1. What is the Ontario Rental Deposit Interest Calculation?

The Ontario Rental Deposit Interest calculation determines the interest owed on rental deposits in Ontario. Landlords are required to pay interest on security deposits at the prescribed rate set by the Ontario government.

2. How Does the Calculator Work?

The calculator uses the simple interest formula:

Where:

• \( Deposit \) — Rental security deposit amount in dollars
• \( Ontario\ Rate \) — The prescribed interest rate set by Ontario government (in decimal form)

Explanation: This calculation provides the exact amount of interest that must be paid to the tenant on their security deposit.

3. Importance of Rental Deposit Interest Calculation

Details: Accurate interest calculation ensures landlords comply with Ontario's Residential Tenancies Act and helps tenants understand their rights regarding security deposit interest payments.

4. Using the Calculator

Tips: Enter the deposit amount in dollars and the current Ontario interest rate in decimal form (e.g., 0.0125 for 1.25%). Both values must be valid positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the current Ontario rental deposit interest rate?
A: The interest rate is set annually by the Ontario government and is typically equal to the guideline increase for rent.

Q2: When must landlords pay interest on rental deposits?
A: Landlords must pay interest annually or when returning the deposit, whichever comes first.

Q3: Are there any exceptions to paying interest?
A: Interest must be paid on all security deposits held for more than one year, with limited exceptions.

Q4: How often does the Ontario interest rate change?
A: The rate is typically set annually and may change each calendar year.

Q5: What happens if a landlord doesn't pay the required interest?
A: Tenants may file an application with the Landlord and Tenant Board to seek compensation for unpaid interest.