Tenants get interest-free loans for back rent through the Ontario Rent Bank

Tenants living in Ontario, Canada who are facing eviction due to nonpayment of rent may have access to a tremendous alternative to high interest loan products. The Ontario Rent Bank provides much-needed funding for those who have fallen behind on their rent payments and are now in imminent danger of becoming evicted.

While homeowners are not eligible for assistance, tenants can gain access to affordable rental loans that carry zero interest costs. The purpose is to help you stay in your home if it is financially feasible over the long-term. Sometimes receiving enough money to cover your back rent payments can be enough to get you through a temporary financial crisis, thereby allowing you to remain in your home and out of the homeless shelters and other social welfare programs.

Why would the Ontario Rent Bank lend money to you to help you stay in your current home? It is simply cheaper to help families get through a temporary crisis by providing interest-free loans that it is to pay for the administrative costs that other programs incur. Roughly half of all tenant loans are repaid in full which can then be used to lend money to other needy borrowers.

In order to be eligible for assistance through the Ontario Rent Bank, you must be a legal resident who is currently leasing apartment or private home in Ontario. You must demonstrate that you can normally afford your rent so that you will be able to remain in the home even after you receive the assistance.

The program requires that you be paying a market rent to qualify. This means that you cannot be paying substantially more than the average rent in your community. Those receiving rent subsidies will not qualify for this special program.

Preference is given to those tenants who meet all conditions for the loans and to have experienced a recent hardship that is caused them to fall behind in their rent payments. If you believe that you meet this guideline you are encouraged to apply for a Rent Bank loan.

Applicants may call the central office at 416-924-2543. You may visit the Neighbourhood Information Post on Gerrard Street in Toronto, or you may ask for the closest Local Access Centre.

A zero interest loan can help you avoid the dangers and costs associated with an eviction. Furthermore, the Ontario Rent Bank can help you avoid the pitfalls of rental assistance loans offered by predatory lenders.