New program helps Ontarians integrate past rental payments into their credit score

Integrating rental history and personal finances into the groundwork for homeownership can be a lengthy process.

In light of the shifting landscape of Canadian property standards, Borrowell (a national credit-building organization) has launched an initiative that quantifies two years’ worth of past rental payments toward personal credit scores.

In Ontario, recent information points to an incredibly hostile market for potential homeowners, as studies show that it would take roughly a decade for a single couple to be able to purchase a starter home in a city like Mississauga. According to a release surrounding their new credit initiative, Borrowell has taken steps to ensure that renters can now have a leg up when entering the Ontario property market.

Representatives within Borrowell also recently surveyed numerous Canadians to understand national sentiments toward home ownership. 

Their findings concluded that:

• 65 per cent of Canadians feel that they would be more financially sturdy if they built their credit earlier in their lifetime. 
• 65 per cent of immigrants in Canada who rent are looking to build credit in order to apply for a mortgage.
• 58 per cent of surveyed Canadians with lower credit scores feel as if they will never own a home in Canada. 

According to Borrowell, their new tandem credit/rental incentive will give Canadians the confidence to know that retroactive rental payments — potentially amounting to the thousands — will go towards smoothing the edges of their credit scores. 

“We developed this program to make the credit system fairer for renters and to have their track record of responsible financial behavior recognized on their credit profile. This service builds off our Rent Advantage program to allow even more Canadians to achieve their goals faster, like purchasing their first home,” said Andrew Graham, CEO and Co-Founder of Borrowell in an official statement. 

As indicated by an official release from Borrowell, this new rental payment program will be an allegedly straightforward process, with no landlord involvement required. Representatives within Borrowell indicate that the company will review payment information that is provided and then relay it to Equifax Canada, where it will then potentially remedy a client’s credit score. 

At the time of this article, no information is available on the success rate of this program, further information can be found on Borrowell’s official website.