More than half (56 per cent) of newcomers to Canada mistakenly believe that you need a credit history to qualify for a mortgage, according to a recent poll by the Royal Bank of Canada. The poll asked newcomers a series of questions to dispel some myths and provide realities around the topic of credit in Canada.
The poll, conducted by Environics Research on behalf of RBC, revealed that almost three quarters of respondents (72 per cent) agreed that a credit card can be useful for new Canadians to build a good credit rating, but there still are some myths that require clarification.
These myths which over 40% newcomers incorrectly agree include:
Myth 1 - You need a Canadian credit history to get a mortgage in Canada
Myth 2 – Newcomers to Canada must have Canadian credit history before they are eligible for a vehicle loan at a car dealership
Myth 3 - Someone with a lot of assets in their home country will have a better credit rating in Canada.
Myth 4 – New Canadians must have a Canadian Credit history in order to get a credit card.
“The poll revealed some interesting findings, and it shows us that we still have some work to do when it comes to educating newcomers on different products available to them in Canada,” said Christine Shisler, director of multicultural markets at RBC. “At RBC we have new no-credit-history-required products, including credit cards, auto loan financing, and mortgages that are specifically designed for newcomers that will help them get their first card, car and home. The best way to change these myths is through education, so I encourage every newcomer to speak to a financial advisor in a local RBC branch.”
Access to credit remains an important priority for all newcomers to Canada, and RBC has recently changed their policies to address the needs of newcomers , putting them ahead of their competitors in a number of areas. For more information, please visit any RBC branch or online at rbc.com/welcomecanadacredit.