Canadians react to Trudeau's proposal that rent 'count towards your credit score'

Prime Minister Justin Trudeau believes that people's rent payments should count toward people's credit scores, but his proposal has drawn mixed reactions.

The new Canadian Renters' Bill of Rights, announced in March, would help young Canadians enter the housing market by improving their credit scores.

The proposal would make a unit's rental price history visible so renters can bargain appropriately. The government would also create a legal aid fund to help renters fight bad-faith evictions.

The proposal would also mean that credit bureaus must consider a renter's payment history when calculating their credit score, thereby allowing them to qualify for a mortgage.

"If you've been paying that on time for years, that should count towards your credit score. Soon it's going to," said Trudeau in a video posted on April 20. "We're going to change the rules of the game so you can report your rent payments towards your credit score so you can get a better mortgage so you can get a place of your own sooner."

We’re going to change the rules of the game so you can buy a place of your own, sooner. pic.twitter.com/NJXb767lyv

— Justin Trudeau (@JustinTrudeau) April 20, 2024

Some people online are on board with these proposed changes.

I agree with Trudeau on this. Renters should have both rights and credit score reporting for making rent payments, just like mortgage holders. After all, they are paying the mortgages of those landlords who leverage real estate and use renters to do it.

— Lance Sorensen (@lanceairensen) April 20, 2024

"It sounds like there's a plan in motion to address housing affordability or access to homeownership," said one user, noting how "Making changes to the rules can potentially open up new opportunities for individuals and families to achieve their goal of owning a home."

But netizens pointed out that it's not just credit scores that are a barrier but saving up for a down payment while paying for "unaffordable rent."

Building credit through rent is a good move but ... it doesnt address the biggest barriers - including unaffordable rent! If you're young and you've been paying rent you're likely not to have been able to save enough money for a downpayment of $145,000 (required to avoid mortgage…

— Leilani Farha 🍉 (@leilanifarha) April 20, 2024

What are your thoughts on this? Let us know in the comments.

With files from Megan Devlin