Personal Finance

Mortgage showing up on credit report

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  • May 4th, 2018 11:58 pm
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Mortgage showing up on credit report

I recently mortgaged out my property, namely to invest some cash, as well as pay off a balance on a HELOC. Normally you'd think this would help your credit score, however, mine has gone down.

So I looked into my credit report, and the "mortgage" is showing up under a line of credit. It's not a LoC. What it seems is that my bank, National Bank, has put everything into an "all-in-one". So there is a mortgage portion, which is $74,000 (was $75,000 a couple months ago) as well an a LoC ($100,000, with about $1,000 in use). My credit cards are all 'nil' in balance out of a total line of $50,000. The auto-loan (Tricor through Ford) doesn't show except under "Public Records" (non-derogatory), it's just a registration.

So basically I owe about $1,000 out of all my credit card and LoC of around $150,000. Yet both Transunion and Equifax are noting 'high balances' which is generated by the mortgage.

Anyone else experience this? Any idea's how to fix this?
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The "All In One" is one account with all your products under it - hence, "all in one". You can actually have, iirc, 99 different products (chequing, credit cards, locs, mortgages, personal loans) under it. How much did you credit score drop?
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skeet50 wrote: The "All In One" is one account with all your products under it - hence, "all in one". You can actually have, iirc, 99 different products (chequing, credit cards, locs, mortgages, personal loans) under it. How much did you credit score drop?
It went from 790 to 668. On Transunion, anyway, it doesn't indicate Mortgage, just "line of credit". Funny thing is, before this, my HELOC was about 90% utilized before I did this. ($45,000/$50,000) I did have balances on the credit cards but total was only about $4,000 out of $50,000 (so 8% utilized). Mortgage shouldn't be considered in utilization, from my understanding. I'm sure that the credit check didn't do the 122 point drop. Not only that, they increased the HELOC to $100,000, so that should IMPROVE utilization, if used. For what it's worth, asset/debt ratio is 5:1. (excluding vehicle)

Neither chequing account, nor my TFSA is in the "All-in-one". I guess I'll have to talk to the bank, and both reporting agencies, to sort this out.
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skeet50 wrote: The "All In One" is one account with all your products under it - hence, "all in one". You can actually have, iirc, 99 different products (chequing, credit cards, locs, mortgages, personal loans) under it. How much did you credit score drop?
So I went ahead and bought the Equifax credit, which shows me more, and a lower credit score (663). No mortgage on file. (it shows mortgage on my personal banking at my bank, NBC) It shows 1 line of credit with $75,000 owing out of $225,000. So I am guess that is hurting my score, since the credit cards are included, as in the HELOC, in that total. I owe $74,100 on the mortgage, $900 on everything else.

For sure it's the mortgage screwing me over, so I'll need to talk to NBC and Equifax and Transunion to settle this thing. #Frustrating.

I guess on one hand, it's a good thing, I won't be filing for credit for anything. (though dumb if I did considering my HELOC)
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So it does seem that NBC is reporting the All In One as sum totals. Not good. It would be interesting if others would chime in with their experiences with this account.

Strange though cause even with $75,000 used, your utilization is around 33%, and this shouldn't have such a large impact on your score. Makes me wonder whether credit lines have a significant larger impact versus other types of debt? Definitely talk to NBC about this.

BTW: Assets have no impact on your credit score.
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jeff1970 wrote: So I went ahead and bought the Equifax credit, which shows me more, and a lower credit score (663). No mortgage on file. (it shows mortgage on my personal banking at my bank, NBC) It shows 1 line of credit with $75,000 owing out of $225,000. So I am guess that is hurting my score, since the credit cards are included, as in the HELOC, in that total. I owe $74,100 on the mortgage, $900 on everything else.

For sure it's the mortgage screwing me over, so I'll need to talk to NBC and Equifax and Transunion to settle this thing. #Frustrating.

