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Padder Guarantor vs. Padder Deposit: What’s the Difference?

Padder offers two different insurance products that solve two different problems in the leasing process:

  • Padder Guarantor →  an alternative to a personal guarantor. It's an insurance policy where Padder acts as the guarantor on the tenant's lease, giving the landlord added assurance when approving an application. 

  • Padder Deposit → an alternative to a last month's rent deposit (LMR). Padder Deposit is an insurance policy that replaces the upfront rental deposit with a non-refundable one time premium to lower a tenant's move-in costs. 

Both can work individually or together.

When Padder Guarantor is used

Padder Guarantor is designed for situations where a landlord wants added assurance before approving an applicant. It's often used by renters who are:

  • New to Canada

  • Students or recent graduates

  • Self-employed, or earning gig or other non-traditional income

  • Building their credit history

Whether Padder Guarantor is offered is at your landlord's discretion, and all applications are subject to Padder's underwriting.

You pay a one-time premium (typically 30%–130% of one month's rent). Your landlord becomes the beneficiary of the Padder Guarantor policy, which can protect them for eligible unpaid base rent and certain lease defaults (up to the policy limits).

You are still obligated to pay rent as normal; this doesn't replace your rent or your lease obligations.

When Padder Deposit is used

Padder Deposit is used to replace the traditional Last Month's Rent (LMR) deposit with an insurance policy.

Instead of paying a full month of rent upfront as LMR:

  • You pay a smaller one-time premium (typically 10%–15% of one month's rent) to Padder.

  • Your landlord does not hold a LMR deposit.

  • Padder provides insurance protection (up to one month's rent) if you fail to make your final month's rent payment when it comes due.

You are still obligated to pay rent as normal, including your final month of rent; this doesn't replace your rent or your lease obligations.

When you might use both

In some cases, you might see both products on the table in a Padder-partner building:

  • Padder Guarantor → used so the landlord can approve your application.

  • Padder Deposit → used so you don't have to pay a Last Month's Rent deposit upfront.

Example scenario:

You're new to Canada with limited Canadian credit, applying for a unit in a Padder-partner building.

  • The landlord recommends a traditional guarantor, or a Padder Guarantor policy, to feel comfortable approving your lease.

  • The building also accepts Padder Deposit, so instead of paying a full LMR deposit, you pay a smaller one-time Padder Deposit premium.

Both still:

  1. Keep you fully responsible for paying every month's rent, including the last month.

  2. Protect the landlord if you don't pay, up to the policy limits.

  3. Create an indemnity obligation: if Padder pays your landlord, you owe Padder back.

Always optional

Padder's products are designed and sold as optional insurance for tenants.

That means:

  • Padder is always optional — your landlord cannot make Padder a condition of tenancy.

  • Your landlord can recommend Padder as one way to meet their approval or deposit requirements (for example, "Padder or a qualified personal guarantor" / "Padder Deposit or a traditional LMR").