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Canada’s Credit System Shapes Access to Loans, Housing, and Financial Services

In Canada, credit scores play a central role in determining access to financial products, influencing everything from loans and mortgages to rental applications. Lenders and service providers rely on credit reports compiled by major bureaus to assess how individuals manage debt and repayment.

Rather than being used only for large financial decisions, credit scores are applied broadly across everyday situations, including mobile contracts, insurance, and utilities. The system is based on factors such as payment history, credit usage, and overall debt levels, making consistent financial behaviour essential for maintaining access to opportunities and favourable terms.

Strong Credit Scores No Longer Shield Homeowners From Mortgage Stress, Equifax Data Shows

Financial strain among Canadian homeowners is no longer limited to traditionally high-risk borrowers, as rising interest rates and cost-of-living pressures begin to affect a wider segment of the population. Recent data from Equifax shows that mortgage delinquencies are increasing across credit tiers, including among borrowers with strong credit histories who would typically be considered financially stable.

The trend points to a broader systemic pressure rather than isolated financial mismanagement, raising concerns about how sustained high rates and affordability challenges could continue to impact the housing market and overall financial stability in Canada.

Exclusive: RBC, BMO planning sale of $2-billion Canadian payments venture, sources say

Aug 14 (Reuters) – Royal Bank of Canada (RY.TO), opens new tab and Bank of Montreal (BMO.TO), opens new tab have placed their Canadian payments joint venture up for sale, in a deal that may value the business as highly as $2 billion, four people familiar with the matter said. Moneris is one of the largest payment processors in Canada, handling one in every three business transactions in the country. It was founded in 2000 by the two banks, and offers digital, mobile, and in-store payment systems for about 325,000 merchant locations, according to its website.

Springtime for Canada’s fintech industry?

The uptake of digital financial services is low in Canada compared with other similar economies. Developments in five areas will determine if the industry is about to blossom

First, its banking industry is large compared with other G-7 countries. Banking revenues of $180 billion accounted for 7.9 percent of GDP in 2023, compared with 5.8 percent in the United States and an average of 5.6 percent among other developed economies. Canadian banks are also more profitable than those in other developed economies (Exhibit 1). Likewise, Canada’s insurance revenue pool is large. With estimated revenues of $136 billion in 2022, it’s one of the world’s ten largest insurance markets.1 These attributes make Canada a tempting target for fintech attackers.

The best fixed and variable mortgage rates this week

Will there be any more interest rate cuts from the Bank of Canada this year? At least one major Canadian bank thinks the answer is no.

A Royal Bank of Canada report last month from RBC Economics says it’s now forecasting no further cutting from the central bank in light of inflation concerns and the Canadian economy’s resilience during the U.S. trade war. It’s bad news for variable mortgage holders who may have been banking on some discounts this year.

Not all economists agree with RBC, with other institutions such as Bank of Montreal forecasting as many as three rate cuts in 2025. But Robert Kavcic, senior economist at BMO Economics, has also said that a trade deal between Canada and the U.S. that puts a stop to tariffs could indeed prompt the Bank of Canada to hold rates for the rest of the year.

The U.S. and Canadian governments have given themselves a July 21 deadline to reach a trade deal, and talks have been rocky along the way. Until we know more about the nature of a possible deal, there is a lot of uncertainty in the direction of variable mortgage rates.

Preparing for the downside: Could Canadian federal finances withstand a trade war?

Canada’s economy is set to weaken amid ongoing trade wars even though the U.S. has stepped back from broad reciprocal tariffs and applied only targeted tariffs on Canada.

U.S. tariffs on China and other trading partners, along with growing uncertainty, is likely to slow U.S. growth meaningfully and weigh on Canadian growth. Lower oil prices won’t help as well.

Gap between Canada’s rich and poor widens at record pace on inflation, higher rates

Want to improve your credit score? Experts explain what you need to know—and do. Many people are at a loss when it comes to understanding how credit scores work. Yet that score can have a huge impact on any credit application they might make. Not only do financial institutions check credit scores; so do employers, landlords, insurance companies, and mobile serve providers. They all want to know who they are dealing with because the higher the score, the less risk they need to take on. Hence, the better the deal they can offer. Here are some credit score basics and tips on how to improve your score.