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 - logo (CNW Group/Borrowell) Borrowell - logo (CNW Group/Borrowell)](https://mma.prnewswire.com/media/2440936/Borrowell_Borrowell_Introduces_First_of_its_Kind_Service_Allowin.jpg)
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.
Survey findings include:
- 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.
About Borrowell:
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.
Survey Methodology:
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