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, licensed insurance intermediary (MGA) that helps renters move into and afford their homes. We offer two residential products: Padder Guarantor, a lease guarantee that gives your landlord added assurance, and Padder Deposit, a lower-cost alternative to paying a traditional last month's rent deposit upfront. Padder's policies are issued by the Insurance Company of Prince Edward Island (ICPEI). All products are optional and subject to underwriting.
What's the difference between Padder Guarantor and Padder Deposit?
Padder Guarantor is an optional alternative to a personal guarantor. It's an insurance policy where Padder acts as the guarantor on your lease, giving your landlord added assurance when approving your application.
Padder Deposit is an optional alternative to a last month's rent deposit (LMR). Padder Deposit is an insurance policy that replaces your upfront rental deposit with a non-refundable one time premium to lower your move-in costs.
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 a licensed insurance intermediary (managing general agent) that designs and administers the products under delegated authority from the insurer.
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 10%–15% 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 with a one-time Padder Deposit premium (typically 10%–15% of one 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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