Big news! Consumer credit reporting agency Equifax has finally brought an automated income verification service to Canada! For years, this service was only available in the US, but this new product has been in the piloting stages since May 2017 and is finally ready to go.
An income verification system called Verification Exchange by Equifax saves time and resources while helping people such as lenders and mortgage brokers perform their job more efficiently. This system will electronically check to make sure that an individual is working where they claim to work, and that their salary is what they claim it to be. This will allow lenders to quickly verify a potential lendee’s employment and income before proceeding with a loan or mortgage deal. The process will be instant, which will save clients up to weeks of waiting time. It will also be hard to fool: the likelihood of fraud will be greatly reduced as this data will be coming directly from employers.
Equifax has high hopes for this system, and there is a high level of confidence in the system’s adherence to guidelines and regulations. One way or another, this will be proven in the coming months as more lenders turn to the new service. New users are suggested to confer with their legal teams before trading in the collection of pay stubs and T4s for this new system.
Currently, there are only fewer than half a million Canadians that are searchable in the database. But while the database is relatively small at the moment, this may be a useful tool for the future. Equifax also does offer a one to two day service that can verify people who cannot be found in the system.
There is still some work to do, but this is the beginning of a changing lender’s landscape. Soon, clients will be able to be approved in seconds, and gone will be the days of collecting employment documents and waiting long periods for these items to be processed. This is not only good for the lenders, but for the mortgage scene too.