Definition
A credit freeze (or file block) allows a consumer to restrict access to their file at Equifax and/or TransUnion. While the freeze is in place, no lender can access the file to approve new credit.
How to proceed in Canada: - **Equifax**: online, mail, or phone request — free in some provinces - **TransUnion**: same procedure — fees may apply depending on province
Implication for a mortgage application: - The borrower must temporarily lift the freeze before submitting a mortgage application - Temporary lifting can be done for a set duration or for a specific lender - Forgetting to lift the freeze causes delays during a real estate transaction
Fraud alert (less restrictive alternative): - Requests the bureau to add a note requiring identity verification before granting credit - Less restrictive than a freeze, but offers partial protection - Duration: renewable 90 days