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

• Padder Guarantor → helps you re-qualify for a lease
• Padder Deposit → helps you replace the Last Month’s Rent (LMR) deposit

They can work together, but they’re not the same thing.

When Padder Guarantor is used

Padder Guarantor is used when your landlord likes your application, but you don’t quite meet their usual approval criteria.

Examples:

• New to Canada
• Student or recent grad
• Self-employed, gig income, or non-traditional income
• Limited or thin credit history
• Credit or income slightly below their standard policy

You pay a one-time premium (between 30% and 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 (between 12% and 20% 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 payment) if you fail to make your final month's rent payment when it comes due.

You are still obligated to pay rent as normal; 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 (because you don’t meet standard criteria on your own).
• 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:

• Keep you fully responsible for paying every month’s rent, including the last month.
• Protect the landlord if you don’t pay, up to the policy limits.
• 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”).