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Regulation and legal framework

Credit inquiry consent

Français : Consentement à l'enquête de crédit

The lender or broker must obtain the borrower's written consent before accessing their credit file. A hard pull is recorded and can slightly lower the score.

Definition

In Canada, accessing a credit file for a credit decision (mortgage, loan, card) is a 'hard inquiry' (hard pull). It requires explicit consumer consent.

**Types of inquiries**: - **Hard pull**: accessing the file to make a credit decision. Recorded in the file, visible to other lenders, temporary score decrease of 3-10 points. - **Soft pull**: preliminary check (pre-screened offers, borrower's own check). Does not affect score, not visible to lenders.

**Mortgage shopping window**: Equifax and TransUnion apply a grouping policy: multiple hard inquiries from mortgage lenders within a 14-45 day window are treated as a single inquiry for score calculation. Shopping your mortgage with multiple lenders in the same period is therefore less penalizing than one might think.

**In Quebec**: the Act Respecting the Protection of Personal Information in the Private Sector (Bill 25) strengthens consent obligations.

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This definition is provided for informational purposes only and does not constitute legal, tax, or financial advice. For a personal situation, consult an AMF-licensed mortgage broker, notary, accountant, or the relevant financial institution.