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Originally Posted by Truenorth00
I don't think he actually believes credit score is keeping young people from buying or renting homes. I thinks it's a sign of desperation that they are talking about credit score as an accomplishment. It means that don't have anything more substantial. They need some quick policies they can point to at the next election. This is one of them.
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There are cases where this could help, but they're likely cases that aren't in Canada's large cities and they could well be edge cases.
Case in point, I know someone who bought a house in a small community in Eastern Ontario just over a year ago. She initially wanted to buy in a larger community but
barely missed being able to buy where she wanted because of the interest rate she qualified for. Had her long history of paying rent on time been taken into account, it could have made the difference in which community she was able to buy in. We're talking about a difference of only a few thousand dollars in the price of house, but the difference was enough for the bank to turn down the mortgage for the first choice but approve the one for the second choice.
In any event this was a longtime renter who was able to buy. And she's not the only longtime renter I know who has bought a home in the past three years. One couple even bought a condo in downtown Vancouver, and I know a couple that is planning to buy in North Vancouver soon. There are people my age and younger who are buying, or are very close to buying, but sometimes I think these people are overlooked by commentators who think all renters are in dire financial straits. Some Canadian renters make very good money and have been building savings.
Myself, I'm a renter and I don't plan to buy anytime soon; but that's more a product of being single and also having no interest in living in a smaller community. I'd rather rent in Metro Vancouver and be happy living here than moving anywhere else that's more affordable where I know no one and be unhappy.