Personal Finance

mortgages to now show up on bureau

  • Last Updated:
  • Feb 1st, 2010 7:28 pm
[OP]
Jr. Member
Jan 22, 2007
109 posts

mortgages to now show up on bureau

confirmed for all CIBC branded mortgages starting next week.
co-signers and guarantors will be reporting...
10 replies
Jr. Member
Feb 13, 2009
192 posts
4 upvotes
Thanks for the information. Is this CIBC branded only, or their subsidiary low-end mortgage companies also? (I'm thinking Firstline in particular).
Deal Addict
Feb 4, 2008
3133 posts
177 upvotes
How are Equifax and Transunion going to deal with thus as far as the scoring portion based on credit utilization?

A $300K mortgage limit and a balance of $299K will cause issues I would think??????
www.mortgagecalculatortoolkit.com

Do your mortgage math correctly!
Deal Expert
User avatar
Dec 11, 2005
19211 posts
1702 upvotes
sslinn wrote: How are Equifax and Transunion going to deal with thus as far as the scoring portion based on credit utilization?

A $300K mortgage limit and a balance of $299K will cause issues I would think??????
+1. A mortgage is not a standard loan, so they hopefully are treating it differently.

It would be nice to hear from BullsEye or other experts in the know on this.
To be nobody but yourself - in a world which is doing its best, night and day, to make you everybody else - means to fight the hardest battle which any human being can fight; and never stop fighting. -- E. E. Cummings
Deal Addict
Feb 5, 2009
2387 posts
347 upvotes
No source to cite, but I'm pretty sure I read the other day that they'll be reported, but will not affect your score.
Sr. Member
May 24, 2007
509 posts
9 upvotes
TD Mortgage shows on my credit report since two years ago. I guess more banks are just following this practice.

My mortgage broker told me the mortgage balance itself doesn't affect the score, but if you miss payments (no longer R1), then it WILL affect the score.
Deal Fanatic
Aug 27, 2004
6846 posts
382 upvotes
Toronto, ON
sslinn wrote: How are Equifax and Transunion going to deal with thus as far as the scoring portion based on credit utilization?

A $300K mortgage limit and a balance of $299K will cause issues I would think??????
Utilization HAS to be only for revolving credit accounts (i.e. LOC, credit card), no? The entire point of the utilization measure is to see how much you are stretching your credit, i.e. how close you are to defaulting and how eager you are to consume your available credit.

Think about, say, a car loan or lease (which is reported and probably always has been). Or a cell phone (reported as of recently, at least for Bell Mob). For as long as your payments are up to date, there's not really 'utilization' in the traditional sense.
Deal Addict
Oct 30, 2008
2120 posts
58 upvotes
Toronto
It's an installment loan. Up until very recently mortgages were not reported on bureau. The concern came mostly from real estate investors who are constantly buying and selling. Personally, I think mortgages don't provide an accurate representation of someone's debt habits because a mortgage covers a necessity: shelter. If people are stretched with money and they have to decide between paying their mortgage or a high interest credit card, most I would hope have the common sense to make the mortgage payment. Mortgages are given purely on an equity position. You don't even need to have good credit to get one. On the other hand, unsecured debt, especially large a LOC, provide a more accurate representation of an individual's debt habits, which is why these trade lines carry the most weight on your credit score while installment loans don't and you must have excellent credit to get one.
Banned
Jun 19, 2006
9349 posts
54 upvotes
This is a move that should've been done a long time ago, as the more information a lender has, the better they are able to underwrite credit and reduce fraudulent transactions.

Especially with co-signers as well. How many threads have we seen in this RFD forum, where a co-signer really didn't understand the gravity of their actions? Far too many.

And also, by putting mortgages on credit reports, the people have been responsible, and didn't blow their brains out on mortgage debt in the past 5 years -- they'll be able to access better borrowing terms than their over-mortgaged peers, thus, rewarding them for good choices.
"I worked with several H1B employees that were/are borderline ********. One of them wanted to spray an electrical patch panel with solvent to see if it would make the “network go faster”". <--- lol (source)
Banned
Jun 19, 2006
9349 posts
54 upvotes
liorsyncro wrote: It's an installment loan. Up until very recently mortgages were not reported on bureau. The concern came mostly from real estate investors who are constantly buying and selling. Personally, I think mortgages don't provide an accurate representation of someone's debt habits because a mortgage covers a necessity: shelter.
Well, here's the thing. Canadian real estate is at least 100% overvalued, and maybe even more in some locations, by most traditional metrics.

Bankers know this. Bankers know that declines are imminent, if not already underway.

But bankers still need to be able to make loans, in order to keep themselves in business, so they need a way to seperate those consumers who are going to be dealing with declining and negative equity, from those who are properly capitalized, and were fiscally responsible in the past decade.
If people are stretched with money and they have to decide between paying their mortgage or a high interest credit card, most I would hope have the common sense to make the mortgage payment.
No, the credit card gets paid first, because if not, the credit card company can (and does) shut the card off instantly. Whereas, a foreclosure is a much longer process. Especially when everyone else is getting foreclosed upon, foreclosures can take years simply because of a backlog in the system.

IMHO, people who kept themselves clean this past decade, by not borrowing heavily to buy houses, will do the best the next decade, because they'll be in a position to use very low interest rate loans, leveraged against their excellent credit, to buy assets up on the cheap. Whereas, the irresponsible will be stuck under the weight of heavy loans, with rising interest rates (rising risk premia), against assets that are declining in value.
"I worked with several H1B employees that were/are borderline ********. One of them wanted to spray an electrical patch panel with solvent to see if it would make the “network go faster”". <--- lol (source)
Deal Addict
Feb 4, 2008
3133 posts
177 upvotes
Odd that CIBC is bringing this forward. One of the big sells for Firstline's (arm of CIBC) Matrix Mortgage is that the loc portion was not reported.
www.mortgagecalculatortoolkit.com

Do your mortgage math correctly!

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