Cautious optimism for federal plan to let rent count toward credit scores

TORONTO — The federal government's commitment to have rent payments counted toward credit scores is being welcomed by companies that already offer the service, while renter advocates have raised concerns.

Equifax Canada chief executive Sue Hutchison said the credit agency, which has already been working to include rent payments, was excited to hear about the government's announcement. Zac Killam, CEO of FrontLobby, which has been offering rent reporting to credit bureaus since 2018, said he supports any efforts to raise awareness of the benefits.

Reporting rental income, however, only helps a credit score if it’s regularly paid on time. With the sharp rising cost of rents, and overall living costs, many are under strain and may not benefit, cautioned Elizabeth Mulholland, chief executive of charity Prosper Canada.She said it’s important people have control over whether they want the data to be shared with credit bureaus.

Landlords enticing tenants to sign on with the promise of improving their credit score is concerning, said Douglas Kwan, director of advocacy and legal services at Advocacy Centre for Tenants Ontario. Borrowell doesn't rely on landlord involvement, something Graham said is important because lots of small landlords don't have the capacity to participate. Killam however raised concerns on how the credit agencies will actually verify where e-transfer payments are going.

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