Using a Cosigner or Guarantor on an Ontario Residential Lease

A landlord asks a young tenant to bring a parent along to sign. Or a parent is handed a lease with their name at the bottom and told it is just a formality. Both are common, and both raise the same questions: is this allowed, and what could the guarantor end up paying?

In Ontario the law does allow guarantor clauses, but it also limits what a landlord can ask for alongside them. This article covers what is permitted, what a guarantor is and is not, and what to check before signing.

Can a landlord require a guarantor?

Yes. A landlord may require a prospective tenant to get a guarantee for the rent, so guarantor clauses are permitted. Using guarantees in the manner the regulation prescribes does not infringe the Human Rights Code.

A guarantor is usually one part of a wider screening process. A landlord may ask a prospective tenant for credit references and rental history, and for permission to run a credit check, and may use these to select or refuse the applicant. Income information may be requested only if the landlord also asks for credit references, rental history or a credit check, and it must be considered together with that other information.

There is an exception: if the landlord asked for all of the listed information but obtained only income information, the landlord may consider income alone.

Screening cannot be used as cover for discrimination. Everyone has a right to equal treatment in the occupancy of accommodation, without discrimination because of grounds such as family status, marital status, age, disability or the receipt of public assistance.

Does a guarantor become a tenant?

A guarantor who is named as a tenant in the lease but has no right to occupy the unit does not become a tenant under the Residential Tenancies Act, 2006 (RTA). Whether a guarantor who does have a right to occupy the unit is treated differently depends on the facts, so it is worth confirming with a lawyer.

What the guarantor owes depends on the wording of the guarantee. It might cover only unpaid rent, or it might be broader. It may or may not carry over to renewals or extend to damage. Whether the LTB can make orders against a guarantor is worth confirming with a lawyer, and enforcing a guarantee is generally a court matter.

Because the exact words matter so much, a guarantor should never sign without reading the whole document.

What a landlord may and may not demand

A guarantor does not give a landlord unlimited extra security. The RTA applies despite any agreement or waiver to the contrary, and a lease term that conflicts with the Act is void.

A tenant who is 16 or 17 and has withdrawn from parental control has a right to equal treatment in renting accommodation, and a lease they sign is enforceable against them as if they were 18.

Questions to ask before you sign as a guarantor

• What exactly am I guaranteeing: rent only, or other costs as well?
• Does the guarantee last for the original term only, or does it continue if the lease is renewed or extended?
• Is there a cap on what I could owe?
• Am I signing as a guarantor or as a tenant? Check the signature block and the wording.
• Do I have a copy of the full lease, including the rent and term?
• Can I be told if the tenant falls behind?
• Could I afford the amount if the tenant did not pay?

If a guarantor is named in the lease as a tenant but has no right to occupy the unit, that does not make them a tenant. Even so, the document may still be a binding guarantee, so the wording still needs to be read closely.

What to do next

If you are a tenant, ask the landlord for the guarantee wording early and give it to the person who will sign. If you are the guarantor, take the lease and guarantee to a lawyer before signing, especially if the amounts are large or the lease is for a fixed term. If you are a landlord, keep your requests within what the law permits, and use the guarantor clause alongside the screening steps the regulation allows.

Frequently asked questions