Security Deposit Interest – 2026 Update

The interest payable on security and pet damage deposits for 2026 is 0%, as the prime lending rate on January 1, 2026 (4.45%) was below the 4.5% threshold set out in the Residential Tenancy Regulation. However, landlords should remember that interest may still be owed on deposits held during previous years when interest was payable (1.95% in 2023, 2.7% in 2024, and 0.95% in 2025). When returning a deposit, interest must be calculated over the entire period the deposit was held, not just the current year.