I guess on one hand, it's a good thing, I won't be filing for credit for anything. (though dumb if I did considering my HELOC)
Generally a mortgage will report (predicated on mortgage org if it is licensed to report) but will not affect overall scoring.
But helocs will or are supposed to report due to their nature and what the heloc may be used for.
While heloc's are mainly used for home upgrades like a new basement refurnish etc many are using heloc's to purchase new cars, furniture, long trips etc.
A heloc used to purchase a new car should be reported no differently than a new car loan from either an auto manufacturers captive financier or a normal cdn big bank.
If the heloc is not reported and treated as part of the whole mortgage then any FI trying to qualify you for a loan will not see the whole picture. Qualifying capacity will be wrong.

ie: use a heloc to buy a new car(it's not reported) then go to any of the new car dealers and finance another new car, or a trunk, or even a boat.(marine finance orgs)
While I use this as an example to detail scenarios these transactions have actually occurred.
Last edited by mikeymike1 on Sep 2nd, 2017 12:45 pm, edited 1 time in total.
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Who cares? A 660 credit score is still sufficient for anything you likely need anyway...
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gei wrote: Who cares? A 660 credit score is still sufficient for anything you likely need anyway...
Not that I am shopping for a car or to finance anything, but it does affect interest rates. No one will give a good rate to someone under 700. My score is low, and will have an impact if I make changes in the future.
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mikeymike1 wrote: Generally a mortgage will report (predicated on mortgage org if it is licensed to report) but will not affect overall scoring.
But helocs will or are supposed to report due to their nature and what the heloc may be used for.
While heloc's are mainly used for home upgrades like a new basement refurnish etc many are using heloc's to purchase new cars, furniture, long trips etc.
A heloc used to purchase a new car should be reported no differently than a new car loan from either an auto manufacturers captive financier or a normal cdn big bank.
If the heloc is reported and treated as part of the whole mortgage then any FI trying to qualify you for a loan will not see the whole picture. Qualifying capacity will be wrong.

ie: use a heloc to buy a new car(it's not reported) then go to any of the new car dealers and finance another new car, or a trunk, or even a boat.(marine finance orgs)
While I use this as an example to detail scenarios these transactions have actually occurred.
Thanks...I'll speak to the bank and if that goes nowhere, I'll speak to both reporting agencies. Mortgage is asset based, so I would guess that is why it's not a burden on ones credit.
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jeff1970 wrote: So I went ahead and bought the Equifax credit, which shows me more, and a lower credit score (663). No mortgage on file. (it shows mortgage on my personal banking at my bank, NBC) It shows 1 line of credit with $75,000 owing out of $225,000. So I am guess that is hurting my score, since the credit cards are included, as in the HELOC, in that total. I owe $74,100 on the mortgage, $900 on everything else.

For sure it's the mortgage screwing me over, so I'll need to talk to NBC and Equifax and Transunion to settle this thing. #Frustrating.

I guess on one hand, it's a good thing, I won't be filing for credit for anything. (though dumb if I did considering my HELOC)
I wouldn't lose sleep over it. Generally for most credit if you're 650+ you're good. They're more worried about things like servicing ratios.
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jeff1970 wrote: Not that I am shopping for a car or to finance anything, but it does affect interest rates. No one will give a good rate to someone under 700. My score is low, and will have an impact if I make changes in the future.
My car is at 3.9%
Mortgage 2.69%, 2nd at 2.29%

My credit score has always fluctuated between 650-670... I had 658 when I got the 1st mortgage.
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Bumping this thread to see if anyone has a similar experience with a mortgage being reported as a LOC and killing their credit score.

I pulled my report which shows my mortgage (a HELOC) as 2 separate lines of credit. The line of credit portion has a low CL but zero owing. The mortgage portion is showing a high balance.

Was anyone successful in having this changed?
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elwoods wrote: Bumping this thread to see if anyone has a similar experience with a mortgage being reported as a LOC and killing their credit score.

I pulled my report which shows my mortgage (a HELOC) as 2 separate lines of credit. The line of credit portion has a low CL but zero owing. The mortgage portion is showing a high balance.

