Backed by leading real estate operators and early-stage investors, Padder launches Canada’s first insurance-backed guarantor model to help landlords approve more renters while protecting rental income.

Toronto, ON – February 25, 2026 – Across Canada’s rental market, approval standards have grown increasingly rigid. Many landlords rely on traditional benchmarks, such as requiring renters to spend no more than one-third of their income on rent, alongside high credit thresholds and strict employment documentation – criteria designed to reduce risk but now exclude a growing share of otherwise qualified renters.

Industry research shows that more than 40% of renters are denied their first-choice apartment due to qualification barriers.

Padder, a Toronto-based insurtech company modernizing the rental leasing process, today announced it has raised $2.5 million in seed funding. The round was led by Exit North Ventures, with participation from Westdale Properties and a group of real estate, insurance, and finance angel investors.

Built for a Changing Renter Base

Canada’s renter profile is shifting.

New immigrants building Canadian credit histories, domestic and international students, self-employed professionals, and gig economy workers increasingly make up a significant share of rental applicants. Many have stable income and strong earning potential, yet fail to meet legacy approval benchmarks tied to traditional employment documentation or rigid credit score cutoffs.

Padder enables these renters to access apartments they could otherwise afford – without requiring family co-signers, excessive deposits, or prepaid rent.

For landlords, the model replaces informal guarantors with structured, insured rent protection for a defined portion of the lease term, preserving portfolio stability while expanding the pool of eligible applicants.

“The rental market has changed, but approval systems haven’t,” said Daniel Moss, Founder and CEO of Padder. “Padder uses data-driven underwriting to help landlords confidently approve more qualified renters – filling units faster – while expanding access to housing for people who don’t fit outdated criteria.”

Improving Leasing Conversion and Portfolio Stability

Renters apply through Padder’s digital platform, where applications are evaluated using underwriting models that reflect modern income and employment realities. Once approved, landlords receive insured rent protection with no operational changes to their leasing process.

“Padder’s technology and platform are tackling one of the most persistent challenges existing in housing today: access,” said Craig Smith, Commercial Real Estate Principal and Padder Investor. “The Padder team has built a solution that expands tenant eligibility without compromising landlord/ownership risk.”

Padder is already working with leading residential operators, including Fitzrovia and Campus Living Centres, helping property teams convert more applications into signed leases, reduce vacancy downtime, and maintain consistent rent collection across portfolios.

“Expanding access to quality housing is a core focus for us,” said Adrian Rocca, Founder and CEO of Fitzrovia. “Padder gives us the ability to approve additional renters. We are pleased to make our award-winning rental communities more accessible.”

Bringing a Proven Model to an Underserved Market

Insurance-backed guarantor programs are widely used across major U.S. rental markets, yet remain largely unavailable in Canada.

Padder is introducing this proven model to Canada, tailored to local regulatory frameworks and landlord operating realities.

The new funding will support continued product development, go-to-market, and deeper partnerships with multifamily owners and property managers as Padder builds innovative insurance infrastructure for Canada’s evolving rental economy.

About Padder

Founded in Toronto, Padder is a Canadian insurtech company building regulated insurance solutions for rental housing. By combining advanced underwriting with licensed insurance capacity, Padder enables landlords to safely approve more renters while protecting rental income.

Padder Underwriting Inc. arranges coverage for tenants and landlords in provinces where it is licensed to offer insurance products.

For more information, visit www.padder.com.