Lack of Canadian credit history may pose a problem for newcomers looking to rent a home
Lack of Canadian credit history can create problems when renting an apartment for immigrants, including temporary foreign workers, international students and new permanent residents.
In a report on the housing situation facing newcomers to Canada, the Canadian Center for Housing Rights recommends that governments step in to help.
“In many cases, the lack of a Canadian credit history or guarantor is the basis on which housing providers refuse to rent to immigrants,” the report said.
“Recognizing this, provincial governments and the federal government of Canada should launch fee-free guarantor services to support newcomers to access housing once they arrive in Canada,” the report recommends.
Throughout its report, the Canadian Housing Rights Center categorizes the difficulties newcomers have in renting an apartment by marital status, race, etc., and references a survey it conducted more than a decade ago.
However, the report acknowledges that financial considerations, in addition to prejudice and racial discrimination, are at the core of many of the problems newcomers to Toronto face.
“Barriers to accessing rental housing are particularly high for newcomers with no work history or credit in Canada, who are effectively barred from even applying for many apartments in Ontario’s tight rental market,” the report said.
The report also notes that many newcomers basically can’t afford the high rent costs in Canada’s biggest cities, such as Toronto and Vancouver, which have the highest rates in Canada.
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