Was anyone successful in having this changed?
When I spoke to my adviser she told me that that was just the way that it is. It's a mortgage loan but everything falls under the all-in-one. So I'm just working to get my utilization below 30%, which is hard with a mortgage of $72,000...
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jeff1970 wrote: When I spoke to my adviser she told me that that was just the way that it is. It's a mortgage loan but everything falls under the all-in-one. So I'm just working to get my utilization below 30%, which is hard with a mortgage of $72,000...
Oh man. My mortgage is large and part HELOC, part non-revolving... but the whole thing shows up as revolving. If this is the way it’s gonna be for a while, then I won’t be able to apply for any significant credit.
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elwoods wrote: Bumping this thread to see if anyone has a similar experience with a mortgage being reported as a LOC and killing their credit score.

I pulled my report which shows my mortgage (a HELOC) as 2 separate lines of credit. The line of credit portion has a low CL but zero owing. The mortgage portion is showing a high balance.

Was anyone successful in having this changed?
My HELOC reports as a usual revolving credit. But it doesn't kill my score, which is typically in the high 700's/low 800's even though my overall utilization is around 40%.
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robsaw wrote: My HELOC reports as a usual revolving credit. But it doesn't kill my score, which is typically in the high 700's/low 800's even though my overall utilization is around 40%.
issue is that the "Mortgage" portion is showing up in the HELOC.

While you're usable HELOC goes up every month, having the mortgage on the HELOC affects your utilization rate. I have zero debt (exception is the car), plus my "mortgage loan", but my utilization is over 30% because of where the mortgage is placed. My total LOC's are about $225,000, but the mortgage is $72,000, so that's utilization of 32%. I would need to pay down the mortgage by about $6,000 to get this under 30%, which seems to be a magic number.

To be honest, I don't need extra credit, I have over $50,000 between my credit cards available, plus over $100,000 with my HELOC, but it would be nice to see that my credit report isn't damaged by the way the bank reports things. My adviser looked at it this way "you have over $100,000 available, plus your credit cards, plus Ford gave you a low interest loan, so why you worried about what your report says?"....some just don't get it. I understand her point, but that's not the point.
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jeff1970 wrote: issue is that the "Mortgage" portion is showing up in the HELOC.

While you're usable HELOC goes up every month, having the mortgage on the HELOC affects your utilization rate. I have zero debt (exception is the car), plus my "mortgage loan", but my utilization is over 30% because of where the mortgage is placed. My total LOC's are about $225,000, but the mortgage is $72,000, so that's utilization of 32%. I would need to pay down the mortgage by about $6,000 to get this under 30%, which seems to be a magic number.
Yeah, that’s the issue - the term portion of my mortgage is showing up as revolving, which makes my utilization somewhere in the 90% range. I don’t have any debt other than my mortgage, and only a few credit cards with $5000 limits. My score went from over 800, and now hovers around 720.
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jeff1970 wrote: issue is that the "Mortgage" portion is showing up in the HELOC.

While you're usable HELOC goes up every month, having the mortgage on the HELOC affects your utilization rate. I have zero debt (exception is the car), plus my "mortgage loan", but my utilization is over 30% because of where the mortgage is placed. My total LOC's are about $225,000, but the mortgage is $72,000, so that's utilization of 32%. I would need to pay down the mortgage by about $6,000 to get this under 30%, which seems to be a magic number.

To be honest, I don't need extra credit, I have over $50,000 between my credit cards available, plus over $100,000 with my HELOC, but it would be nice to see that my credit report isn't damaged by the way the bank reports things. My adviser looked at it this way "you have over $100,000 available, plus your credit cards, plus Ford gave you a low interest loan, so why you worried about what your report says?"....some just don't get it. I understand her point, but that's not the point.
My HELOC is secured by a mortgage, I thought they all were. If you mean that there is a LoC portion and fixed-term portion that is a different scenario if they mix the two. My mortgage is all HELOC and all reports as usual revolving credit. which seems to have minimal effect on my credit-rating or ability to churn-cards and get high credit-limits of $20k+.

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