By Cathy Miyagi
Paying hire, very like a mortgage, can typically be an individual’s greatest month-to-month expense. But, there hasn’t traditionally been a manner for renters to get credit score for making these giant funds on-time like owners.
New rent-reporting platforms are aiming to alter that. These platforms act as a liaison between renters and their landlords and a credit score bureau so renters can construct their credit score historical past and enhance their probabilities of qualifying for a mortgage when the time comes.
“Your hire is your greatest month-to-month obligation for debt funds so it’s unfair that it’s not counted in direction of constructing your credit score,” mentioned Viler Lika, founder and CEO of rental providers firm SingleKey.
Firms like SingleKey, Zenbase, Borrowell and FrontLobby supply such rent-reporting providers, with various charges and necessities.
SingleKey works with landlords and property managers throughout Canada, and screens greater than 15,000 rental purposes each month. Landlords pay a $30 charge for a tenant screening report, and renters pay $8 per 30 days to report their hire funds on the SingleKey platform.
“It is a very highly effective device for graduating in direction of house possession as a renter since you’re demonstrating to the lender that you’ve the power to pay a big quantity,” Lika mentioned.
The platform accommodates pauses in hire reporting too – while you may transfer again in along with your mother and father for instance – with out harming your credit score.
Lika believes hire reporting will make housing extra accessible for renters whereas additionally lowering tenant delinquency threat for landlords.
Nevertheless, Alex Leduc, CEO and principal dealer of Toronto-based mortgage brokerage agency Perch, cautions that such disclosure can include its personal set of issues.
“If [you] cease reporting, it might be a pink flag to lenders and they’d dig deeper,” he mentioned. “And if [you] maintain reporting and arrears present on [your] credit score report, then [your] credit score rating would probably go down because of this.”
Leduc advises towards opting right into a rent-reporting program in case you anticipate lacking a fee and even paying a number of days late.
“In any other case, you’re simply shining a light-weight on a poor reimbursement historical past that might’ve doubtlessly gone unnoticed,” he mentioned.
Nevertheless, Leduc believes hire reporting could be useful particularly for longtime renters, new immigrants, or aspiring homebuyers with little or no credit score historical past.
“Not having a credit score rating is an enormous obstacle to getting credit score in any respect,” Leduc mentioned. “If you’re making an attempt to get a mortgage, you’re in the end asking a lender to offer you lots of of 1000’s of {dollars} … They need to know you’ve managed credit score efficiently earlier than.”
He mentioned there are three key elements to making ready a mortgage software: credit score rating, down fee, and revenue. And whereas a down fee can typically be resolved – by receiving gifted funds from household, for instance – having poor credit score could be a “deal breaker.”
Cash Mentors CEO Stacy Yanchuk Oleksy mentioned credit score rankings and credit score scores are sometimes misunderstood.
A credit standing is given for every of your credit score merchandise. It’s primarily based on a scale of 1 to 9, with one being the perfect (that means you’re no less than making minimal funds in your bank card, for instance). As you miss funds, you go up the size. A credit standing of 9 would point out a debt in assortment and even chapter.
All of this data contributes to your credit score rating – a three-digit quantity from 300 to 900 that’s used as a predictor of how probably you’re to pay again your money owed. The upper the rating, the extra “credit score worthy” you’re.
Oleksy who can also be an authorized credit score counsellor, mentioned there’s typically misconceptions about what builds and harms your credit score rating. Being granted a excessive credit score restrict in your bank card, for instance – even in case you pay it off in full each month – can really be disadvantageous, she mentioned.
“When your credit score rating is calculated, it appears in any respect that accessible credit score and says that’s debt as a result of [theoretically] you may exit to city tomorrow [and spend it].”
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Alex Leduc Borrowell client finance ideas credit score rating Editor’s choose FrontLobby private finance hire SingleKey The Canadian Press Zenbase
Final modified: October 1, 2025
