it’s offering a larger deposit, securing a guarantor, or opting for on-campus housing—you can improve your chances of finding a comfortable place to live. Additionally, familiarizing yourself with Canadian rental laws and your rights as a tenant will ensure that you are protected throughout your rental experience.

If you’re planning to transition from student life to permanent residency, or if you’re looking for more long-term housing solutions, The Johnson Team is here to help. We have deep expertise in the Toronto real estate market and are ready to guide you through every step of the process. Whether you’re buying, selling, or renting, our team will make sure you have the support you need to make your real estate journey smooth and successful.