Any time you have a high balance account where the balance does not go down for an extended period of time, it hurts your credit. If you have damaged credit and no other bank will take you when its time for renewal, your current bank may take you at a higher rate. Just do a one year term until you can get on your feet again. Your current bank will take in consideration your mortgage payment history with them even if it is not on your report and even if all other accounts have been late giving you a lower score.

Mortgages were never originally reported on a Credit Report due to the many people who went bankrupt or Consumer Proposal but kept their houses and mortgages. How do you show them as starting over again when a mortgage was present? Keeping them off the Report prevented the issue of having no missing history.

Some banks - TDCT & Scotia - have now introduced LOC (Line of Credit) Mortgages which are reported on a person's Report. Sounds like a great way to show good payment history & in the case of bankruptcy or Consumer Proposal, you still get to keep your financial history intact. But it's not. Due to the factors that make up your Credit Score, these large amounts negatively affect your Score.

Fair Issacs, Lending Institutions and the government have been in negotiations for the last 2 years on this - whether to keep ALL mortgages off or put all of them on - and will probably continue to mull this over for several more years before they reach a unanimous decision.

In the meantime, stay away from LOC Mortgages & consider it a blessing that your mortgage is a separate identity from your reported Credit.

Did you know that most mortgages in Canada are NOT listed on your credit reports with Equifax and TransUnion?

Even though this is your biggest piece of credit and most important piece of credit, most creditors DO NOT report your mortgage on your credit report.

Not sure if your mortgage is listed on your credit report?

Make sure you order a copy of your credit reports with both Equifax Canada and TransUnion Canada today!