Credit Rating

When you apply for a Mortgage, the lender checks to see whether it should lend you the money and under what conditions.

The lender will ask your permission to obtain a copy of your credit bureau report. This report shows your previous and current credit rating, and indicates how well (or not) you handle credit. If you do not handle credit well, you may be charged a higher rate, or your application may be denied depending on the financial institution.

If you consistently make late payments, or if you do not pay your bills at all, the lender could refuse your mortgage application. Some lenders may still consider your application if you have a large Down Payment and an acceptable co-signer.

If you have previously declared bankruptcy, this will show up on your credit bureau record for a minimum of six years after your discharge. While some lenders will not consider your request if a Discharge of Bankruptcy is recorded on your credit bureau report, others may consider the request based on your current circumstances and amount of down payment.

How can I get more information about my Credit Report?

You should request a copy of your credit file at least once a year. This may also be important before you apply for a mortgage in order to make sure that there is no mistake on your credit report. This service is usually provided to you free of charge. To request your credit report, contact the following credit reporting agencies:

Equifax Canada Inc.
Consumer Relations Department
Box 190, Jean Talon Station
Montreal, QC H1S 2Z2
Tel: (514) 493-2314 or
toll-free: 1-800-465-7166
Fax: (514) 355-8502
Web site: http://www.equifax.ca/

Trans Union Canada
Consumer Relations
Box 338, LCD 1
Hamilton, ON L8L 7W2
Tel: (905) 525-0262 or toll-free: 1-800-663-9980
Fax: (905) 527-0401
Web site: http://www.tuc.ca/

Northern Credit Bureau
336 Rideau Boulevard
Rouyn-Noranda, QC J9X 1P2
Fax: 1-800-646-5876

How can I correct an error on my credit file?

If you find an error or some inaccuracies on your credit report, you may contact the credit bureau directly to correct them. However, the bureau must then contact the organization that reported the erroneous information, since it cannot make a correction without first confirming that an error has been made.

Credit bureaus are bound by provincial legislation. In most provinces, credit bureaus must resolve disputes within 30 days (although Alberta allows 90 days). This means that the credit bureau must contact the organization that gave them the information and, if they determine that an error has been made, they have 30 days to correct your credit file. If the bureau confirms that the information has been reported accurately, but you are still not satisfied with the result, you can submit a brief statement, explaining your position, and it will be added to your credit file.

To avoid delays in having errors on your credit file corrected, you can contact the organization that provided the incorrect information (for example, your financial institution or your credit card issuer) and ask that they correct the error. If your financial institution will not correct the error, you may ask them about their complaint handling process. Financial institutions that operate under federal laws, such as banks, some trust and loan companies and some insurance companies, are required by law to have such a process in place. This process is designed to resolve disputes between consumers and their financial institutions. For information regarding your financial institution's complaint handling process, contact FCAC's Consumer Contact Centre
toll-free at: 1-866-461-3222, or contact your branch directly.


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