New report finds 65 per cent of Canadian renters say they would be in a better financial position today if they had started building credit earlier; new program will allow renters to submit up to 24 months of past rent payments to build credit history with a money-back guarantee.
TORONTO, June 18, 2024 /CNW/ – Today, Borrowell, Canada’s leading company helping over three million Canadians build and better understand credit, launches the first program in the country allowing renters to report up to 24 months of past rent payments to Equifax Canada with no landlord involvement required. By providing renters the ability to report past rental payment history, Canadians can finally benefit from their track record of responsible financial behaviour, and work towards building stronger credit and further financial stability.
Borrowell has launched this new program to address the needs of the majority of renters who have been making consistent, long-term rental payments, with nothing to show for it when it comes to their credit profile. A new survey conducted amongst over 1,500 Borrowell members, who are renters, revealed that 65 per cent of renters say they would be in a better financial position today if they had started building credit earlier, and 87 per cent agreed that renters should be able to use rent payments to build credit history.
- 65% of renters feel be in a better financial situation today if I had started building their credit earlier
- 65% of Canadian immigrants who are renters are looking to build credit to apply for a mortgage, compared to the national average at 53%
- A majority of renters have been renting for more than 11 years, paying between $1,000 and $2,000 a month. This means those renters would have spent a whopping $132,000 to $264,000 on rent payments with no impact on their credit history. This amount sums up to more than an 18% down payment on an average $704K Canadian home.
- 58% of respondents with lower credit scores (scores from 0 to 659) feel less confident they’ll ever own a home in Canada
- 65% of Gen Xers feel much more limited in credit card options due to their credit, compared to Gen Z at 44%
Now, with the ability to report past rent payments, Canadian renters across the country can feel confident that their hard-earned money going towards rent payments will count towards security and opportunity in the future. In 2022, Borrowell launched its Rent Advantage program, the first service in Canada helping renters build credit history by reporting timely rent payments without landlord involvement to Equifax Canada. Now, Borrowell is offering additional rent reporting options to Canadians to allow renters to use up to 24 months of past rent payments with a money-back guarantee if users don’t see an improvement on their credit score once payments are added to their Equifax Canada credit report.
“We are thrilled to be offering Canadian renters even more options to build their credit and forge a path to financial success,” said Andrew Graham, CEO and Co-Founder of Borrowell. “At Borrowell, we have seen more and more responsible, long-term renters come forward looking for options to build credit. We developed this program to make the credit system fairer for renters and to have their track record of responsible financial behaviour be 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.”
For a one-time fee of $59, Canadian renters can start building credit right away by submitting past rent payments to Equifax Canada with no landlord involvement required. The renter will receive a link to submit their lease details, as well as bank statements or rental receipts to prove timely rent payments. These details will be reviewed by Borrowell before the information is submitted to Equifax Canada to add to the member’s credit report. With the money-back guarantee, members who do not see a credit score increase after the past rent payment history has been added, are eligible for a full refund. This program complements Borrowell’s existing suite of credit education and credit building tools, including Rent Advantage, Credit Builder, an installment loan product, and free credit monitoring which is used by over three million Canadians.
As a pioneer in services helping Canadians understand, use and build credit, Borrowell has launched this new feature to continue their mission of helping Canadians reach the financial goals they deserve.
For more information on Borrowell’s program accepting up to 24 months of past rent payments and the Rent Advantage program, please visit: borrowell.com/rent-advantage. For additional survey findings, please visit https://borrowell.com/blog/reporting-past-rent-payments-study.
Borrowell’s mission is to make financial prosperity possible for Canadians. As Canada’s leading company helping consumers understand and build credit, Borrowell is trusted by over three million members and offers free access to credit monitoring, credit coaching and personalized financial product recommendations. Borrowell also provides affordable options to help Canadians build credit history, including Credit Builder and Rent Advantage. Borrowell has won numerous awards including Globe and Mail Canada’s Top Growing Companies, LinkedIn Top Startups, Best Workplaces in Canada, and Best Workplaces for Women. For more information, visit borrowell.com.
These are the findings of a survey conducted by Borrowell from May 21 to May 31, 2024 among 1,568 Canadian renters who are Borrowell members over the age of 19. The survey was conducted in English. No margin of error can be associated with a web survey. For comparative purposes, a sample of 1,568 respondents would have a margin of error of ±2.5%, 19 times out of 20.
SOURCE Borrowell
Featured image: Deposit Photos © Itchaz
