When a business pays rent they can deduct it from their income. When I pay rent…?
Makes sense.
That would have a much higher impact on affordability than whatever this credit score plan is trying to do.
If you did this, they’d just raise rents be what you’re claiming.
Any answer to this problem that doesn’t involve both taxing the everloving shit out of investment income and property holdings, as well as a massive build of public housing, is basically deck-chair shuffling.
The Liberals and Conservatives do not want to fix this problem because a) a huge chunk of the Canadian economy depends on property speculation, and b) they and their donors make more money on the problem than they would on any solution…
So let me get this strait… if you’re struggling to make the 3200$ rent payment each month… because your roommate dipped or you got your hours cut… your credit rating gets tanked. And a tanked credit score means banks can charge you more for loans. Additionally future landlords and (apparently now even employers) are legally allowed to pass on you for … let me get this right… being unlucky?
Well, to be fair, that is what credit scores are like for everyone. Either of those things can make you miss a mortgage payment, or a car payment, or a utility bill, or a loan payment, or taxes….
This just adds one more thing that can tank your credit score.
I don’t see the point. If you need to build credit, get a credit card ( even a secured one ) or take out a small loan. Use the loan money to pay off the credit card. Or take out an RRSP loan and partially pay it back with the tax refund.
Why would you want to add rent to your credit score? If you are too financially marginal to take out a $1000 loan or get a $500 credit card ( or even a $250 secured card ), you are probably late on your rent sometimes.
Get rid of credit scores
An RBC report published earlier this month said that more than two-thirds, or 68 per cent, of Canadian households can’t afford to buy a home on earned income alone.
Critics, however, said the measure doesn’t address the key issues of insufficient housing supply and affordability, but it could hurt the credit scores of people who are struggling to pay their rent on time.
Putting more power in the hands hands of private companies and landlords is not a good idea. Good thing they aren’t actually required to do it.
An amendment to the Canadian Mortgage Charter would urge landlords, banks, credit bureaus and fintech companies to include rental reporting in a credit score.
Both of Canada’s official credit bureaus told CBC News that they welcomed the new government initiative. Credit Reports: Last Week Tonight with John Oliver (HBO)
For anyone paying attention it’s very clear the current federal government only meaning of “affordable” is figuring different ways to get people to leverage more into housing.
I remember you, Sammy Jankis.
But I worry at this “for anyone paying attention” bit. It suggests that anyone disagreeing with your assessment only does so because they haven’t been paying attention. That’s a bit of a false dilemma right off the bat, isn’t it; or perhaps a No True Scotsman fallacy?
Here is an alternative Piped link(s):
Credit Reports: Last Week Tonight with John Oliver (HBO)
Piped is a privacy-respecting open-source alternative frontend to YouTube.
I’m open-source; check me out at GitHub.
