Last Month's Rent Interest Calculator

LMR Interest in Ontario

Under section 106(6) of the Residential Tenancies Act, landlords must pay interest on last month's rent deposits each year. The interest rate is equal to the rent increase guideline for that year. This interest must be paid to the tenant or applied to rent.

How It Works

• Interest compounds annually based on the guideline rate
• The interest must be paid within 12 months of collection or the anniversary date
• Most landlords apply LMR interest as a credit toward rent
• In 2021, the rate was 0% due to the COVID rent freeze