Frequently Asked Questions
Quick answers to the questions tenants ask most often about Padder Guarantor and Padder Deposit.
About Padder
What is Padder?
Padder is a Canadian insurance company that helps renters qualify for and afford their home. We offer two products: Padder Guarantor, an insurance policy that acts as your co-signer if you don't qualify on your own, and Padder Deposit, a low-cost alternative to paying a traditional last month's rent deposit upfront.
What's the difference between Padder Guarantor and Padder Deposit?
Padder Guarantor helps you get approved for a unit you might not qualify for on your own — it acts like a co-signer. Padder Deposit doesn't affect approval; it just replaces the cash you'd otherwise put down for last month's rent. Your landlord may offer one, the other, or both.
Who's behind Padder?
Padder policies are issued by the Insurance Company of Prince Edward Island (ICPEI), a subsidiary of Desjardins. Padder Underwriting Inc. is the licensed insurance company that manages the products.
Eligibility & Applying
Who can apply?
Anyone applying for a residential lease at a participating property can apply for Padder Guarantor and / or Padder Deposit.
Can I apply if I'm new to Canada, self-employed, or have no Canadian credit history?
Yes. Padder Guarantor is specifically designed for renters who don't fit traditional approval criteria, including newcomers, students, freelancers, and people with limited Canadian credit history. Approval is subject to underwriting.
How do I apply?
You apply online at www.padder.com. You'll provide some basic information, consent to a soft credit check, and upload supporting documents. The whole flow typically takes about 10 minutes per applicant.
What documents do I need?
For most applicants: government-issued ID, proof of income (pay stubs, employment letter, bank statements, or equivalent), and your lease details if you have them. Specific requirements may vary based on your situation.
How long does approval take?
Decisions are typically returned within 24 business hours after all household members complete their applications.
Will applying affect my credit score?
No. Padder uses a soft credit check, which doesn't impact your credit score.
Can I apply before I've found a place?
No. You need to be referred to Padder by a participating property before you can apply. We're working to expand availability more broadly in the future.
Why was my application declined?
Declines happen for a range of reasons, and we don't share specific underwriting criteria. If you were declined, you'll receive an email explaining your options, which may include adding a Responsible Party to your application or reapplying with updated information.
Cost & Payment
How much does Padder Guarantor cost?
The premium is a one-time fee, typically between 30% and 130% of one month's rent. You'll see your exact price (quote) before you commit.
How much does Padder Deposit cost?
Padder Deposit typically costs around 12% of one month's rent as a one-time fee. For most tenants, that's significantly less than paying last month's rent upfront.
Is the fee refundable?
No. Padder premiums are one-time, non-refundable fees once the policy is issued and your lease is signed.
Can roommates split the cost?
Yes. Only one Padder policy is needed per lease — you can split the premium with roommates however you choose.
How do I pay?
You pay online at checkout using a credit card or debit card, Google Pay, Apple Pay, E-transfer or Wire. Your policy isn't confirmed until your premium is paid and your agreement(s) is signed.
Coverage & Responsibilities
What does Padder Guarantor cover?
It covers your landlord for unpaid rent if you default on your lease — including rent loss, failure to move in, holdover, and abandonment. It does not cover property damage, fees, or other non-rent charges.
What does Padder Deposit cover?
It covers your landlord for up to one month's rent in losses tied to rent default, failure to move in, or abandonment. Like Guarantor, it does not cover property damage or other charges.
Do I still have to pay my rent?
Yes. Padder protects your landlord from financial loss if you default, but you remain fully responsible for paying your rent and meeting all your obligations under the lease.
Does Padder Deposit replace my last month's rent?
No. Padder Deposit replaces the upfront deposit that's traditionally collected for last month's rent. You're still responsible for paying your final month's rent when it comes due.
What happens if I miss rent or break my lease early?
Your landlord may continue their normal lease enforcement process — including any notices or proceedings under applicable tenancy law — and Padder doesn't pause or replace that. If Padder ends up reimbursing your landlord for losses you caused, you owe that amount back to Padder under your indemnity agreement. We may reach out to help find a resolution along the way.
What is the indemnity agreement?
It's the document you sign when your policy is issued. Padder only reimburses your landlord after a qualifying event under the policy — for example, when a lease default has gone through your landlord's normal enforcement process and the resulting losses are confirmed. If that happens, the indemnity agreement is what allows Padder to recover the reimbursed amount from you. You receive a signed copy by email for your records.
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